The Scotch Whisky industry has something of a reputation for investing in green technology. The latest distillery to do so is Tomatin near Inverness. Its Japanese owners, Takara Shuzo, has been investing in the company over the past few years and there’s been a change of emphasis in its marketing away from producing whisky for use in other brands’ blends and towards a focus on growing the its own single malt as a premium product in its own right.
The investment will help save money as well as Tomatin’s carbon footprint
Now, the firm’s confirmed that it’s the latest to install a biomass boiler in a project worth £1.2m, with support from the Edinburgh-based Green Investment Bank (GIB). This will be the bank’s first investment in Scotland. In what looks like a complex deal, the government-backed institution explained that the Equitix Managed Fund, in which it has a stake, will invest £576,733 in the project, releasing a further £600,274 of investment from the Equitix Energy Efficiency Fund (EEEF).
The project will see an old and inefficient oil-fired boiler used in the production of whisky replaced with a modern biomass unit. This will be fuelled with sustainably certified wood pellets from managed local forests supplied by a local specialist, Balcas Limited. The new system is expected to cut greenhouse emissions by over 95,000 tonnes over the 20-year life of the investment. As well as this, the new boiler will also mean that Tomatin saves a significant amount on its energy bills.
Shaun Kingsbury
Green Iinvestment Bank
Shaun Kingsbury, chief executive of the GIB, said in a statement that the whisky sector could be a prime candidate for further investment. “As well as significant emission reductions,” he explained, “the project will provide a boost to the local economy. We have a strong pipeline of investments in Scotland and hope to be able to announce further investments in Scottish distilleries, as well as other projects, very soon.”
The Business Secretary, Vince Cable, also hailed the investment as a major step forward for the bank, pointing out that “the whisky distillery has always used a perfect blend of innovation and tradition. Today’s investment from the Green Investment Bank, funded by the UK government, will continue this proud tradition. By funding a new biomass boiler, we are helping Tomatin to become more energy efficient and high-tech. This money will also help secure local jobs and support the local supply chain.”
However, some supporters of renewable energy have asked questions about the Government’s commitment to biomass in particular. It’s expected to announce details about its proposed cap on subsidies for such power plants. It’s also expected to confirm plans to end subsidies for the technology from 2027 in a decision first announced last year. But biomass is a controversial technology with some green groups expressing concern that too many plants could exhaust the supply of locally sourced wood pellets, leading to imports from forests overseas which could undermine projected carbon savings.