BUSINESS Secretary Vince Cable will officially declare the UK's "green" bank open for business as he announces details of its first investments.

The Green Investment Bank (GIB) is funded with £3 billion of Government money earmarked for helping develop a green economy.

First to benefit from the fund is a project in the north-east of England that will generate energy from waste.

Around £8 million will go to the construction of an anaerobic digestion (AD) plant at Teesside, the first of six planned over the next five years. This will be matched with a further £8 million from the private sector, according to the Government. The GIB will also invest £5 million to fit manufacturer Kingspan's UK industrial facilities with systems that will reduce its energy consumption by 15%.

Speaking in Edinburgh, where the new bank is headquartered, Mr Cable will say: "The Green Investment Bank - a key coalition pledge - is now a reality.

"It will place the green economy at the heart of our recovery and position the UK in the forefront of the drive to develop clean energy. Three billion pounds of Government money will leverage private sector capital to fund projects in priority sectors from offshore wind to waste and non-domestic energy efficiency, helping to deliver our commitment to create jobs and growth right across the UK."

The Business Secretary added: "Having the headquarters in Edinburgh is a powerful vote of confidence in the Union, and a testimony to our commitment to helping Scotland lead the green revolution."

Mr Cable and UK Government colleagues will begin their Scottish visit by touring the Whitlock Energy Collaboration Centre in Rosyth, a new education, research and training hub to promote growth in the renewables sector.

The official launch of UK GIB will take place later at the Heriot-Watt University Conference Centre before an audience of finance and environmental figures.UK a competitive edge."

Dan Barlow, of environmental group WWF Scotland, described the bank launch as an exciting step towards a low carbon economy, while Scottish energy minister Fergus Ewing said the opening of the bank presented "huge opportunities" for Scottish green energy projects, bringing jobs and investment.

© Press Association 2012