ETZ Challenge Fund unlocks £4 million for high-growth energy transition firms

Ten companies, ranging from pioneering subsea robotics to next-generation EV charging, receive ETZ grants

Ten North East firms with high-growth potential in renewables and low-carbon markets are benefitting from a £4 million investment boost, unlocked by Energy Transition Zone Ltd (ETZ) funding.

The latest round of the ETZ Challenge Fund, which has so far unlocked more than £14m investment since 2022, has provided grants to firms ranging from pioneers in subsea robotics to developers of next-generation electric vehicle chargers, aimed at helping businesses to accelerate innovation and transition into low-carbon markets.

The not-for-profit, spearheading North-East Scotland’s energy transition, has delivered £1.47m of capital grants, supporting further private funding of more than £2.4m. Today’s announcement marks its third round of Challenge Fund support.

Launched in 2022, the Fund has so far issued more than £4.5m in capital grants to dozens of companies across Aberdeen City, Shire and Moray, unlocking total investment of more than £14 million across the three rounds.

Through the Challenge Fund grants, backed by the Scottish Government Just Transition Fund, awardees are poised to grasp opportunities in a range of sectors including offshore wind, geothermal energy, carbon capture and storage (CCS) and hydropower.

The full list of awardees is:

• Safelift Offshore Ltd (Offshore Wind)
• Trojan Energy (Electric Vehicle Charging)
• Greenwell Equipment (Offshore Wind, Onshore Wind, Hydropower, CCS, Wave Power)
• Resolute Energy Solutions Ltd (CCUS, geothermal, decarbonisation of oil and gas)
• ITC Hydraulic Services Ltd (Offshore Wind)
• Innovair Limited (Offshore Wind)
• Alba Gaskets (CCS, Decommissioning)
• HonuWorx Ltd (Offshore Wind)
• HPR ROV Ltd (Offshore Wind)
• ADC Energy (Offshore Wind)

Primarily focused on small and medium-sized enterprises (SMEs), ETZ has issued individual grants of up to £250,000 to firms, many of whom have traditionally serviced the oil and gas market and are now exemplars of the transition to clean energy in action.

Project awardees include HPR ROV, developing “micro ROVs” for floating wind inspection, and Safelift Offshore, which is using its funding to develop a state-of-the-art fabrication facility at its Aberdeenshire base.

The award of the funding was marked by Scottish Government Cabinet Secretary for Net Zero and Energy, Gillian Martin MSP, during a visit to Alba Gaskets this week.

Traditionally an oil and gas-focused firm, Alba Gaskets is using the funding to help break into the CCS market utilising its specialised laser welding and 3D printing technology.

Acting Energy Secretary Gillian Martin said: “Scotland has an established track record in promoting renewable energy. We are at the forefront of its technology development and generate the majority of our electricity from renewable sources - ensuring we play a crucial role in the UK's overall energy landscape.

“The ETZ Challenge Fund is a good example of how funding, supported by our Just Transition Fund, is helping businesses to accelerate innovation and transition into low-carbon markets.

“This is yet another demonstration of the Government working closely with partners to ensure that our transition to net zero by 2045 is done in a way which is just and fair to everyone.”

Freda Miller, Supply Chain Programme Manager at ETZ, said: “This impressive array of companies supported by the third round of the ETZ Challenge Fund showcases the scale of pioneering work being driven forward by this region’s world class energy innovators.

“The supply chain is the lifeblood of our sector. These are the homegrown companies, with specialist skills and experience to scale and deploy innovative solutions that are vital if we’re going to reach net zero – both here in Scotland and right across the globe.

“More than £3.9m of total funding has been unlocked through this round of the Challenge Fund, showcasing a sector which is ready and willing to diversify operations for the industrial revolution in green energy.”

Gavin Sim, Managing Director, Alba Gaskets, said: “As a proud Scottish manufacturer, we want to create employment within the city and longevity for the business.

“This funding will assist us in our goals to become the leading gasket supplier within the CCS market and we thank ETZ Ltd for its support in realising that ambition.”