The 16-mile pipeline will link four distilleries to the mains gas network
Three Speyside distillers are teaming up to invest £7.6 million to install a 16-mile gas pipeline which will link four of their distilleries to the mains gas network.
Diageo, Chivas Brothers and Angus Dundee said the pipeline will end their reliance upon fuel oil and will cut their energy costs by around 30 per cent.
The new pipeline will connect distilleries at The Glenlivet, Tormore, Cragganmore and Tomintoul with Scotland’s main gas network.
Work on the underground pipeline, which has been contracted to Fulcrum, will begin in November and is expected to complete within 18 months.
The conversion to natural gas is expected to reduce distillery carbon emissions by a quarter and will remove the need for tanker deliveries on rural roads often affected by severe winter weather.
A joint statement from the three distillery companies said: “These distilleries were founded before the advent of gas as an energy source and their distant locations were often chosen for a bounteous supply of fresh spring water above all else.
“It is a very positive move to bring them online with the main gas network which will bring environmental and economic benefits to all distillers concerned.”
Fulcrum sales and marketing director Richard Atkinson added: “ We expect the distilleries to be able to cut their energy costs by around 30 per cent and recoup their initial investment very quickly with savings from then on going straight to the bottom line.
“Based on historic fuel oil usage and price trends, we estimate at least one of the distilleries will be saving £50,000 a week by switching to gas and we’ve had strong interest from other remote distilleries.
“Energy costs are now a constant boardroom topic for most businesses – oil prices have been volatile for some time and it is increasingly economical for companies currently outside the main gas network to make this kind of investment.”