A renewable-energy fund and an infrastructure firm yesterday committed to spend £9.8million on buying and upgrading the district heating scheme in Wick.
The UK Green Investment Bank (GIB) and Equitix said they would improve the infrastructure at the Wick green-energy plant and expand the heating system to cover another 150 customers.
They announced their plans after agreeing to buy the company that had owned and operated the scheme, Ignis Biomass, from Jersey-based fund Ludgate Environmental.
The network currently provides heat to the Pulteney Distillery, Caithness General Hospital, Wick Assembly Rooms, residences owned by Cairn Housing Association and about 200 other domestic residences.
As well as upgrading the biomass-fuelled plant, GIB and Equitix want to build at least four new smaller-scale combined heat and power (CHPs) systems in and around Wick.
The new CHPs would provide a new, sustainable heating source for care homes which have been unable to connect to the existing network.
GIB and Equitix said the investment would save 3,000 tonnes of carbon dioxide a year, the equivalent of taking 1,300 cars off the road.
Wick’s scheme should be held up as an example for the rest of the UK, GIB chairman Lord Smith of Kelvin added.
Lord Smith said: “While the UK has made good progress in developing new renewable-energy generation to decarbonise our electricity production, much more remains to be done to improve how we heat our homes and businesses more effectively and sustainably.
“The district heating project in Wick has already shown other parts of the UK how it can be done and I am pleased that GIB’s investment will be playing a key role in extending its reach.”
Scottish Energy Minister Fergus Ewing MSP said: “This is welcome news of further investment and expansion of Wick renewable energy plant and district heating network.
“The continued growth of the network will significantly cut fuel bills for householders switching to the heat network.”
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