Plant grant a burning issue for mill boss
Black Isle man fears £25m biomass operation could shut him down
Published:
A BLACK Isle sawmill owner who produces wood chips for biomass boilers says he may be forced to close once a new £25million wood-processing plant opens in Easter Ross.
Alasdair Anderson has hit out at Highlands and Islands Enterprise after it handed over more than £3million to the Invergordon plant, currently under construction.
Mr Anderson, 37, managing director of Raddery Sawmill, Raddery, says it is a conflict of interest because his company and the Invergordon plant will both be making biofuel.
Construction of the Balcas combined heat and power plant and wood pelleting unit on the 10-acre site of the former Alcan aluminum smelter at Invergordon began earlier this year.
Mr Anderson said: “When I asked for a grant from HIE to buy a local sawmill (in 2006), for expansion, I was told that they had backed sawmills before and that they couldn’t help me because it would be a conflict of interest.
“Well my argument is that this is a conflict of interest. Although I produce wood chips and Balcas will produce pellets, it’s all biofuel. HIE have said to me that they are backing a power plant, but the power is only there because to make the pellets they need heat, and to make the heat they need power.”
Mr Anderson, who employs eight, said in 2005 he got a grant of almost £8,000 from HIE for expanding into biofuel, adding: “It was on the conditions that if my business ceases trading within five year we would have to pay back the grant.
“I don’t know that if Balcas puts us out of business in the fuel side of things do we or do we not have to pay the money back?”
Raddery Sawmill provides wood chips for heating and hot water at two Highland schools, the Lovat Arms Hotel at Fort Augustus and the Averon Centre, Alness, but Mr Anderson fears some of these could be lost when the Balcas plant opens.
Archie McCreevy, HIE's head of operation in the Moray Firth area, said: “We have had, and continue to have, discussions with Mr Anderson and explained that grant conditions remain in place for the period agreed at the time of approval.
“While Balcas and Raddery Sawmills operate in the same field, Balcas will be supplying their own product which is distinct from that of Raddery Sawmill. In addition Balcas has other components to its operation which offer significant advantages to the Highland economy and which were clearly eligible for grant assistance.
“We are keen to continue discussions with Mr Anderson on his potential activities in a fast developing sector.”
