A paper mill in Scotland which closed last year is to be turned into a £60m green energy centre.

The biomass fuel plant at Inverurie, Aberdeenshire, will process timber and operate from the former International Paper mill, which shut last year.

International Paper bought the mill, which produced an estimated 85% of all photocopy and printer paper used in the UK every year, in 1996 and is now driving the multi-million energy plan, which is backed by a business consortium led by Preston-based Integrated Energy Systems International.

The centre will have an integrated wood pelting plant capable of processing 250,000 tonnes of locally-sourced timber annually.