Energy grant saves jobs

ABOUT 175 jobs at a Highland paper manufacturer have been secured after it received a £5 million government grant to help build an environmentally-friendly energy system.

Arjo Wiggins, at Corpach, near Fort William, is installing a 17 million biomass system, the biggest in Scotland, which will make the plant almost self-sufficient in energy.

The wood-burning generator will replace the 40-year-old oil heating system, turning wood into heat and electricity and producing less environmentally-damaging emissions.

As well as heating the paper mill, the generator will provide up to 80 per cent of the plant’s electricity.

The money, from the Department of Trade and Industry, will go to renewable energy developer Energy Power Resources Limited, which is building the generator.

The cash is part of a 30 million government fund to promote bio-energy projects in the UK, with the government seeking to provide 10 per cent of the country’s energy requirements from renewable sources by 2010.

It is expected the new generator would cut carbon dioxide emissions from the plant by about 40,000 tonnes.

Brian Wilson, the energy minister, during a visit to the plant yesterday, said: "The project will secure the plant’s future and represents a huge vote of confidence by government and by the company. The benefits of renewable energy sources are self-apparent."