The iconic Italianate village of Portmeirion has invested more than £1m to bring in biomass to heat the hotel and cottages.
Wood chippings will be used to create enough heat to warm Castell Deudraeth Hotel and the self catering cottages.
The money saved by switching to biomass will be invested in the village.
Portmeirion Ltd’s managing director Robin Llywelyn said, “We had to look at different ways to heat the buildings and supply hot water to the village.
“Even though we had considered different ways of doing this the biomass system, by burning chipped wood, was the most effective way to us.
“Like every other company, we had to look at different ways, to make effective savings and by installing a biomass system like this, we can invest more in the village in the future and continue to employ local people and invest in the community.”
The ESP Company from Shrewsbury are the main contractors and local companies like Mona Lifting from Anglesey and Keith W Jones from Llanfrothen are responsible for the work of placing the system and the building work.
Ian Roberts, the financial manager at Portmeirion said: “We are pleased to collaborate with local companies.
“This was an important element to us as a company, when we were preparing the project, that we support small local businesses and through that contribute to the rural economy.”
The system will be in place by January 2016 and will be processing heat and hot water for 90% of the buildings.
Meurig Jones, attractions manager of Portmeirion added: “In the words of our famous architect Sir Clough Williams-Ellis’ who built Portmeirion , we should Cherish the Past, Adorn the Present and Construct for the Future, and that is what we’re certainly doing with this project.
“The biomass system will reduce our carbon footprint and energy costs.”