Scottish Industrial Energy Transformation Fund opens for applications


A new £34 million Scottish Industrial Energy Transformation Fund has been launched to help manufacturing industries reduce energy costs and emissions.

Scottish businesses at industries where energy usage makes up a significant part of production costs can apply for match funded grants of more than £125 000 to invest in energy efficiency and low-carbon technologies.

Scotland’s Energy Minister Paul Wheelhouse commented on the announcement: “Our industrial and commercial sector have a vital role to play in helping meet Scotland’s world-leading climate change targets, including our strategy target for a 75% reduction in emissions by 2030, and improving industrial energy efficiency will be a significant part of that.

“The SIETF will support Scottish manufacturing industries transition to a low carbon future, not only helping businesses cut emissions but also reducing their energy costs.

“The support can be used to invest in a wide range of technologies, including systems to recover and re-use heat from an industrial process and technology to reduce the amount of energy used within a manufacturing production line.

“The fund will prioritise the most energy-intensive industrial sectors in Scotland – cement, ceramics, chemicals, food and drink including whisky and spirit distilleries, glass, iron and steel, paper and pulp, and oil and gas refining – to overcome the challenges associated with investing in energy efficiency or decarbonisation measures.”

The fund is distributed via two competitions, one for energy efficiency measures and one for feasibility and engineering studies to develop energy efficiency and deep decarbonisation projects to then deploy.

Cat Hay, Food and Drink Federation Scotland Policy and Industry Liaison Manager, commented on the scheme: “Food and Drink Federation Scotland welcomes the launch of the Scottish Industrial Energy Transformation Fund as a crucial step towards stimulating investment in low carbon solutions for industry.

“This fund will provide an opportunity for forward-looking food and drink manufacturers to co-invest alongside Scottish Government to improve energy efficiency and contribute positively to reducing emissions.”

The Scottish Industrial Energy Transformation Fund closes for applications at 5pm on 26 February 2021.

More information about the fund and how to apply is available on the Scottish Government website.