This item was published during the term of a previous administration that ended in April 2007
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New fund to encourage sustainable energy
05/09/2006
A new £6m fund to support renewable energy developments in the East of Scotland has been set up.
The Sigma Sustainable Energies Fund is being financed by a range of partners - including the Executive and Scottish and Southern Energy - to stimulate growth in the fast-growing renewables sector.
At Fife Energy Park in Methil, Deputy First Minister Nicol Stephen said:
"Scotland has incredible potential to be a world leader in green energy and we have a target of 40 per cent of our electricity to come from renewable sources by 2020.
"We have world class universities and research facilities; skills and technology from our offshore energy industry; and many innovative and enterprising developers and companies.
"Ocean Power Delivery (OPD) is already setting the pace for wave energy. It is exporting its Pelamis wave devices to Portugal, using Scottish skills to make it happen.
"I now want to see more Scottish companies exploiting the opportunities that exist. I have already announced £20 million for clean, green energy products and this new Sigma fund will further strengethen Scotland's position.
"This fund will give other companies the opportunity to follow Ocean Power Delivery and I am particularly pleased to be able to channel £2.4 million European Regional Development Funding (ERDF) into developing the market.
"By working with the business sector, we can make Scotland the place to be for renewable energy - good for the environment and good for business."
The Sigma Sustainable Energies Fund has a value of £6 million - which could rise to £8 million - and investments will be up to £500,000 in each company.
The fund will consider energy related projects in a wide range of fields including wind, solar, hydro-electric, biomass (including biofuels), ocean, hydrogen, and geo-thermal.
The fund will also consider projects which develop home and community power systems, fuel cells and energy storage (devices and physical storage), control systems and energy efficient products or applications.
Partners in Sigma Sustainable Energies Fund | Scottish and Southern Energy plc | £2.4 million |
| SIGMA Technology Investments Ltd | £400,000 |
| Scottish Enterprise Fife | £500,000 |
| Scottish Executive (ERDF) | £2.4 million |
| Limited partners | £300,000 |
| Total | £6 million |
The fund will cover areas which are included the East of Scotland Objective 2 zone. It will run until the end of 2008.
The Sigma Sustainable Energies Fund is a follow on and derivative development from the Sigma Innovation Fund (East of Scotland) which was launched in November 2003 and is also supported by the ERDF.
It is based on the success of the Innovation Fund with significant interest from new and early stage companies with a focus on technology and innovation seeking equity to grow their businesses.