Green Distilleries Competition (closed to applications)
Summary
The Green Distilleries Competition closed with £12.33 million allocated to 17 feasibility studies and 3 demonstration projects exploring industrial heat decarbonisation. Projects tested technologies including hydrogen combustion, high-temperature heat pumps, thermal storage, and biomass gasification at whisky distilleries. The competition concluded in 2026 with no further rounds planned.
Key facts
- •£12.33 million total funding
- •17 Phase 1 feasibility studies funded with £1.01 million
- •3 Phase 2 demonstration projects funded with £8.67 million
- •Competition closed to applications in 2026
- •Technologies included hydrogen, heat pumps, thermal storage, biomass
Related programmes
Memo3,337 words
In his 2020 Budget speech, the Chancellor announced £10 million of new research and development funding to help distilleries go green. To meet net zero by 2050, all industries, including distilleries, must decarbonise as far as possible. This funding was increased to £12.33 million to fund 17 feasibility studies for Phase 1 and 3 demonstration studies for Phase 2. The Green Distilleries Competition funded a range of different solutions which spanned electrification, hydrogen, biomass or waste. In addition, enabling technologies were considered and included fuel conversion, transportation or storage. The competition is split into 2 phases. ### Phase 1: Feasibility study (closed) Phase 1 is closed to applicants. Read [details of the successful projects](https://www.gov.uk/government/publications/green-distilleries-competition/green-distilleries-competition-projects-selected-for-phase-1). The purpose of the feasibility study was to develop the fuel switching / enabling technology concepts to understand the performance technologies, their market potential, and develop a costed pilot trial. Phase 1 provided £1.01 million in funding to 17 projects to complete a feasibility study on their proposed Green Distilleries solution, looking into developing technologies that enable the use of a low carbon fuel in a distillery. ### Phase 2: Demonstration (closed) Phase 2 is closed to applicants. Read [details of the winners for Phase 2 funding](https://www.gov.uk/government/publications/green-distilleries-competition/green-distilleries-competition-phase-2-demonstration-successful-projects). Phase 2 provided £8.67 million in funding to 3 projects to continue the development of their proposed Green Distilleries fuel switching concept or solution through to demonstration. Phase 2 allowed projects to build upon the outputs of their Phase 1 feasibility study. --- ## 1. Highland Park GreenStills Demonstrator Led by Edrington alongside consultants Allen Associates. High Temperature Heat Pumps (HTHP) have the potential to convert low-grade heat into steam for use in a variety of distillery applications. They have the benefit of improving overall energy efficiency as well as enabling fuel switching to renewable electricity from fossil fuels. Edrington aim to investigate this technology on an industrial scale, at Highland Park distillery and maltings in Kirkwall. The project will develop an innovative stillhouse heat recovery system with a HTHP at its core. The steam produced will be used to heat the malt drying kilns, replacing coke as the fuel source for this process and eliminating the associated carbon emissions. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978974/Highland_Park_Greenstills_Demonstrator_Phase_1_Feasibility_Report.pdf). ## 2. Decarbonising the InchDairnie Distillery Led by John Fergus & Co Ltd alongside Arup. This project will specifically focus on the potential to use hydrogen at the distillery to significantly decarbonise the process heat required. The hydrogen could be produced two ways, by converting the gas generated at the local AD plant to hydrogen onsite and through electrolysis of local renewables onsite. Alternatively, it could be delivered to site from other local larger scale producers in the locality. The distillery has already carried out a study looking at the energy that could be generated from the warehouse roof PV panels, this data will be brought into the study to determine the hydrogen production capacity. The study will also look at the implications of this additional renewable generation on the electrical system supplying the distillery. The use of the hydrogen within the existing but converted natural gas steam boiler or a newly installed hydrogen system displacing the sites remaining natural gas demand. Additionally, the carbon footprint of the distillery has been the subject of a previous study. This will help to confirm the potential carbon savings of such a scheme. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/985889/John_Fergus___Co_Phase_1_Feasability_Report.pdf). ## 3. Using hydrogen to heat thermal oil to replace steam in the distillation process The Uist Distilling Company Ltd. The distillation process for most operational distilleries is fuelled by the raising of steam through burning of fuel oil or natural gas. This project will consider the opportunity for a new distillery to be designed as low carbon from the outset by running the distillery through a combination of a hydrogen burner and indirect heating of a thermal oil rather than conventional steam. This innovative engineering design utilises indirect burning of hydrogen to create a safer operational environment and a cheaper solution than direct combustion. The project seeks to assess the feasibility of creating hydrogen onsite through installation of renewable energy generation and viable routes to market for excess hydrogen created. The production of hydrogen offsite using operational renewable energy assets and transport to site will also be investigated. The techno-economic feasibility of such energy systems will be assessed and discussed in the context of national and regional energy strategy and transition towards a hydrogen economy. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978989/The_Uist_Distilleries_Company_Lot_2_Phase_1_Feasibility_Report.pdf). ## 4. Using a high temperature heat store to overcome highly constrained grid infrastructure The Uist Distilling Company Ltd. This project considers the opportunity for a new build distillery to be run via an electrically driven high temperature heat store as opposed to the counterfactual case of fossil fuel based oil burners. A significant proportion of existing and new distilleries are situated in rural areas where the electrical infrastructure is highly constrained. This limits the possibilities for new renewable electricity generation as export to the grid is not possible. The insulted high temperature heat store will use electricity to raise the internal temperature of the storage medium which can then be transferred into process heat. This process heat can be dispatched rapidly (sub one second) allowing energy to be used flexibly and as efficiently as possible. This innovative fuel switching design allows for further integration with renewable sources of electricity and relieves local grid constraints by having a flexible and dispatchable load. The result is a zero or low carbon distillery with lower energy demands and higher resource efficiency that can be replicated across the distillation industry and applied in other industrial commercial settings with high thermal energy use. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978988/The_Uist_Distilleries_Company_Lot_1_Phase_1_Feasibility_Report.pdf). ## 5. Decarbonising the distillation process via direct fuel switching from fossil fuels to hydrogen Locogen Ltd. This project will assess the feasibility of switching an operational distillery from fuel oil to hydrogen burners that provide direct process heat for distillation. Direct combustion of the hydrogen in burners would involve the retrofit of the fuel distribution and boiler systems within the distillery, whilst the option of creating hydrogen offsite and transporting onsite will also be investigated. This innovative fuel switching project allows for integration with onsite or offsite renewable energy sources which can create hydrogen through electrolysis. The techno-economic feasibility of such energy systems will be assessed and discussed in the context of national and regional energy strategies and the transition towards a hydrogen economy. The project will realise a zero or low carbon distillery, converted from fossil fuel dependence, which can be replicated across the distillation industry and applied in other industrial commercial settings with high thermal energy use. The project will highlight the opportunities for the acceleration of the hydrogen economy. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978982/Locogen_Ltd_Phase_1_Feasibility_Report.pdf). ## 6. Large Scale Phase Change Material Thermal Storage Led by Sunamp with support from Heriot Watt University. Sunamp will demonstrate through the Green Distilleries feasibility study how PCM thermal storage offer distilleries, both old and new, a safe and resilient pathway of fuel switching to zero and low carbon renewable technology as their main method of heat generation. Using energy and process modelling from Heriot Watt, with data from their on-campus distillery as well as industry input, we will show how a large-scale (MWh) PCM thermal store can be used to convert, capture and store renewable energy generation to be used at the point of demand, in effect decoupling generation from demand. