The construction of a new low carbon energy centre at RWE’s Markinch CHP biomass plant in Fife has begun.

The £24 million Glenrothes Energy Network scheme between Fife Council, RWE and the Scottish Government aims to provide low carbon heat to industrial, commercial, community and domestic properties in the region as well as the Fife House complex.

Civil engineering works have started, with the building of the external structure due to begin at the end of the month.

RWE will own the energy centre and provide the heat required for the network from its adjacent biomass plant.

Vital Energi was awarded the contract for the design and development of the facility after a comprehensive tender process, with Balfour Beatty appointed as the main contractor for the site’s heat network.

The project is forecast to be operational by the end of January next year.

Steve Hicks, RWE Project Director, said: “The success of this project is down to ongoing collaboration, energy and commitment from across all of the teams and businesses involved.

“District heating schemes are key to providing local communities and businesses with access to cheaper heat from efficient local sources, thereby cutting carbon dioxide emissions.”

The UK’s competition watchdog has proposed establishing regulations for the expanding heat networks industry.