RWE to build biomass plant

By Andrew Bolger
Published: July 19 2008 03:00

RWE npower Cogen, the electricity supplier, is to spend more than £100m on a 45MW combined heat and power biomass plant that will provide steam and electricity for the Tullis Russell Papermakers mill at Markinch in Fife.
The paper mill currently uses a coal-fired plant that will replaced by the new facility, reducing Tullis Russell's annual carbon emissions by 250,000 tonnes.
The biomass plant will use both "virgin" wood, such as trees, as well as "recycled" wood such as old furniture, doors and cabinets that would otherwise end up in landfill.
The new facility, which should be operational by 2011, will generate 6 per cent of Scotland's renewable generation targets. RWE npower Cogen already owns 11 CHP plants in the UK, but this will be its first to use biomass.
The Scottish government will give up to £8.1m in regional selective assistance for the plant, which will create 30 new jobs and safeguard a further 540.
Alex Salmond, first minister, said this announcement pointed the way to the future and showed the resilience of the Scottish economy in the face of international financial pressure.
"We have seen a paradigm shift in energy costs," he said. "Scotland is in a great position because our natural resources mean we have a commanding share of just about every one of these emerging renewable technologies."
The Scottish National party leader said he was certain his devolved government would meet early, and exceed, its target of producing 31 per cent of electricity demand from renewable sources by 2011.
Tullis Russell was founded in 1809. Chris Parr, chief executive, said the move to biomass would make the employee-owned company a genuine low carbon producer for the cards, covers and premium packaging markets it served. Andrew Bolger
Copyright The Financial Times Limited 2008