By Charlene Wilson

A FIFE PAPER mill is leading the renewable energy revolution after securing full funding for a multi-million pound biomass project which aims to significantly reduce its carbon footprint and create 30 jobs in the process.

First Minister Alex Salmond pledged £8.1million on behalf of the Scottish Government towards the £100 million project at Tullis Russell, during a visit to the Markinch firm yesterday morning.

The majority of the funding will come from RWE npower Cogen who will build and operate the 45MW plant, which will create energy from wood.

Although the plans have received widespread support and acclaim since first mooted three years ago, the road to fruition has been a rocky one.

Environmental legislation requires Tullis Russell, one of the region’s biggest private employers which celebrates its bicentenary next year, to replace its existing coal fire and gas power station by 2010.

Fears for the future were high, therefore, when the previous Executive turned down the company’s application for £20 million towards the cost of a combined heat and electricity generator.

Things turned around in June last year when the newly elected First Minister pledged his full support to the project.

The biomass plant, which will run solely on green power aims to reduce the firm’s annual carbon emissions by 70% at a rate of 250,000 tonnes per year and meet 6% of Scotland’s renewable generation targets.

Some 540 jobs will be safeguarded as a result of the project, which will be operational by 2011, while a further 30 jobs will be created on-site.

A further 300 jobs will be made available for the construction of the state-of-the-art plant.

Mr Salmond said, “This is a significant investment and complements the Scottish Government’s work to make Scotland a greener, wealthier and fairer place to live and do business in.

“The announcement points the way to the future and shows the resilience of the Scottish economy in the face of international financial pressure.

“Despite the credit crunch, things are looking good for the Fife economy.

“We have no tolls, a new Forth bridge is on the way, we have the Fife Energy Park to be proud of and now this pioneering biomass facility here at Tullis Russell which could light up Dundee with the amount of energy it will generate.”

CEO of Tullis Russell, Chris Parr added, “This is an historic and exciting project with enormous commercial and environmental benefits.

“From a customer perspective, the move to biomass builds further upon our already strong environmental credentials.

“Nearly 90% of the pulps used in our production are FSC certified and volumes of recycled grades are growing rapidly.

“Combining these attributes will ensure that we continue to add genuine value to the produces bought by our customers.

“There is also a very strong local perspective to this project.

“In addition to the significant reduction in our CO2 emissions, much of the wood we are planning to use as fuel for the plant will be recovered wood that would otherwise go to landfill.

“The plant will also provide opportunities to supply low grade heat for other local applications and these opportunities are being actively explored.”

Head of npower Cogen, Phil Piddington said, “This project forms an important part of our wider strategy for reducing our carbon intensity through investment in lower or zero carbon power generation sources.

“The project is an excellent example of how innovative and new energy technologies such as biomass can be deployed to help the UK energy industry and individual businesses reduce their impact on the environment.”

Central Fife MSP Tricia Marwick has long supported the biomass plan and even travelled to Brussels last year to discuss the proposals with environment officials at the European Commission.

She said, “I am absolutely thrilled that these plans have been realised.

“Fife has a lot to be proud of. Tullis Russell is so important for central Fife and is one of the few paper-making companies left in Scotland.”

Leader of the administration, Councillor Peter Grant also welcomed the announcement.

“This announcement is great news for Fife and especially for the Markinch and Glenrothes areas,” he said.

“Tullis Russell has shown that it’s possible to invest in long term business success in a way that is environmentally sustainable.

“As well as protecting their business from the uncertainties of the energy market they are helping to make Fife and Scotland a greener place to live and work.”