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Scottish Government releases plan to make Scotland key producer of hydrogen

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Acting Energy Secretary Gillian Martin (Andrew Milligan/PA)
Acting Energy Secretary Gillian Martin (Andrew Milligan/PA)

The Scottish Government has published its first plan to make Scotland a key producer and exporter of hydrogen.

Acting Energy Secretary Gillian Martin said hydrogen is one of Scotland’s “greatest industrial opportunities since oil and gas”.

The report – A Trading Nation: Realising Scotland’s Hydrogen Potential – A Plan for Exports – outlines what Scotland should do to become a key player in the industry.

The Government has set out recommendations to bolster the sector, including investing in the production, transport and storage of hydrogen.

It calls for the creation of regional hydrogen hubs and improving the country’s infrastructure.

The report says regulation of the fuel should be aligned with EU rules to increase trade with the economic bloc.

It says the viability of hydrogen pipelines between Scotland and mainland Europe should also be explored.

The Scottish Government said evidence suggests Scotland could potentially deliver up to 3.3 million tonnes of green hydrogen per year by 2045 – the energy equivalent of around 90% of Scotland’s total current energy demand.

The report follows the publication of a recent report by PwC which found that 3.3% of all jobs advertised in the UK over the past year were green, up from 2.3% in 2023 – the equivalent of 23,000 jobs in Scotland.

The acting Energy Secretary – who is filling in for Mairi McAllan while she is on maternity leave – unveiled the plan during a visit to Hydrasun, a Scotland-based company which designs, makes and installs hydrogen refuellers and associated parts.

Ms Martin said: “Hydrogen is one of Scotland’s greatest industrial opportunities since oil and gas was discovered and we have the environment, skills, knowledge, and experience to become a driving force behind the growth of the hydrogen sector in Europe and beyond.

“This plan focuses on the significant international trade opportunities presented by hydrogen and sets out the key steps required to secure and maximise the economic benefits.

“It provides the government, industry and investors with clarity in the direction we must all move in, with pace, if Scotland is to build a sustainable and successful hydrogen economy – whilst helping to deliver a just transition for our energy sector.

“Although the full economic potential of hydrogen is yet to be realised, Hydrasun is a great example of how Scottish businesses are already leading the way in the hydrogen sector.”

Hydrasun director Dr Stuart Mitchell said: “Our expanding footprint demonstrates the growing demand for Scottish hydrogen expertise overseas.

“Scotland’s proximity to key markets like Germany and the Netherlands provides the opportunity to be at the forefront of hydrogen exports.

“Continued support from the Scottish Government, through agencies like Scottish Enterprise, has enabled Hydrasun to accelerate its growth, expand into new markets, and deliver innovative solutions.

“Collaboration across industry sectors, governments, and communities is essential to fully realise hydrogen’s potential.

“Together, we can position Scotland as a global leader in hydrogen innovation and sustainability.”

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