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Scotland's energy transition opportunity

Energy transition will dominate Scotland’s supply chain in the next decade. We’re starting now.

Using our skills, creativity, and knowledge, we can help you expand into the four areas crucial to Scottish economic growth — hydrogen, offshore wind, clean heat, and tidal energy. Get to grips with clean energy and learn how to maximise its potential for your business.

Latest industry support and information

Scottish energy transition sector: four focus areas

Scotland has high ambitions to develop an internationally significant hydrogen economy, as documented in the Scottish Hydrogen Action Planopens in a new window. A key part of that ambition is to develop 5GW of installed hydrogen production capacity by 2030, then 25GW by 2045.

The economic opportunities associated with hydrogen are not limited solely to its production. Other areas of opportunity include hydrogen use in:

  • Distribution
  • Storage
  • Industry
  • Transport
  • Chemical feedstock
  • Exports to the rest of the UK and Europe

The global transition to hydrogen makes it a lucrative and innovative sector. Now we're showing Scottish companies how to be part of that change. 

We're furthering our understanding of the wider hydrogen economy’s requirements and looking for existing capabilities in Scotland that could be useful to the sector. 

The Assessment of Electrolysers report, commissioned by the Scottish Government, outlines the current state of electrolyser manufacturing globally. It details how to support the growing supply chain so that Scotland can reach its electrolyser deployment targets. We're working to make links between hydrogen project developers and Scottish companies that can offer relevant products and services.

Read the Assessment of Electrolysers report opens in a new window 

Hydrogen projects

Scotland’s hydrogen project pipeline is growing, supported by existing energy generation and infrastructure assets.

Our map of Scotland's hydrogen assets lets you see where hydrogen production, distribution and usage could take place.

View our map of Scotland's hydrogen assetsopens in a new window 

We are working to support developing projects and would encourage you to speak to us if you are a project developer and/or an inward investor.

Scotland's hydrogen innovation network (SHINe)

Scotland's hydrogen innovation ecosystem is growing at a fast pace. Scotland's hydrogen innovation network (SHINe) programme helps companies access the wide range of hydrogen innovation resources available.

SHINe aims to speed up innovation in Scotland, strengthen hydrogen capabilities and help companies in the sector build lasting partnerships.

Learn about hydrogen opportunities and news from SHINe  

Sector and market opportunities

There are significant opportunities for companies that can contribute to making the large-scale production of green hydrogen more affordable.

Learn about international hydrogen opportunitiesopens in a new window 

Recent reports

These reports cover hydrogen opportunities across different sectors in Scotland:

Hydrogen demand study - Scottish industry and transport

Learn how heavy industry, commercial sites, and transport sectors could use hydrogen to decarbonise their energy and fuel needs. This study explains the most likely offtakers, where they're located in Scotland, and their potential volumes of demand.

Read the reports on hydrogen demand in Scotland  

Hydrogen for Scottish distilleries

Scotch whisky distilleries have ambitions to become more sustainable –and hydrogen is one of the ways that distilleries can do that. This study helps to simplify the type of hydrogen projects distilleries may consider, its requirements and costs.

Read the report on hydrogen in Scottish distilleries  

Scottish hydrogen production – sites and opportunities

There's potential to produce green hydrogen all across Scotland. These studies highlight a range of sites where land, power and water requirements make the production of green hydrogen a possibility.

Read our study on de-centralised green hydrogen production  

Read our large-scale study on hydrogen production and export locations  

Sustainable aviation fuel mapping

Read about Scotland’s potential to support the use and development of synthetic/sustainable aviation fuels (SAF) – a solution that is widely regarded as the first step towards decarbonising aviation globally. This report defines the global and Scottish market opportunities for SAF and assesses the country’s strengths and appetite to engage in zero-emission aviation. It also provides recommendations on how the Scottish and wider UK public sector can maximise the transition to net zero emissions aviation.

Read the report on synthetic/sustainable aviation fuel  

Carbon capture, utilisation and storage

Scotland has a significant opportunity to deploy carbon capture, utilisation and storage (CCUS) due to its vast CO2 storage potential in the North Sea and the option to repurpose existing oil and gas infrastructure for CO2 transport and storage.
 
Scotland also has the skilled, experienced workforce and supply chain required to develop CCUS. This will help reduce carbon emissions across hard-to-abate industries, while also creating and sustaining jobs in Scotland. 
 
