Scotch and gin aficionados will soon be able to enjoy their favourite UK tipple in the knowledge that they are helping to cut carbon emissions and support new green jobs, thanks to a new government scheme, the Green Distilling Fund. Kwasi Kwarteng, Minister for Energy and Clean Growth announced the opening of the GBP10 million (≈ EUR 11 million) fund on August 17, which is being made available to kick-start green innovation across Scotland’s iconic distillery industry.
The move gives backing to distilleries across the UK to harness energy sources such as low-carbon hydrogen, biomass and repurposed waste to power their operations. The funding will help to contribute to the UK’s legally-binding target to reach net-zero carbon emissions by 2050.
Our plan to deliver a carbon-neutral future doesn’t just mean new jobs in new industries but helping some of our oldest industries to play their part as well. We want to harness the tremendous innovation of our distilleries so customers can enjoy their favourite tipple in the knowledge they are helping us to tackle climate change, said Energy and Clean Growth Minister, Kwasi Kwarteng.
Welcomed by trade bodies
The funding has been welcomed by trade bodies in both Scotland and Northern Ireland, which are home to the vast majority of the UK’s world-famous distilleries. In 2019, the UK distilleries industry grew by 20 percent, demonstrating the opportunity for the sector to be at the heart of a clean and resilient recovery.
Greening is essential to our industry’s future and this is to be welcomed. Interestingly, in the last five years, I’ve seen more distilleries in Northern Ireland than in the last 50. It’s good to see the government investing in food and drink businesses, said Michael Bell, Executive Director of the Northern Ireland Food and Drink Association.
According to the Department for Business, Energy and Industrial Strategy (BEIS), it is estimated that there are over 400 distilleries across the UK.
The Scotch Whisky industry welcomed the new Green Distilling Fund announced in the March Budget as an important step on our sustainability journey. The use of innovative technology is among several approaches that the industry could adopt as it works towards net-zero by 2045, as outlined in our recent net-zero report. This Fund will provide us with the opportunity to put forward bids for demonstration projects for so-far untested technologies, helping the Scotch Whisky industry play its part in reaching Scotland’s emissions targets, said Dagmar Droogsma, Director of Industry at the Scotch Whisky Association.
Expressions of Interest open
The decarbonisation opportunities for the distillation industry can be split into four main groups: energy efficiency, fuel switching, resource efficiency and carbon capture, utilization, and storage (CCUS).
The Green Distilleries programme aims to address decarbonisation in the spirits sector by accelerating the development of low carbon fuel switching solutions or enabling technologies that are currently at a technology readiness level between 4 and 7 and could improve the emissions saving potential compared with current fuels.
The competition will address fuel switching, as this is seen as the highest priority for decarbonising the industry. Fuel switching offers the highest carbon reduction opportunity due to the wide use of fossil fuels to produce heat for the distillation process.
Phase 1 of the Green Distilleries competition will fund feasibility studies looking into developing technologies that enable the use of a low carbon fuel in a distillery.
The programme will take a portfolio approach and aims to fund a range of different solutions which could include electrification, hydrogen, biomass, or waste. In addition, enabling technologies will be considered and could include fuel conversion, transportation, or storage.
