Scottish Industrial Energy Transformation Fund (SIETF): winners and case studies

Summary of Scottish Industrial Energy Transformation Fund (SIETF) competition winners for 2021 and 2022, along with case studies.


Read more about the Scottish Industrial Energy Transformation Fund (SIETF).

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Competition winners 2021

Name

Competition

Sector

Location

Technology

MacDonald & Muir Ltd (Glenmorangie)

Study

Food and drink

Highland

Synthetic methane from hydrogen and fermentation CO2

Chivas Brothers Ltd

Deployment

Food and drink

Aberdeenshire

Mechanical and thermal vapour recompression

GlaxoSmithKline (GSK)

Deployment

Pharmaceuticals

North Ayrshire

New air compressors and control system

Brightsolid Online Technology

Deployment

Data centre

Dundee City

Replace cooling equipment and implement cold aisle containment

O-I Glass

Deployment

Glass

Clackmannanshire

Convert traditional gas combustion furnaces into oxy-fuel furnaces

Graham’s Family Dairy

Deployment

Food and drink

Stirling

Upgrade steam production and heat distribution infrastructure

BrewDog PLC

Deployment

Food and drink

Aberdeenshire

Heat recovery from distillation and new compressor refrigeration system

Case studies

MacDonald and Muir Ltd (Glenmorangie): Synthetic Methane from Hydrogen and Fermentation CO2

  • study competition
  • local authority area: – Highland

Glenmorangie distillery in Tain, Ross-shire, produces single malt whisky. In a distillery, there are two main contributors to carbon emissions: from combustion of fossil fuels to generate steam/heat and, although in a closed carbon cycle, the CO2 generated and released during the fermentation process.

With project partners Mabbett and Associates and MAN Energy Solutions, the project aims to study the feasibility of installing a 1MWe (electric) plant that collects/ captures the CO2 that is generated (and although in a closed carbon cycle, is normally released to atmosphere) in the fermentation process and converts it to synthetic methane by combining it with hydrogen created through electrolysis using renewable electricity. The main output will be a feasibility and engineering study report containing an assessment of the benefits and challenges of the proposed concept, including capital and operating costs. This will enable a decision as to whether to progress to deployment.

The company estimate that the 1MWe plant should reduce the Tain distillery’s emissions by 825 tCO2e (equivalent) or 6% per year. When scaled up to collect all CO2 from fermentation, a reduction of 39% of the emissions from heat generation would be made. Future expansion will allow the CO2 from the combustion of the synthetic gas to also be added to the system, making a reduction of 95% of the emissions from heat generation possible. This would also lead to the production of excess ‘green gas’ that can be supplied to other users.

BrewDog PLC: Heat recovery from distillation to pre-heat the boiler feed and new compressor refrigeration system

  • deployment competition
  • local authority area: Aberdeenshire

BrewDog is a brewery and pub chain based in Ellon, producing various types of ales and lagers. The company aims to deliver on-site energy savings through a suite of thermal efficiency improvements.

SIETF funding will enable the company to deliver two on-site projects: recovering heat from condensate to be used to pre-heat the brewery’s boiler feed, with the inclusion of thermal storage and installing a high-efficiency cooling system that will use a natural refrigerant, reducing carbon emissions from both the refrigerant and the energy consumed in the system.

The project has the potential to achieve greenhouse gas emission savings in the region of 250 tCO2e per year and anticipated energy consumption savings in the range of 968 MWh to 1,276 MWh in 2022, rising to 1,166 MWh to 1,474 MWh from 2024 onwards due to an anticipated increase in the output of the brewery. The low-carbon model that the company is creating will provide a useful template for other businesses in the Scottish food and beverage sector.

Chivas Brothers Ltd: Deployment of MVR (mechanical vapour re-compression) and TVR (thermal vapour re-compression)

  • deployment competition
  • local authority area: Aberdeenshire

Chivas Brothers, a producer of branded Scotch whisky, will replace heat from an oil fuelled boiler using a combination of thermally and electrically driven heat pumps. The technology aims to recover 100% of the condenser heat and recycle it directly into the distilling process.

The project will be designed, procured and managed in house and involves installation of Mechanical Vapour Re-compression (MVR) on two wash stills and Thermal Vapour Re-compression (TVR) on two spirit stills, which will recover and upgrade heat currently being rejected from the condenser. The technology has already been successfully implemented on a still at one if its malt whisky distilleries.

By reducing the quantity of oil burned, greenhouse gas emissions from the site are expected to provide a saving of 3522 tCO2e per year. Energy consumption is projected to reduce by 54%. The project has the potential to provide lessons for other distilleries across Scotland and impact positively on the local and national food and drink industry.

