Highland Council has granted planning permission to Protium for the Cromarty Green Hydrogen Production Facility—a 15 MW green hydrogen electrolysis plant in Alness, near Inverness. The announcement followed Protium’s acquisition of the project in May 2026. It’s the first stage of what the company calls the Highland Hydrogen Hub, and it holds a distinction no other hydrogen project in Scotland can claim: a contract for difference subsidy awarded under the UK government’s Hydrogen Allocation Round 1.
Planning permission granted for Cromarty facility
Highland Council’s decision makes the Cromarty Green Hydrogen Production Facility (CGHPF) official. The 15 MW electrolysis plant in Alness will convert locally generated renewable electricity into green hydrogen, forming the first stage of the Highland Hydrogen Hub.
Protium acquired the project in May 2026 and built its offtake strategy around a clear set of priorities: maximizing energy efficiency while keeping local traffic, noise, and visual impact low. That community-conscious approach appears to have shaped the planning outcome considerably.
Around 30 permanent jobs are expected, local supply chains will be supported, and the project is positioned as a contribution to the Highlands’ net-zero goals.
Near Inverness, the facility sits within reach of industrial users, heavy transport operators, and off-grid energy consumers across the Highlands and Aberdeenshire—the target market for whatever hydrogen it produces.
The UK government subsidy underpins the project
What sets Cromarty apart from every other hydrogen project in Scotland is its contract for difference (CfD) subsidy, awarded under the UK government’s Hydrogen Allocation Round 1 (HAR1). No other hydrogen project in Scotland holds that designation.
A CfD guarantees a fixed “strike price” for the hydrogen produced, shielding the project from market price swings and giving investors long-term revenue certainty. In practical terms, that stability directly lowers the cost of locally produced, zero-emission hydrogen for end users.
The subsidy draws on Westminster financial support to anchor the project’s economics within the Highland region. Because the hydrogen will be produced and consumed locally, Protium says all the economic and energy benefits stay in the Highlands rather than flowing elsewhere.
Expected regional economic and environmental outcomes
The CGHPF is expected to create around 30 permanent green-collar jobs and apprenticeships in Cromarty, alongside contracting roles during construction. Protium has committed to directing investment toward regional contractors, logistics providers, and training hubs through a local procurement strategy.
Beyond employment, the facility’s core purpose is decarbonization. Affordable green hydrogen is intended to replace fossil fuels in off-grid generators, heavy transport, and regional industry across the Highlands and Aberdeenshire—sectors that are notoriously difficult to electrify directly and where clean alternatives remain scarce.
The project fits into a larger policy goal as well. Highland Council has set a net-zero greenhouse gas emissions target for 2045, and Protium positions the CGHPF as direct, practical support for that commitment. Whether a single 15 MW facility moves the needle significantly on regional emissions remains to be seen—but it’s a concrete step in a direction the council has publicly endorsed.
Community benefits scheme and just transition commitments
Alongside the planning approval, Protium has outlined a Community Benefits Scheme built around four pillars: employment and fair work, local procurement, community funding, and educational outreach.
The employment pillar prioritizes local recruitment, upskilling, and apprenticeships—with an explicit goal of keeping young talent in the region rather than watching it leave for opportunities elsewhere. That focus on youth retention reflects a concern common to many rural and post-industrial communities across Scotland.
Educational outreach takes a similarly forward-looking shape. STEM workshops, site visits, and green skills programs are planned for local schools, colleges, and universities, building a pipeline of workers familiar with hydrogen technology from an early age.
Community funding will be aligned with needs identified through engagement with regional stakeholders, rather than predetermined by the company. That suggests Protium intends the scheme to respond to what communities actually say they need—though how that engagement will be structured hasn’t been detailed publicly yet.
Next steps and Protium’s broader Scotland strategy
Construction timelines and further community engagement updates for the CGHPF are still to be announced. Protium has said these will be confirmed in due course, leaving some uncertainty around when the facility will actually break ground.
Cromarty’s role within the company’s wider ambitions is clearer. Protium describes the project as the primary, active focus of its long-term strategy in Scotland—a community-first model intended to inform how it approaches potential future developments in the region. Speyside and Islay have been identified as possible locations for additional hydrogen hubs, though neither appears to be at an advanced stage.
Protium describes itself as an end-to-end green hydrogen solutions provider, covering production, distribution, and on-site deployment across construction, manufacturing, transport, and operations.
Local supply chains will be supported
Highland Council’s planning approval gives Protium a clear path forward for the Cromarty Green Hydrogen Production Facility. The 15 MW electrolysis plant in Alness is the first stage of the Highland Hydrogen Hub and the only hydrogen project in Scotland backed by a HAR1 contract for difference subsidy—a distinction that provides the long-term revenue certainty needed to make locally produced green hydrogen economically viable.
Around 30 permanent jobs are expected, local supply chains will be supported, and the project is positioned as a contribution to the Highlands’ net-zero goals. A Community Benefits Scheme covering employment, procurement, funding, and education is part of the commitment. Construction timing is still to be confirmed.
Staff Writer
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