Working in partnership with Iona Capital and Keithick Bioga, SGN says the first commercial green gas project in Scotland will come into operation later this year.
SGN, which is responsible for the local gas distribution network, will clean up more than 5 million cubic metres of biogas produced by the anaerobic digester and inject the resulting biomethane directly into the gas network.
At maximum capacity the plant will provide enough renewable gas for up to 5,000 homes in the summer and 1,500 in the winter.
The anaerobic digester at Keithick will produce this biogas from over 36,000 tonnes of whole crop rye, maize, sugar beet off-cuts, raw silage and vegetable wastes each year. This fuel will be sourced from Keithick Estate, and other local farms and businesses.
Iona has been already been involved in the development of AD infrastructure in the UK, having financed eight AD plants in England, Scotland and Wales.
The AD plant is being supplied by MT-Energie, a German producer of turnkey biogas plants.
Robert Wilby, SGN’s head of business development, said: “Greening the gas, by connecting distributed sources of renewable gas to our network as we are in Coupar Angus, is at the heart of our long-term vision of an enduring and sustainable gas network. It’s a key part of our strategy, and also central to decarbonising the UK’s heat supplies.”