Just Transition for the Grangemouth industrial cluster: discussion paper

Current Scottish Government Funding Offers

We continue to devote significant funding to support the energy transition all across Scotland, and this includes: our £500m Just Transition fund – which is already delivering projects – the £75m made available through our Energy Transition Fund; £300m via our Heat Network Fund; and up to £100m capital funding programme through our Hydrogen Action Plan.

In Grangemouth we are seeing investment deployment, through a combination of major public and private investment initiatives, including the Growth Deal at £140m.

Beyond this, during this Parliament, we are investing up to £60 million to support industrial decarbonisation:

• Through the Low Carbon Manufacturing Challenge Fund. With Scottish Enterprise, we fund a CivTech Challenge to help manufacturers decarbonise, build resilience, strengthen competitive advantage and support low-carbon markets.
• Through the Scottish Industrial Energy Transformation Fund (SIETF) which co-invests with a diverse range of Scottish manufacturers to reduce energy costs and emissions through increased energy efficiency and deep decarbonisation.

The 2022 Programme for Government committed us to continue SIETF which leverages over £100m of total investment to directly reduce emissions from industrial processes. The fund in its current form should cut manufacturing sector industries emissions by c. 0.15Mt CO2e.

Our SIETF programme continues to receive significant applications from a wide range of industrial manufacturing sectors across the country. By enhancing energy efficiency it cuts energy costs, in particular for Scotland’s diverse food and drink sector.

Up to 2022, over 20 projects have been offered grants totalling £12m with many more to be offered during 2023. The programme will be reviewed prior to further invitations to apply.