£6.4 million renewable energy investment boost for Scottish economy

Scotland’s renewable energy sector gets a boost today with a £6.4 million investment by Land Energy Girvan Limited as they launch their new site expansion in Girvan.

The firm, a manufacturer of “Woodlets” brand biomass wood pellets for the renewable energy market, as part of their expansion has secured a £250K Regional Selective Assistance grant from Scottish Enterprise in a bid to increase capacity and drive productivity.

The investment will see at least 10 permanent full-time jobs created, whilst safeguarding a further 28 jobs. Furthermore the business plans to increase output from 60,000 tonnes to 90,000 tonnes per annum increasing turnover by 50% per annum.

Land Energy Girvan’s state of the art manufacturing facility produces premium grade wood pellets using locally sourced sustainable timber. Their pellets contain no additives and are certified by the European Pellet Council with ENPlus A1, the highest quality mark in the industry, which ensures that the pellets burn efficiently and cleanly.

The expansion includes:

• An increase in the capacity of the combined heat & power plant, including a new condenser and an extension to the dryer
• An upgrade to the pellet line including new pellet mill grinders and silo
• Additional on-site storage facilities

Minister for Business, Innovation and Energy, Paul Wheelhouse, said:

"Scotland is home to a thriving and innovative business sector and I’m delighted that Land Energy Girvan Limited are investing in a £6.4 million expansion of their site. This welcome investment is projected to create 10 new jobs and safeguard 28 existing jobs in the Scottish supply-chain supporting generation of renewable, biomass energy, and will reduce biomass customers' reliance on imported wood pellet supplies.

“The RSA grant award we have made is a tribute to the success of the team at Girvan, supported and enabled by Scottish Enterprise, and it demonstrates our commitment to make Scotland as competitive a place to do business as possible.”

Commenting on the grant, Managing Director of Land Energy Girvan Ltd, John Westmacott, said: “The UK premium wood pellet market has grown rapidly in the last 5 years and is now worth £100m per annum. The new investment in the Girvan plant will ensure that Land Energy continues to be a leading player in this market as it continues to grow.”

Total imports of pellets to the UK more than doubled between 2012 and 2013. In fact, the UK is the largest importer of wood pellets in the world. Currently Russia and Lithuania are the largest supplier to both the UK and the EU with a 26% per cent share. With Land Energy Ltd manufacturing only the highest grade wood pellet and now at an increased capacity, they hope to have a major sales advantage over the imported product.