Companies receive £9.4m to help cut carbon

Ten companies have been awarded a total of £9.4 million to help Scottish industries reduce carbon emissions through decarbonisation and energy efficiency projects.

The recipients from the second round of the Scottish Industrial Energy Transformation Fund (SIETF) are predominantly involved in the manufacturing and food and drink sectors.

The projects include a more energy efficient dryer at a seaweed processing facility, whilst several brewers and whisky distilleries will also receive funding for projects that aim to reduce the emissions that are created during energy-intensive manufacturing processes.

The projects awarded funding have the potential to reduce emissions by 40,482 tonnes of CO2 a year, the equivalent of the annual emissions from 17,000 households.

A further £160,000 has also been made available to conduct up to four engineering or feasibility studies into future projects that will aim to reduce emissions and increase efficiency within the sector by creating a pipeline of future projects.

First Minister Nicola Sturgeon announced the funding while visiting Graham’s Family Dairy, where previous SIETF funding allowed them to upgrade steam production and heat distribution infrastructure.

The First Minister said:

“Reducing emissions in our manufacturing sector will be a crucial step in ensuring Scotland reaches its net zero target by 2045.

“I am pleased that the Scottish Industrial Energy Transformation Fund continues to support companies across the sector to embrace decarbonisation, improve efficiency and reduce their impact on the environment.

“This week is Scotland’s Climate Week, which puts a renewed focus upon the ongoing climate emergency and our efforts to tackle it. And as households and businesses struggle with rising energy costs, it has never been more important to support industry to become more energy efficient.

“I welcome the work that the Fund has already supported and I hope that many more businesses will apply in the future.”

Up to £34 million of Scottish Government funding will be made available through the lifetime of the five-year SIETF, which runs until 2026. The third round of applications is now live.

Robert B Graham, Managing Director at Graham’s Family Dairy said:

“The SIETF programme has enabled us to accelerate our industrial decarbonisation programme, driving energy efficiencies and reducing waste. SIETF funding support has meant we have been able to deliver a number of process decarbonisation projects in parallel, to achieve scalable impact across our supply chain and share results to support Scottish industry & businesses with their journey to net zero.”

Peter Davison and Kieran Healey-Ryder from the Sustainability Leadership Team at Whyte & Mackay, which has secured second round funding, said:

“As whisky makers we believe in a sustainable future for what we do here on Jura. This Scottish Government programme is a galvanising platform for industry to come together and solve for a green future right across these islands.

“This grant will accelerate our journey towards a sustainable future for whisky making here on Jura.”

Background

The Scottish Industrial Energy Transformation Fund was launched on 11 December 2020. The first recipients of SIETF were announced on 8 October 2021.

SIETF supports industrial sites with high energy use to transition to a low carbon future. It will improve the international competitiveness of many companies whilst protecting jobs. The application window for the third round of projects will remain open until 18 November 2022.

The second round of recipients of SIETF funding are detailed below: