CHP plant to provide steam for iconic distillery

August 18, 2014, Speyside, Scotland – A new biomass-fuelled combined heat and power (CHP) plant in Speyside, Scotland will generate enough renewable
energy to power more than 20,000 homes and provide steam for an iconic distillery.

The Macallan distillery will use the heat generated by the
plant in the form of steam, a critical component of the distillation process.

The new CHP facility will contribute to reducing the cost of
energy at The Macallan distillery by providing 90% of all of the steam needed
in the distillation process. By using biomass to generate heat instead of natural
gas, the distillery will reduce its greenhouse gas emissions by over 17,500
tCO2e, equivalent to taking almost 8,000 cars off the road.

The plant will be fuelled with sustainable forestry
by-product sourced from the local area, one of the UK’s most productive
forestry areas. A consortium of local growers and forest industry suppliers
including Stobart Biomass Products Ltd. and UPM Tilhill will supply the plant.

John Laing and the UK Green Investment Bank are investing
£26m, alongside £48m debt to be raised from the bond market. The bond will be
guaranteed by Infrastructure UK, part of HM Treasury.

Max Aitken, Co-CEO of Estover Energy said:
“This is a great
step forward for Estover. To attract such high-quality investors for our first
project is a ringing endorsement of the experienced team we've built
up, and we look forward to financing our wider portfolio over the coming
months.”



The new biomass Combined Heat and Power (CHP) plant near
Craigellachie, Moray, will generate 87.4 GWh per annum of renewable energy –
enough to power more than 20,000 homes. It will also generate 76.8 GWh per
annum of renewable heat. Together, the carbon saving equates to 42,000 tCO2e
per annum, the equivalent to taking over 18,000 cars off the road.

The project will create 123 jobs (100 in peak construction
and 23 permanent) and support one of Scotland’s most important export
industries.