Businesses receive £7.2m in government funding for carbon-cutting projects

Scottish businesses have been awarded £7.2m in government funding to help grow their innovative energy-saving projects.

The Scottish Industrial Energy Transformation Fund (SIETF) supports projects that aim to reduce carbon emissions that are created during energy-intensive manufacturing processes.

This set of grants has been awarded to nine projects across a range of businesses – including food and drink manufacture and timber pallet processing – leveraging private funding to reach a total of £19m of investment.

First Minister John Swinney visited Chivas Brothers Strathclyde Distillery in Glasgow – which produces grain whisky for blends including Chivas Regal and Ballantine’s – to see new Mechanical Vapour Recompression (MVR) technology, supported by a £3.1m grant from the latest round of SIETF.

The company says this will reduce carbon emissions for the distilling process by more than half and reduce energy usage by over 46,000 Megawatt hours per year – enough energy to power 17,000 homes for a year.

The First Minister said: “Growing the economy and tackling the climate emergency are two of my priorities in Government. Projects like the one at the Strathclyde Distillery will be essential in helping us meet our climate change ambitions and promote sustainable economic growth across Scotland – by supporting our existing energy intensive sectors and attracting the manufacturing industries of the future.

“With an average ratio of £1 of public to £1.75 of private funds, the Scottish Industrial Energy Transformation Fund has been incredibly successful in leveraging investment across industrial sites to accelerate adoption of low-carbon, energy efficient technologies. The fund also delivers business benefits through energy-related manufacturing savings.

“The SIETF demonstrates how 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.

“We will continue to work closely with industrial sectors to support the progression of projects to decarbonise Scottish manufacturing.”

Production director at Chivas Brothers Brian MacAulay, said: “This grant from the Scottish Government via SIETF validates our approach to decarbonisation and our commitment to shaping the future of sustainable Scotch.

“It is only by embracing innovative solutions and working together with specialist partners like GEA Wiegand that we can reduce our environmental impact, while also ensuring the longevity and resilience of the Scotch whisky industry for generations to come.”

Mark Kent, chief executive of the Scotch Whisky Association said: “How the Scotch whisky industry will achieve emissions reduction will be as diverse as our distilleries and locations.

“Each site will have different challenges, but through support from the Scottish Government with grants like SIETF, distilleries can accelerate decarbonisation in their own operations towards our shared industry goal of 2040.

“As an industry with a strong track record delivering environmental improvement, we are determined to achieve net zero emissions in our own operations and supply chains as fast as possible. Innovation, collaboration and an enabling policy framework will enable us to continue to celebrate and produce Scotch Whisky for the long term.”