The largest woodfuel-based community heating project in Britain is currently taking shape in Oban.

Technology being installed by West Highland Housing Association Ltd at Glenshellach will supply heating and hot water to 44 homes by August. A further 46 houses will be added by 2008.

A communal boiler plant will supply heat and hot water via a network of insulated pipework, while homes will each have intelligent heat meters to calculate how much heat is needed.

Wastewood from felling and sawmilling will fuel the boiler.

Forestry Commission Scotland director Dr Bob McIntosh, who recently visited the project, said: “Scotland’s wood supply is growing and there is considerable capacity to expand the use of wood for fuel. Wood-fuelled heating is a tried and tested technology in Scandinavia and Austria, but it is now starting to grow in Scotland.”