Peatland Restoration Fund

About the fund 

The Peatland Restoration Fund is designed to support organisations across the Highlands and Islands in delivering vital peatland restoration projects. Through this fund, up to 14 contractors will be awarded capital grants to adapt equipment, enabling them to undertake peatland restoration activities.

Specifically, the Peatland Restoration Fund will support contractors to adapt 360-degree excavators to make them suitable for operating on sensitive terrain, such as peatland.

• Grant amount: Up to £25,000 per applicant, covering up to 50% of the cost of adapting one machine.
• Fund opening: December 2025.
• Eligible spend period: Financial year 2026/27.

We encourage applications for projects that will deliver peatland restoration in remote and rural areas.

What can the grant be used for?

Funding is available exclusively for the purchase of equipment to allow the adaptation of 360-degree excavators to enable peatland restoration work within the Highlands and Islands.

Assistance will be provided towards:

• conversions to wide-tracks, and any associated adaptations needed to the excavator undercarriage (by spreading the weight of the excavator over a larger area there is less damage to the peatland and less chance of the excavator becoming bogged).
• the purchase, and fitting, of tilt rotator hitches which can significantly increase the excavator’s precision in performing restoration techniques and enhance output while preventing damage to the peatland, as the excavator can stay in the same position for longer.

If you are invited to apply to the Peatland Restoration Fund, at the application stage you will need to provide at least one quote for the equipment purchase and adaptation work.

What can the grant NOT be used for?

The grant cannot be used for:

• Projects that have already commenced at the time of submitting an Expression of Interest (EOI).
• Any costs invoiced to, or paid by, the applicant prior to submitting an EOI.
• In-kind costs and own-labour costs, e.g. contractors adapting their own machinery will not be eligible.

Who is eligible to apply?

To be eligible, your organisation must:

• Be a small or medium-sized enterprise (SME).  This includes Sole Traders.  For the definition of an SME, please refer to this guide - User guide to the SME definition - Publications Office of the EU
• Have been trading for at least 12 months (as determined by the date of incorporation, or registration with HMRC for unincorporated organisations).
• Be based in the Highlands and Islands.
• Be intending to undertake or apply for Peatland Restoration works in the Highlands and Islands in the next 12 months.
• Comply with Highlands and Islands Enterprise (HIE) Fair Work conditions for grant support. For further details, visit our Fair Work page or contact us at enquiries@hient.co.uk.
• Applicants from most sectors are welcome, subject to the exclusions listed below.

Who is not eligible?

• Large enterprises (as defined in the SME guide above).
• Applicants whose projects, or organisations, do not meet the criteria outlined above.

How will funding decisions be made?

Our contribution will be based on the financial need of the applicant. Applicants will be required to provide financial information to support their application.

Application process

The application process consists of two stages:

1. Expression of Interest (EOI):

• Complete and submit the online EOI form. Applications submitted via email or general enquiry will not be accepted.
• Applicants will receive a decision within four weeks of the EOI closing date of 30 January 2026.
• If successful, applicants will be provided with assistance to guide them through the full application process.
• If an EOI is unsuccessful, we will provide feedback and signpost to other support, where possible.

2. Full Application:

• Successful EOI applicants will be invited to submit a full grant application, including supporting documentation, such as evidence of quotes for machinery adaptation.

Fair Work

Applicants must comply with HIE’s fair work conditions for grant support. For more information, see our fair work conditions below. If you want to speak to someone about this requirement or need more information, please email enquiries@hient.co.uk

The small print - this is important 

• All HIE grant assistance is discretionary. Grant awards are subject to due diligence and budget availability.  Due diligence includes making an assessment on the need for public funding; the viability of the business going forward; the ability of the applicant to deliver the project; the impact of the development on the economy, subsidy control considerations and the strength of the business case presented to HIE. NatureScot Peatland ACTION will be part of the application appraisal process.
• Making an application to the scheme does not guarantee that your application will be successful.  If you are not successful in your application, or are only partially successful, e.g. you receive funding of a lesser amount than you applied for, we will contact you to let you know why you have been unsuccessful and point you in the direction of other possible sources of funding.
• There is NO appeals process.  We are unable to consider a complaint purely relating to dissatisfaction as to the outcome of a funding decision. However, if you have identified a specific process failure relating to your application, then you may wish to make a formal complaint. See our formal complaints process for more information.

Need to speak to us?

If you would like to talk to someone about your enquiry, please email enquiries@hient.co.uk and we will get back to you.