The firm will supply wood for the next five years to the Guardbridge Energy Centre - a macro-renewable project on the site of the former Curtis Fine Papers Mill - that is supporting the university’s aim of becoming Britain's first carbon neutral institution of its kind.
The biomass plant will use virgin round wood, sourced locally by Scot Heat & Power to produce and store hot water. This will then be pumped four miles underground to the university’s North Haugh Campus via a network that will heat and cool its administration and academic building, as well as laboratories and residences.
The facility - expected to be fully commissioned in early 2017 - will complement plans for a six-turbine wind power development on university land at Kenly, four miles east of St Andrews.
Scot Heat & Power managing director Malcolm Snowie said: "In recognising the highly efficient renewable benefits of biomass energy, Scotland’s oldest university has now placed itself at the forefront of green energy innovation, allowing it to reap the rewards of lowered costs and heightened performance.
"It will also firmly place St Andrews in the driving seat as it looks to attain the status of first university to reach such an important accolade in future sustainability.
"We are certain that the project will deliver a strong environmental return for decades to come, more than repaying the confidence that has been invested in it."