ART announces investment in biomass CHP project

By Alpha Real Trust Ltd. | February 17, 2016

Alpha Real Trust Ltd. announces it has entered into a purchase agreement to acquire the long leasehold interest in a central Scotland land development site. ART has entered into a 40 year, long leasehold interest with full planning consent and secure grid connection for the installation of a wood-fired combined-heat-and-power (CHP) plant at Acharn, Killin, Perthshire, Scotland.

This CHP project targets increasing growth opportunities identified in the renewable energy sector which benefit from long term secure and predictable inflation-linked income streams substantially supported by the Renewable Heat Incentive and Renewable Obligation support mechanisms.

The company’s £2.45 million ($3.5 million) purchase (including costs) of the long leasehold interest in the Acharn site of 6 hectares (15 acres) was funded from existing cash reserves. The 6 MW electric CHP project has a potential gross development value in the region of £30 million, and on completion the company forecasts a running yield in excess of 9 percent.