CCF's grant comes in addition to the £350,000 already committed to the project by Tullis Russell and its separate company with charitable status, the Russell Trust.

The independent paper manufacturer will provide the land and maintenance for the proposed building at its Markinch, Fife-based paper mill where it is also due to begin building a £100m 45MW biomass combined heat and power (CHP) facility to replace an existing coal-fired plant this year.

Cash from the CCF will go towards building an eco education centre at the same site as the CHP facility to provide a resource for schools and community groups to learn about sustainability and paper production.

The education centre will house a series of interactive displays and provide information on green issues to encourage visitors to reduce their own carbon footprint.

Tullis Russell marketing manager Malcolm Sinclair said: "The project is another significant step in our strategy to position ourselves as a leader in the production of environmentally friendly boards.

"It also links directly with our own plans to combat climate change through the construction of a biomass CHP plant."

Tullis Russell said the CHP plant, which is hoped to be in operation by 2012, will produce 6% of Scotland's renewable generation targets once up and running and will cut carbon emissions by 250,000 tonnes. 

Sinclair said: "As we celebrate 200 years of history, it is incredibly exciting to be involved in two such significant projects that focus so clearly on the future."