RWE npower Cogen, the Combined Heat & Power (CHP) division of RWE npower, today announced plans for another CHP plant, bringing its total number of CHP plants to 11.

CHP plants combine electricity generation and heat production, producing significant efficiency and cost benefits. The technology also delivers environmental benefits through lower carbon dioxide emissions.

The new plant is a 45 MW biomass CHP plant at Markinch in Scotland. An £8.1m Regional Selective Assistance grant from the Scottish Government has been awarded to help fund the project. The new facility will supply steam and electricity to the Tullis Russell Papermakers paper mill under a long term contract, replacing the existing coal fired plant.

Phil Piddington, Head of npower Cogen said: “Our plans to build a CHP plant at the Tullis Russell paper mill form an important part of our wider strategy of reducing our carbon intensity, through investment in lower or zero carbon power generation sources. This project is an excellent example of how innovative new energy technologies such as Biomass can be deployed to help the UK energy industry - and individual businesses - to reduce their impact on the environment.”

Scottish First Minister Alex Salmond said:

“This is tremendously exciting with huge economic and environmental benefits for Scotland. The Scottish Government has fully supported the partnership working of these two leading, international companies, RWE npower Cogen and Tullis Russell.

“The new biomass plant in Markinch is a significant investment in Scotland and pays testament to our competitive advantage in terms of skills and workforce and the development of energy supplies that are cleaner, greener and economically competitive.

“I am delighted that we have attracted and secured this significant investment. The project complements the Scottish Government’s work to make Scotland a greener, wealthier and fairer place to live and do business in. This announcement points the way to the future and shows the resilience of the Scottish economy in the face of international financial pressure.”