GIB pours cash into distillery bio
First Scottish investment to install biomass boiler for whisky-maker
The UK Green Investment Bank is making its first Scottish investment by financing the installation of a biomass boiler at Tomatin Distillery.
The Equitix-managed Energy Saving Investments fund, in which the GIB is a cornerstone investor, will contribute £576,733 and the Equitix Energy Efficiency Fund £600,274.
The investment is being made by ESI in partnership with Balcas Limited, a leading UK manufacturer of wood pellet biomass.
The new boiler at the whisky distillery, which is 16 miles south of Inverness, will replace 80% of the heat load usually generated by the current oil-fired boiler.
It will be fuelled by wood pellets manufactured by Balcas at its Invergordon facility using renewable electrical and thermal energy and raw materials sourced from local, sustainably managed forests.
GIB chief executive Shaun Kingsbury (pictured) said: “I am pleased to be able to announce our first Scottish investment. As well as significant emission reductions the project will provide a boost to the local economy.”
The ESI fund forms part of GIB's allocation of investment into one of its priority sectors, energy efficiency. GIB awarded the competitive fund mandate to Equitix to invest £50m, matched by private investors, to drive investment in small-scale low carbon infrastructure requiring less than £30m of financing.
Equitix also established EEEF to make investments in the energy efficiency sector, including co-investments alongside ESI.
Equitix chief executive Geoff Jackson said: “This is the second deal Equitix has closed in which GIB has invested with the EEEF as the private sector co-investor. We are pleased to be able to add a positive economic and environmental impact to this area in Scotland.”