It is seeking second stage funding of 5m to 10m. The project includes the building and operation of a pulp mill, paper mill, saw mill and renewable energy plant in Cromarty Firth, which could create up to 500 new jobs.

A spokeswoman for Forscot said the funds would be used to secure the site. She said the firm would look to seal a deal for the site within the next few months.

The funds will also be used for more technical research on the project, while at the same time the beginnings of a senior management team will also start to be put in place.
Once operational the plant will use Sitka Spruce trees, grown in Scotland and the north of England.