A proposed wood-fuelled combined heat and power (CHP) plant is slated to be the first investment in Scotland by the UK’s Green Investment Bank.

The GBP465m ($710m) CHP project (artist’s impression pictured) received approval from the Scottish Government earlier this month.

Forth Energy, which is a joint venture between Forth Ports Ltd and SSE plc, is the developer behind the project, which will be located at the Port of Grangemouth, in the Scottish central belt.

The plant will use sustainably-sourced wood fuel, primarily from overseas, and will have the capacity to generate 120 MW of electricity and 200 MW of heat.

The electricity will feed the national grid, while the heat will be supplied to industrial users in the surrounding area, which include chemical and oil refining facilities.

According to Forth Energy, the plant could also provide the opportunity for the subsequent installation of a district heating network in the Grangemouth area.

The developer anticipates that the plant will take approximately three years to build, following a year’s detailed design and engineering, and could begin generating heat and power by 2017.

The project will create approximately 300 construction jobs, peaking at 500 during parts of the build process; then 70 operational jobs based at the port, running the plant and handling the fuel, says Forth Energy

It is also forecast to deliver around GBP26m in annual economic growth to the area.

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