World-famous distillery to benefit from £74m CHP plant

A new combined heat and power plant in Speyside, north-eastern Scotland will generate enough renewable energy to power more than 20,000 homes.

John Laing and the UK Green Investment Bank (GIB) announced the plans to invest in the new £74m green energy facility developed by Estover Energy.

The world famous Macallan distillery will use the heat generated by the plant in the form of steam, a critical component of the distillation process.
MacAllan
John Laing and the UK Green Investment Bank invested £26m, alongside £48m debt to be raised from the bond market, guaranteed by the UK’s Treasury.

The new biomass CHP plant near Craigellachie, Moray, will generate 87.4 GWh per annum of renewable electricity – enough to power more than 20,000 homes. It will also generate 76.8 GWh per annum of renewable heat. Together, the carbon saving equates to 42,000 tCO2e per annum, the equivalent to taking over 18,000 cars off the road.

The facility will contribute to reducing the cost of energy at The Macallan distillery by providing c. 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.

Derek Potts, Executive Director for Primary Investment at John Laing, said: “This is an exciting investment for John Laing, not only because of the clear opportunities that the facility will create for the Speyside economy but also because this is our first investment in biomass CHP and a significant milestone in our growing presence in the renewable energy sector.”

The plant will be fuelled with sustainable forestry by-product sourced from the local area, one of the UK’s most productive forestry areas. A consortium of local growers and forest industry suppliers including Stobart Biomass Products Ltd. and UPM Tilhill will supply the plant.



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