The government-led initiative will pay about about £500,000 a year at current volumes which, when added to the estimated cost of oil offset by the boilers, will create substantial cost savings, the company said.
BSW worked with Slovenian manufacturer KIV to get the kit accepted by HMRC as green technology, which further enhances the financial benefits.
BSW operates two 3MW biomass boilers in Newbridge, a 5MW boiler in Dalbeattie and two 5MW boilers at the Fort William site.
BSW Timber CEO Tony Hackney said: "The biomass projects at our three sites have been a huge success. Not only does biomass significantly reduce BSW’s carbon emissions, it also makes overall site operations more sustainable."