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978986/Sunamp_Phase_1_Feasibility_Report.pdf). ## 7. Use of Liquid Organic Hydrogen Carrier (LOHC) for Decarbonizing the UK Distillery Industry Environmental Resources Management Limited. Hydrogen has the potential to decarbonise heat in UK distilleries. However, transporting hydrogen to distilleries, often in remote locations, can be a challenge. A potential solution is to transport and store the hydrogen using a liquid organic hydrogen carrier (LOHC). LOHC can carry a similar level of hydrogen per unit volume as liquid hydrogen and can do so safely and cleanly at atmospheric temperature and pressure. It can be transported using conventional road tankers and stored in existing fuel storage tanks. The objective of the project will be to determine the viability of using LOHC for decarbonising the distillery industry and outline a plan to demonstrate its technical performance, environmental, health and safety credentials and lifecycle cost. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/985896/Environmental_Resource_Management_Phase_1_Feasibility_Report.pdf). ## 8. WhiskHy Supercritical Solutions Ltd. Supercritical’s electrolysis system will produce hydrogen on site at unparalleled efficiency and minimal cost with renewable power supported by waste heat from our partner distillery. The green hydrogen will be looped back into the distillery’s heat or power system to minimise its reliance on fossil fuels, demonstrating a route to a zero carbon distillery reliant only on its local natural resources. The demonstration will be the first of its kind, paving the way for distilleries and other industries across the UK to benefit. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978987/Supercritical_Solutions_Phase_1_Feasibility_Report.pdf). ## 9. Geothermal Distillery and Tropical Cask Maturation Facility Led by the Cornish Geothermal Distillery Company (CGDC) alongside industrial partners Geothermal Engineering Limited (GEL), Buro Happold and Forsyths. This ground breaking project aims to demonstrate a cost effective high-temperature heat pump solution, capable of powering heat intensive distillery processes (from fermentation to distillation to maturation) utilising low grade waste industrial heat sources. The initial focus of the study will look at waste heat taken from the UK’s first geothermal power plant at the United Downs Deep Geothermal Project where 80 degree heat is available as a by-product of the electricity production process. This heat stream will be elevated through a heat pump system to produce steam for the distillery, providing a stable, consistent and sustainable energy supply with zero carbon emissions and significant energy savings. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978962/Cornish_Geothermal_Distillery_Company_Phase_1_Feasibility_Report.pdf). ## 10. HySpirits 2 Led by the European Marine Energy Centre alongside research partner Napier University and industrial partners Edrington, and Orkney Distilling Limited. HySpirits 2 will deliver the world’s first hydrogen fuelled distillery; demonstrating that fuel switching to clean green solutions can be achieved anywhere. The first stage of the project will assess four different technology pathways to facilitate green hydrogen fuel-switching in the distilling sector enabling full decarbonisation of this industrial process. To achieve this, EMEC will use its world-leading expertise in applied R&D on green hydrogen production using wind and tidal energy in Orkney. Edinburgh Napier University’s industrial decarbonisation team will provide 20 years of experience from the distilling sector. Finally, the global distilling group Edrington (owners of Highland Park Distillery in Orkney) and Orkney Distilling (a boutique, Orkney-owned distilling company) will provide end user inputs, support a market roll-out strategy, and help scope a pilot demonstration. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978976/HySpirits_2_Phase_1_Feasibility_Report.pdf). ## 11. Hy/BioDDP: Hydrogen/Biofuel burners for Distillery Decarbonised Power Colorado Construction & Engineering Ltd. Dual fuel hydrogen/NG burners will be developed that can be co-fired with biofuels. This enables an immediate start to be made on the decarbonisation of distilleries using green liquid biofuels co-fuelled with NG, with a direct transition to green/blue hydrogen as it becomes available. Tri-fuel operation on hydrogen, NG and biofuels will be possible in the transition to 100% hydrogen fuel with 100% decarbonisation. NG/hydrogen dual fuel burners with axially staged biofuel injection will be used to utilise difficult to burn waste biofuels such as Pot Ale Syrup and Glycerine. Both steam heated and direct fired distilleries will be part of the programme. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978960/Colorado_Construction___Engineering_Lot_1_Phase_1_Feasibility_Report.pdf). ## 12. BatGasDW: Batch Gasification of Distillery Waste Biomass for renewable distillery fuel Led by Colorado Construction & Engineering Ltd, a distillery design and installation company, burner manufacturer CBS Ltd, and research partner University of Leeds. Waste distillery biomass, DRAFF and PAS, as well as other waste biomass will be batch gasified in a novel medium temperature gasifier that avoids tar formation. The hot gasifier gas will be transferred to a newly developed burner for heating of both steam and direct fired distilleries. Optimisation of the gasifier performance will use CO and gas temperature peak seeking control. The gasifier burner will initially be NG fired but a biofuel/NG/hydrogen combined burner will be developed to increase the decarbonisation efficiency towards the 100% that will be possible once green/blue hydrogen is available. