Distillery secures Green Bank funding
30 Jul 2014
A Scottish distillery has secured finance to build a biomass boiler from the Green Investment Bank (GIB), the third whisky plant to do so since the bank launched a funding programme in May.
The project at Balmenach distillery in Speyside will be financed from the £5 million of funding announced by GIB in May, half of which is provided by the bank and half by private equity investors. The distillery will also be making a capital contribution to put in place the new infrastructure needed to support the project.
Projects like this save distilleries money and reduce their greenhouse gas emissions
GIB’s Rob Cormie
Two distilleries, Tomatin Distillery (near Inverness) and Aberfeldy Distillery (in Perthshire) have already benefited from the new finance available from GIB. The project at Balmenach, like Tomatin and Aberfeldy, will replace the distillery’s heavy fuel oil boiler with a biomass boiler. The boiler will be used to produce steam necessary for the whisky production processes.
“I am very pleased that we have been able to make another investment at a Scottish distillery, just a few weeks after we announced that we were making £5 million available to fund these investments,” said GIB operations director Rob Cormie.
“Projects like this provide a sustainable supply of renewable energy and save distilleries money and reduce their greenhouse gas emissions. With limited capital investment, distilleries can save money from day one whilst also helping to meet the industry’s ambitious green targets.”
The Balmenach distillery traces its origins back to 1824, making it one of the oldest distilleries in Speyside. Located in a remote part of the Scottish Highlands, and therefore not on the National Grid, until now heavy fuel oil has been used to meet its energy needs.
