Chamber and committees

Scotland’s huge potential for renewable electricity generation, and hydrogen’s utility, means that it can also act as a vector for energy storage and a balancing service to the electricity grid. It can additionally act as a vector for transportation, particularly considering grid constraints.

We are engaging closely with the UKG, OfGEM, and National Grid ESO ahead of the launch of the National Energy System operator this Summer to underline the need for strategic planning and to ensure that hydrogen production, storage and system utility is considered and other areas such as progressive approaches to flexibility reform and grid connection timelines, as they affect the viability of hydrogen projects, are reflected in our engagement in strategic programmes such as the Review of Electricity Market Arrangements (REMA) and Strategic Spatial Energy Plan (SSEP) and the ESO Constraints Collaboration project which is seeking solutions for thermal constraints, which can reduce costs to the consumer or reduce the curtailment of renewable generation.

Scottish Government officials are engaging with National Grid on the Project Union initiative exploring the phased repurposing of the UK’s natural gas National Transmission System (NTS) to create a UK hydrogen backbone carrying 100% hydrogen. Decisions on the future of the Gas Grid are a reserved matter and are expected to be made in 2026 by the UK Government. We continue to routinely engage with UKG on a range of hydrogen policy matters including recent consultations on Transport and Storage Hydrogen Business Models

SGN are core members of the Scottish Hydrogen Industry Forum.

We are convinced that hydrogen will play an important role as an energy storage and balancing asset to the wider energy system electricity and gas grids as the share of renewable generation continues to increase.

We published a report in 2023 which can be found here investigating the options for storing energy in the form of hydrogen in Scotland and its potential for reducing curtailment of renewable energy and the role of hydrogen peaking power plants for electricity generation during times of low renewable energy generation.

The study found that hydrogen storage will play an important role in balancing an energy system that has large amounts of intermittent renewable energy. These findings have informed our position and engagement on strategic programme discussions such as the Review of Electricity Market Arrangements (REMA) and Strategic Spatial Energy Plan (SSEP) and the ESO Constraints Collaboration project, which is seeking solutions for thermal constraints, which can reduce costs to the consumer or reduce the curtailment of renewable generation.

The Scottish Government has worked with agencies and other partners, including internationally, to deliver initiatives in support of the development of zero emission mobility technology. These include funding the University of St Andrews to deliver, in partnership with Strathclyde University, a four-year Hydrogen Accelerator programme. The Accelerator has helped to support several innovative projects including the Scottish hydrogen train, which was demonstrated at Bo’ness in 2022.

We are working with industry and enterprise agency partners to develop a Hydrogen Sector Export Plan for publication this year. The plan will set out the steps needed to realise Scotland's export potential - including the development of critical infrastructure to support the transport of hydrogen and hydrogen derivatives, short-term export opportunities around skills and the supply chain, and the economic opportunity for Scotland represented by renewable hydrogen exports in the longer term.

The recommendations of the Transmission Network Short Life Working Group will soon be published on the Scottish Government website, alongside detail of the programme of work associated with the actions previously accepted by Scottish Ministers.

Alongside electrification, hydrogen will be a key part of the net zero journey, particularly in transitioning many hard-to-abate sectors such as industry. The Scottish Government is developing a place-based, industry specific Just Transition Plan for the Grangemouth industrial cluster, as we committed to doing in our 2023 Programme for Government. The Plan will outline the strategic long-term future of the industrial cluster and a range of possibilities for operations at Grangemouth in 2045, including low-carbon hydrogen manufacture, carbon capture and storage, as well as wider Just Transition outcomes for the workforce, community and surrounding environment.

Beyond this, we have produced a detailed report on the distillery sector which can be found here .

We are engaging closely with the Cromarty Hydrogen Project (Storegga) 10.6MW and Scottish Power Whitelees Project 7.1MW both of whom are targeting industrial heat as an offtake for their renewable hydrogen and were successful in their applications for support from the UK Government via the first allocation round of the hydrogen production business model.

In addition, the Scottish Industrial Energy Transformation Fund (SIETF) has match-funded support grants for feasibility and engineering studies which can allow industrial manufacturers to investigate how they could use hydrogen to decarbonise their operations.

The Scottish Government continues to build a strong evidence base in relation to the development of key infrastructure, transport routes and supply chains necessary to develop hydrogen export opportunities.

The Scottish Government has ongoing engagement with the UK Government in relation to international hydrogen engagement and the development of the export opportunity.

Alongside Scottish Enterprise, we are developing a Scottish Hydrogen Innovation Network (SHINE). SHINE will provide an entry point for Scottish and European companies to access Scottish research and development centres in academic and commercial settings. The resulting innovations will increase the competitiveness of hydrogen technologies and enable collaborative partnerships.

The formal project launch of SHINE will take place at All-Energy on 16 May 2024 with the SHINE website to be launched preceding All-Energy.

We are building the evidence base to help support hydrogen off-take across multiple sectors in Scotland, examining both hydrogen production and demand across Scotland’s geography through a number of key reports, such as ‘Hydrogen demand in Scotland: a mapping of industrial and transport applications’ which can be found here and a detailed report focussing specifically on the distillery sector which can be found here .