Whisky production will return at Annandale after 90 years
Whisky production is to be revived at a disused distillery in southern Scotland for the first time in 90 years.
Enterprise Minister Jim Mather has confirmed Regional Selective Assistance (RSA) support for the Annandale Distillery Company in Annan.
The £150,000 grant is part of a £4m investment project which hopes to create a total of 18 new jobs.
Mr Mather said the scheme was a "significant boost" for the region and whisky production in general.
He said the return of whisky production to the Annandale area of Dumfries and Galloway was a "welcome development".
"I hope that RSA will prove a valuable tool in creating new jobs and resurrecting whisky production at Annandale and I wish those involved with the project every success," he said.
Project director of the scheme, Prof David Thomson, said the main ambition was to create an "interesting and meaningful brand".
"Having conducted much of the detailed early planning, our project is now moving into the more advanced stages of design," he said.
He added that the investment could deliver real economic benefits.
The project has also been welcomed by Campbell Evans of the Scotch Whisky Association.
"The development at Annandale is part of a very welcome trend of new distilleries being built and silent distilleries being brought back into production," he said.
"Significant recent investment across the Scotch whisky industry is being supported by growing demand worldwide and is good news for the wider Scottish economy."