Infrastructure Investment Plan 2021-22 to 2025-26: programme pipeline update - March 2023

This pipeline provides information relating to key major infrastructure programmes with an investment of £20 million or more included at Annex D of our Infrastructure Investment Plan, published in February 2021.

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Sector: Low carbon manufacturing

Programme name: Low Carbon Manufacturing Challenge Fund (LCMCF)

Programme description: New Challenge Fund that will support Scottish manufacturers' scope to innovate and drive the decarbonisation of manufacturing businesses.

Estimated total investment: £26 million.

How is programme being funded: Capital Funded.

Programme delivery timetable: 2022-23 to 2025-26.

Latest programme progress: Small amount of capital from 2021-22 has been used to fund a CivTech 6.0 Challenge to develop a tool to help manufacturers' baseline carbon emissions. At the completion of the CivTech accelerator phase, we signed a Pre-Commercial Agreement with a small Scottish start-up called iSumio to work towards a beta product by the end of 2022.

iSumio have now succeed in producing their beta product named Neoni® as a part of the Agreement and are seeking to test this with industry. We are continuing to work with the company to support this phase with an aim to move towards a full commercial launch of the product later this year.

We launched the Low Carbon Manufacturing Challenge Fund (LCMCF) in May 2022. The goal is the development of new products, services or technologies that will reduce emissions, energy consumption, waste production and decrease the use of raw materials in the manufacture, and/or end use of the existing alternative. Alternatively, we want to support the development of new business models based on the principles of a circular economy. Through circular supplies, resource recovery, product life extension or use of sharing platforms, for example.

Administered by Scottish Enterprise, LCMCF grants are for a minimum of £150,000 with £3 million made available across 2022-23. The first grant award of £750,000 to NorFrame was announced in December 2022 to support the establishment of a fully renewable energy powered factory to manufacture timber kit frames for homes, schools and commercial buildings. There continues to be a good level of interest in the Fund from industry with a large volume of proposals at various stages of the pipeline.

Contribution to economic development: The LCMCF will support development of new business models. These will potentially lead to new products that will drive low carbon transition in the Scottish manufacturing sector, drive collaborative development across supply chains of new manufacturing processes and technologies, develop options to enhance capacity in growth sectors and exploit opportunities in support of the transition to a circular, net zero carbon economy.

Contact for public enquiries: email:



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