Decarbonisation: F&B firms awarded share of £19m grant fund

The grants were awarded by the Scottish Industrial Energy Transformation Fund (SIETF), which supports projects that aim to reduce carbon emissions created during energy-intensive manufacturing processes.

Five of the nine businesses to secure a grant are from F&B, with the recipients including whisky makers Chivas Brothers and GlenAllachie and fruit processor Kettle Produce.

The overall investment totals £19m, with £7.2m contributed by the Scottish Government and the rest delivered via private funding.

To mark the announcement, first minister John Swinney visited Chivas Brothers’ Strathclyde Distillery in Glasgow to see the manufacturer’s new Mechanical Vapour Recompression (MVR) technology.

Chivas Brothers was awarded a £3.1m grant during the latest round of SIETF investment and said that its MRV technology will reduce carbon emissions caused by the distilling process by more than half, while also reducing energy usage by over 46,000 Megawatt hours per year.

Speaking during the visit, Swinney said that growing the economy and tackling climate change were two of his priorities in government.

“Projects like the one at the Strathclyde Distillery will be essential in helping us meet our climate change ambitions and promote sustainable economic growth across Scotland – by supporting our existing energy intensive sectors and attracting the manufacturing industries of the future,”​ he added.

“With an average ratio of £1 of public to £1.75 of private funds, the Scottish Industrial Energy Transformation Fund has been incredibly successful in leveraging investment across industrial sites to accelerate adoption of low-carbon, energy efficient technologies. The fund also delivers business benefits through energy-related manufacturing savings.​

“The SIETF demonstrates how government and industry are taking steps together to deliver against climate change plan targets by co-investing to decarbonise the industrial sites that local jobs and communities depend upon.”​

Whisky sector approves

According to the Scotch Whisky Association, exports of Scotch Whisky were worth £5.6bn in 2023 and accounted for 22% of all UK food and drink exports.

The organisation’s chief executive, Mark Kent, welcomed the support from the SIETF and called for further innovation and collaboration as the whisky sector moves on its journey towards net zero.

“How the Scotch Whisky industry will achieve emissions reduction will be as diverse as our distilleries and locations,”​ Kent said.

"Each site will have different challenges, but through support from the Scottish Government with grants like SIETF, distilleries can accelerate decarbonisation in their own operations towards our shared industry goal of 2040. As an industry with a strong track record delivering environmental improvement, we are determined to achieve net zero emissions in our own operations and supply chains as fast as possible.”​

This was echoed by Chivas Brothers production director Brian MacAulay: “This grant from the Scottish Government via SIETF validates our approach to decarbonisation and our commitment to shaping the future of sustainable Scotch. It is only by embracing innovative solutions and working together with specialist partners like GEA Wiegand that we can reduce our environmental impact, while also ensuring the longevity and resilience of the Scotch whisky industry for generations to come.”​

Efficiency focus needed

Chris Spray, customer success director at smart factory solutions provider Lineview, also hailed the investment in decarbonisation but urged manufacturers to maintain their focus on improving operational efficiency in order to cut waste

“This [investment] not only highlights the importance of sustainability in manufacturing but also reinforces Scotland’s leadership in fostering innovative solutions that can drive long-term economic and environmental benefits,” ​said Spray.

“While this investment is a positive step, decarbonisation is just one part of the multitude of challenges facing manufacturing. To truly unlock the sector's potential, we must improve operational efficiency. Inefficient processes lead to significant waste, undermining sustainability and global competitiveness. Scotland’s initiative is a strong start, but broader attention to efficiency is needed. By pairing decarbonisation with a focus on efficiency, Scotland, and the UK, by extension, can lead the way in sustainable manufacturing, ensuring economic growth and environmental stewardship for future generations.”​

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