Scottish Whisky Gets Green Energy Boost

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Investment plans for a new biomass combined heat and power (CHP) plant near the world famous Macallan whisky distillery in Scotland have been agreed.

Developer Estover Energy Ltd (Estover), John Laing (London) and the U.K. government's Green Investment Bank (GIB) have decided to go ahead with the construction of the Speyside biomass project, near Craigellachie, Moray. When complete the plant will be capable of generating enough power for 20,000 homes, alongside heat for the nearby Macallan whisky distillery. The project will cost an estimated €92.5 million ($123 million) to construct.

The plant will generate 87.4 gigawatt hours (GWh) per annum of renewable electricity, as well as 76.8 GWh per annum of renewable heat. The CHP facility will drastically reduce the cost of energy at the Macallan distillery by providing around 90% of all of the steam needed in the distillation process. By using biomass to generate heat instead of natural gas, the distillery will reduce its greenhouse gas emissions by over 17,500 tCO2e, equivalent to taking almost 8,000 cars off the road, the company said.

The plant will be fuelled with sustainable forestry by-product sourced from the local area, one of the U.K.'s most productive forestry areas. A consortium of local growers and forest industry suppliers will supply the plant.

"With £3.8 billion of funding the UK Green Investment Bank has been set up to help businesses make the transition to a green economy right across the country," said U.K. Business Secretary, Vince Cable at the announcement. "This investment in Speyside will not only help secure jobs, boost a vital industry and support the local supply chain but also generate renewable energy for homes in Scotland. Through our industrial strategy we are working in partnership with business to give companies the confidence to invest, securing green jobs and a stronger U.K. economy."

Lord Smith of Kelvin, Chairman of the U.K. Green Investment Bank, added: "This project is a great example of the wide ranging benefits of renewable energy. It generates power from a sustainable source, reducing the U.K.'s greenhouse gas emissions. It generates heat for a local business, the iconic Macallan distillery, helping to save it money and reduce its carbon footprint. It supports local landowners who are providing much of the fuel. And it creates and supports local jobs".

The U.K. government officially launched the unique Green Investment Bank in 2012, giving it a budget of €4.5 billion ($6.1 billion) to invest in renewable energy projects. That summer, the bank placed offshore wind at the top of its priority list, with the goal of financing renewable energy projects at a 'near commercial' stage of development. For additional information, see June 28, 2012, article - U.K. Green Investment Bank to Back Offshore Wind.

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