Helius Energy’s (LON:HEGY) proposed biomass project in Rothes, Morayshire in Scotland, has taken a major step forward.
Today the Royal Bank of Scotland (LON:RBS) and Lloyds Banking Group (LON:LLOY) approved an application for project financing.
Alongside a consortium of Scotch whisky companies - known as The Combination of Rothes Distillers – Helius will develop a biomass power plant that will generate up to 7.2 megawatts of renewable electricity capacity. The power will be sold into the local network.
"The project represents a significant step forward for Helius and its distillery partners,” Helius chief executive Adrian Bowles said.
“We all look forward to getting this project constructed and into commercial operation at the earliest opportunity".
The Helius CoRDe joint venture company applied for the financing required to build and commission the plant.
It has now received approval for a non-recourse project finance credit facility, whereby Llyods and RBS will provide up to 75 percent of the total funding.
Pre-construction work is already underway and on-site works are expected to start in the spring. The project is slated to begin commercial production in the second quarter of 2013.
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