Nicol Stephen at the new Musselburgh site
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A hi-tech biomass heating plant is to power a £50m state-of-the-art Queen Margaret University College campus planned for a site in Musselburgh.
Scotland's new higher education campus will be able to harness renewable energy as well as provide cutting-edge facilities for 5,000 students.
A £400,000 grant from the Scottish Funding Council will pay for the plant.
Deputy First Minister Nicol Stephen said it was an important development for Scottish education and environment.
Mr Stephen said: "Queen Margaret University College should be congratulated not only for their ambitious plans to build this state-of-the-art campus but for incorporating sustainability in every aspect.
"This first new higher education campus to be built in a generation will be a lifelong learning hub for its students and the local community.
"It will also provide a welcome economic boost with employment attributable to the new campus of around 1,200 and approximately 500 jobs on site during the construction phase. "
He said the college was the first higher education institute in Scotland to embrace biomass technology, and predicted that it would encourage other similar projects throughout the country.
Such schemes have a "vital role" to play in reducing our carbon emissions, he added.
"I'm also delighted to hear their plans to increase their participation in research and development.
"With such a forward-thinking approach to their students, building and the local community, I believe that this campus will be a huge success and will help attract new businesses it the area."
Scottish economy
Current QMUC sites at Corstorphine and Leith are at full capacity and not suitable for redevelopment.
A QMUC spokeswoman said: "The institution has the potential - estimated by the Fraser of Allander Institute - to boost the local economy by £32m, and the Scottish economy by some £90m."
Construction work started in autumn 2005, and the new campus is due to open in autumn 2007.
Biomass technology uses renewable energy resource derived from sources such as timber industry bi-products, agricultural crops, raw material from the forest and major parts of household waste and food.
Biomass does not increase carbon dioxide in the atmosphere as the raw material absorbs the same amount of carbon in growing as it releases when consumed as a fuel.