UK government ‘must grow demand for green hydrogen’, says industry body
Scotland has the potential to be a major global producer of green hydrogen but the UK Government must rapidly step up its support for the sector, says a report published today (December 3) by industry body Scottish Renewables.
The Scottish Renewables ‘Green Hydrogen Vision 2025’ has outlined key recommendations that the UK Government and the National Energy System Operator (NESO) must adopt to secure Scotland’s green hydrogen future.
Green hydrogen, produced through a process known as electrolysis that is powered entirely by renewable energy, can strengthen the UK’s energy resilience and deliver unique system-wide benefits, placing it at the heart of the nation’s future clean-energy mix.
The ‘Green Hydrogen Vision 2025’ recommends that the UK Government coordinates closely with the Scottish Government, the National Energy System Operator (NESO) and Ofgem, to:
- Establish and grow demand for green hydrogen in sectors that have traditionally been difficult to decarbonise such as heavy industry, maritime operations and storage.
- Develop clear incentives for green hydrogen producers to build and operate projects in locations where a significant amount of renewable energy is generated, such as Scotland. This will help balance the electricity network and maximise the use of available capacity.
- Prioritise the build-out of hydrogen-only infrastructure, a pipeline network only used for hydrogen that connects production to where it is needed and meets the ambitions of both governments.
- Recognise the importance of green hydrogen offtake, which provides a guarantee to producers that there will be a commercial demand for their fuel.
- Support both smaller-scale projects co-located with demand, such as green hydrogen for distilleries, as well as industrial-scale offtake projects that provide large-scale, flexible demand for green hydrogen.
Green hydrogen has the potential to provide the UK economy with an annual boost of £25 billion and support more than 300,000 jobs by 2045.
Maggie Olson-Jow, Policy Manager for Offshore and New Technologies at Scottish Renewables, said:
“Scottish Renewables has worked closely with its members and key stakeholders to set out the key recommendations and policy actions Scotland will need to establish a thriving green hydrogen sector.
“For Scotland and the UK to become global leaders in this technology both governments must establish and grow demand for green hydrogen in sectors that have traditionally been difficult to decarbonise
“The UK Government must develop clear incentives for green hydrogen producers to build and operate projects in locations where there is a wealth of renewable energy generation, such as Scotland, to maximise benefits to the UK energy system.
“The UK and Scottish governments have both outlined their aspirations to be world leaders in the development of green hydrogen and they must now work closely with NESO to develop a clear pathway for green hydrogen to be delivered at scale in Scotland.”
Ends
Notes to editors