The Renewable and Low Carbon Energy website

for farmers and landowners

Hydrogen Innovation scheme launched by Scottish Government

Case Studies

The Scottish Government has launched a £10 million hydrogen innovation scheme, providing funding to boost innovation within the sector and accelerate its integration into the energy system.

Offering financial support over the next 4 years, the new scheme aims to encourage additional private investment in the related technologies and enable new companies to enter the market. The funding, part of £100 million the Scottish Government has committed to invest in renewable hydrogen during the course of this parliament will be used to support:

  • low-cost and sustainable production
  • storage and distribution, both within Scotland and for export
  • integration into the existing energy system

Net Zero & Energy Secretary Michael Matheson said:

“Scotland has the resources, the people and the ambition to become a world leader in hydrogen production for both domestic use and for export to Europe.

“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 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 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.”

Andy McDonald, Head of Low Carbon Transition at Scottish Enterprise said:

“Scottish Enterprise is collaborating with Scottish Government to develop opportunities in the hydrogen sector in Scotland that will maximise the economic benefits and support energy transition. We share the ambition to develop Scotland as a leading hydrogen nation. Innovation is a big part of that as it is at the heart of economic development.

Helen Melone, Senior Policy Manager at Scottish Renewables commented

“Hydrogen will play a key role in our transition to the net-zero energy system we need to build to tackle climate change, and support for its production and integration into our energy system is to be welcomed.

“It is vitally important that preference is given to green hydrogen, produced from renewable electricity, for which growing global market demand already exists.

“The Scottish Government must also ensure the most effective use of the overall £100 million funding set aside in its draft Hydrogen Action Plan. It is key that focus remains on innovation and on efficiency which drives cost reduction, and we would urge more funding to be committed to the former to enable the development of a world-class hydrogen sector in Scotland.”

More information on the scheme can be found on the Scottish Government’s website


Advice & Opportunities