Green Investment Bank announces funding for biomass boiler at whisky distillery

GIB awarded the competitive fund mandate to Equitix to invest £50 million, matched by private investors, to drive investment in small-scale low carbon infrastructure requiring less than £30 million of financing. Equitix has also established EEEF to make investments into the energy efficiency sector, including as co-investors alongside ESI.

The boiler installation at Tomatin Distillery, located 16 miles south of Inverness, produces steam utilised in the production of whisky. The boiler, manufactured by a leading European manufacturer, replaces a high maintenance, inefficient oil fired boiler. The new boiler will replace 80% of the heat load usually generated by the oil fired boiler.

The boiler will be fuelled by sustainably sourced wood pellet fuel and as a result, CO₂ emissions are expected to be cut by over 96,500 tonnes over the 20 year life of the investment. In addition to supporting the green economy and reducing carbon emissions, switching to a biomass boiler will save Tomatin a significant amount on their energy bills.

It will use sustainable EN plus A1 Standard pellets, manufactured by Balcas using renewable electrical and thermal energy and raw materials sourced from local, sustainably managed forests by Balcas at their plant at Invergordon. This will provide local jobs and support the local supply chain.

The whisky produced at the distillery is used in a range of blends and its single malts are currently sold in over 40 export markets. The site has been distilling whisky since the 15th century.

"I am pleased to be able to announce our first Scottish investment. As well as significant emission reductions, the project will provide a boost to the local economy. We have a strong pipeline of investments in Scotland and hope to be able to announce further investments in Scottish distilleries, as well as other projects, very soon."

Shaun Kingsbury
Chief Executive Officer, UK Green Investment Bank

"This is the second deal that Equitix has closed in which GIB has invested with the Equitix Energy Efficiency Fund as the private sector co-investor. We are pleased to be able to add a positive economic and environmental impact to this area in Scotland.  Equitix continue to source a pipeline of high quality opportunities for investment by GIB and expect to deploy further capital in this region in the near future."

Geoff Jackson
Chief Executive Officer, Equitix 

"The first Scottish deal is a landmark moment for this ground-breaking Edinburgh-headquartered institution. It demonstrates that combining Scotland's expertise in the financial and green sectors with a strong transaction team in London, can deliver significant benefits for businesses and local communities across Scotland.

With the Bank confident that more Scottish investments will be announced in the near future, I am certain that UKGIB will play a hugely important role in realising Scotland's enormous green energy potential, ensuring that we are at the centre of the UK's low carbon economy."

Michael Moore
The Secretary of State for Scotland

"The whisky distillery has always used a perfect blend of innovation and tradition. Today's investment from the Green Investment Bank, funded by the UK Government, will continue this proud tradition. By funding a new biomass boiler, we are helping Tomatin to become more energy efficient and high-tech. This money will also help secure local jobs and support the local supply chain. Despite tough international conditions, whisky exports have done very well. The industry is to be applauded for its achievements. I want to make sure we continue its success as we rebalance the economy and create wealth outside of the south east of England."

Vince Cable
The Secretary of State for Business, Innovation and Skill