Investing in net zero energy

New funding to drive innovation within the hydrogen sector and accelerate its production and storage has been launched.

The £10 million Hydrogen Innovation Scheme will provide capital support over the next four years . This  aims to unlock additional private investment in the technology, and enable new companies to enter the sector.

The first round of funding will target:

• projects that support the low-cost, efficient and sustainable production of renewable hydrogen
• projects that support efficient hydrogen storage and distribution, both within Scotland and for export
• projects that support the efficient integration of hydrogen into our energy system

The scheme is part of a Scottish Government commitment to invest £100 million in hydrogen over the course of this parliament. This is part of a wider £180 million package of investment in emerging energy technologies which will be delivered as set out in our updated Climate Change Plan.

Net Zero & Energy Secretary Michael Matheson said:

“Scotland has the resources, the people and the ambition to become a world leader in hydrogen production for both domestic use and for export to Europe.

“The Scottish Government is committed to working with the energy sector to establish hydrogen as an important part of a cleaner, greener energy system, supporting a just transition for the industry both home and abroad.

“Our offshore wind resources, which will increase massively in the coming years, offer huge opportunity for the Hydrogen sector to grow. As set out in our Hydrogen Action Plan, and our clear ambition to have 5GW installed hydrogen production capacity in Scotland by 2030 and 25GW by 2045. 

“We are open to the world and actively seeking opportunities to collaborate with international partners. The Hydrogen Innovation Scheme provides important, near-term investment to help the sector develop, diversify and realise it’s potential to support our transition to a net zero economy.” 

Andy McDonald, Head of Low Carbon Transition at Scottish Enterprise said:

“Scottish Enterprise is collaborating with Scottish Government to develop opportunities in the hydrogen sector in Scotland that will maximise the economic benefits and support energy transition. We share the ambition to develop Scotland as a leading hydrogen nation. Innovation is a big part of that as it is at the heart of economic development.

“It is important in an emerging sector like hydrogen that we support Scottish companies and projects now to develop new techniques and technologies which can help us to realise our future ambitions in this sector and to retain as much value and intellectual property in Scotland as possible. Scottish Enterprise is engaged with the Hydrogen Innovation Fund and supporting its implementation.”

Nigel Holmes, Chief Executive Officer of the Scottish Hydrogen and Fuel Cell Association said:

“The Hydrogen Innovation Scheme will help Scotland to develop our hydrogen supply chain and build the international partnerships to grow Scottish capacity and export capabilities. This is a great opportunity for our manufacturers, innovators, and researchers not yet involved in the hydrogen sector to establish new activities in Scotland.”

John Andresen, Hydrogen Strategic Champion at the Energy Technology Partnership said:

“The Energy Technology Partnership is very pleased about the new Scottish Government’s £10 million Hydrogen Innovation Scheme which will foster national technological progress and advance home-grown innovation. A key funding route for the green powerhouse of Europe.”

Background

Details on the Hydrogen Innovation Scheme are available on the Scottish Government website.

Draft Hydrogen Action Plan

Climate Change Plan 2018 - 2032

Audrey MacIver, Director of Energy Transition and Net Zero at Highlands & Islands Enterprise said:

“The development of green hydrogen is a potentially significant economic opportunity for the Highlands and Islands. Our region is already rich in the resources, infrastructure and skills to grow a thriving and sustainable renewable energy sector. We have business and communities already engaged in innovative hydrogen demonstration projects, where learning by doing is proving hugely valuable. 

“Further innovation in the production, distribution and use of green hydrogen could accelerate our transition to net zero, while creating high value, sustainable employment, including in many of our rural locations.

“We very much welcome this new innovation fund, which will help expand that knowledge and expertise, and set us on a path towards a hydrogen economy.”

Professor Russel Griggs, Chair of South of Scotland Enterprise said:

“South of Scotland Enterprise welcomes the Scottish Government's drive and leadership in putting Scotland at the forefront of Hydrogen production as the energy of the future. The Hydrogen Innovation Scheme will provide much needed support to businesses and projects in the South of Scotland to help us fully realise the ambition and potential in both supporting our transition to a net zero economy and realising our global ambitions. The South of Scotland is a renewables powerhouse and this support will allow us to position ourselves as a leader in Green Hydrogen production."