Plans for a new net zero distillery in Dornoch have taken a significant step forward following a funding award of up to £1.57 million from Highlands and Islands Enterprise (HIE).

Struie Distillery is being developed by the Dornoch Distillery Company Limited (DDCL), the firm founded in 2016 by brothers Simon and Philip Thompson. Currently operating as a micro-distillery within a 19th-century fire station, the business is set to scale up dramatically with a new purpose-built facility at Dornoch South.

The new site will feature advanced infrastructure capable of producing 400,000 litres of pure alcohol annually—more than ten times the current output. The expansion will also integrate bottling and warehousing to support the company's growing independent bottling, blending, and gin operations.

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Central to the vision is a commitment to carbon-neutral production. The distillery will be powered entirely by renewable energy, utilizing solar arrays, thermal energy storage, and high-efficiency heat pumps. A dedicated visitor centre is also planned, with the capacity to welcome 15,000 guests each year.

The investment comes at a pivotal time for the local economy following the recent news that Diageo is closing the Johnnie Walker visitor experience at the nearby Clynelish Distillery in Brora. The Struie project is expected to create skilled rural jobs and reinforce the region's status as a premier destination for whisky tourism.

Simon Thompson, co-founder of Dornoch Distillery Company, said: "With HIE's 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."

Claire Wilson, Head of Business Growth at HIE's Caithness and Sutherland team, added: "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."