New £2.5m energy transition fund to help unlock investment in Aberdeenshire industrial properties

Delivered by ETZ and funded by Scottish Enterprise, the new Property Improvement Fund is designed to tackle the high refurbishment costs that can prevent older industrial properties from being upgraded and limit businesses’ ability to grow.

The scheme will offer funding solutions of up to £500,000 per project, covering no more than 30 per cent of eligible costs.

By addressing the “viability gap” associated with refurbishing older industrial property, the fund aims to unlock significantly greater private investment and bring business-ready premises back into productive use.

The initiative is part of a wider strategic partnership announced by ETZ and Scottish Enterprise earlier this year, which aims to create more business-ready industrial space, support companies to grow and diversify into energy transition markets, and strengthen the North-east’s proposition to investors. It builds on the success of a 2024 ETZ pilot.

Projects must involve existing industrial property with the potential to support businesses operating in, or supplying, energy transition markets. Applications will be assessed on factors including economic impact, private investment, occupier demand and carbon performance.

Neil Young, deputy chief executive of ETZ, said: “The Property Improvement Fund has already shown what targeted investment can achieve. It has helped bring long-vacant industrial buildings back into use, improve existing premises and create space for businesses to grow.

“This £2.5m fund will support projects across Aberdeen and Aberdeenshire. We want to hear from applicants with strong, deliverable proposals that can revitalise industrial property and help grow the region’s energy transition supply chain.”

Clare Alexander at Scottish Enterprise added: “This new fund will help bring more vacant and underused industrial property back into productive use, creating the business-ready premises companies need to invest, grow and diversify into energy transition markets. Through our strategic partnership with ETZ, we are strengthening the North-east’s proposition to investors and helping turn the region’s energy transition opportunity into long-term economic impact.”

The fund is open for applications now, with initial proposals expected to be reviewed before the end of the year and funding available across 2027/28.