TEN companies have been awarded £9.4 million in grants to reduce their carbon emissions under a Scottish Government scheme.

On Monday, Nicola Sturgeon visited the Graham’s Family Dairy plant in Bridge of Allan, near Stirling, one of the businesses which benefitted from the programme.

Its managing director said companies had faced a “terrifying summer” due to rising energy bills.

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The Scottish Industrial Energy Transformation Fund has allowed Graham’s to install an energy efficiency system which retains heat from steam used in the pasteurisation and cleaning process.

The company says this has reduced its energy use by 30% at its headquarters near Stirling.

So far, 10 companies have received funding under the scheme and applications have now re-opened. The grants range from over £1 million to £100,000.

Four companies were also given smaller grants, under £125,0000, to conduct studies which relate to reducing emissions. 

The Government says the projects awarded funding have the potential to reduce emissions by 40,482 tonnes of CO2 a year, the equivalent of the annual emissions from 17,000 households.

The National: Nicola Sturgeon views the decarbonised heat network alongside Managing Director Robert Graham during a visit to Graham's The Family DairyNicola Sturgeon views the decarbonised heat network alongside Managing Director Robert Graham during a visit to Graham's The Family Dairy (Image: PA)

Sturgeon said: “Reducing emissions in our manufacturing sector will be a crucial step in ensuring Scotland reaches its net-zero target by 2045.

“I am pleased that the Scottish Industrial Energy Transformation Fund continues to support companies across the sector to embrace decarbonisation, improve efficiency and reduce their impact on the environment.

“This week is Scotland’s Climate Week which puts a renewed focus upon the ongoing climate emergency, and our efforts to tackle it.

“And as households and businesses struggle with rising energy costs, it has never been more important to support industry to become more energy efficient.

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“I welcome the work that the fund has already supported and I hope that many more businesses will apply in the future.”

Managing director Robert Graham said the new system had reduced the plant’s carbon footprint.

He said: “It allows us to capture heat loss in the process to helps us reduce our heat needs by 30%.”

“That obviously has a big decarbonisation impact.”

Many businesses had expressed concerns about rising energy costs, he said, adding: “It’s been a terrifying summer.

“And speaking to a lot of businesses in Scotland, who will be looking at the October 1 cliff edge on energy, it’s been terrifying.”

The National: The FM said reducing emissions in the manufacturing would have a huge impact on net zero targetsThe FM said reducing emissions in the manufacturing would have a huge impact on net zero targets (Image: PA)

During peak prices about four weeks ago, he said the company’s electricity bill was projected to reach about £1 million a month.

Following the Chancellor’s announcement of support for business energy bills last week, he expected it would be around £300,000 to £350,000.

He added: “It gives us time to accelerate, maybe, some additional solar PV for here and other things we can do to mitigate.”

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Other projects which received money from the fund include a more efficient dryer at a seaweed production facility, while several breweries and distilleries also received money.

Up to £34 million of Scottish Government funding will be made available through the lifetime of the five-year fund which runs until 2026.

Which companies have been awarded grants? How much and what for?

  • DSM Nutritional Products, East Ayrshire. Mechanical Vapour Recompression (MVR) technology. Grant offered; over £2m.
  • Whyte & Mackay, Argyll and Bute. Steam boiler with biomass fuel burner and flue gas purification. Grant offered; over £2m.
  • Pauls Malts, Angus. The installation of a hot water network and CHP. Grant offered; £1m - £2m. 
  • Brewdog, Aberdeenshire. Food grade (green) CO2 production via CO2 capture. Grant offered; £500k - £1m.
  • Carbon Capture Scotland, Dumfries and Galloway. CO2 feedstock recycling. Grant offered; £500k - £1m.
  • Uist Asco, Western Isles. Installation of a more efficient dryer with heat recovery. Grant offered; £500k - £1m.
  • UPM, East Ayrshire. Replace existing pumps with three energy efficient turbo blowers. Grant offered; £500k - £1m.
  • Diageo, Aberdeenshire. Installation of High Temperature Heat Pump. Grant offered; £250k - £500k. 
  • Macphie, Aberdeenshire. Conversion of oil-fired steam plant to natural gas. Grant offered; £250k - £500k. 
  • Tennent's, Glasgow. Air compressor and spent grain transfer and smart air injection and spent grain removal technology. Grant offered; £250k - £500k. 
  • DSM Nutritional Products, East Ayrshire. Heat recovery DCM evaporator and preheat feed effluent columns. Grant offered; £110k - £250k.

A further round of grants under £125,000 has been offered, for studies only. The winning applicants were:

  • Diageo, Fife. Natural gas to electricity transition.
  • GlenAllachie Distillery, Moray. Mechanical Vapour Recompression (MVR) technology.
  • Ineos, Falkirk. Energy efficiency of pyrolysis furnaces.
  • Tennents, Glasgow. Investigation of low carbon heat pump technology.