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£100m Funding Aims to Make Scotland a Leading Hydrogen Nation

David Paul

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Hydrogen Action Plan
A five-year funding programme will support tech rollout as Scotland looks towards becoming a leading hydrogen producer.

The Scottish Government has announced a five-year plan to build the country’s hydrogen economy and deliver technology to provide around one sixth of Scotland’s energy needs by 2030.

More than £100 million of investment is being put towards the draft Hydrogen Action Plan, announced in December last year, which sets out an ambition for 5 Gigawatts of renewable and low-carbon hydrogen power within the next ten years.

The programme will support regional renewable hydrogen production hubs and renewable hydrogen projects.

Around £10m will be put towards a Hydrogen Innovation Fund launching next year to “drive technological progress and advance innovation and cost reduction” within the hydrogen sector.

Commenting on the plans, Net Zero and Energy Secretary Michael Matheson said: “Hydrogen has an important role to play in our journey to a net zero economy, by supporting the bold, urgent action required to deliver cleaner, greener energy and also by supporting a just transition – creating good, green jobs for our highly skilled workforce.

“Scotland has the resources, the people and the ambition to become a world leader in hydrogen production and our Hydrogen Action Plan sets out how we will work collaboratively with the energy sector to drive progress over the next five years.”

The Scottish Government has also announced that its Energy Transition Fund is being “expanded” to up to £75m to deliver £15m of investment in an Aberdeen Hydrogen Hub.

The hub will develop infrastructure to support hydrogen transport growth and the deployment of new applications across the northeast.

Additional investment will be made to support advancement of the technology, including £100,000 to support collaborative, industry-academia projects through the Energy Technology Partnership, £150,000 for German-Scottish hydrogen research collaboration, and public and private sector joint funding for a study to explore options for the export of hydrogen from Scotland to Germany.


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Matheson continued: “Both renewable and low-carbon hydrogen will play an increasingly important role in Scotland’s energy transition.

“Our priorities are to get as much renewable hydrogen into the energy system as quickly as possible while supporting the establishment of low-carbon hydrogen production at scale in the 2020s, linked to Carbon Capture and Storage (CCS).

“The Scottish Government is fully committed to helping the hydrogen sector develop and grow. We are investing £100 million in renewable hydrogen projects over this parliament and, in addition to this, I am pleased to announce the expansion of our Energy Transition Fund to support the development of a Hydrogen Hub in Aberdeen and help the region be at the forefront of the energy sector’s net zero transformation,” he added.

A consultation on the draft Hydrogen Action Plan will run until 19 January 2022.


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David Paul

Staff Writer, DIGIT

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