Investment to help industry decarbonise

£3.4 million awarded as applications for funding re-open.

The first recipients of a fund set up to help Scotland’s manufacturing industries reduce emissions have been announced.

Eight companies will share £3.4 million through the first round of the Scottish Industrial Energy Transformation Fund (SIETF), with additional private funding bringing total investment across the projects to more than £10 million.

Projects awarded funding include the conversion of gas combustion furnaces to a cleaner, oxy-fuel system at a glass manufacturing plant, and a feasibility study into capturing CO2 during the fermentation process at a whisky distillery.

They will reduce emissions by an estimated 14,000 tonnes of CO2e a year by the time they are completed, saving the equivalent of the annual emissions from 5,200 households.

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

Net Zero and Energy Secretary Michael Matheson said:

“Bold, urgent and collective action is required across all sectors to ensure we become a net-zero economy by 2045 at the latest.

“The Scottish Industrial Energy Transformation Fund is providing substantial, tangible support to help industry and our manufacturing sector decarbonise in response to our climate targets.

“The Fund will support a wide range of manufacturing companies to commit to lowering emissions and future-proofing their operations. I hope many more will follow suit and look forward to the next round of applications supporting just that.”

UK Accounting Manager of O-I Glass Limited Paul Boreham said:

“‘The Oxy-fuel furnace will enable O-I Glass to increase its UK spirits production, taking away demand for glass from other countries. SIETF funding will enable us to successfully complete this project, boosting Scotland’s manufacturing industry, for the community and workforce alike.’


The Scottish Industrial Energy Transformation Fund was launched on 11 December 2020.

The application window for a second round of SIETF funding will remain open until 17th December 2021. It has an expanded scope to include more industrial sectors and welcomes enquiries from projects or studies to improve energy efficiency at industrial sites, or to decarbonise heat through measures such as fuel switching.

The first recipients of SIETF funding are detailed below.






Grant offered: over £1m

OI Glass




Convert traditional gas combustion furnaces into oxy-fuel furnaces

Grant offered:  £500k - £1m

Chivas Brothers


Food and drink


Mechanical and thermal vapour recompression




North Ayrshire

New air compressors and control system

Grant offered:  £250k – £500k

Guala closures Group


Materials (for food and drink sector)

Glasgow City

New spray paint and curing oven assets

Grant offered:  £125k – £250k



Food and drink


Heat recovery from distillation and new compressor refrigeration system



Data centre

Dundee City

Replace cooling equipment and implement cold aisle containment

Graham’s Family Dairy


Food and drink


Upgrade steam production and heat distribution infrastructure

Grant offered:  under £125k (study only)

MacDonald & Muir


Food and drink


Synthetic methane from hydrogen and fermentation CO2

Scottish Government grants are match-funded by industries who provide a greater proportion of project investment costs.


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