Eleven projects designed to accelerate Scotland’s hydrogen economy are set to benefit from a share of £3.4 million in Scottish Government funding.
According to the government, the investment will help develop green hydrogen production across the country, improve the hydrogen supply chain, and enhance hydrogen transport and storage infrastructure.
Among the initiatives awarded funding is the Sustainable Fuels Orkney project, led by the European Marine Energy Centre, which won £375,000, and the Protium Green Solution’s Lanark Hydrogen Island scheme, with £450,619 in funding.
Of the £3.4 million in total funding, more than £1.5 million is being allocated to just two organisations.
Green Cat Hydrogen has been awarded over £1 million for three projects, including £320,549 for its Strathallan Hydrogen scheme to harness around 20 Megawatts of renewable energy to produce low-carbon hydrogen in Perth and Kinross, as well as £490,088 for its Creca Hydrogen Facility located in Dumfries and Galloway, which aims to produce more than 4,000 tonnes of green hydrogen per year.
Meanwhile, Storegga Hydrogen will see more than half a million pounds of public money invested in its two Cromarty Hydrogen projects, including £238,400 for the Phase 2 Longman project and £290,155 for its Muir of Ord scheme.
The funding follows the Scottish Government’s invitation in September last year for hydrogen projects to apply for match-funding grant awards of up to 50%, to a maximum value of £2 million.
News of the new funding follows a debate in the Scottish Parliament yesterday regarding Scotland’s hydrogen future, with the government’s acting net zero secretary Gillian Martin telling MSPs: “Hydrogen stands as a critical pillar of Scotland’s route to net zero by 2045.
“We are determined that no community, particularly not the ones that have powered our economy for generations, will be left behind as we move away from the burning of fossil fuels towards a low-carbon energy system.
“We are working to build a hydrogen economy in which the benefits of our energy transition are shared and that harnesses the full potential of our skilled workforce and world-class industries, both of which are the envy of neighbouring countries, as well as the natural resources that Scotland is so lucky to have.”
During the debate, Martin highlighted the need for a national hydrogen network with integrated storage infrastructure if Scotland is to reach its potential in this still emerging energy sector, although admitted that at the moment there is still ‘uncertainty about how, where and when network and storage infrastructure will be supported’, which the minister cited as one of the main barriers hindering private sector investment in green hydrogen production.
Building out Scotland’s hydrogen infrastructure, including making public investments into early-stage projects, is a core pillar of the government’s Hydrogen Action Plan.
The plan, launched back in 2022, laid the foundation for Scotland’s hydrogen economy, and included promised actions over the next five years such as a £90m Green Hydrogen Fund to support hydrogen pathfinder projects up to 2025/26, as well as the development of regulatory, planning and consenting frameworks to support the scale-up of hydrogen at pace.
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Last year, the Scottish Government took another step forward in its hydrogen strategy, with the publication of the first hydrogen export plan, outlining the actions needed to secure Scotland as a key producer of renewable hydrogen by 2030.
The report outlined key recommendations to accelerate Scotland’s hydrogen infrastructure, including the development of additional hydrogen storage facilities, closer alignment of regulations with EU standards, and the exploration of hydrogen pipeline routes connecting Scotland to mainland Europe and Ireland.
However, during yesterday’s debate, Martin made it clear that the exportation of hydrogen ‘is not something that Scotland could do alone’.
“We need to be working with the UK Government on it,” said the secretary.
“We need to look at how we can partner with those who want to buy hydrogen that is produced in these isles to get it over there, and Germany is the biggest market for that at the moment…it is critical that the UK Government is in the room with the German Government to talk about how we can improve the infrastructure that is associated with the export of hydrogen.”
