Energy Transition Zone (ETZ) has launched the first round of its new fund aimed at supporting companies servicing the oil and gas market to take advantage of opportunities in green energy.
Specifically targeting companies located in Aberdeen, Aberdeenshire and Moray, the Energy Transition Supply Chain Pathway and Challenge Fund, backed by the Scottish Government’s Just Transition Fund, will support development of company plans to enter new energy markets, identify capital requirements, and deliver capital investment grants to assist the energy supply chain.
Grant funding of between £50,000 and £250,000 from an overall tranche of over £2m will be awarded to accelerate innovation and market entry, support business growth and create new jobs in the energy transition into the low-carbon market.
The first tranche was announced following an initial pilot of the programme, which saw the allocation of around £1m to support 11 companies.
Freda Miller, energy supply chain programme manager with ETZ, said: “This fund will ultimately accelerate the development of new industry-related facilities, new equipment and existing infrastructure upgrades, including digital infrastructure, to drive innovation and market entry and therefore support company growth and creates sustainable jobs.
“I urge businesses which meet the criteria to apply and take their next step as the north east looks to achieve an accelerated and successful energy transition.”
Net Zero and Just Transition Secretary Mairi McAllan said: “The Scottish Government is determined to support Aberdeen, the north east and Moray to become the net zero capital of the world and has announced a 10-year £500m Just Transition Fund to establish the region as a world-leader in the transition to a net zero economy.
“We have already committed £75m to a programme of transformative projects, including almost £10m for the ETZ’s Supply Chain Pathway and Energy Transition Challenge Fund for indigenous supply chain companies.
“I look forward to seeing how these innovative and ambitious projects develop to create and sustain cleaner energy production and jobs, supporting a fair and just transition for the region and for the people of Scotland.”
Beneficiaries of the pilot programme, which was launched in December last year, have spoken about the motivation behind applying to the fund.
Gareth McIntyre, director of engineering services provider GDi, said: “The ETZ Challenge Fund has enabled the diversification of the GDi business into the utilities sector.
“Post successful application, we were able to rapidly deliver our bespoke project requirements - this process has enabled us to transform our business and we will use this platform to accelerate our cross-industry growth strategy.”
Richard McGowan, managing director of engineering solutions provider Fathom Group, added: “The fund has allowed us the opportunity to accelerate completion of new web-based software, in readiness to support our clients in the offshore industries.
“Without the support of ETZ, Fathom’s digital products would be much later to market, missing vital opportunities to support our clients, both locally in the north east and nationally, as they make their transition from more traditional oil and gas offerings to the fast-moving offshore renewables market.
“By developing this software offering, we can expand our client base, allowing growth of our team of specialist engineers whilst further creating opportunities for expansion of our software team.“
The first round of the ETZ Challenge Fund closes on 5 June 2023.
To be eligible, businesses should have an existing relationship with ETZ; for example, they have participated in the existing Energy Transition Pathway programmes.
Businesses must have premises in or a registered address within Aberdeen, Aberdeenshire or Moray and all project activities and any project outcomes must take place in and directly impact this region.
Applications will be assessed against criteria including customer and market demand, use of funding, deliverability and impact on business growth, decarbonisation, emissions saved, and employment.
The fund's appraisal panel will meet in June, and applicants will be notified of their award decision within two weeks of the panel meeting.
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