AssetGen Partners is developing the 10 MWe plant 22 miles north east of London. The facility is expected to start operating in the first half of 2017
Upon completion, the facility will deliver enough renewable electricity for over 7,000 homes each year and reduce more than 900,000 tonnes of greenhouse gas emissions.
The £60m plant will feature the gasification technology, which will treat commercial and industrial waste.
The bank said the plant is the first commercial-scale, refuse-derived fuel (RDF) gasification facility to secure construction financing from third-party investors.
It will use over 90,000 tonnes of RDF supplied by two waste management firms, Biffa and Powerday.
Biomass Power will design the gasification technology while Bouygues Energy & Services will serve as EPC and O&M contractor.
GIB, via its fund manager Foresight Group, is investing £30m in a combination of shareholder loans and equity. NOY and P3P are investing £20m and £10m respectively.
UK GIB chief executive Shaun Kingsbury said: This first-of-kind, high-technology waste facility signals a new phase in the UK waste management sector. The project is a great example of innovation driven by and backed up by some great UK companies."
UK Business Secretary Vince Cable said: "This latest investment by the Green Investment Bank in a gasification plant in Hertfordshire will use technology and parts sourced from British companies and create more than 100 local jobs."
