Question reference: S6W-01884
- Asked by: Liam Kerr, MSP for North East Scotland, Scottish Conservative and Unionist Party
- Date lodged: 27 July 2021
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Current status: Answered by Michael Matheson on 22 August 2021
Question
To ask the Scottish Government what financial grants and schemes are available to companies in (a) the north east and (b) Scotland to encourage smaller enterprises in rural areas that work in the rural sector to develop hydrogen production schemes valued between £100,000 and £300,000.
Answer
Our policies continue to support suitable hydrogen projects and proposals of smaller scale Schemes of this funding scale may fall under the banner of local energy systems, in which case support may be available through:
- CARES which may be able to provide funding support: https://www.localenergy.scot/funding/ . This scheme has supported projects such as the Huntly hydrogen project in the north east: https://www.localenergy.scot/projects-and-case-studies/case-studies/community-owned/huntly-hydrogen
- The Local Energy Systems Scottish Industry network (LESSIN) can also direct towards funding whilst providing other types of support - https://es.catapult.org.uk/impact/projects/local-energy-systems-scottish-industry-network/
Where there is clear economic benefit (jobs, regional growth etc.) and a contribution to net zero and in particular Scottish Enterprise’s Hydrogen Economy national programme ambitions, Scottish Enterprise’s place team may be able to become involved as a partner on projects and provide support for certain activities such as strategy development, market and economic research, meetings and events, facilitation of workshops & appraisals
Any prospective hydrogen production project owners in the North East are also encouraged to contact Scottish Enterprise’s hydrogen economy national programme team ( [email protected] ) so that they are aware of the project and can connect it to other relevant projects, companies and initiatives.
If the project involves buses (including mini-buses for smaller projects), Transport Scotland’s Scottish Zero Emission Bus Challenge fund ( https://www.transport.gov.scot/public-transport/buses/scottish-zero-emission-bus-challenge-fund/ ) could help with the cost of the vehicles, but also associated infrastructure (e.g. hydrogen refuelling stations at a very attractive 85% intervention rate).
Additionally, the Hydrogen Policy Statement published on the 21 December 2020 sets out the Scottish Government’s vision for Scotland to become a leading Hydrogen Nation with an ambition to generate 5GW’s of renewable and low-carbon hydrogen by 2030, committing to £100 million funding to accelerate the hydrogen economy in Scotland over the next five years.
The framework provided by the Hydrogen Policy Statement is informing the development of a Hydrogen Action Plan in 2021 which will provide further detail on the planned approach and necessary actions to assist the growth of a Scottish hydrogen economy.
In the development of the Hydrogen Action Plan, the Scottish Government is considering a wide range of options and actions to provide financial support to companies investing in the Scottish hydrogen sector to assist the Government in meeting the ambition to reach 5GW’s of renewable and low-carbon hydrogen production by 2030 as set out in the Hydrogen Policy Statement.