Scotland's Hydrogen Export Strategy: Paving the Way for a £93 Billion Opportunity
Key Ideas
  • Offshore Energies UK highlights Scotland's potential to become a key hub for low carbon hydrogen production, with a projected £93 billion export opportunity.
  • The strategy aims to develop hydrogen transportation and storage infrastructure, promote blending hydrogen into the national gas grid, and use price support mechanisms to scale up production.
  • Collaboration between government and industry is crucial to ensure investable business models and to support early projects in the nascent hydrogen market.
  • OEUK calls for a modern industrial strategy to provide long-term, globally competitive policies for companies to invest in the energy mix and lead the world in hydrogen technology.
Offshore Energies UK (OEUK) has praised Scotland's new hydrogen export strategy, foreseeing a significant £93 billion export opportunity if the appropriate actions are taken to attract investment and talent. The strategy was launched by Scotland's Acting Cabinet Secretary for Net Zero and Energy, Gillian Martin, at Hydrasun's facility in Glasgow. OEUK emphasizes the importance of scaling up the low carbon hydrogen market to achieve net zero objectives, focusing on developing infrastructure and enabling hydrogen blending. Price support mechanisms like contracts for difference are seen as essential in the initial stages but should gradually be replaced as businesses become profitable. A report commissioned by OEUK highlights the potential for UK firms in the global hydrogen market, driven by investments from countries like the US and Australia. Michael Tholen, OEUK's director, believes Scotland can play a crucial role in the emerging hydrogen markets with the right policies and support from the government and industry. The organization stresses the need for an industrial strategy that supports companies in investing across the energy mix to stay competitive globally. OEUK urges policymakers to collaborate closely with the industry to ensure UK firms can capitalize on the growing hydrogen market and not be left behind.
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