The Wood Pellet Manufacturing Facility aims to produce 10,000 tonnes of pellets every year from locally produced wood for the local heat market. This would displace over 5 million litres of heating oil. As demand increases the plant would have the capacity to increase that output.

Charlesfield First obtained outline planning consent for the facility in December 2009 along with the Combined Heat and Power (CHP) plant. Charlesfield First and Charlesfield Fuels Limited are now bringing together the finance for the project in tandem with the CHP plant in order that the benefits to the local economy can be delivered.

Charlesfield First is working with the Borders Machinery Ring (BMR) which is looking to identify under-utilised woodlands throughout the Borders, and is looking to support the creation of a supply and distribution network for the pellets. This will provide extra income for farmers with woodlands, and create and sustain jobs in the forestry industry.

Charlesfield First is also exploring with the local Housing Associations, Scottish Borders Council and Scottish Enterprise the use of renewable heat through the use of boilers fuelled by wood pellets and the creation of a local heat network using the heat supply from the CHP plant. The Renewable Heat Incentive consultation announced by the UK Government on 1st February 2010 may act as an added stimulus as well as the impact of the Carbon Reduction Commitment which becomes effective in April 2010.