Leading trade body, Offshore Energies UK (OEUK) says Scotland’s new hydrogen export strategy can build on the nation’s industrial strengths and unlock a £93 billion export opportunity if firms are now backed with a clear action plan to attract investment and talent. Scotland’s Acting Cabinet Secretary for Net Zero and Energy Gillian Martin visited OEUK member Hydrasun, a specialist hydrogen solutions company, at their Cambuslang facility, Glasgow to launch the strategy.
OEUK supports the scale up of the low carbon hydrogen market in Scotland and the UK as an important tool to achieve net zero objectives. Developing hydrogen transportation and storage infrastructure and enabling the blending of hydrogen into the national gas grid are key priorities to kickstart this new market. OEUK says price support mechanisms, such as contracts for difference have a crucial role to play in scaling low carbon hydrogen production, but they should be gradually displaced as businesses turn a profit and invest. Government and industry need to work hand in hand to ensure business models that deliver government support to early projects remain investable.
As detailed in a report commissioned by OEUK from independent consultants Rystad Energy, there is a £93 billion opportunity for UK firms between 2035 and 2040. It is largely driven by investments outside Europe by countries such as the US and Australia, which currently lead the low-carbon hydrogen race. The UK has all the ingredients to become a key hub for low carbon hydrogen production, particularly in Europe.
Michael Tholen, Offshore Energies UK’s director of sustainability & policy, comments:
'With the right policies backing its unique mix of homegrown energy and expertise, Scotland can be a launchpad into the world’s emerging hydrogen markets. This new strategy can help firms, their skilled people and critical supply chains seize the opportunities to export and build a new generation of technology worldwide – making the most of both green and blue hydrogen. It’s now important this plan is put into action in close partnership with industry so we build on our industrial strengths.
'There’s a world of opportunity out there. The global hydrogen opportunity for the UK is developing fast and we expect it to reach £93 billion in the next ten years. Offshore Energies UK is calling on policymakers to help ensure UK firms do not get left behind in the race for this prize. Companies need to be at the forefront of the delivery of our nascent hydrogen market. This is why we are calling for a modern industrial strategy that makes sure companies get the long-term, globally competitive policies they need to invest across our energy mix and lead the world.
'It was great to see the minister announce this strategy on the premises of one of our members, Hydrasun. This firm has seen the huge potential of this global market and is moving fast. It’s now essential policymakers match this ambition and pace, back homegrown firms and unlock much needed growth for the whole economy.'
Hydrasun offers design, build, installation and maintenance of hydrogen systems for transport and industrial sectors for the UK and international markets including Europe. Ms Martin toured the company’s Hydrogen Design and Manufacturing Centre. Hydrasun showcased some of the innovative products they make to support transport and industry, including hydrogen refuelling technologies, industrial panels and training services and equipment.
Source: OEUK
