The projects are delivered through the Scottish Government's Island Communities Fund, which provides investment for community-led projects that support employment, community resilience and contribute to Scotland's just transition to net zero and climate resilient living on islands.
This second payment tranche will see funding provided to six additional projects. A second instalment of funding will also be provided to one of the projects awarded money in the first tranche.
The Fund is managed by Inspiring Scotland on behalf of the Scottish Government and the 35 successful projects span across 55 islands.
Islands Secretary Mairi Gougeon said: "Last summer, we received more than 180 applications for this fund which shows us that our islands are focussed on making Scotland a greener and fairer place. They will play an important role in helping us meet our ambitious climate change targets.
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"The additional funding will enable even more projects to help people, businesses and communities on our islands thrive."
Magnus Holbourn of Foula Wool has received two funding instalments through the fund. Speaking about the importance of the fund to his business, he said: "This is a genuine transformational opportunity for our island business, we have worked extremely hard over a number of years building up a customer base and establishing our Foula Wool product range. To now be able to bring all of the physical processing work that goes into creating the product back to the island, retaining its full value in the local economy is simply a dream come true.
"The fact that all of the yarn processing machines will be running on low carbon renewable electricity generated by Foula's own off-grid network not only increases overall island resilience but also allows us to significantly lower our business carbon footprint. We are really passionate about the environment and it makes us so happy to know that we are going to be able to produce our product in a responsible way, supporting our community and our unique sheep at the same time."
Inspiring Scotland CEO Celia Tennant said: "Inspiring Scotland is delighted to work with the Scottish Government to deliver this increase in investment to the Island Communities Fund. Support for these seven organisations will help island communities from Foula to Arran thrive, retain and grow population, and move towards a net zero future more quickly."
