A new green energy facility is to be created in Speyside, it has been announced.

The plans for the £74m facility have been unveiled by John Laing and the UK Green Investment Bank (GIB), and will be developed by Estover Energy Ltd.

According to the UK GIB, the new biomass Combined Heat and Power (CHP) plant will be located near Craigellachie in Moray. It will generate 87.4 GWh per annum of renewable electricity, which is enough to power more than 20,000 homes; as well as generating 76.8 GWh per annum of renewable heat.

Some 100 jobs will be created during the construction phase of the project, while a further 23 permanent jobs will be created to support one of Scotland's most important export industries.

In addition to the above, the new facility will contribute to reducing the cost of energy at The Macallan distillery by providing around 90% of all of the steam needed in the distillation process.

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Through using biomass to generate heat instead of natural gas, the distillery will reduce its greenhouse gas emissions by more than 17,500 tCO2e, the UK GIB added.

John Laing and the UK Green Investment Bank will invest £26m in the initiative, with the remaining funds – in the form of debt – coming from the bond market, guaranteed by HM Treasury.

Welcoming the investment, Business Secretary, Vince Cable, said: "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 UK economy."

Chief Secretary to the Treasury, Danny Alexander, added: "The Speyside guarantee is fantastic news for Scotland's economic future. It will power thousands of homes with clean energy, and also support the whisky industry, a cornerstone of our economy, which brings in billions for Scotland and employs over 10,000 people."

Derek Potts, Executive Director for Primary Investment at John Laing, described the funding as "exciting". He added: "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."

(JP/IT)