The hydrogen sector will receive £100 million over the next
five years to support a green recovery and Scotland’s just
transition to net zero.
Scotland is set to become a leading hydrogen nation, with an
ambition to generate 5GW of renewable and low-carbon hydrogen
by 2030 – enough to power the equivalent of 1.8 million
homes.
Economic impact research suggests the industry has the
potential to be worth up to £25 billion a year to the
Scottish economy by 2045.
Scotland’s Energy Minister said:
“We are the first country in the UK to publish a Hydrogen
Policy Statement that sets out how we can make the most of
Scotland’s massive potential in this new sector. Hydrogen is
rapidly emerging across the international community as a
sustainable solution for the decarbonisation of the economy
and a key element of the energy transition picture. Scotland
is prepared to play its full part together with other
European nations – that’s why we’re publishing this key
policy statement today and investing £100 million of Scottish
Government resources to stimulate the sector and its supply
chain.
“Scotland has, in abundance, all the raw ingredients
necessary for the production of low-cost hydrogen as well as
one of the largest concentrations of offshore engineering
expertise in the world that can harness Scotland’s renewable
energy potential in technologies like wind, wave and tidal
power, to produce green hydrogen. Indeed, Scotland is one of
the best placed nations anywhere in the world to develop
competitively priced hydrogen for our own economy’s needs and
to generate a surplus in supply to export to other European
nations with emerging demand, but insufficient supply to meet
their own needs.
“No one fuel or technology is, by itself, the solution to
climate change, but hydrogen has the potential to be a very
important part of a progressive, decarbonised energy system
supporting our transition to net zero in transport, heating
and industrial decarbonisation. We are committed to
supporting this emerging sector to deliver a transformation
in how we produce, store and utilise energy and to maximising
the economic benefits that the production of hydrogen can
bring.”
Chief Executive of the Scottish Hydrogen and Fuel Cell
Association Nigel Holmes said:
“We welcome this Hydrogen Policy statement which underlines
the opportunity for Scotland to be the leading hydrogen
nation, and puts us on the right path to deliver net zero by
2045. This ambition builds on the experience and lessons
learned with projects in Aberdeen, Fife, Orkney, and the
Western Isles. Islands and ports will be hubs for energy
innovation, bringing together large scale renewables for
green hydrogen production.
“The identified capacity of 25GW of electrolysis by 2045 will
produce 126TWh per year of green hydrogen across Scotland,
with 32TWh to deliver Scotland’s net zero target and 94TWh of
green hydrogen for export.”
Background
Hydrogen – which emits no carbon dioxide – can be used as an
alternative to natural gas to transfer and store energy and
could replace fossil fuels in industrial processes, internal
combustion engines and homes.
£100 million of the £180 million Emerging Energy Technologies
Fund announced as part of the Scottish Government’s Climate
Change update will be invested in the Hydrogen sector.
Hydrogen Policy
Statement is published with accompanying research:
Scottish Enterprise procured and managed the Scottish
Offshore Wind to Green Hydrogen Opportunity Assessment and
supported the Hydrogen Assessment Project.
