Scotland Launches £7m Funding Scheme to Drive Green Hydrogen Projects
Key Ideas
  • Businesses in Scotland can apply for up to £7m of funding to kick start green hydrogen projects, with a focus on development costs and production capacity.
  • The funding will support projects capable of producing enough green hydrogen to heat hundreds to thousands of homes, as well as work on the hydrogen supply chain and storage solutions.
  • The Scottish Government's commitment to green hydrogen aligns with their goal of achieving net zero targets and growing the hydrogen sector as part of the Green Industrial Strategy.
  • Scottish Enterprise is actively involved in facilitating the growth of green hydrogen projects, emphasizing the importance of renewable energy in transforming Scotland's economy.
The Scottish Government has launched a funding scheme providing up to £7m to businesses for green hydrogen projects in Scotland. This initiative aims to cover the development costs of projects with production capacities ranging from five to 400 megawatts, which could provide heating for at least 200 homes up to more than 16,000 homes. Additionally, support will be extended to activities related to the hydrogen supply chain and storage solutions. The scheme, developed in collaboration with Scottish Enterprise, offers a maximum of £2m in match-funding per applicant. It complements the existing £7m Hydrogen Innovation Scheme, supporting 31 projects across the country since 2023. Acting Minister for Climate Action, Alasdair Allan, highlighted the importance of green hydrogen in achieving Scotland's net zero targets, leveraging the country's renewable energy capabilities. The funding is expected to drive the development of green hydrogen projects and hydrogen hubs, unlocking opportunities for domestic use, export, and powering clean energy-intensive industries. This initiative signifies Scotland's leadership in renewable energy development that not only delivers economic benefits but also underscores the commitment to growing the hydrogen sector outlined in the Green Industrial Strategy. Scottish Enterprise's director of energy transition, Suzanne Sosna, emphasized the critical role of the funding in supporting new green hydrogen projects, essential for building a thriving hydrogen economy in Scotland. The potential of renewable energy, particularly green hydrogen, is seen as a transformative force for Scotland's economy, with Scottish Enterprise dedicated to assisting hydrogen production, storage, and off-take businesses in this endeavor.
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