Of the four CCUS clusters in the UK, Scotland has one. These clusters will contribute towards the UK Government’s target to capture and store twenty to thirty megatonnes per annum (mtpa) of CO2 by 2030. CCUS in Scotland and across the UK will accelerate in the run up to 2030 to meet this target and will create new opportunities for the Scottish supply chain as a result.

Offshore wind puts us in a strong position to be a world leader in green energy thanks to Scotland’s long-standing links to the oil and gas industry. 

Existing expertise can be applied to offshore wind in fields such as surveying, installation, operations, maintenance, and health and safety. 

Market opportunities in offshore wind

Our market plans explain the background, scale and scope of the opportunity in offshore wind, the types of companies that are eligible, and – if you meet the criteria – what you need to do next. 

Check out international opportunities in:

Floating wind projects in Scotland

Scotland has two of the biggest floating wind farms in the world — Hywind Scotland and the Kincardine Offshore Wind Farm. There's a third in construction, the Pentland Offshore Wind Farm, which when completed, will overtake the others as the world's largest. 

The opportunity for investment and growth in this sector is huge. In the UK alone, floating offshore wind is forecast to provide 17000 jobs and £33 billion GVA to the economy by 2050.

Run by Highlands and Islands Enterprise (HIE), Offshore Wind Scotland provides information on the sector. Discover developments and opportunities, instructions on how to become part of our Forth and Tay offshore supply chain clusters, and who to contact to find out more.

Read more on offshorewindscotland.org opens in a new window  

Getting into clean heat offers big opportunities for your business, given Scotland’s 2045 net zero targets, 

Heat accounts for 51% of Scotland’s energy demand and, moving forward, all homes and buildings must have significantly reduced energy use with the majority using a zero-emissions heating system. This can provide the perfect opportunity for your company to grow through retraining your staff and redeveloping your services.

Funding and grants 

Green Heat Innovation Support Programme (GHISP)

The £17.6 million GHISP supports innovation and capital investment that will accelerate the roll out and adoption of clean heating solutions and associated products.

Learn more about GHISP  

HeatSource industry hub

HeatSource is a collaborative knowledge hub funded by our organisation, HIE, and South of Scotland Enterprise (SOSE). It's aim is to explore opportunities in low carbon heat and bring together knowledge, partners and resources to help prepare the sector for net zero.

As well as providing industry updates, it allows you to register for events and list your business for free on the industry directory to help collaborators find you.

Find out more on heatsource.org opens in a new window  

Clean heat business guide 

Read our report on Clean heat: low carbon heat opportunities 

Case study

Learn how Glasgow-based confectioner Aldomak is cutting energy costs.

Read the full story on Aldomak 

Scotland is a world leader in tidal stream energy (TSE) technology and infrastructure. Your business can find lots of opportunities to join or develop TSE projects in Scotland.

What are the benefits of tidal stream energy (TSE)? 

There are several benefits of TSE as a renewable energy source:

  • Predictability: TSE relies on the gravitational pull of the moon, making it highly predictable – this is a huge benefit to the energy system as a whole 
  • Diversity: TSE provides diversification of supply to the grid, and is decoupled from other energy sources – which supports a more secure energy mix
  • Potential: The global TSE potential is 120GW by 2050 – and Scotland could see 6GW in this timeframe

Why Scotland is an ideal place for tidal energy projects

Scotland is a uniquely strong location for TSE projects for several reasons:

Scotland's TSE ecosystem – innovation and R&D infrastructure

If you're looking to develop a TSE project in Scotland, you'll have access to a thriving network of partners, resources, and expertise.

Organisations that can support your TSE project include: 

Discover energy transition funding

Check out our Funding and Grants page for information on open and upcoming calls.

You might also be interested in

  • Our net zero framework

    This focuses on economic opportunities that deliver benefits to the environment and society. Find out how we're helping shape Scotland’s net zero economic transition.

  • Business sustainability

    Sustainability drives competitiveness. Protecting environmental resources and cutting carbon is good for business, boosting your credentials with customers, suppliers, staff and investors.

  • Verlume: storage and management solutions for Scotland's energy transition

    Verlume's portfolio of engineering solutions support Scotland's energy transition. Learn about its successes and projects, and how we've supported the business.