The Green Investment Bank (GIB) has committed to expand a district heating scheme in Scotland.

The GIB alongside Equitix have acquired Ignis Biomass, the owner and operator of a 3.5MW combined heat and power (CHP) plant in Wick for £9.8 million.

They will upgrade the CHP plant to extend the district heating system to connect 150 more people by March next year.

By replacing oil and gas heating through the district heating network and generating renewable electricity from the CHP plant, the project will save 3,000 tonnes of carbon emissions annually.

Energy Minister Fergus Ewing said: “The continued growth of the network will significantly cut fuel bills for householders switching to the heat network.

“This announcement shows that there is a positive appetite for investment in district heating schemes and helps the Scottish Government to realise our ambition to increase the uptake of district heating in Scotland.”