Realising Scotland’s hydrogen export potential

The Scottish Government is taking steps to cement Scotland as an international player in the production and export of low carbon hydrogen. The recently published Hydrogen Sector Export Planopens in a new window has brought together industry leaders from across the supply chain. It discusses how Scotland can be a key hydrogen exporter. Scottish Hydrogen Innovation Network (SHINe) was also mentioned as a key enabler for this strategy.

Spotlighting Scotland

Scotland can become a leading producer and supplier of low carbon hydrogen in the UK and a strategic exporter into key European markets. Its vast renewable energy resource and energy sector expertise can support low carbon hydrogen production at scale, especially electrolytic hydrogen. 

Scotland also has a rich history in the energy supply chain. It can support development of a rapidly expanding hydrogen industry through its existing skills, experience, and knowledge. 

Global demand for hydrogen and hydrogen products 

The global effort to reach net zero is well under way. There's growing demand for renewable and sustainable energy across the globe. Demand in Europe for renewable and low-carbon hydrogen will increase. The European Commission is targeting 330TWh of imported hydrogen by 2030. 

The International Energy Agency (IEA)opens in a new window has forecasted that demand for hydrogen globally could reach 400Mt by 2050. Demand will also become more diverse, as industrial, transport, power and heating industries look for ways to decarbonise. 

Further analysis conducted in the Scottish Government’s export plan also highlights high hydrogen import requirements from Germany, Belgium, Italy, and the Netherlands. This showcases that the development of an international hydrogen economy is key to decarbonising our global energy supply.  

How Scotland can become a global leader

Scotland is currently targeting 25 gigawatts of renewable or low carbon hydrogenopens in a new window production by 2045. The nation’s supportive policy framework, renewable energy capacity and global supply chain provide the perfect foundations to realise its ambitious goals. 

The Scottish Government has identified four key strategy points in its export plan to help it realise Scotland’s hydrogen export opportunities. 

Assurance of demand 

One of the key barriers to hydrogen deployment both in Scotland and globally is the lack of coordination, commitment, and support from the whole value chain. Significant investment and more supportive policies are key to scaling the production of low carbon hydrogen. This can be difficult to achieve if both policymakers and industry do not see adequate global demand for the technology. 

Assurance of supply

Just as Scotland needs certainty that the demand for hydrogen globally will warrant the investment, international markets need assurance that Scotland can meet this demand. International markets will only commit to investing in hydrogen from Scotland if they can be sure that Scotland can scale up production. 

There is good news on the horizon for Scotland’s hydrogen supply. The UK Government has announced £2.3 billion worth of support for 11 low carbon or electrolytic hydrogen projects. This level of confidence will signal to international markets that Scotland has can provide the hydrogen needed to decarbonise global energy supplies. 

Connectivity pillars

The Scottish Government has identified the crucial building blocks needed before Scotland can export significant levels of hydrogen to a global market. These include:

• Ports to facilitate the export of hydrogen and hydrogen products via pipelines or through shipping
• Hydrogen pipelines interconnecting Scotland with north-western Europe
• Large-scale storage solutions to increase flexibility and reassure global markets that Scotland has a reliable, continuous supply of hydrogen
• A standardised, international regulatory regime and certification schemes to ensure Scottish hydrogen and hydrogen products meets the requirements of other countries

Critical enablers  

The critical enablers are what must happen next to help grow the Scottish hydrogen sector and help Scotland to realise their production and export ambitions. These include creating a skilled workforce, investing in the development of hydrogen infrastructure and products, and ensuring Scotland’s hydrogen supply is cost competitive. 

One of the critical enablers mentioned in the Scottish Government’s export plan is the Scottish Hydrogen Innovation Network (SHINe). SHINe is highlighted as a key critical enabler due to its potential to accelerate hydrogen innovation and investment. SHINe will:

• Provide a single-entry point for companies to access Scotland’s existing hydrogen innovation network
• Help to guide innovators towards hydrogen expertise, demonstration opportunities, testing facilities and partnerships
• Stimulate innovation in Scotland’s hydrogen economy

SHINe aims to strengthen Scotland’s hydrogen production, storage, and export ability by facilitating the creation of innovative new products and services. It will be front and centre of Scotland’s efforts to become a global leader in hydrogen production and export. 

If you're looking to invest in Scotland’s hydrogen economy and require guidance as to what opportunities are available, contact the SHINe team today.