£1.57m award for Dornoch Distillery towards new net zero whisky distillery
25th March 2026
A major project to develop a new net zero distillery in Sutherland has secured up to £1.57m from Highlands and Islands Enterprise (HIE).
A major project to develop a new net zero distillery in Sutherland has secured up to £1.57m from Highlands and Islands Enterprise (HIE).
Struie Distillery is being developed by the Dornoch Distillery Company Limited (DDCL), founded in 2016 by brothers Simon and Philip Thompson.
Dornoch Distillery is a micro distillery in a 19th century fire station in the grounds of Dornoch Castle Hotel, where it employs nine people.
The new facility is being built on land at Dornoch South. It will have advanced production infrastructure capable of producing up to 400,000 litres of pure alcohol a year, more than ten times the current production level.
It will also include integrated bottling and warehousing capabilities, allowing the expansion of their existing Independent Bottling, Blending and Gin businesses, which have been growing through the current Whisky down market.
A dedicated visitor centre is expected to welcome around 15,000 visitors a year.
Central to the project is the aim to be one of the UK’s largest carbon neutral distilleries. It will be powered solely by renewable energy technologies such as solar arrays, thermal energy storage and high-efficiency heat pumps.
The project is expected to generate significant economic and social benefits. These include creating skilled rural jobs, strengthening supply chains and enhancing the area’s appeal to visitors as a premium whisky tourism destination.
Dornoch Distillery Company Limited also includes Dornoch Castle Hotel and the Thompson Bros bottling plant. The plans already have planning consent and widespread local support.
With the whisky industry going through a difficult period, including the recent announcement of the closure of the Johnnie Walker experience in Brora at Clynelish Distillery, this news of a new distillery in Dornoch comes at a welcome time and shows confidence from the Thompson Bros in their ability to create a world-class facility and product from the region despite current market conditions.
The HIE funding will contribute towards the costs of the energy efficiency elements of the construction project.
Head of business growth with HIE’s Caithness and Sutherland team Claire Wilson said, "We’ve been working with Dornoch Distillery Company for several years now. It’s a company with clear growth potential, particularly in exports, and the ambition to match. This latest project will not only significantly increase the company’s production capacity, it will also position Struie Distillery at the forefront of sustainable whisky production. As such, it has the potential to become an exemplar for the sector’s green transition. I’m delighted we’ve been able to support this exciting project and look forward to seeing the new facility taking shape.”
Simon Thompson, co-founder, said, "With HIEs support towards our innovative energy infrastructure, we hope to demonstrate a path for the Scotch Whisky industry to achieve electrified Net Zero production leveraging market-ready technologies that are cost-competitive with the best natural gas systems. If we can demonstrate the expected energy efficiency and plant reliability, such systems should be a no-brainer for widespread adoption."
