ETZ Ltd’s flagship energy supply chain initiative has delivered over 250 green jobs and unlocked millions of pounds in private sector investment, according to a new evaluation.
And the positive economic impact of the not-for-profit’s Supply Chain Pathway and Challenge Fund Programme shows no signs of stopping, with forecasts placing total green job creation at almost 800 in the coming years.
Analysis conducted by leading Scottish consultancy Optimat has shone a light on the progress made to date by the Challenge Fund, led by ETZ Ltd and supported by the Scottish Government’s Just Transition Fund.
Since it was launched in 2022, the initiative has generated 267 green jobs, with more than 50 companies receiving support to transition into the low carbon energy sector.
During that time it has also unlocked £17million in private sector investment, just over double the £7.5m of public money awarded by government to deliver the grant funding element of the four-year programme in 2022.
According to Optimat’s 10-year forecast, the Challenge Fund will generate further economic value, including over 500 full time equivalent positions, taking the total green jobs count to just under 800, and deliver more than £300m in Gross Value Added (GVA) for the Scottish economy.
Cabinet Secretary for Climate Action and Energy, Gillian Martin said: “The ETZ Supply Chain Pathway and Challenge Fund is a critical means of supporting energy supply chain companies, especially SMEs, ensuring they have the tools to succeed in an increasingly competitive global market.
“I am delighted at the strong job creation and economic impact emerging from the evaluation. This report is a welcome assessment of the impact of the Just Transition Fund, and a strong case study of the benefits of public and private partnership more broadly.
“Our ongoing support for the Challenge Fund will allow us to deliver more jobs and help our companies diversify and compete, ensuring the full potential of this investment is realised.”
Freda Miller (left), Supply Chain Programme Manager, ETZ Ltd; Gillian Martin (Centre), Cabinet Secretary for Climate Action and Energy; Maggie McGinlay (right), CEO, ETZ Ltd; pictured with the management team of Dron & Dickson, which was in the first cohort of companies to benefit from the Supply Chain Pathway and Challenge Fund Programme.
These economic impact findings from Optimat come as the latest round of successful awards are finalised and distributed to the 2025–26 Challenge Fund cohort.
In order to build on the programme’s successes to date, an additional £3m has also been pledged by Scottish Government, through the Just Transition Fund, to support high-growth potential companies across North-east Scotland's energy sector.
The enhanced Challenge Fund provides grants of between £50,000 and £500,000 to help accelerate innovation and speed up market entry, while supporting business growth and protecting and creating jobs across emerging and established low-carbon sectors.
Examples of eligible projects would include the development of new innovation technology solutions or industrial facilities, investment in manufacturing capability and automation, equipment installation, and upgrades to existing infrastructure - including digital systems.
The fund is primarily aimed at SMEs currently servicing the energy supply chain market in Aberdeen City, Aberdeenshire and Moray that have ambitions to diversify into new or existing commercial opportunities within the low-carbon energy sector.
Maggie McGinlay, Chief Executive of ETZ Ltd, said: “This evaluation is evidence not just of the success of ETZ’s Supply Chain Pathway and Challenge Fund Programme, but more crucially of the level of ambition and entrepreneurship that exists within businesses in the energy sector who are looking to transition into low carbon opportunities.
“The figures underscore just how powerful public money can be in unlocking long-term private sector investment; it is industry collaboration like this that will be so vital to delivering a just transition.
“By supporting innovation and strengthening supply chain capability, we are not only accelerating business growth in the North-east energy sector but also generating meaningful economic returns across Scotland.”
Steven Simpson, Managing Director, Safelift, said: “The support from the ETZ Challenge Fund has been crucial for us. It wasn’t just about the capital to build a new first-class fabrication facility; it was also the catalyst that accelerated our offering into the renewables marketplace.
“Because of this investment we’ve been able to move at a far greater pace, already landing our largest project to date for a major European offshore wind farm, a massive boost for our team. We’ve improved our procedures, upgraded our workspace, and most importantly, we’re bringing in new talent and apprentices to build a future.
“This funding has essentially helped further anchor us in the North-east of Scotland. It gives us the confidence to shout about our global ambitions while staying hugely committed to our local supply chain and the community that supports us.”