Commenting on the recent £5.5m cash injection from the Highlands and Islands Enterprise, Balcas managing director Ernest Kidney said: “We are delighted with the announcement as it will bring the project to fruition in 2008.”

Scottish first minister Jack McConnell described the Balcas project at Invergordon, set to be one of the UK’s largest biomass renewable energy plants, as good news for the economy and environment.

“Scotland’s devolved government is determined to support renewable energy for economic and environmental reasons,” said Mr McConnell.

“Biomass has a vital role to play and Balcas’s new plant will be a major step forward for the industry.”

The project will be one of the largest biomass plants in the UK and is expected to reduce carbon emissions by 170,000 tonnes a year.

Mr Kidney said the plant will produce 8MW of electricity, five of which will be exported to the grid. The remaining 3MW will be used internally.

“We are currently awaiting consents, both in relation to planning and to the operation of the plant,” he said. “Once those are in place, we will be in a position to award contracts and we intend to start construction in the second quarter of next year.”

Mr Kidney told TTJ he expected the plant to be commissioned by the first quarter of 2008, and operational by the third quarter of the same year.