Scotland's Hydrogen Export Strategy: Unlocking a £93 Billion Opportunity
Key Ideas
  • Offshore Energies UK believes Scotland's new hydrogen export strategy can leverage the nation's industrial strengths, potentially unlocking a £93 billion export opportunity.
  • The focus on developing hydrogen transportation and storage infrastructure, along with blending hydrogen into the national gas grid, is crucial for kickstarting the low carbon hydrogen market.
  • There is a projected £93 billion opportunity for UK firms in the low-carbon hydrogen sector between 2035 and 2040, driven by investments outside Europe.
  • The call for a modern industrial strategy to support UK firms in the global hydrogen market and ensure they remain competitive in the emerging industry is emphasized.
Scotland's new hydrogen export strategy, launched by Offshore Energies UK (OEUK), aims to capitalize on the nation's industrial strengths by unlocking a potential £93 billion export opportunity. This strategy was announced by Gillian Martin, Scotland's Acting Cabinet Secretary for Net Zero and Energy, during a visit to Hydrasun's facility in Glasgow. OEUK supports scaling up the low-carbon hydrogen market in Scotland and the UK as a key step towards achieving 'net zero' objectives. The strategy focuses on developing essential infrastructure for hydrogen transportation and storage, as well as enabling the blending of hydrogen into the national gas grid. Price support mechanisms like contracts for difference are highlighted as crucial for scaling low carbon hydrogen production, with the need for government-industry collaboration to ensure early projects remain investable. A report by independent consultants Rystad Energy forecasts a significant £93 billion opportunity for UK firms in the low-carbon hydrogen sector between 2035 and 2040. This opportunity is primarily driven by investments from countries like the USA and Australia. OEUK emphasizes the need for the UK to become a key hub for low carbon hydrogen production, positioning itself as a competitive player in this emerging market. Michael Tholen, OEUK's director of sustainability and policy, envisions Scotland as a launchpad into the global hydrogen market with the right policies and support for local companies. Hydrasun, a specialist hydrogen solutions company, plays a vital role in this vision by offering design, installation, and maintenance of hydrogen systems. The company's innovative products and services cater to both transport and industrial sectors, positioning it well to capitalize on the growing demand for hydrogen technologies.
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