Lactalis says the move will lower both energy costs and CO2 emissions.
BasePower, which will develop and build a fully containerized CHP system on The Caledonian Cheese Company manufacturing site, has financed the agreement.
BasePower will oversee the scheme’s operation, which is projected to generate 77% of all the site’s electricity consumption, supply 24% of heat usage, and save at least 2,000 tons of CO2 per year. With construction already under way, the project is targeted to be operational by December 2016.