City loan for green energy firm

Energy is created from waste burned in an incinerator

Nottingham City Council has agreed to a loan of more than £1m to encourage the take-up of a heating system that supplies 3,000 homes and businesses.

The money will pay for new pipes for cash-strapped EnviroEnergy, which is owned by the council.

The system uses steam from waste burnt at the Eastcroft Incinerator.

City council spokesman Tim Render said: "It has been losing money in the past two years - but the long-term answer is to get more customers."

But he said the city needs to invest in facilities to get the product to its customers.

The service uses waste from the incinerator to create energy, which is a "green" way of producing heat, he said.

EnviroEnergy spokesman Andrew Estrop said: "There are many factors that influence our financial performance such as the price of gas and electricity in the market and the reliability and consistency of supply of steam - as well as the size of the customer base."