Castletown mill distillery project gets £250,000 HIE boost
The new whisky distillery taking shape within Castletown’s former mill has secured a £250,000 investment from Highlands and Islands Enterprise.
The £5.9 million project is being led by Dunnet Bay Distillers and 13 jobs will be created.
The mill was originally constructed to feed local flagstone workers in the 1800s. The industry once employed up to 500 men but later fell into disrepair.
The derelict building is now being converted into a state-of-the-art craft whisky distillery and visitor attraction. The distillery’s name will be Stannergill, which is understood to be a Norse term meaning stone-enclosed gorge or ravine – or river of stone.
Dunnet Bay Distillers previously secured £500,000 from Historic Environment Scotland for the renovation works.
The funding from HIE will help meet the costs of plant and equipment to fit out the new facility. It will also help bring in “significant private-sector investment”, according to the enterprise agency.
Stannergill Distillery will source water on site and use energy from renewable sources to power the electric distillery equipment.
Plans are under way to dispose of any waste from the distillation process in a sustainable and environmentally conscious way, including options for it be used as fertiliser by a local barley farmer.
Hilary Budge, development manager with HIE’s Caithness and Sutherland team, said: “Whisky production is a key part of the food and drink sector in Caithness that is helping to diversify the local and regional economy through whisky-based tourism.
“There are several aspects to this project that will bring benefits to the local area and to the wider economy.
“It will bring a disused building back into productive use as a place of interest promoting local heritage and improving the aesthetics of the area. And of course it will create valuable local jobs and contribute towards net-zero ambitions.
“I’m delighted we’ve been able to provide support and look forward to seeing the new distillery taking shape.”
Martin Murray, co-owner of Dunnet Bay Distillers, said: “What delights me about this project is saving an old building and giving it new life.
“The opportunity it will create for new local employment is something that really pleases us and we look forward to when we can start recruiting.”
Dunnet Bay Distillers was founded in 2013 by Martin and Claire Murray and now produces and sells more than 110,000 bottles of gin, vodka and rum every year.
The business consists of a distillery and five-star visitor centre in Dunnet with more than 15 full-time-equivalent posts.
The distillery’s Rock Rose gin has attracted industry attention in recent years, including being selected by CoolBrands and listed by Decanter as one of the best Scottish gins to try.
It was also a finalist in the Industry Judges’ Awards of the Gin Co-operative Awards in 2022 and Scottish Gin Distillery of the Year in 2019.
