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West Highland Hotel saves nearly £20k on its energy bill by installing new biomass boiler

The West Highland Hotel in Mallaig, Scotland, is saving almost £20,000 a year on its energy bills thanks to the installation of a new biomass fuelled boiler - funded by a the Scottish Government SME Loan

The 40-bedroom West Highland Hotel is located in the fishing village of Mallaig on the West Coast of Scotland - offering guests incredible views over the islands of Skye, Rum and Eigg. The hotel is committed to reducing its carbon footprint and is taking steps to reduce its environmental impact through the Green Tourism Scheme.

The hotel management contacted Resource Efficient Scotland to identify the options that were available to improve the hotel’s environmental sustainability while reducing its energy overheads. Resource Efficient Scotland specialists provided a free report detailing the energy savings, capital investment and payback period of upgrading the hotel’s gas boiler to high efficiency biomass fuel.

Equipped with this information, the hotel applied for the Scottish Government’s SME loan to fund the upgrade. The boiler is saving the business almost £20,000 on its annual energy bill, and is enabling the hotel to remain open in the winter, which is providing a valuable new revenue stream.  

“The support from Resource Efficient Scotland and the funding we obtained through the SME loan was critical in allowing us to go ahead and install our biomass boiler. The support that we received was excellent and made the entire process from application to installation extremely straightforward. The loan has allowed us to extend the period that the hotel is open for and allow our guests to experience a West Highland winter in luxury and comfort”. Sine Davis, West Highland Hotel

The Scottish Government’s SME loans offer businesses up to £100,000 to make savings to their energy, waste and water equipment systems. Resource Efficient Scotland’s expert advisors support applicants at every step of this process, from planning and funding to implementation. The West Highland Hotel also received support to install low-energy lighting and movement sensors, and employ a temporary member of staff to oversee the changes. Resource Efficient Scotland is continuing to support the hotel’s plans to enhance energy efficiency by replacing existing electric heating in the bedrooms with a wet heating system, which could see savings double to nearly £40,000.


We are here to support your business

Our support to reduce your business costs through food waste prevention and reduction are funded by the Scottish Government and by the European Regional Development Fund through the £73 million Resource Efficiency Circular Economy Accelerator Programme.

If you are interesting in saving energy, and reducing your operating costs, get in touch with our team. Advice is free and impartial. We can provide a free report to help you prioritise your projects. Just call 0808 808 2268 or email


There are other hospitality case studies that show how other operators have cut their resource use. Working with Boat Hotel we found the opportunity to save £48,000 on energy.

As hospitality goes hand in hand with food service, finding ways to prevent food waste and improve margins is often at the top of the agenda.  Here are just a few of the many businesses we’ve supported to prevent food waste and make savings; Westerwood Hotel, Crieff Hydro and Salutation Hotel.




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