Scottish-based Forscot is on track to build an integrated forest products processing complex at Invergordon with news that it has achieved the £700,000 needed for funding phase one of the project.
The money will finance detailed research and the initial stages of the planning and environmental approvals process.
Chairman Ed Gillespie said the project was on timetable and the aim was to start construction of the plant in 2006 and to begin operations in 2008.
He added: “It is good to see these pieces of the plan falling into place. We have an expert and dedicated management team working hard on this ambitious project and, importantly, we have an active and continuing dialogue with the local community and its representatives.”
Forscot’s financial strategy involves fund-raising in three stages, with the £1bn estimated capital cost funded through a combination of debt, equity and grants.
The second phase will raise some £5m-10m of equity funding to secure the site, broaden the management team, complete the project definition and secure planning and environmental approvals and construction quotes.
Phase three funding to finance construction is expected to be around £1bn.
The proposed facility will be an integrated pulp mill, paper mill, saw mill and renewable energy generation plant using Sitka spruce grown in Scotland and northern England.
Sawn goods operations, planned to be contracted out, will produce around 250,000m3 a year of strong, low-cost construction timber. Forscot said it has good development potential with the increasing demand for timber frame houses.
