A wood fuel project valued at nearly £1m is helping timber to make a comeback as a means of heating in Scotland.

The Wood Fuel Development Programme (WFDP), developed by the Highlands & Islands Wood Fuel Group, has already helped fund a number of projects across the Highlands and Argyll.

The grant scheme, which has received £216,900 from the European Regional Development Fund and matched funding from the Highlands & Islands Enterprise Network, helps business owners install wood-burning boilers to heat their buildings, as well as wood chip suppliers to buy equipment needed to supply customers with chips.

WFDP, managed by Forestry Commission Scotland, is developing clusters of suppliers and customers in local districts throughout the region, with two clusters already established in Argyll and more in development.

Beneficiaries of the scheme include hotels, estate offices, a sawmill and a nursing home. Others who have applied for grants or made enquiries include a salmon hatchery and a group of self-catering holiday units.

Elaine Hanton, head of the renewable energy team at Highlands & Islands Enterprise, said: “It’s good news for forest owners and wood-processing businesses because it is helping to develop a new market for their wood, and Highland communities benefit from the extra jobs that are being created in districts where employment opportunities may be hard to find.”

Matched funding from building owners and wood chip suppliers take the value of the grant scheme to almost £1m.