Grangemouth Hydrogen Hub (2024)

Scottish Enterprise commissioned Optimat to review and re-assess the status of hydrogen activities in the Grangemouth industrial cluster. It follows up on a 2021 study by SE and Wood, by providing an update on the current and planned projects in the region and nationally.

Desk-based research was carried out to summarise industrial and policy developments since 2021. A semi-structured interview programme with key Grangemouth Hydrogen Hub industrial and public sector stakeholders was carried out to identify new and emerging hydrogen projects or interests, as well as to identify challenges and opportunities for strategic support and investment.

The Grangemouth Hydrogen Hub is perceived to have a significant advantage in producing blue (methane or biomethane) gaseous hydrogen for local and regional applications. In contrast, green hydrogen is seen as a less viable option due to the considerable distance from the offshore wind sites and, critically, grid constraints. Smaller green hydrogen production sites will develop in the broader region as they collocate with onshore wind sites and could provide hydrogen to the industrial cluster users. If power demands are met in the medium term, Grangemouth could explore opportunities in e-fuel and sustainable aviation fuel production, potentially augmented by CO2 imports from Europe, either for onsite utilisation or permanent storage via the Acorn project.

Access to low carbon electricity was identified as a barrier for future hydrogen projects in Grangemouth. Further investigation is required to determine what interventions can be made to mitigate electricity grid constraints and accelerate the deployment of low carbon technology. The study recommends enabling a hydrogen market by committing to 1-2 key priority end uses in the short term. Based on current activity, these priorities could be industrial transport and industrial heat. Further work is required to encourage more collaboration in the region. The cluster can attract innovative and disruptive companies by providing incentives, facilities, and space (e.g., Sustainable Manufacturing Campus). The report recommends capitalising on its connectivity to the wider area (Forth Ports, UK pipeline projects, connectivity to European North Sea infrastructure) and establishing connections and partnerships between Grangemouth companies and potential end-users that cannot self-supply hydrogen.