The new Combined Heat and Power system, to be installed at the University’s Easter Bush campus, will provide electricity for the Roslin Institute and the Royal (Dick) School of Veterinary Studies.

Edinburgh is one of the UK’s leaders in Combined Heat and Power (CHP) technology, which uses fuel efficiently to produce electricity and heat at the same time.

As one of the UK’s biggest CHP producers, the University has already invested more than £20m in low-carbon energy to provide the majority of its campuses’ electricity needs. This has reduced CO2 emissions by almost 10,000 tonnes annually.

The Easter Bush Energy Centre will reduce emissions by an additional 2000 tonnes annually. It is due to be completed in Spring 2017.

Dave Gorman, director of social responsibility and sustainability, said: “I’m very pleased to see this further investment by the University in Scotland’s transition to a more sustainable energy system.

“The University has been a leader in low carbon energy, in large part because of the dedication and expertise of our Estates staff. With the added support of our Easter Bush colleagues, this is another important milestone towards low-carbon, cost-effective energy for the University.”

The announcement builds upon the University’s continuing commitment to make a significant, sustainable and socially responsible contribution to Scotland, the UK and the world.

In May 2015 the University signalled its intention to use its investments and procurement power to support the transition to a low carbon economy and to divest from the most destructive fossil fuel companies.

Within weeks, £2.5m of direct investment was removed from firms involved in the highly polluting sectors of coal and tar sands.

The proportion of Edinburgh’s investment portfolio linked to fossil fuels has halved since 2013 and fallen by almost 90 per cent since 2008, according to a report by financial advisers Mercer.

Edinburgh’s expertise in climate is world-leading. Its researchers have secured more than £50m over the past seven years to fund work on climate science, emissions mitigation and sustainable solutions.