RWE npower renewables has concluded a contract with papermaker Tullis Russell to supply its paper mill at Markinch, Fife, Scotland, with heat and electricity from a new 50 MW biomass-fuelled cogeneration plant. The plant will replace the existing coal-fired power plant at Tullis Russell.

The biomass project at has been managed by npower Cogen’s development team, working closely with colleagues from across the RWE Group. Around 400,000 tonnes of virgin and used wood from a wide range of sources will be used to power the plant, with contracts being put in place with local and national companies for the supply of biomass.

Paul Cowling, Managing Director of RWE npower renewables said: ‘Our parent company RWE Innogy will invest around £200 million in the biomass facility and we are also delighted to secure an additional £8.1 million support from the Scottish Government for the project. The plant will reduce annual carbon emissions by 250,000 tonnes and generate 6% of Scotland’s renewable generation targets.’

Chris Parr, CEO of Tullis Russell Group commented: ‘This innovative project will help to secure over 500 jobs at Tullis Russell, create over 50 permanent jobs in the operation of the power plant and a new biomass fuel processing facility as well as 400 hundred jobs during the construction phase.’

Construction work is to begin immediately and the power plant is scheduled to enter operation during 2012. In addition to this project, RWE npower renewables is developing plans for a similar biomass plant in Lincolnshire, England, with an installed capacity of 73 MW.