GlaxoSmithKline (GSK): Compressor Energy Efficiency Project

  • deployment competition
  • local authority area: North Ayrshire

GSK is a British multinational pharmaceuticals company. The project will take place at GSK’s Irvine site, which produces antibiotic drugs, and involves the installation of two new, smaller air compressors with a wider operating range than the current compressor, along with a system to improve the operational control of the compressed air system.

The company, along with its contractor, Doosan Babcock, will manage the project, which utilises existing technology in the form of electrically driven air compressors. The compressors will be managed in a novel way to operate at the best possible efficiency for a given demand. The novel management technique will utilise the availability of various compressors of differing sizes to correctly and efficiently meet the changing demands, minimising energy wastage caused by the venting of excess compressed air. 

Delivery of this project will result in estimated emissions reductions of 603 tCO2e per year. The emissions savings associated with the project will increase as the UK grid continues to decarbonise, and as GSK prepares to introduce additional new on-site renewable energy, taking the site to 85% on-site energy generation.

Brightsolid Online Technology: Replace aging air conditioning equipment and implement cold aisle containment

  • deployment competition
  • location – Dundee

Brightsolid is a data centre which offers colocation and hybrid cloud solutions to both private and public sector clients. An SIETF grant will be used to replace ageing air conditioning equipment with more energy efficiency technology and implement cold aisle containment and LED lightning.

The implementation of cold aisle containment will optimise air flow and improve energy efficiency within the data centre, resulting in a reduction in energy use for cooling. Sensor activated, LED lighting will replace the existing manually controlled, fluorescent lighting system, bringing further energy savings.

It is estimated that the new Air Handling Units (AHUs)/cold aisle containment system will reduce the site’s energy consumption by 34%. Due to reduced electricity use on site, carbon emission savings are expected to be in the region of 134 tCO2 per year. SIETF grant funding for this project will directly support the continued availability of indigenous data centre capacity and Brightsolid’s commitment to operating an environmentally sustainable business.

Grahams the Family Dairy: upgrade steam production and heat distribution infrastructure

  • deployment competition 
  • local authority area: Stirling

Based in Airthrey Kerse Dairy in Stirling, Grahams is Scotland’s largest independent dairy, processing 165 million litres of milk a year along with a variety of other dairy products. The current steam production and distribution used in this production process has been identified as inefficient due to the arrangement (length) of steam lines. Therefore, the company aim to use this funding to install higher efficiency equipment relating to steam heat exchangers and steam distribution:

  • replacement of three existing steam ‘hot sets’ exchangers with a high efficiency plate heat exchanger
  • replacement of the existing combined steam and water mixing valves distribution system with a new ’Spirax EasiHeat’ hot water ring main distribution system throughout the dairy

The project will help to reduce the carbon emissions at the Dairy by 333 tCO2e/annum (gas emissions saving of 329 tCO2e/annum and a water consumption emissions saving of 4 tCO2e/annum). This equates to a 34% reduction in emissions from site gas consumption and a 19% reduction in emissions from site water consumption.

There is scope for similar technology to be replicated within both the dairy sector, as well as other industries that use steam for thermal energy transfer. The investment in this project is part of the Dairy’s wider ambition to transition to net zero by 2035.

O-I Glass: Convert traditional gas combustion furnace into oxy-fuel furnace

  • deployment competition
  • local authority area: Clackmannanshire

O-I Glass is a manufacturing facility in Alloa and supplies glass bottles to the UK drinks sector. The company aims to convert a furnace from the traditional gas/air method of combustion to gas/oxygen – reducing emissions. This will be the first Oxy Furnace in Scotland to service the drink and sprits sector and therefore a strategically important project.

The glass making process requires high temperatures to melt different materials together and this is presently carried out using natural gas fuel mixed with air. The project involved construction of a new furnace to replace the traditional gas-air combustion with an oxy-gas one. By doing this, a much better combustion efficiency will be achieved in the furnace along with a reduction of energy usage and emissions. Using pure oxygen requires lower volumes of Gas, in fact Gas-Air ratio is around 14:1 instead of 4:1 for gas-oxy. The project, therefore, would achieve a substantial saving in greenhouse gas emissions of almost 7,403 tonnes of CO2e per year

This is an innovative project which other large combustion facilities should be able to replicate given the feasibility of the technology used and the improvements in air separation technology. The emissions of greenhouse gasses will reduce over the coming years as the UK electricity grid decarbonises.

