Star Refrigeration urges Scottish businesses to apply for SIETF Funding before 19th March deadline
Sample extract from feasability study highlighting potential energy and CO2 savings from heat pump deployment
The Scottish Industrial Energy Transformation Fund (SIETF) supports the deployment of industrial refrigeration and heat pump projects as well as feasibility and engineering studies to enable companies to identify energy efficiency and carbon saving opportunities.
Star Refrigeration is encouraging Scottish companies to consider their potential for a funding application, as the Scottish Industrial Energy Transformation Fund (SIETF) has re-opened a brief funding window to support energy efficiency and decarbonisation projects, with a deadline of 19th March to express interest via one of the listed agencies.
The Scottish government is now open to expressions of interest regarding match-funding for industrial decarbonisation projects. The funding rate is likely to be approximately 50% of the total costs.
This round of funding has been launched with a very short deadline – Wednesday, March 19th – and the fund is streamlined to accelerate the rapid identification of projects which could be delivered by the end of March 2026.
The SIETF can help:
- Cut bills and emissions by investing in more efficient technologies
- Reduce carbon emissions by bringing down the costs and risks associated with investing in decarbonisation technologies
The fund has not been open since 2022, and its return represents a great opportunity for Scottish companies to fund projects for industrial manufacturing, processing or production sites, or data centres – so industrial heat pump and refrigeration projects are ideally suited.
As such, it is best suited to projects that can be quickly submitted for an IETF funding application to maximise the chances of securing support. It can also support feasibility studies to assess current heating and refrigeration needs and evaluate the viability of transitioning to energy-efficient, low-carbon heat pumps.
The application process is expected to be relatively straightforward, and the Scottish Government has set out a clear timetable for projects, as well as sharing case studies of projects funded to date.
stage 1 – February to March 2025: Expressions of interest to capture project data via agencies (closure Wednesday 19 March 2025)
stage 2 – March to April 2025: Appraisal and short-listing of candidate projects.
stage 3 – April to May 2025: Due diligence
stage 4 – May to June 2025: Notification of outcomes and issue of draft grant offers (initial set**)
June 2025: target commencement for projects**
31 March 2026: final date for all projects to complete, unless agreed otherwise on a case-by-case basis
The range of maximum subsidy coverage is as follows, depending on size of business:
50 – 70% for feasibility studies and options appraisals
25 – 45% Front End Engineering and Design (FEED) studies
30% – 50% for Energy Efficiency Deployments (projects)
50% – 70% for Decarbonisation Deployments (projects)
Grant Buchanan, Regional Manager – Scotland at Star Refrigeration, said “Star Refrigeration is committed to actively assisting businesses in navigating a range of funding opportunities, including the IETF scheme.
“With expertise in industrial refrigeration and heat pumps, our Net Zero team can provide valuable support to ensure the effective deployment of technology to reduce industrial energy consumption and achieve carbon emissions savings. Our team can also support businesses with energy data monitoring and analysis and provide feasibility and engineering studies to enable businesses to identify energy efficiency and decarbonisation projects before making an investment decision.”
Case studies of successful SIETF funded projects to date, including feasibility studies, are now available to read here. One of the examples provided highlights the potential of waste heat recovery, where a company’s project costs were estimated at £73,500, with the IETF grant covering £36,750. This project was projected to save the company £342,500 per year.
At the time of deciding to go ahead, the company’s General Manager said, “This feasibility study will quantify the waste heat opportunities and provide evidence-based data on which equipment may be selected and installed that will lead to a reduction in fossil fuel use. The SIETF funding will help enormously to move these actions forward.”
With funding available not just for decarbonisation technology deployment projects but also for energy efficiency projects and feasibility and engineering studies to guide investment, this SIETF funding window represents an excellent, if brief, opportunity for Scottish manufacturing companies to expedite their decarbonisation projects.
For more details on the Scottish Industrial Energy Transformation Fund (SIETF), including timelines and contact information, please see Gov.Scot.
For more information on how Star experts can help businesses secure SIETF funding, please contact Stuart Webb, Scotland Sales Manager at swebb@star-ref.co.uk