Alpha Real Trust (ART) has signed a purchase agreement to buy a land in central Scotland, where it plans to build a wood fired combined heat and power (CHP) plant.
The company acquired the long leasehold interest in Acharn site, covering an area of 6 hectares, for £2.45m.
As per the estimates of ART, the proposed 6MWe CHP plant will require an investment of around £30m.
The main construction and maintenance contracts are also well advanced in order to commission the plant by next year.
Currently, ART is in advanced talks with capital partners to search co-financers to share the construction cost of the CHP plant.
Upon completion, the CHP plant will use locally sourced virgin biomass that will be chipped and dried on site.
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By GlobalDataThe new plant will use an advanced gasification process to generate base load electricity which will be supplied to Scotland’s Loch Lomond and Trossachs National Park.
The electricity produced at the plant will be enough to power nearly 13,500 houses in the UK.
ART said: "This project represents the potential to benefit from a long term secure and predictable inflation-linked income stream with the potential for associated capital growth from an infrastructure asset in the UK renewable energy sector.
"Additional benefits include the associated long term investment in the local economy with the ability to create 15-20 direct, long term jobs."
