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Scotland to fund green hydrogen

Published by
Energy Global,

The hydrogen sector will receive £100 million over the next five years to support a green recovery and Scotland’s just transition to net zero.

Scotland is set to become a leading hydrogen nation, with an ambition to generate 5 GW of renewable and low-carbon hydrogen by 2030 – enough to power the equivalent of 1.8 million homes.

Economic impact research suggests the industry has the potential to be worth up to £25 billion/yr to the Scottish economy by 2045.

Chief Executive of the Scottish Hydrogen and Fuel Cell Association, Nigel Holmes, said: “We welcome this Hydrogen Policy Statement which underlines the opportunity for Scotland to be the leading hydrogen nation, and puts us on the right path to deliver net zero by 2045. This ambition builds on the experience and lessons learned with projects in Aberdeen, Fife, Orkney, and the Western Isles, Scotland. Islands and ports will be hubs for energy innovation, bringing together large-scale renewables for green hydrogen production.

“The identified capacity of 25 GW of electrolysis by 2045 will produce 126 TWh/yr of green hydrogen across Scotland, with 32 TWh to deliver Scotland’s net zero target and 94 TWh of green hydrogen for export.”


Hydrogen – which emits no CO2 – can be used as an alternative to natural gas to transfer and store energy, and could replace fossil fuels in industrial processes, internal combustion engines and homes.

£100 million of the £180 million Emerging Energy Technologies Fund, announced as part of the Scottish Government’s Climate Change update, will be invested in the hydrogen sector.

The Hydrogen Policy Statement has been published with accompanying research:

  • Scottish Hydrogen Assessment Report
  • Scottish Offshore Wind to Green Hydrogen Opportunity Assessment
  • Deep Decarbonisation Pathways for Scottish Industries Study.

Scottish Enterprise procured and managed the Scottish Offshore Wind to Green Hydrogen Opportunity Assessment and supported the Hydrogen Assessment Project.

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