Scottish Government launches £10m hydrogen innovation scheme

It will provide investment over the next four years, with the aim of accelerating production and storage of the technology as well as unlocking additional private investment

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A new £10 million initiative to drive innovation within the hydrogen industry has been launched by the Scottish Government.

The Hydrogen Innovation Scheme, which will provide investment over the next four years, aims to accelerate production and storage of the technology as well as unlock additional private investment and encourage new entrants into the sector.

The first round of funding will target projects that support the low cost, efficient and sustainable production of renewable hydrogen; efficient hydrogen storage and distribution, both within Scotland and for export; and efficient integration of hydrogen into Scotland’s energy system.

The scheme is part of the government’s commitment to invest £100 million in hydrogen over the course of this parliament.

Net Zero & Energy Secretary Michael Matheson believes Scotland has the potential to become a “world leader” in hydrogen production for both domestic use and for export to Europe.

He said: “The Scottish Government is committed to working with the energy sector to establish hydrogen as an important part of a cleaner, greener energy system, supporting a just transition for the industry both home and abroad.

“Our offshore wind resources, which will increase massively in the coming years, offer huge opportunity for the Hydrogen sector to grow. As set out in our Hydrogen Action Plan and our clear ambition to have 5GW installed hydrogen production capacity in Scotland by 2030 and 25GW by 2045.

“We are open to the world and actively seeking opportunities to collaborate with international partners. The Hydrogen Innovation Scheme provides important, near-term investment to help the sector develop, diversify and realise it’s potential to support our transition to a net zero economy.”