BSW Timber’s Newbridge mill says it has installed the UK’s largest biomass hot water boiler in a move which could increase annual profitability by £700,000.

The sawmiller stands to benefit from the government’s Renewable Heat Incentive (RHI), which pays companies to generate heat through biofuels, and through oil cost savings.

The plant consists of two 3MW biomass boilers and is set to create environmental savings of more than 2,800 tonnes of CO2 per year

The boiler plant was designed and project managed by leading renewable consultancy Sustainable Energy Ltd, in partnership with the Carbon Trust, using a KIV boiler.

Mill kilns were previously heated by oil boilers and the co-products from the sawmilling processes – including wood chips and bark – were sold and removed from site by road transport.

By transferring their heat production to the two 3MW wood-chip boilersand using co-products as fuel, BSW will offset the annual consumption of up to one million litres of oil per year – and remove 280 lorries from the local roads.

“This is a major project which sets down a successful blueprint for the rest of our mill operations across the UK,” said mill manager Dave Burd.

Dr Gabriel Gallagher, managing director of Sustainable Energy Ltd, said the BSW project gained the support of both the Carbon Trust and the Forestry Commission.