Competition winners 2022

Grant offered: over £2 million

Name

Competition

Sector

Location

Technology

DSM Nutritional Products Deployment

Food and drink

East Ayrshire Mechanical vapour recompression (MVR) technology
Whyte & MacKay

Deployment

Food and drink

Argyle and Bute Steam boiler with biomass fuel burner and flue gas purification

Grant offered: £1 million to £2 million

Name

Competition

Sector

Location

Technology

Pauls Malt Deployment

Food and drink

Angus The installation of a hot water network and combined heat and power (CHP)

Grant offered: £500,000 to £1 million

Name

Competition

Sector

Location

Technology

BrewDog Deployment

Food and drink

Aberdeenshire Food grade (green) CO2 production via CO2 capture
Carbon Capture Scotland Deployment Dry ice production Dumfries and Galloway CO2 feedstock recycling
Uist Asco Deployment Manufacturing Western Isles Installation of a more efficient dryer with heat recovery
UPM Deployment Manufacturing East Ayrshire Replace existing pumps with three energy efficient turbo blowers

Grant offered: £250,000 to £500,000

Name

Competition

Sector

Location

Technology

Diageo Deployment

Food and drink

Aberdeenshire Installation of high temperature heat pump
Macphie Deployment Food and drink Aberdeenshire Conversion of oil fired steam plant to natural gas
Tennents Deployment Food and drink Glasgow City Air compressor and spent grain transfer and smart air injection and spent grain removal technology

Grant offered: £100,000 to £250,000

Name

Competition

Sector

Location

Technology

DSM Nutritional Products Deployment

Food and drink

East Ayrshire

Heat recovery dichloromethane (DCM) evaporator and preheat feed effluent columns

Grant offered: under £125,000 (study only)

Name

Competition

Sector

Location

Technology

Diageo Study

Food and drink

Fife Natural gas to electricity transition
GlenAllachie Distillery Study Food and drink Moray Mechanical vapour recompression (MVR) technology
INEOS Study Petrochemicals Falkirk Energy efficiency of pyrolysis furnaces
Tennents Study Food and drink Glasgow City Investigation of low carbon heat pump technology

Case studies

Whyte & Mackay: the installation of a steam boiler with biomass fuel burner and flue gas purification

  • deployment competition
  • local authority area: Argyle and Bute

Whyte & Mackay is a producer of scotch whisky. The project will take place at their distillery site at the heart of the tiny island community of Craighouse on the Isle of Jura. The only whisky distillery on the island, the project involves the installation of a steam boiler with biomass fuel burner, flue gas purification and source wood pellets from its second site in Invergordon. The technology has not yet been introduced at Whyte & Mackay.

The site does not have access to mains gas and the distillery is currently fuelled by Class D oil which is transported to the site by road, requiring two ferry crossings.

The project will enable the oil fired boilers to be replaced with a 5MW biomass boiler within the Jura distillery.

Delivery of the project will result in a reduction of 5483 tCO2e and an energy reduction from this project will be 614MWh per year. These savings will predominantly result from efficiencies in the new boiler technology. The project will bring economic and societal benefit to island and has the potential to provide lessons for other distilleries across Scotland and impact positively on the local and national food and drink industry.

Carbon Capture Scotland: CO2 recycling for Dry Ice Production

  • deployment competition
  • local authority area: Dumfries and Galloway

Carbon Capture Scotland are leading CO2 capture specialists, and owner/operator of Scotland’s largest CO2 capture plant. Their CO2 capture plant in Dumfries and Galloway, commissioned in 2021, was a world first and has allowed the company to pilot and research novel methods of high-purity CO2 capture.

Biogenic CO2 is captured from renewable processes and utilised in the form of dry ice, which is used for cold chain transportation in the pharmaceutical and food industries.

The project will realise the installation of multiple CO2 recovery units to recycle CO2 and to deliver savings through increased energy efficiency. The project will allow vented CO2 to be captured, recycled and fed back into the production process. This is the first time the technology has been used in the UK, and the first time worldwide that the process has been used at a combined CO2 capture and utilisation process.

The project will reduce energy consumption required to process biogenic CO2 by 52% and mitigate 10,000 tCO2e per year. Additionally, the project will remove transportation emissions associated with importing CO2, avoiding 120,000 heavy tanker road miles per year.

Carbon Capture Scotland intend to replicate the process worldwide, capturing 1 million tCO2 per year by 2030. Further capture projects are planned in Scotland, starting in 2023.

DSM: (a) installation of mechanical vapour recompression (MVR) technology on a triple APV evaporator and (b) preheat feed effluent columns

  • study/deployment competition
  • local authority area: North Ayrshire

Royal DSM is a global, purpose-led science-based company active in Health, Nutrition and Bioscience. The projects will take place at DSM’s manufacturing site in Dalry which produces vitamin C and vitamin B5.

DSM were awarded funding for two projects from the SIETF:

Project 1

The project involves the application of mechanical vapour recompression (MVR) technology to an evaporation process in the vitamin B5 plant. The MVR technology enables the recovery of waste heat in the vapour which is recycled back into the evaporation process thus eliminating most of the demand for fresh steam. This will provide a significant reduction in natural gas consumption, with associated CO2 emissions savings of approximately 3,200 tonnes/annum, and a fuel switch to electricity as a small electrical load is required to power the MVR.

