£48.5m infrastructure guarantee for Speyside
The Treasury has confirmed it will guarantee bonds worth up to £48.5m for the Speyside Biomass Power project located in Moray, Scotland.
It is the latest project to be supported by the UK Guarantees scheme where the UK government act as a loan guarantor to major infrastructure investments.
The biomass power station will supply electricity to power more than 20,000 homes and provide green energy for one of Scotland’s most iconic whisky distilleries, Macallan.
The world famous distillery will use the heat generated by the plant in the form of steam, a critical component of the distillation process.
Together, the carbon saving equates to taking over 18,000 cars off the road. The project will also create 123 jobs (100 in peak construction and 23 permanent) and support one of Scotland’s most important export industries.
The total funding required is £74m, with the balance provided by John Laing and the Green Investment Bank who will make respective £13.5m and £13m equity investments in the project.
This is the latest project to be supported by the UK Guarantees scheme where the UK government act as a loan guarantor to major infrastructure investments across energy, transport, communications, waste and housing.