A Fife-based distillery has unveiled “bold” expansion plans as it nears its 10th anniversary.

InchDairnie Distillery, which was founded by chairman Ian Palmer on Christmas Day 2015, is doubling capacity to four million litres of alcohol per year and preparing to switch to hydrogen power for distillation, as demand for its first release grows around the world.

The distillery, located to the west of Glenrothes, has installed two new stills – one wash and one spirit – three new washbacks, a hydrogen-ready boiler, and four on-site warehouses under a long-term blueprint. Land has also been secured to enable InchDairnie to add a further 14 warehouses.

Asked why the distillery was expanding now, managing director Scott Sneddon, who has been with InchDairnie since the beginning of the project, told The Herald. “I’ve been in the industry for just over 18 years, and in the whisky industry you always look in the long term – it is never a short-term view.

“The existing site was always designed to be capable of producing four million litres of alcohol. We ran at two million litres of alcohol from the very beginning, so for us it was just a case of adding the additional equipment that enables us to achieve the four million.”

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Mr Sneddon added: “I can’t tell you the exact level of investment. All I can say is that it has all been part of a long-term viewpoint. I have been here since the very beginning, since 2015. So for the last nine and a half years there has only been a period of about six months where we haven’t been doing any building work on site. That just demonstrates the long-term viewpoint and the planning that goes into the distillery process.”

InchDairnie emphasised the importance of energy efficiency to its expansion, noting that the new stills, designed by Frilli, incorporate energy recovery systems and double condensers, like the original stills. The hydrogen-ready boiler, designed by Bosch, will allow it to switch from natural gas to green hydrogen and reduce the carbon footprint of the distillery by around 35%. It is hoped that ScottishPower will begin supplying green hydrogen to the distillery in late 2026 or early 2027.

The expansion of the distillery, which employs 21 people on a full-time basis, follows the release in April 2023 of InchDairnie’s debut spirit, the award-winning RyeLaw. The rye Scotch whisky is now available in 20 countries through MacDuff International, and is retailed here by Masters of Malt, Royal Mile Whiskies, Hedonism, Selfridges, The Whisky Shop, The Whisky Exchange, Luvian’s, Speciality Drinks, Harvey Nichols, Hedonism, Good Spirits Co, Fortnum & Masons, and others.

InchDairnie also lays down a large part of the volume of spirit it produces for an unnamed strategic partner, which uses it for its blends. Mr Sneddon said this deal underlines that there is “growth within the wider whisky environment, so that just gives us confidence to provide additional volume that meets our current needs but also the needs of some of our customers as well”.

(Image: InchDairnie Distillery) Scott Sneddon, managing director, InchDairnie Distillery

He added: “We have one key strategic partner and a number of other smaller customers… they can lay [the whisky] down for their own brands, both current and future.”

Mr Palmer, who has more than 40 years of industry experience, and designed the distillery with construction firm Colorado Group, said: “The installation of the new infrastructure at the distillery is testament to the quality of spirit that we are producing here in Fife, and have done for a decade.

“Demand from industry partners for our new-make liquid has been high, and the response we have had to our first release, RyeLaw, unveiled last year has been both satisfying and humbling.”

Mr Sneddon, who previously worked at Diageo’s Glen Ord and Glenkinchie distilleries, added: “As we prepare to mark ten years, the doubling of capacity is a bold move, but one that ensures we are set to meet the increased growth in demand for our products that we predict will come as more and more discover our innovative whiskies and full flavours.”

Meanwhile, Mr Sneddon revealed InchDairnie has been holding talks with Fife’s four other Scotch whisky distilleries – Kingsbarns, Eden Mill, Daftmill, and Lindores Abbey – with a view to establishing a geographical recognition for whisky produced in the region.

He said InchDairnie is “proud” that its rye whisky is “Fife grown, Fife distilled, and Fife matured”.