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/986186/Batch_gasification_of_distillery_waste_biomass_for_renewable_distillery_fuel.pdf). ## 13. The Bennamann-Atlantic Fugitive Methane Green Distillery Solution Bennamann ltd. The Bennamann-Atlantic fugitive methane project will combine the expertise and experience of two pioneering Cornish companies to provide an innovative industry-wide fuel-switching solution with substantial carbon saving potential. The solution will be easily reproduced and scalable, promote local energy networks and support mutually beneficial cross-industry interaction. The feasibility study will investigate the benefits of switching fuel to carbon negative fugitive methane captured from covered slurry-lagoon anaerobic digestors, by enhancing methane yield from the latter using leachate from brewery and distillery organic waste. This novel approach will create a closed-energy loop between energy provider and user, and maximise the carbon savings from switching fuels. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978958/Bennamann-Phase-1-Feasibility-Report.pdf). ## 14. Two Stage Distillation via Renewably Powered Heat Pump & Hydrogen St Andrews Brewers Limited. Malt Whisky production is an energy intensive process, with distillation accounting for most of the heat demand within the distillery. At Eden Mill Distillery, distillation accounts for approximately 70% of the heat demand. Eden Mill distillery are in the process of relocating their distillery to the Eden Campus within St. Andrews University. In the building with which they share a common internal wall, there is a biomass fired energy centre which provides district heating to the main St Andrews University campus and Eden Campus. This presents a large source of hot water which can be used use by the distillery. The hot water produced can be used directly for mashing and cleaning within the distillery. The distillation requires a higher temperature, and this is to be obtained using a heat pump to create hot water thought to be capable of powering the majority of the distillation process in conjunction with steam via a two stage external heat exchanger. Green Hydrogen created using renewable electricity produced on site is to be used to create the steam required for the second stage of the heat exchangers. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978973/Eden_Mill_St_Andrews_Phase_1_Feasibility_Report.pdf). ## 15. Project HyLaddie Protium Green Solutions Limited. The HyLaddie project sees Bruichladdich Distillery, Protium Green Solutions, and ITPEnergised come together to assess a pioneering heating technology to help Bruichladdich’s Distillery meet its 2025 net zero emissions target. The project will assess the feasibility of deploying a hydrogen steam boiler system under commercialisation by Protium’s affiliate business Deuterium. The system is a Dynamic Combustion Chamber (DCCTM), which the consortium will seek to deploy at the Bruichladdich distillery with the objective of providing an alternative to the existing medium fuel oil boilers currently in use. The DCCTM is an innovative condensing oxy-combustion boiler that combusts hydrogen to generate industrial grade steam; relying on green hydrogen as the feedstock the burner emits no green house gases or pollutants and operates without a flue. The completion of the Green distilleries phase 1 competition run by the Small Business Research Initiative (SBRI) will deliver a viable pathway to Bruichladdich’s 2025 net zero target. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978975/HyLaddie_Phase_1_Feasibility_Report.pdf). ## 16. Orkney Highland Park Energy System A consortium of Highland Park Distillery, SSE Utility Solutions , Lumenion GmbH, Adrian Wilson (Independent Consultant) led by Protium Energy Ltd. A consortium of Highland Park Distillery, SSE Utility Solutions , Lumenion GmbH, Adrian Wilson (Independent Consultant) and Protium Energy Ltd has been formed to remove the kerosene fuels currently burnt at the Orkney based distillery to raise steam for the distillation process. The aim is to replace this CO2-emmitting process with a direct and highly efficient transformation of renewable energy into high temperature CO2–free process heat. The study will investigate the option of a high temperature heat store which takes electricity (when available) and stores it as heat, and then converts that heat to steam (on demand). Orkney is uniquely blessed in the UK with 120% of current electrical demand met by renewable energy sources however it also has electrical grid constraints, requiring significant