A study into a rural energy and transport hub for the isles will benefit from grant funding of over £50,000.
Shetland Islands Council has been awarded the boost from the Net Zero Living Programme.
The funding comes to a total of £52,648.
The Net Zero Living Programme is funded by Innovate UK, the UK’s national innovation agency.
The council led project, known as the “Shetland Rural Energy Hub” will be undertaken in collaboration with Aquatera and Community Energy Scotland.
It will see a feasibility study undertaken to investigate the “non-technical barriers” to implementing a rural energy and transport hub in the isles.
The study will run from 1st April to 30th June 2023.
Chairwoman of the council’s environment and transport committee, Moraig Lyall, said: “Locally focussed projects like the Shetland Rural Energy Hub will have many benefits for the Shetland community.”
Ian Johnstone, Aquatera Director said: “We are excited to be supporting Shetland Islands Council in the innovative Shetland Rural Energy Hub project to explore the feasibility of delivering decarbonisations through a model of rural energy hubs.”