First-of-a-Kind Low-Carbon Distillery Project Marks Breakthrough in Industrial Heat Decarbonisation

 Annandale Distillery to Use Otherwise Wasted Renewable Energy to Produce Low-Carbon Whisky 

Edinburgh, U.K., 14th April, 2026 – Exergy3, a clean heat technology company, has today announced the commissioning of a first-of-a-kind decarbonised heat project at Annandale Distillery near Dumfries in Scotland. 

The pioneering project delivers high-temperature process heat of up to 1,200°C using low- and zero-carbon electricity. This represents a major breakthrough in the affordable decarbonisation of industrial heat, which currently accounts for around 18% of global CO₂ emissions and is notoriously difficult to decarbonise. 

The project was delivered by Exergy3 in partnership with Annandale Distillery and Cochran Ltd, supported by funding from the UK Department for Energy Security and Net Zero through its Net Zero Innovation Portfolio. 

The award-winning Annandale Distillery aims to become one of the first distilleries in the world to produce low-carbon whisky. Exergy3’s technology supports this ambition and forms part of Annandale Distillery’s 12-step decarbonisation plan, which also includes bottling and maturing whisky on site to reduce road miles, switching to electric vehicles where possible, and exploring alternative waste-reuse options for spent grain and carbon dioxide. 

Prof. David Thomson, cofounder of Annandale Distillery, said: “This is a first – not just for the whisky industry or Scotland, but globally. Heat-intensive industries like ours are under increasing pressure to decarbonise, and solutions that can deliver high-temperature heat without fossil fuels have been hard to find. The fact that it does so economically, while also helping tackle the rising costs of balancing the electricity system, makes it incredibly powerful.” 

Exergy3’s modular thermal energy storage system converts renewable electricity into thermal energy and stores it at ultra-high temperatures. The system then discharges hot air at temperatures between 50°C and 1,200°C, depending on industrial requirements. This makes it widely applicable across industries including food, drink, chemicals, pharmaceuticals, fertiliser, and cement. At Annandale Distillery, the system delivers hot air of up to 530°C, which is turned into green steam by a Cochran boiler and used in the distilling process. 

Cochran Ltd, the UK’s trusted leader in industrial boiler manufacturing, was chosen to supply the boiler for its commitment to sustainability and its solutions-orientated approach. Eric Daglish from Cochran Ltd said: “Across industry, we see growing interest in alternatives to fossil fuels as companies work towards their carbon reduction goals. One of the biggest challenges has been finding solutions that are both practical and economically feasible, but this technology shows that it’s possible. We are proud to be part of a project that marks such a significant milestone for the wider decarbonisation of industry.” 

What makes the solution particularly distinctive is its use of renewable electricity that would otherwise be curtailed. In this project, the system utilises wind power, which is the most abundant renewable energy source in Scotland. £2.7 billion was spent on balancing the UK grid in 2024, and this figure could double by 2030. Exergy3’s solution captures that otherwise wasted electricity and converts it into readily available zero-carbon, low-cost heat. 

Markus Rondé, CEO of Exergy3 said: “We are delighted to have partnered with Annandale Distillery to decarbonise one of Scotland’s most important exports and look forward to raising a toast with the very first low-carbon whisky of its kind. Beyond whisky, our solution could halve global industrial CO₂ emissions, while being cheaper than gas and reducing rapidly rising curtailment costs that are paid for by the consumer.” 

With a physical footprint no larger than an average garage and requiring only minimal infrastructure, the solution is extremely compact and quick to install. Its modular design means that it can be commissioned within a matter of months – years faster than alternative technologies such as hydrogen and carbon capture. It is scalable to the onsite grid connection, allowing sites to partially decarbonise while grid reinforcements are made. It can also operate alongside the existing heat system and run only when it is cheaper than gas. 

Each module is highly energy-dense, offering more than 10MWh of storage capacity, round-trip efficiency of up to 96%, and thermal losses of less than 1% per 24 hours, making the system highly efficient. At Annandale Distillery, three modules totalling 30MWh storage capacity supply hot air to the 3MW Cochran boiler which converts it into green steam at 10 bar pressure.