One of the UK’s biggest paper mill sites, now closed, is planned to be re-opened as a major biomass power plant wood pellet manufacturing facility.

International Paper has signed an agreement with Preston-based Integrated Energy Systems International Ltd, which is leading a consortium of companies seeking to create a £60m green energy centre at the paper manufacturer’s former Inverurie mill site in north-east Scotland.

The plan, which would cover 70% of the mill site, envisages the creation of a 17mW biomass energy centre, with wood pellet plant capable of processing 250,000 tonnes of locally sourced timber annually.

“Our agreement suggests that detailed plans will be presented to the appropriate authorities, seeking a determination by the end of the year,” said International Paper’s vice-president of European papers Eric Chartrain.