The pioneering clean energy scheme looks certain now Ofgem has committed the final £67 million of funding to deliver the project.
The funding is on top of £56m confirmed in June, and brings the total investment to £164m.
It means Scotland will play a leading role in the development of a national core hydrogen network in proposals put forward by National Gas, the owners and operators of Britain’s national gas network.
The energy regulator Ofgem has now given a green light to the next stage by confirming additional funding including the £67m for the “vital” scheme in Scotland.
Linking St Fergus to Teesside and further afield, one project is set to connect Scottish hydrogen production to the industrial cluster at Grangemouth and further south.
There is potential for significant green hydrogen production in Scotland, given “abundant onshore and offshore renewable generation”, including the Kintore Hydrogen production facility situated in Aberdeenshire.
The project could support the decarbonisation plans of industries located in the Central Belt of Scotland, which include Grangemouth and the lower regions to the Firth of Forth.
The projects are part of National Gas’s wider plan to build a national core hydrogen network by repurposing existing natural gas pipelines and building new pipelines where required.
Delivering a national core hydrogen network in full will create thousands of Scottish jobs across project execution, while also paving the way for many more in the country’s thriving hydrogen economy.
Early analysis commissioned by National Gas indicates that a national core hydrogen network could support around 3,100 jobs at peak construction and deliver £300m in annual direct gross value added (GVA) to the economy.
Ian Radley, chief commercial officer at National Gas, said: “This is a hugely significant moment for Scotland’s economy and clean energy journey. With Ofgem’s support, we’re moving from discussion to delivery – taking significant strides towards building a national core hydrogen network, with Scotland at the helm.”
“These projects will unlock significant investment, create a critical pathway for hard-to-electrify heavy industries to decarbonise, and safeguard jobs – all while advancing the Government’s clean energy ambitions and strengthening Scotland’s energy security.
“Hydrogen will sit alongside electrification as a vital part of a cleaner, more resilient energy system, and this funding shows that future becoming a reality.”
Read More:
The need for a core hydrogen network was clearly identified by the Climate Change Committee, the Second National Infrastructure Assessment and in the UK Government’s Hydrogen Transport and Storage Networks Pathway.
The Scottish energy industry has welcomed the funding announcement.
Nigel Holmes, of Hydrogen Scotland, said: “The decision by Ofgem on FEED funding for Project Union Teesside to St Fergus is a critical step towards establishing the UK’s core hydrogen network. The new hydrogen pipeline connection from Teesside will enable connections between large scale hydrogen production across Scotland and the increasing hydrogen demand from industry and responsive power generation throughout the UK.
“The proposed Project Union core hydrogen network will provide resilient energy infrastructure for making, moving, storing, and using hydrogen as an integral part of a low carbon energy system which provides cost effective energy security for Scotland and the UK. Members of Hydrogen Scotland look forward to hearing more about Project Union Scotland and providing input to National Gas for development of the FEED study.”
Plans to build a Radisson hotel with a rooftop bar in a “deteriorating” part of the city centre and knock down a listed building will go before councillors for a hearing next week.
Planners are recommending refusal of the 19-storey Apart Hotel plan on Maxwell Street, which would have 236 rooms including a number of serviced apartments.
Part of the development would see buildings demolished including a B-listed former printworks to make way for the new hotel on a site described as a ‘backland’ to St. Enoch Centre.
A design statement lodged with the council on behalf of applicant Regent Property Ltd said that “the emerging proposals, present a catalyst for change and much needed regeneration and investment in Maxwell Street.”
Money HQ 💷
This article appears as part of the Money HQ with Ben Stark newsletter.
Anyone can be the victim of a pension scam, no matter how financially savvy they think they are. Scammers are using ever more elaborate tricks to fool people, so it’s important to look out for the warning signs.
We examine how to stay one step ahead of the scammers and protect your financial security in retirement.
Last year, financial fraud and scam complaints hit their highest level ever, according to the Financial Ombudsman. The statistics surrounding pension scams are particularly chilling.
According to ActionFraud, the UK’s national reporting centre for cybercrime and fraud, an estimated £17.7 million of pension funds was fraudulently accessed between 2023 and 2024. The average loss per person was almost £47,000. However, The Pensions Regulator reports that fewer than one in five victims report the crime.
