Diageo to invest £65m in green energy

Drinks giant Diageo has announced plans for a £65m bioenergy facility at Scotland's largest distillery.

The facility at the Cameronbridge Distillery in Fife will cut CO2 emissions at the site by 56,000 tonnes - the equivalent of taking 44,000 cars off the road.

The joint project with energy management company Dalkia is believed to be the largest investment in renewable energy by a non-utility company.

It is set to cut CO2 emissions at the site by 56,000 tonnes - the equivalent of taking 44,000 cars off the road.

The facility will provide 98% of the thermal steam and 80% of electrical power needed at the distillery.

Dalkia will construct the facility, subject to planning consent, over the next two years and will then transfer it to Diageo under a finance lease agreement.

"This will be a showcase bioenergy facility which harnesses a variety of green technologies in a project of an unprecedented scale in our industry," said Diageo Scotland managing director Bryan Donaghey.

"It is without question the right way forward in terms of our environmental ambitions and secures the long-term sustainability of our operation at Cameronbridge, moving the site away from reliance on fossil fuels."

Campbell Gemmell, chief executive of the Scottish Environment Protection Agency added: "We are very supportive of new and developing technologies that can help protect Scotland's environment and make a meaningful contribution to tackling climate change. Diageo is to be commended for its investment in bioenergy."

The bioenergy project is in addition to a £100m investment programme in Scotland, which includes a new distillery at Roseisle in Morayshire and a £40m expansion at Cameronbridge by the summer of 2010.