Driving progress to a net-zero future

Funding of £4.5 million has been awarded to Aberdeen City Council for the introduction of 10 new hydrogen buses into the city’s public transport fleet.

The money comes from the £62 million Energy Transition Fund which was set up to help ensure a green recovery from the coronavirus (COVID-19) pandemic and support the energy sector’s transition to a net-zero economy.

The Fund, with a focus on the North East, underpins the region’s ambitions to become a world leader in the transition to net zero, creating good green jobs and growing the local economy in a way that is fair and benefits everyone.  

The hydrogen industry has the potential to be worth up to £25 billion a year to Scotland’s economy by 2045. £100 million has been committed over the next five years to stimulate the sector and its supply chain.

Scotland’s Energy Minister Paul Wheelhouse said:

“The Scottish Government is wholly committed to ending Scotland’s contribution to climate change, and doing so in a way that ensures no-one is left behind as our economy undergoes the transformation required to reach net zero.

“It is vital we seize the opportunity to take forward a green, low-carbon recovery and support our energy workforce as the sector diversifies. Now is the time to re-imagine the Scotland around us and to ensure we build a greener, fairer and more equal society and economy.

“I am pleased to be announcing this funding to expand the Aberdeen Hydrogen Hub project, which is securing demand for clean green hydrogen in the transport sector and ramping up hydrogen production.

“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 energy system supporting the decarbonisation of our transport, heating and industry. We are committed to supporting this emerging sector to maximise the economic benefits that the production of hydrogen can bring.”

Aberdeen City Council Co-Leader Councillor Jenny Laing said:

“We are delighted to have been awarded £4.5 million from the Energy Transition Fund as the investment will contribute to the funding of 10 additional hydrogen double decker buses. These vehicles will increase the world’s first hydrogen double decker bus fleet in Aberdeen to 25 and complement one of the largest and most varied fleets of hydrogen vehicles across Europe which includes cars, vans, road sweepers and waste trucks. 

“Aberdeen is one of Europe’s pioneering hydrogen cities and through the work of Aberdeen City Council, we have developed a cluster of hydrogen activity. The grant will help us to secure additional demand for hydrogen and support our ongoing work around establishing a Hydrogen Hub with significant large-scale offshore wind resources, supply chain expertise, and hydrogen storage capability. 

“Together these initiatives will help ensure Aberdeen is at the forefront of supporting Scotland’s green recovery, whilst demonstrating the city’s continued success at being a leader in hydrogen technology.”

Aberdeen City Council Co-Leader Councillor Douglas Lumsden said:

“The investment in our hydrogen buses project will also support our ambitious plans to combat climate change as part of our Net Zero Vision and Strategic Infrastructure Plan for Energy Transition.

“The proposed Energy Transition Zone is expected to accelerate the development of carbon capture technology and renewable energies, including capitalising on emerging opportunities in offshore wind, as well as greener oil and gas production.

“The buses and our Hydrogen Hub show our commitment to achieving net zero and support the global energy transition as a climate positive city while cementing our position as a world leader in the energy sector as an economic driver for the city, region, Scotland and the UK.”

Background
The Energy Transition Fund was announced in June 2020.

The Scottish Government published a Hydrogen Policy Statement in December 2020. The Energy Minister delivered a statement on developing Scotland’s hydrogen economy in February 2021.