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The government is reported to be exploring the sale of its stake in Urenco, the firm that makes enriched uranium for nuclear power, to help finance the green investment bank that will be used to fund projects such as refurbishing energy-inefficient homes.

In last week鈥檚 comprehensive spending review, chancellor George Osborne, said the government would invest 拢1bn to set up the low carbon technology investment bank.

Speaking to the Guardian, energy secretary Chris Huhne said he was looking at selling the UK鈥檚 one-third share in Urenco, a company it jointly owns with the Dutch government and two German power companies, RWE and E.ON. Urenco has recently been valued at 拢3bn.

However, the move could be controversial with anti-nuclear campaigners, given that it is such a politically and technologically sensitive company.

The 拢1bn announced last week for establishing a green investment bank was less than many had hoped for and there are question marks over whether it will be enough to attract the private investment needed to deliver the government鈥檚 carbon reduction targets.