The Government has officially launched a new £10 million R&D project to address decarbonisation in the UK spirits sector.
The Green Distilleries programme was first announced by the Chancellor, Rishi Sunak, in his 2020 Budget, aiming to accelerate the development of low carbon fuel switching solutions through research and development projects.
The scheme forms part of a larger commitment by the Government to accelerate the commercialisation of innovative, cheap, clean and reliable energy technologies and it aims for a net-zero carbon rating.
There are currently more than 400 distilleries in the UK, with the Spirits sector worth an estimated £11.4 billion to the UK economy last year, with £4.7 billion of this being exports, meaning that it was worth a total of 21 per cent of the UK’s total food and drinks exports.
The production of whisky is particularly energy-intensive, expending more than seven times the amount of energy as gin production, with more than 530,000 tonnes of CO2 produced in 2018 as a result, according to official Government statistics.
The opportunities for distilleries and the spirit production industry have been split into four categories:
- Energy efficiency
- Fuel switching
- Carbon capture, utilisation and storage
- Resource efficiency
The Green Distilleries programme aims to fund a variety of R&D projects, including biomass, waste, hydrogen and electrification solutions, while enabling technologies will also be considered, such as fuel conversion, storage and transportation.
For help and advice on ensuring your clients are taking advantage of the R&D tax credits that they are eligible for, contact our expert team at Kapitalise today.