GIB funds biomass boiler at Scottish distillery
The U.K. Green Investment Bank has announced a further investment in the Scottish drinks industry.
The project at Balmenach distillery in Speyside will be financed from the £5 million ($8.44 million) of funding announced by GIB last month. The distillery will also be making a capital contribution to put in place the new infrastructure needed to support the project. Two distilleries, Tomatin Distillery (near Inverness) and Aberfeldy Distillery (in Perthshire) have already benefited from the new finance available from GIB. Tomatin Distillery has now reduced its greenhouse gas emissions by around 80 percent and significantly cut its fuel costs.
The project at Balmenach, like Tomatin and Aberfeldy, will replace the distillery’s heavy fuel oil boiler with a biomass boiler. As the distillery is in a remote part of the Scottish Highlands, and therefore not on the National Grid, heavy fuel oil has been used to meet its energy needs.
The new boiler will reduce the distillery’s energy costs and their greenhouse gas emissions, providing cost-effective renewable energy with limited up-front capital investment. The boiler will be used to produce steam necessary for the whisky production processes.
The distillery traces its origins back to 1824, making it one of the oldest distilleries in Speyside. The distillery was closed in 1993, but was bought in 1998 by Inver House Distillers Group, which is owned by ThaiBev, a leading Asian drinks business. The premium gin brand, Caorunn, is also produced at Balmenach.
Rob Cormie, Group Operations Director, UK Green Investment Bank, said, “I am very pleased that we have been able to make another investment at a Scottish distillery, just a few weeks after we announced that we were making £5m available to fund these investments. Projects like this provide a sustainable supply of renewable energy and save distilleries money and reduce their greenhouse gas emissions. With limited capital investment, distilleries can save money from day one whilst also helping to meet the industry’s ambitious green targets.”