Chamber and committees

In December 2023, UK Ministers confirmed their positive strategic policy decision to support blending of up to 20% hydrogen into GB gas distribution networks. We welcomed this announcement and now continue to urge UK Government to make progress and provide a timetable for future decisions on blending and the role of 100% hydrogen in the gas grid to provide clarity for us and for stakeholders.

There are several Regional Hydrogen Hubs developing in Scotland. We have provided up to £15m to support the development of the Aberdeen Hydrogen Hub which is now developing as a joint venture between Aberdeen City Council and Bp.

Aberdeen Hydrogen Hub presents an important opportunity to deliver a commercially investable, green hydrogen production facility focussed initially on the decarbonisation of transport and phased to grow into other markets such as industrial heat.

We are building the evidence base to help support other hydrogen hubs to develop in Scotland, examining hydrogen production and potential 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 .

Data from these reports is also included in Scotland’s Hydrogen Asset online map .

We also published a report last year on the potential capability and interest in Scotland in developing a SAF sector, which could become a major end-use of hydrogen. That report can be found here .

Further engagement in support of hydrogen hub development is ongoing.

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.

As set out in our Hydrogen Action Plan, hydrogen in the transport sector could act as a complementary energy source alongside electrification, providing an option to parts of the transport sector such as heavy-duty vehicles, when full electrification is challenging. We support the rollout of infrastructure needed for hydrogen vehicles to operate in Scotland: Aberdeen City has two hydrogen refuelling stations.

The Scottish Government is working with many partners to develop Scotland’s skills base in hydrogen for transport.

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.

The Scottish Government and its partners engage with and provide specialist support to companies in Scotland seeking to trade overseas, including help to attend trade shows and establish links with international project developers.

The Scottish Government continues to work with the Scottish Regulatory Steering Group, comprised of key regulators, to assess regulatory requirements for the development of the hydrogen sector in Scotland. We are working with UK and Scottish regulators to ensure that action is taken to address identified issues and create a clear regulatory framework for hydrogen projects.

The Scottish Government is funding the Hydrogen Business Development service, delivered through the Energy Technology Partnership, to accelerate knowledge exchange between academia and enterprises to stimulate innovation in the hydrogen sector.

Establishing hydrogen transport infrastructure is critical to achieving the ambitions set out in our Hydrogen Action Plan. The Scottish Government is working with key European partners to assess options and opportunities for the development of transport infrastructure to enable the export of hydrogen from Scotland.

Scottish Government is 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 UK Government on a range of hydrogen policy matters including Transport and Storage Hydrogen Business Models.

We are also working with industry and the development agencies on the development of a Hydrogen Sector Export Plan (HSEP) that will set out the steps needed to realise Scotland's export potential – including in relation to the development of critical infrastructure to support the transport of hydrogen and hydrogen derivatives. This is expected to be published this year.