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The fund will invest in the development and subsequent trading performance of industrial facilities that incorporate recycling waste-management systems, primarily through New Earth's UK operations.

Economic incentives for resource recovery and strict landfill-diversion targets for local authorities presented waste management companies with "significant" investment opportunities, the companies claimed.

The group currently has a 50,000-tonnes-per-year waste facility in Canford, Dorset, and is planning to invest in 50 new £10m plants over the next few years, including a Kent facility due to open in September.

According to New Earth, the UK is currently the second biggest waste offender in Europe, with more than 75 per cent of all "black bag" waste ending up in landfill sites, while research undertaken by the Local Government Association shows UK households sent more than 22.6m tonnes of rubbish to the landfill in 2004-05 alone.

The New Earth Solutions Recycling Facilities Investment Sub-Fund will form part of the Premier Investment Opportunities Fund Protected Cell Company and be available to experienced investors only. New Earth said it is targeting a return of 12-15 per cent a year.

The minimum investment for the fund, which recently received a £4m equity investment from UK environmental investment company Impax, is £10,000, or £5000 through offshore bonds.

Jonathan Fogg, an investment manager at Impax, said: "New Earth's technology is proven, effective and efficient. The company has a significant track record in delivering services to existing clients and a range of innovative, competitive and flexible packages for local authority clients looking for viable solutions in waste treatment and recycling technology."