The investment at BSW Energy’s manufacturing base at Fort William will allow the company to expand its conversion of co-products – such as wood chips and sawdust – into a range of innovative wood fuels geared to trade and domestic use across the UK.

It will make BSW Energy one of the largest manufacturers of heatlogs in the UK. BSW Energy was launched following the integration of Suffolk-based biomass company Bridgebrooke Energy, manufacturers of Hotties Heatlogs, into the company in 2015.

BSW Energy’s new plant includes four specialist extruders allowing for a five-fold increase in heatlog production, together with a drier, storage and handling equipment.

The expansion reflects a significant increase in demand for the wood fuel products which are all made from FSC-certified timber.

“The success of BSW Energy shows the benefits of product diversification within the timber industry, maximising the use of the whole log, with no wastage,” said BSW Timber’s CEO Tony Hackney.

“This makes for high quality, high performance products sourced from home-grown British timber in a market that is traditionally supplied from overseas.”

The company is looking to target new market sectors with the expanded product range – including retailers and fuel merchants, as well as selling direct to the consumer.