February 12 (SeeNews) - Alpha Real Trust Ltd (LON:ARTL), or ART, today said it has acquired the long leasehold interest in a site for a 6-MWe wood-fired combined heat and power (CHP) plant in central Scotland.
The company is also in advanced talks with capital partners about co-financing the plant, whose development value is estimated at GBP 30 million (USD 43.4m/EUR 38.6m). The main construction and maintenance contracts are also well advanced, so that the facility can come online by 2017, ART said.
The real estate investor acquired the long leasehold interest for GBP 2.45 million. The site is located at Acharn, Killin in Perthshire and has full planning consent and secure grid connection. The plant will use locally sourced virgin biomass which will be chipped and dried on site.
"This CHP project targets increasing growth opportunities identified in the renewable energy sector which benefit from long term secure and predictable inflation-linked income streams substantially supported by the Renewable Heat Incentive ("RHI") and Renewable Obligation ("RO") support mechanisms," the company said.
(GBP 1.0 = USD 1.445/EUR 1.286)