Scotland's Hydrogen Export Strategy: Unlocking a £93 Billion Opportunity
Key Ideas
- Offshore Energies UK supports Scotland's hydrogen export strategy to leverage industrial strengths and unlock a £93 billion export opportunity through clear action plans, investment attraction, and talent retention.
- Key priorities include developing hydrogen transportation and storage infrastructure, enabling blending into the gas grid, and utilizing price support mechanisms gradually to scale low carbon hydrogen production.
- The UK has the potential to become a key hub for low carbon hydrogen production, with the right policies and partnerships in place to capitalize on the emerging global hydrogen markets and ensure UK firms remain competitive.
- Hydrasun, a specialist hydrogen solutions company, showcased innovative products for transport and industry, emphasizing the importance of backing homegrown firms to drive growth and seize global opportunities.
Offshore Energies UK (OEUK) has highlighted the potential for Scotland's hydrogen export strategy to unlock a substantial £93 billion export opportunity by leveraging the nation's industrial strengths. The strategy launch, attended by Scotland’s Acting Cabinet Secretary for Net Zero and Energy, Gillian Martin, at Hydrasun's facility in Glasgow marks a significant step towards realizing this opportunity.
OEUK emphasizes the importance of scaling up the low carbon hydrogen market in Scotland and the UK to achieve net zero objectives. Key priorities include developing infrastructure for hydrogen transportation and storage, as well as facilitating the blending of hydrogen into the national gas grid. Price support mechanisms like contracts for difference are seen as crucial for scaling low carbon hydrogen production, with a gradual shift as businesses become profitable.
A commissioned report by Rystad Energy underscores the massive £93 billion export opportunity for UK firms between 2035 and 2040, driven by investments outside Europe. The UK is well-placed to become a vital hub for low carbon hydrogen production, especially in Europe.
Offshore Energies UK's director emphasized the need for the right policies and industry partnerships to ensure that Scotland can capitalize on its energy expertise and be a launchpad into the global hydrogen markets. The call for a modern industrial strategy aims to empower companies to lead in the nascent hydrogen market and ensure long-term competitiveness.
Hydrasun, a key player in hydrogen solutions, showcased innovative products at its Hydrogen Design and Manufacturing Centre. The company's focus on transport and industrial sectors, both in the UK and internationally, highlights the potential for homegrown firms to drive growth and innovation in the hydrogen sector. The importance of policymakers supporting these initiatives to unlock the full economic potential of hydrogen technology was also emphasized.
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