Groupe Lactalis, the global leader in cheese and the second largest dairy company worldwide, has made a commitment to significantly lowering energy costs and CO2 emissions in an energy partnership with CHP developer BasePower. Lactalis has signed a Power Purchase Agreement for the installation of a Combined Heat and Power (CHP) system at The Caledonian Cheese Company in Stranraer, Scotland, whose brands include Seriously Strong Cheddar, McLelland Mature Cheddar and Galloway Scottish Cheddar, as well as several private label brands for leading UK food retailers.

BasePower, who will develop and build a fully containerised CHP system on The Caledonian Cheese Company manufacturing site, has financed the Power Purchase 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.

Mark Taylor, Group Managing Director, Lactalis McLelland said:
“In the face of increased competition and uncertain investment in UK energy infrastructure, we are delighted to be partnering with BasePower on this project which underscores our commitment to keep Lactalis at the forefront of cost competiveness and environmental performance.”

George Fowkes, Director, BasePower added:
“This project at The Caledonian Cheese Company site is a perfect example of how energy-intensive industries like food and beverage manufacturing can really exploit on-site power generation to deliver energy cost savings. We are looking forward to working with Lactalis on their next stage of development as Scotland’s most innovative dairy manufacturer.”