12 June 2012 Last updated at 06:37 ET

Abandoned Caithness heat plant resurrected by Ignis Biomass

Chap had burned waste wood in a biomass boiler

A company has officially taken over a district biomass heating scheme that was abandoned by Highland Council.

Caithness Heat and Power (Chap) was launched in 2004 to provide a wood fuelled heating system to up to 500 houses in Wick.

But the £13.8m project experienced technological and financial problems in 2009 and was later scrapped.

New owner Ignis Biomass said it would start providing low-cost heat to about 200 homes from October.

Following the collapse of Chap, the households it had supplied switched to an oil-fired heating system.

From autumn, Ignis Biomass plans to heat their homes through low carbon emitting biomass energy production.

One of its customers is Inver House Distillers' Pulteney Distillery in Wick.