Scottish Industrial Energy Transformation Fund - competition 2: feasibility and front-end engineering design studies - form and guidance

Scottish Industrial Energy Transformation Fund (SIETF) funding invitation for the Feasibility and Front-End Engineering Design (FEED) studies competition which must aim to improve the energy efficiency and decarbonisation of industrial processes.

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Applying for study funding


We will fund feasibility projects, industrial research projects and experimental development projects.

Feasibility study

A feasibility study is defined as the evaluation and analysis of the potential of a project, which aims at supporting the process of decision-making by objectively and rationally uncovering its strengths and weaknesses, opportunities and threats, as well as identifying the resources required to carry it through and ultimately its prospects for success. A feasibility study must:

  • investigate specific technologies or a set of potentially applicable technologies to improve the energy efficiency or decarbonise an industrial process  
  • conclude (affirmatively or negatively) the technical and commercial viability of the potential project

Engineering study

An engineering study is a detailed project plan that identifies specific technical requirements. The final report will be an overall document, summarising many separate studies that will have been carried out by different specialists. It is a structured, multi-disciplinary engineering design with the purpose of identifying key project design features and providing a project cost estimate. An engineering study must:

  • provide sufficient detail to enable a final investment decision on the project

In order to achieve the above, we would expect an engineering study to include appropriate consideration of:

  • technical approach
  • carbon reduction and other benefits analysis
  • health and safety
  • planning and consenting
  • environmental impacts
  • economic analysis
  • project delivery requirements and scheduling
  • project risks


Companies conducting studies must consent to produce a publishable case study. This will be for the purposes of knowledge sharing. It will be made publicly available by Scottish Government for the benefit of other companies in the sector or wider sectors. Individuals/ organisations conducting studies on behalf of eligible businesses must be sufficiently qualified to deliver products that meet the above feasibility and engineering study requirements.

For feasibility studies that involve effective knowledge dissemination, you could receive funding for your eligible costs of:

  • up to 70% if you are a micro or small organisation
  • up to 60% if you are a medium-sized organisation
  • up to 50% if you are a large organisation

For experimental development, you could receive funding for your eligible costs of:

  • up to 45% if you are a micro or small organisation
  • up to 35% if you are a medium-sized organisation
  • up to 25% if you are a large organisation

For industrial research, you could receive funding for your eligible costs of:

  • up to 70% if you are a micro or small organisation
  • up to 60% if you are a medium-sized organisation
  • up to 50% if you are a large organisation

Read the definitions of different organisation sizes.

Effective knowledge dissemination is expected from studies. For engineering studies, doing so increases aid intensity eligibility by an additional 15%.

Funding provided under this competition must be compliant with EU state aid Article 25, ‘aid for research and development projects’ of the General Block Exemption Regulation (GBER). It is your responsibility to make sure that your organisation is eligible to receive state aid.

To receive aid, you cannot be considered an ‘undertaking in difficulty’. You cannot apply for, or obtain, duplicate funding in respect of the funded activities covered by the grant. Duplicate funding means funding provided by another source for the same activity. Any match or pooled funding, where declared, will not be duplicate funding.

Applicants cannot combine funding of the SIETF with other forms of state aid received for the study (i.e. for the same eligible costs) if this would result in the aid intensity and aid amount permitted by the GBER being exceeded.

Any research organisations in your consortium undertaking non-economic activity as part of the study can share up to 20% of the total eligible costs (note that this stipulation takes precedence over the general guidance for applicants). If your consortium contains more than one research organisation undertaking non-economic activity, this maximum is shared between them. Research organisations include: Universities, non-profit research and technology organisations, public sector organisations, public sector research establishments, research council institutes, research organisations and charities.   

You are expected to seek the minimum amount of grant required for the project, not the maximum available. Once submitted, the costs in an application cannot be revised.

Read more information on state aid, including aid intensity, undertakings in difficulty, and company size definitions.



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