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The Isle of Barra Distillers has received permission to build a new £12m gin and whisky distillery at Eoligarry, Isle of Barra.

The new building will include a distillery hall, service plant, service yard, office accommodation, cafe/restaurant, shop and tasting room.

According to the company’s economic impact assessment, the project will contribute £44m over 25 years in cumulative gross value added in the region, while growing the Scottish whisky sector, supporting the local supply chain and visitor economy, and attracting talent.

It is anticipated that when fully operational, the distillery will produce 800 casks (200 litres) per annum across its core range of single malt whiskies, as well as more limited offerings, such as the Grain to Glass series, whereby the distillery has plans to grow the grain to be used onsite.

The company has also set up the Isle of Barra Distiller Foundation, which has committed to donating/investing 1% of all future net profits to supporting projects on Barra.

“The Isle of Barra Distillery is keen that the local community are engaged and provided an opportunity to help shape the projects – the focus being on delivering benefits for the local people and communities,” the statement read.

“In the longer term, by year 13 of operation, the aim is for the foundation to fund the construction of six affordable homes on the island, which will be sold at cost price to young families to ease housing affordability on the island.”