Publication - Advice and guidance

Scottish Industrial Energy Transformation Fund - 2nd call: guidance

Last updated: 25 Nov 2021 - see all updates
Published: 5 Oct 2021

Guidance and forms for the 2nd call (autumn 2021) of the Scottish Industrial Energy Transformation Fund (SIETF) to provide grant funding to reduce energy costs and emissions through increased energy efficiency.

Scottish Industrial Energy Transformation Fund - 2nd call: guidance
Pre-application information

Pre-application information

You should read all the guidance in this section before starting an application within the competition that is relevant to your project.

Key eligibility criteria

Proposals for energy efficiency and deep decarbonisation deployment projects must:

  • improve energy efficiency, and/or decarbonise, an industrial process at a site located in Scotland
  • following installation and commissioning of the energy efficiency or decarbonisation measure. The technology must already be proven to work through test and demonstration and/or successful operation. Previous test and demonstration and/or successful operation of the technology does not have to have been at the applicants site
  • the project will not go ahead in its current form without SIETF funding. Applicants will be required to state how the project, in the form and to the timetable as proposed, is additional to what would have taken place, or is expected to take place, without SIETF funding. Further guidance is provided in the application forms

Further detail on feasibility and FEED eligibility criteria can be found in the eligibility section.

Type of application

Minimum grant threshold

Maximum grant threshold

Maximum subsidy intensity

Large / Medium / Small company

Start by

Complete by

Feasibility study

£20,000

£7 million

50% (L)

60% (M)

70% (S)

01/05/2022

31/03/2023

Engineering study (FEED)

£40,000

£14 million

25% (L)

35% (M)

45% (S)

01/05/2022

31/03/2023[1]

Energy efficiency deployment

£100,000

£14 million

30% (L)

40% (M)

50% (S)

01/05/2023

31/03/2025[2]

Decarbonisation deployment

£100,000

£20 million

50% (L)

60% (M)

70% (S)

01/05/2023

31/03/2025

 

To be eligible for this competition, the lead applicant must carry out an eligible industrial process. The business SIC code should fall into the following category:

  • manufacturing SIC codes 10000 to 33200
  • data centre 63110
  • new - mining and quarrying SIC codes 05101 to 05200; 07100 to 08900 and 09900
  • new - recovery and recycling of materials 38320

If you are requesting a deployment grant that exceeds £2.5 million, or a study grant that exceeds £100,000 you must inform Scottish Government before submitting an application. Please email SIETF@gov.scot at least 20 working days before the competition closes, stating the technology your project is focusing on and the total grant you expect to apply for. Note that these are not the maximum grant thresholds under each competition, but this step is necessary to inform Scottish Government in advance of application window closure of potential projects that may wish to access a relatively large proportion of available funds.

Lead applicant

To lead a project or work alone, your organisation:

  • must be a business of any size registered in the UK that operates at a manufacturing site with SIC codes, as above, in Scotland where the project is carried out. Check your business SIC code
  • can collaborate with other businesses, research organisations, research and technology organisations (RTO), academic institution or public sector organisations which must all be registered in Scotland or other parts of the UK
  • cannot be an undertaking in difficulty

Third parties (for example, a consultancy or an Energy Service Company) may prepare an application on behalf of the lead applicant. However, the grant provider will not have a legal relationship with or pay money to a third party, or anyone other than a lead applicant

Company SIC code versus manufacturing site SIC code:

  • some large companies will have various entities and the manufacturing site may be managed by an entity with non-eligible SIC code
  • if you belong to a larger company who has a non-eligible SIC code, but a site contains manufacturing, then your project may still be eligible subject to providing clear information that the process/activities which the project or study will address match an eligible SIC code

Relationship between technology provider and manufacturing site:

  • in some instances, a technology provider may propose installing and operating an energy efficiency technology at a manufacturing site and the site either does not pay capital costs up front, or does not pay for the technology at all. The fund will accept applications using this business model 
  • if the lead applicant is not the owner of the capital investment, this should be transparent in the application form. Information regarding the contractual arrangements between site and technology provider will be reviewed as part of the application process and The Scottish Government may seek additional clarifications regarding deliverability and risk

Consortia

To collaborate with the lead, an organisation can be a business of any size, a research organisation, RTO, an academic institution or a public sector organisation.

The lead must claim funding by entering their costs during the application. If the lead is collaborating with other organisations, then the lead and at least one other partner must claim grant funding and enter their costs into the application form. Further clarification, in finance section.

Each partner organisation must be invited to participate by the lead to collaborate on a project. Partners must enter their own project costs into the application.

Your project can include partners that do not receive any of this competition funding, for example non-Scottish or non-uk businesses. Their costs will count towards the total eligible project costs.

Working with an overseas partner:

  • you can work with international partners, but they can't claim grant unless they are registered in the UK
  • you can also use international subcontractors, though in your application form you should explain why you need to use an international rather than UK-based company

Subcontractors

Subcontractors are allowed in this competition and can be from anywhere in the world. We would expect subcontractor costs to be justified and appropriate to the total eligible project costs. You must make sure they are sufficiently qualified for their role.

 

[1] SG will consider approaches from studies that are within eligible scope but are expected to be delivered beyond this date.

[2] Projects must have installed and begun to operate (or be ready to operate after commissioning) the technology deployed and therefore have drawn-down all capital funds.


Contact

Email: SIETF@gov.scot

First published: 5 Oct 2021 Last updated: 25 Nov 2021 -