Friday, August 8, 2008

By Bruce Fegen

Plans for a pioneering £65 million bio-energy plant at Scotland`s largest distillery, Cameronbridge, at Windygates in Fife, have been announced by drinks giant Diageo.

Following two years of rigorous research, the company, which makes leading global brands including Johnnie Walker, Tanqueray and Smirnoff, has signed a partnership agreement with energy management company, Dalkia, to create the new plant.

It will generate major environmental benefits and is set to place Scotland at the forefront of green technology on the world stage. Diageo said that the plant will, for the first time, integrate sustainable technologies, including anaerobic digestion and biomass conversion, on a commercial scale.

It is believed to be the largest single investment in renewable technology by a non-utility company in the UK, and is set to reduce annual CO2 emissions at the site by around 56,000 tonnes (the equivalent of taking 44,000 family cars off the road).

The proposed plant, which is subject to planning approval, will provide 98% of the thermal steam and 80% of electrical power used at the distillery.

Dalkia will construct the plant over the next two years and it will then transfer to Diageo under a finance lease arrangement, while continuing to be managed by Dalkia.

Bryan Donaghey, managing director of Diageo Scotland, said, "It will be a showcase bio-energy facility that harnesses a variety of green technologies in a project of an unprecedented scale in our industry.

"It is without question the right way forward in terms of our environmental ambitions and secures the long-term sustainability of our operation at Cameronbridge, moving away from reliance on fossil fuels."

The bio-energy plant will generate renewable energy from spent "wash"-a mixture of wheat, malted barley, yeast and water-left after the alcohol has been distilled from it.

The wash is separated into liquid and dried solids, the liquid being converted into bio-gas through anaerobic digestion, and the solids forming a biomass fuel source.

Around 90,000 tonnes of co-products, which would have required transport off-site by road, will be turned into bio-energy as electricity and steam for use at the distillery. The plant will also recover almost a third of the site`s water requirements.

Campbell Gemmell, chief executive officer of the Scottish Environment Protection Agency, said, "SEPA welcomes the use by industry of efficient, sustainable energy sources. Diageo is to be commended for its investment in bio-energy."

Dalkia`s chief executive officer Frederic Pelege said the scheme demonstrated the effective use of bio- energy and would deliver real environmental benefits.

The bio-energy project is in addition to a £100 million investment by Diageo in Scotland, including a £40 million expansion at Cameronbridge due for completion in 2010 and a new distillery at Roseisle in Moray that will also feature sustainable technology.

Cameronbridge employs about 100, with the bio- energy project expected to create 20 extra jobs.

Diageo and Dalkia have worked closely with local and national stakeholders, as well as consulting local community representatives.

© All copyright D C Thomson & Co Ltd., 2008