RWE npower renewables and papermaker Tullis Russell have signed a contract for the development of a biomass power plant to be used to provide electricity for the papermaker's production facility in Markinch (Fife, Scotland). The new biomass power plant will be built upon an existing coal-fired power plant and will have 50 MW of installed generation capacity.

According to the announcement, the project represents a GBP 200 million investment, while an additional GBP 8.1 million will be secured from the Scottish Government. RWE npower renewables has emphasized the role of the Scottich Government's Renewables Obligation support mechanism.

The new plant will be using around 400,000 tons of virgin and used wood from a wide range of sources. Contracts have been put in place with local and national companies for further supply of biomass. The project will secure some 500 jobs at Tullis Russell, and create 50 permanent jobs in power plant operations. The biomass plant will help reduce the company's carbon footprint by as much as 72%, enhancing its credentials as an environmental leader, minimizing the company's environmental impact.

Construction will begin immediately, with completion set to occur in 2012. In addition to this project, RWE npower is also developing plans for a similar biomass power facility in Lincolnshire, which is to have 73 MW of installed generation capacity. By 2013, the company is planning to install a total of 390 MW of biomass capacity.