A FIFE firm’s plans for a £100 million green energy biomass plant are being examined in Europe to see if they qualify for financial help.

Glenrothes papermaker Tullis Russell needs £20 million towards the cost of the generator which would meet 6% of Scotland’s renewable energy generation targets and 20% of the country’s carbon dioxide emission reduction target.

Environmental legislation requires the company—one of the region’s biggest private employers with 550 workers—to replace its power plant by 2010.

The biomass proposal already has the backing of First Minister Alex Salmond, and Central Fife MSP Tricia Marwick (pictured) raised the issue with bodies at the European Parliament in Brussels earlier this week.

However, the project hinges on the approval of planning permission to build a retail park, which would include Asda’s first eco-store in Scotland, on surplus land at Tullis Russell. The sale of the land would net the firm around £80 million towards the cost of the biomass generator.

It is hoped the funding gap can be made up by the Scottish Executive and/or European money and Mrs Marwick was in Brussels to explore the options.

“Everybody I spoke to was very excited about Tullis Russell’s proposals and the impact the biomass plant would have on the renewable energy and carbon emissions targets,” said the MSP.

“However, there are still a number of issues that need to be resolved locally and these include awarding planning permission for the development of a shopping complex on surplus land at Tullis Russell.

“This is vital if the biomass project is to go ahead and it will also bring much needed shopping facilities to the town.

“I urge Fife Council to recognise the importance of this shopping facility for the people of the town, the additional jobs which will be created and the 550 jobs at Tullis Russell which will be safeguarded for the future.”

She continued, “Tullis Russell is so important for central Fife. It’s one of the few papermaking companies left in Scotland and it’s vital it remains.”

Tullis Russell chief executive Chris Parr has previously expressed fears for the company’s future if the biomass project cannot be progressed.

He said the firm would have to commit to an alternative proposal involving gas which would significantly reduce the environmental benefits and the future competitiveness of the company.

He added, “The project will have benefits for us and for the whole of Scotland.”