Project 2

The project involves the reuse of waste heat from the bottom of the effluent columns in the vitamin B5 plant. The distillation column is currently cooled at the bottom with cooling tower water before the effluent is sent to the wastewater treatment plant. However, the waste heat at the bottom of the column can be used instead to preheat the feed stream into the effluent column thereby reducing steam consumption and saving approximately 520 tonnes/annum of CO2 emissions.

The projects will contribute to DSM’s GHG Roadmap 2030 targets and support DSM’s and our decarbonisation transition to Net Zero.

UPM-KYMMENE UK LTD: deployment of papermachine vacuum system blowers

  • deployment competition
  • local authority area: North Ayrshire

UPM operate several paper mills globally and the Caledonian paper mill in Irvine, has an annual capacity of 250,000t of coated magazine paper. The technology used in this project – turbo blower pumps – are specialist pumps for the paper mill industry and will deliver significant energy efficiency and a reduction in carbon at the paper mill site in Irvine.

The project management will be handled by mill personnel who will oversee the removal of seven Nash vacuum pumps from the pump room to be replaced by the installation of three turbo blowers. These will require substantially less water cycling and electricity for the process and will reduce CO2 emissions.

Carbon savings from this project will be in the region of 2151tCO2e per year and specific vacuum system electricity consumption is projected to reduce significantly by 46%. This project will allow the Caledonian paper mill to be more competitive within the group and will protect current and future jobs.

Macphie: process steam system efficiency improvements (comprising multi-level Heat recovery improvements) and boiler upgrade

  • deployment competition
  • local authority area: Aberdeenshire

Macphie is an internationally renowned family ingredient manufacturer, making a wide range of products including bread mixes and savoury sauces. The project will take place in Macphie’s existing site in Glenbervie, Stonehaven, Aberdeenshire.

The project will make improvements by upgrading the boilers and steam system efficiency and by increasing the utilisation of an existing wind power connection, allowing for complete removal of a second grid electricity supply.

The upgraded boilers will have the ability to use different fuel sources in the future.

The project has estimated energy savings through transitions of 2,449,260 kWh through process steam efficiency improvements of 19% and savings from the grid removal of electricity supply (grid to wind). The project will reduce CO2 emissions by 608 tonnes per year. The project also provides a foundation for other carbon reduction phases.

Ineos Chemicals Limited: convection bank improvements

  • studies competition
  • local authority area: Falkirk

INEOS Chemicals Grangemouth Limited’s primary activity is the production of petrochemicals. SIETF will part-fund a feasibility study to look at improving the energy efficiency of INEOS’ existing pyrolysis furnaces on its ethylene manufacturing plant through modifications to the convection banks using boiler feed water preheat, air preheat and a tertiary quench exchanger.

Ethylene ‘cracking’ is a very energy intensive process, with each of the nine furnaces requiring up to 48MW. Together they account for up to 70% of the total energy required at the plant. The study will review the technical and economic viability of redesigning the furnace convection section of the manufacturing process.

Based on 2020 data, modifying a single furnace could deliver reductions of 17,000 MWh per year and the study considers this taking place at five furnaces. With the addition of a BFW preheater there is potential, if the study moves to deployment, to reduce emissions by over 50,000 tCO2e per year.

The study aligns with SIETF aims to cut energy demand by investing in more efficient technologies. It is one of the key elements of INEOS’ roadmap towards net-zero for the Grangemouth site, which includes their plans for hydrogen generation and fuelling.

Diageo Global Supply: electrification of heat that utilises on-site renewables to displace current natural gas use

  • studies competition
  • local authority area: Fife

Diageo’s primary business activity relates to the distilling, maturation and bottling or packaging of alcohol. SIETF will part-fund an exploration to replace natural gas use with electric systems. The project will consider the use of electric heat pumps (high and low temperature, air, ground and water source) and direct electric heating.

The majority of process heat on site – for distillation, clean in place, or chill filtration - is currently provided by a centralised natural gas fired steam system. Technologies to be explored are electric heat pumps (air, water and ground) and direct electric heating. This study will determine whether they are feasible at the Leven site with regards to electrical infrastructure and capacity and meet commercial investment criteria.

Estimated potential energy and carbon savings of the project, if deployed, are:

  • replace Steam Heating of Chill Filtration with Heat Pump/Heat Recovery: 295 tCO2e, 800,000 kWh
  • electrification of Clean-in-Place system: 1,105 tCO2e, 2,400,000 kWh
  • electrification of distilling pilot plant: 2.5 tCO2e, 5,000 kWh

There is also potential to provide very significant additional decarbonisation of space heating, in parallel.

The study will provide a business case to allow an internal application for capital funding for decarbonising the site’s process heating requirements. It aligns with site-wide 2030 Net Zero ambitions to decarbonise process heat.

Contact

Email: SIETF@gov.scot

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