A MULTI-million pound biomass plant will be unveiled today at the Tullis Russell paper manufacturing plant in Fife, safeguarding hundreds of jobs and reducing thousands of tonnes of carbon emissions in the process.

RWE, one of Europe's biggest renewable companies, has built and will operate the combined heat and power plant in Glenrothes.

Replacing an outmoded coal and gas fired power station on the Markinch site, parts of which date back to the 1950s, the plant will provide all of Tullis Russell's heat and electricity requirements, with a sizeable surplus then sold to the local grid.

It is believed the facility, backed by an £8.1 million Regional Selective Assistance grant, will reduce carbon emissions by as much as 250,000 tonnes of carbon dioxide a year.

RWE, which is Europe's second biggest hydro developer and a significant player in onshore wind in Scotland, will operate the plant. It will sell power to Tullis Russell, which is now able to demonstrate to global clients that it has the same low carbon credentials as its competitors.

The move to a more efficient power source will help safeguard as many as 500 jobs at the employee-owned business, which will see its power bill halve.

RWE said it will employ a team of 40 to maintain the plant. As many as 600 staff worked on the project, which began in 2009, at peak times.

Ian Calvert, head of biomass at RWE Innogy, said the scale of the project is startling. "It's just been big. People might get fooled by the fact it is embedded in Glenrothes. It's quite a constrained site - that's been one of the challenges - and it's been an operating paper mill all the time we have been building the plant here. But is quite a significant development."

Chris Parr, chief executive of Tullis Russell, said: "This has been a major project for Fife and our business, the importance of which cannot be overstated.

"The plant delivers a modern, economical and sustainable source of renewable power for Tullis Russell, reduces our carbon emissions by 72 per cent, and helps to safeguard the future of the 500 jobs at our Markinch base."