Turning waste into opportunity

Based in Upper Bighouse, the company has invested £100,000 in the project as part of its wider ambition to achieve Net Zero by 2035. The new system forms a key milestone in a long-term decarbonisation strategy developed following a carbon audit that identified practical opportunities to reduce emissions across the business.

The investment highlights the important role that rural businesses can play in Scotland’s transition to a low-carbon economy. By making better use of materials already produced through its sawmill operations, GMG Energy is helping to demonstrate how circular economy principles can create environmental and economic benefits for rural communities.

Once fully operational, the system will reduce the moisture content of sawdust from around 35% to 10%, allowing it to be processed into renewable biomass briquettes for use in wood-burning stoves and heating systems. By processing the material on-site, the company expects to reduce transport requirements, lower associated emissions and increase the value of a by-product that might otherwise leave the business as a low-value material.

Malcolm Morrison, Director of GMG Energy, said:

“Following our carbon audit, we developed a realistic and achievable plan to reach Net Zero by 2035. A key part of that strategy was looking closely at how we could reduce emissions while making better use of the materials already produced through our sawmill operations.

“This project does exactly that. Instead of transporting wet sawdust long distances, we’re able to process it on-site, significantly reducing transport emissions and turning a by-product into a valuable renewable fuel.”

The automated system uses renewable heat generated through the company’s existing biomass infrastructure to dry sawdust before it is converted into briquettes. This approach not only improves operational efficiency but also supports the business’s ambition to create a near zero-waste operation by ensuring more of the timber processed on-site is fully utilised.

For rural and island businesses across Scotland, the project provides a practical example of how innovation can unlock greater value from local resources while reducing environmental impact. It also reflects the growing focus on community resilience, sustainable production and decarbonisation across Scotland’s rural economy.

The project aligns closely with the ambitions of Scotland’s Climate Week, which celebrates climate action being taken by individuals, organisations and communities across the country. Through initiatives like this, rural businesses are helping to show how local solutions can contribute to national climate goals, reduce waste and support a more sustainable future.

Mr Morrison added:

“We’re producing a couple of tonnes of sawdust every week, so finding a better use for that material was an obvious opportunity. The new system dries the sawdust to the ideal level before converting it into briquettes that can be used in wood-burning stoves by customers across the region.

“It’s a great example of circular economy thinking in action. We’re reducing waste, creating a new income stream for the business and producing a renewable fuel that can stay within local communities rather than being transported hundreds of miles.”

With beta testing now underway, the new sawdust drying and briquette production system is expected to become fully operational in the coming weeks, bringing GMG Energy another step closer to its Net Zero ambition while highlighting the important contribution rural enterprises can make to Scotland’s climate transition.

Find out more: Visit the Scotland’s Climate Week website to discover how communities, businesses and organisations across the country are taking action towards a greener future: Climate Week | Net Zero Nation