We use cookies to collect anonymous data to help us improve your site browsing experience.

Click 'Accept all cookies' to agree to all cookies that collect anonymous data. To only allow the cookies that make the site work, click 'Use essential cookies only.' Visit 'Set cookie preferences' to control specific cookies.

Set cookie preferences

Your cookie preferences have been saved. You can change your cookie settings at any time.

Policy

Energy efficiency

From
Acting Cabinet Secretary for Net Zero and Energy, +1 more … Acting Minister for Climate Action
Directorate
Energy and Climate Change Directorate
Topic
Energy, Environment and climate change, Housing
Policy actions  7 of 7

Scottish Industrial Energy Transformation Fund (SIETF)

SIETF funding for 2025 to 2026

The Scottish Government is open to expressions of interest regarding potential match-funding investment for industrial decarbonisation projects. We welcome proposals that can demonstrate significant reductions in greenhouse gas emissions such as through energy efficiency, switching fuel to a lower-carbon source or capturing carbon.   

This funding builds on the track record of the Scottish Industrial Energy Transformation Fund (SIETF). Its outcomes directly contribute to the priorities of the First Minister by:

  • reducing industrial emissions to tackle the climate emergency
  • growing the economy by attracting private investment
  • sustaining and creating jobs
  • creating more competitive and sustainable businesses

It aligns with our wider policy objectives in the Green Industrial Strategy (GIS) (September 2024).

Expressions of interest

Businesses with industrial decarbonisation projects at options appraisal, feasibility study, engineering study (FEED) or at deployment stage should contact one of the following to provide an outline of project information, depending on the location of the site:

Projects must be applicable to industrial manufacturing, production or processing sites, or data centres, within Scotland but we want to widen the opportunity to projects which connect outside a specific industrial site. More information on Standard Industrial Classification (SIC), Technology Readiness Levels (TRLs) and the scale and type of projects which could be supported is available through the agencies.  

Success will depend on knowledge of appropriate projects, therefore, the fund is streamlined to accelerate the rapid identification of projects which could deliver by the end of financial year 2025 to 2026. We are working with Scotland’s enterprise agencies to capture essential project information in a consistent format to enable appraisal. Two key criteria will focus on carbon emissions reductions (tonnes of CO2e saved, per year) and maximising implementation by March 2026. 

Timetable 

  • stage 1 -  February to March 2025: Expressions of interest to capture project data via agencies (closure Wednesday 19 March 2025)
  • stage 2 -  March to April 2025: Appraisal and short-listing of candidate projects. 
  • stage 3 - April to May 2025: Due diligence
  • stage 4 -  May to June 2025: Notification of outcomes and issue of draft grant offers (initial set**) 
  • June 2025: target commencement for projects**   
  • 31 March 2026: final date for all projects to complete, unless agreed otherwise on a case-by-case basis

Note. ** A review following stage 3 will determine if additional projects could be considered later during 2025.  

SIETF background

In October 2018, UK Government announced an Industrial Energy Transformation Fund providing of up to £315 million. Scottish Ministers opted to deliver a separate IETF in Scotland. In September 2020, our Programme for Government announced that £34 million would be made available for capital projects..

The importance of shared objectives to meet climate change targets ensures that we work closely with other UK administrations on the SIETF. Yet a distinct fund allows flexibility towards the specific characteristics of Scotland’s industrial manufacturing base.

About the SIETF

As well as an environmental necessity, industrial decarbonisation is an economic opportunity – to grow our existing energy intensive sectors and to attract the manufacturing industries of the future. However, engagement with industry leaders has shown that there are significant barriers to attracting the necessary investment – particularly long payback periods – whilst sites must remain internationally competitive.

Via match-funding, the SIETF incentivises investment in existing sectors, building on their considerable strengths. SIETF-supported projects demonstrate government and industry are taking steps together to deliver against climate change plan targets by co-investing to decarbonise the industrial sites that local jobs and communities depend upon.

See case studies of projects funded to date.

For industrial sites in England, Wales and Northern Ireland, refer to the Industrial Energy Transformation Fund managed by the UK Government.

Our September 2023 Programme for Government reiterates our commitment to work with industry to accelerate decarbonisation and create energy transition opportunities via the SIETF, and we welcome the UK Government’s decision to grow IETF.

Closed invitations

The third call for projects for the Scottish Industrial Energy Transformation fund (archive link) closed in November 2022. 

The second call for projects of the Scottish Industrial Energy Transformation Fund 2021 is accessible (archive link). 

Scottish Industrial Energy Transformation Fund 2020 competitions can also be viewed in the archive:

Contact

Please email enquiries to SIETF@gov.scot.

Back to top