levels of generation curtailment. The islands have an Active Network Management system, which is trying to get more renewable generation connected by introducing controlled loads such as EVs. It is highly likely that the addition of a multi-megawatt dispatchable load would enhance the system and facilitate even more renewable energy on the archipelago, while tapping into low priced but otherwise curtailed electricity production. [Read the feasibility report](https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/978984/Protium_Energy_Ltd_Phase_1_Feasibility_Report.pdf). --- ## GD143 – Locogen Ltd, in partnership with Logan Energy Limited, Arbikie Distilling Ltd The £3 million funding awarded to Locogen, in partnership with Logan Energy and Arbikie Distillery, will finance development and installation of a green hydrogen energy system at the distillery, comprising a wind turbine, electrolyser, hydrogen storage and hydrogen boiler system. The ‘world first’ project allows Arbikie to move away from traditional distilling processes that burn fossil fuels, instead using zero-carbon green hydrogen generated on site. Tangible benefits of the project include a clean energy supply for distillation, resulting in greater energy security and cost savings. Arbikie will save over 4kg CO2e per litre of alcohol produced. A crucial output will be investigating the replicability of this solution to other distilleries and industries, assessing the business case and technical barriers. The heart of Arbikie’s ethos is provenance and sustainability. It began by growing the crops and botanicals needed to distil on site. It is now conquering its energy usage, and the environmental impact of packaging and shipping. Arbikie’s new Distillery Experience opens in 2022. The Green Hydrogen project will be showcased to private investors and developers. Finance will be sought to expand the production facility and create a regional green hydrogen hub, serving businesses across Angus and beyond. Visit the [Locogen Arbikie green distilleries site](https://locogen.com/arbikie-highland-estate/) ## GD155 – Supercritical Solutions Ltd, in partnership with Beam Suntory UK Ltd, Manufacturing Technology Centre (MTC) Supercritical is developing the world’s first high pressure, ultra-efficient electrolyser for the production of hydrogen and oxygen from water, with zero emissions. WhiskHy (pronounced Whisky) will see Supercritical’s technology advance from single cell scale to a multicell module which will be demonstrated and tested. Distillery partner, Beam Suntory, will trial 100% hydrogen fuel delivery to supply zero emission heat at the point of combustion to a still at one of their distilleries. Plans will be prepared for pilot deployment of Supercritical’s technology at Beam Suntory’s largest Scottish distillery where the green hydrogen will decarbonise the existing steam boiler. WhiskHy will demonstrate the lowest cost route to a zero carbon distillery reliant only on its local natural resources. The demonstration will be the first of its kind, paving the way for distilleries and other industries across the UK and the world. Visit the [Supercritical Whiskhy site](https://www.supercritical.solutions/whiskhy) [Final report: GD155 – Supercritical Solutions Ltd, in partnership with Beam Suntory UK Ltd, Manufacturing Technology Centre (MTC)](https://assets.publishing.service.gov.uk/media/69a99b60ac93547152b9b1db/whisky-final-report-green-distilleries.pdf) ## GD166 – Colorado Construction and Engineering Ltd Colorado Construction & Engineering Limited has, in conjunction with the University of Leeds and Clean Burner Systems, developed a novel biofuel gasification system that can help transition all direct fired and steam heated distillery operations towards total carbon neutrality. The solution will enable distilleries to retrofit boilers with the means to gasify low-cost biofuels to replace their current legacy fuels. The gasifiers will be connected to the existing steam boilers to have a >60% thermal efficiency. We will prove the efficacy of the manufactured gasifiers and reactive fuel burner at distillery conditions in a test rig at the Livingston Centre for Industrial Decarbonisation (LCID). The LCID has been open to the public from May 2021. Some of the key benefits of the programme are: * the gasifier is a practical solution for directly fired and steam heated distillation * 100% decarbonisation of distillery power production using hydrogen and biofuels * use of distillery waste and locally sourced biofuels from as early as 2023 * distilleries will be sheltered from increasing energy costs by utilisation of lower-cost biofuels We intend to roll out the technology to distilleries across Scotland and England from 2023 but with demonstrations and seminars from late 2022. [Final report: GD166 – Colorado Construction and Engineering Ltd](https://assets.publishing.service.gov.uk/media/698de23175466636847f6a7b/GD166-green-distilleries-project-final-report.pdf)