Scottish government funds biomass district heating project

By Anna Simet | January 15, 2016

The Scottish government has announced it will aid in the funding of a £10.6 million ($15.2 million) district heating biomass project in Broomhill, Glasglow.

The Cube Housing Association District Heating Project will provide heat and hot water to 701 homes, and aims to reduce fuel poverty in the area, according to a news release issued by the government.  CUBE is a registered charity that provides affordable homes for people in need.

The Glasglow project is being funded partly through SPRUCE (Scottish Partnership for Regeneration in Urban Centers) via a £5 million ($7.2) loan, with the remainder coming from British Gas, which is carrying out the building and installation work. The project will include three 500-kilowatt wood pellet boilers with thermal heat stores, 1.5 MW of condensing gas boilers to for backup, underground heat mains and a new distribution pipe network.

The Broomhill project is the last to receive a portion of the £50 million ($72 million) SPRUCE fund which, according to the government, has invested in various regeneration projects across Scotland since 2001. It was established with funding from the Scottish Government and the European Regional Development Fund to provide affordable, flexible, repayable loans for project sponsors.

The Scottish government estimates that SPRUCE investments will spur an additional £158 million ($227.6 million) in private funding, creating 4,750 jobs.