This item was published during the term of a previous administration that ended in April 2007
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New renewable energy project for the Highlands
16/11/2006
Balcas Ltd is to construct a £24 million biomass project in the North of Scotland, it was announced today.
The planned facility at Invergordon, north of Inverness will include a combined heat and power (CHP) plant generating green energy that will be supplied direct to the grid.
Balcas, a Northern Ireland based company, will also use the new plant as a manufacturing facility that will produce wood pellets. These pellets can in turn be used to generate power. In total the development is expected to create around 40 jobs.
Highlands and Islands Enterprise will provide £5.5 million towards the total project costs.
First Minister Jack McConnell said:
"The decision by Balcas to build a new biomass plant in Invergordon is good news for the economy and good news for the environment. It will create jobs and it will help cut harmful carbon emissions.
"Scotland's devolved government is determined to support renewable energy for economic and environmental reasons. Biomass has a vital role to play and Balcas' new plant will be a major step forward for the industry.
"The plant will bring new jobs to a remote area of Scotland, providing a crucial boost for the local economy. I am very pleased we can support it through a HIE grant
"The £7.5 million Biomass Support Scheme we announced earlier this year is open for expressions of interest for the first time today. I hope it will help all types of organisations benefit from the real opportunities producing energy from biomass provides."
Martin Togneri, Chief Executive of Scottish Development International said:
"We're delighted to welcome Balcas to Scotland and to have supported our colleagues at Highlands and Islands Enterprise in their successful effort to win this project for Invergordon.
"There is a great opportunity for companies based outside of Scotland to contribute to Scotland meeting its renewable energy targets alongside Scottish companies and the Balcas project is a welcome example of that happening."
Background:
Balcas are a Northern Ireland-based company who plan to develop a facility on the former Alcan smelter site at Invergordon. Balcas is already the largest UK manufacturer of wood pellets that are marketed under the company's "Brites" brand. Brites can be used in everything from large commercial plants to small domestic central heating boilers and stoves. The company has an annual turnover of £65 million and 700 direct employees. Its largest site is at Enniskillen in Co. Fermanagh, where they have built a high-efficiency CHP plant using surplus sawdust and woodchips to generate heat and electricity.
The total project cost is £24 million and includes a CHP plant and wood pellet manufacturing plant. Highlands and Islands Enterprise will provide £5.5 million towards the total project costs. It is expected to create around 40 jobs.
The Scottish Biomass Support Scheme is Scotland wide with total funding of £7.5 million over the financial years 2006/07 and 2007/08. Subject to state aid clearance, the scheme will provide grants to support both supply chain and heat, CHP and power installations. It will be open to a range of organisations from producer groups to businesses.
Key drivers are:
- The strategic transformation of the Scottish biomass woodfuel sector market
- Maximising carbon savings
- Supporting rural economies by creating sustainable green jobs
- Contributing to renewable energy targets
We are keen to receive early expressions of interest before we formally launch the scheme towards the end of the year. This will allow potential applicants to develop applications in advance of the formal launch. An online form is available at: http://www.scotland.gov.uk/Topics/Business-Industry/infrastructure/19185/17611 or contact Christine McKay, Scottish Executive, Meridian Court, 5 Cadogan Street, Glasgow, tel: 0141 242 5797 or Christine.mckay@scotland.gsi.gov.uk