Eleven projects aimed at advancing Scotland’s hydrogen economy have secured a combined £3.4 million in government funding, as part of the country’s wider efforts to decarbonise its energy system and build a green industrial base.
The funding will support initiatives focused on green hydrogen production, supply chain improvements, and the development of hydrogen transport and storage infrastructure. The awards were made following a competitive process launched by the Scottish Government in September 2024, which offered match-funding grants covering up to 50% of eligible project costs, capped at £2 million per award.
“Hydrogen stands as a critical pillar of Scotland’s route to net zero by 2045,” said Acting Net Zero Cabinet Secretary Gillian Martin during a parliamentary debate on Scotland’s hydrogen strategy. “Alongside the development of our offshore wind capacity, it is one of Scotland’s greatest industrial opportunities since the discovery of oil and gas in the North Sea.”
Martin emphasised the government’s commitment to a fair energy transition. “A just transition remains at the heart of our approach, and we are determined that no community, particularly those which have powered our economy for generations, will be left behind as we move away from burning fossil fuels towards a low carbon energy system,” she said.
The 11 successful applicants were selected from a shortlist of 18, following a full application process led by Scottish Enterprise, the delivery partner for the scheme.
Recipients of the funding include a mix of public and private sector organisations, such as the European Marine Energy Centre, Green Cat Hydrogen Ltd, Protium Green Solutions, SSE Hydrogen Developments, Statkraft Hydrogen UK, Storegga Hydrogen, Glacier Energy, and Hydrasun.
The projects are intended to support Scotland’s ambition to become a leading producer and exporter of hydrogen, particularly green hydrogen generated from renewable energy sources such as wind and tidal power.
The Scottish Government has set a target to achieve net-zero greenhouse gas emissions by 2045, and views hydrogen as a key component in decarbonising sectors where electrification is less practical, including heavy industry, transport, and heat.