Investing in green hydrogen

Funding to support just energy transition.

Projects to drive innovation in the production, storage and distribution of renewable hydrogen are to receive £7 million of Scottish Government funding.

First Minister Humza Yousaf announced the Hydrogen Innovation Scheme funding while addressing delegates at the All-Energy conference in Glasgow.

The investment will support 32 projects, including:

  • a study into treating water from the River Clyde to produce hydrogen cheaply
  • the establishment of a green hydrogen production learning, test and research hub in Stornoway
  • a scheme to use waste heat generated from wind turbines on the Isle of Lewis to create hydrogen
  • a Hydrogen Innovation Hub at Glasgow Airport for storage and distribution
  • a study examining the use of tidal energy around Yell in the Shetland Islands to produce hydrogen

The First Minister said:

“We have committed £100 million, over this parliamentary session, to supporting the green hydrogen sector.

“Part of that funding has been allocated to the Hydrogen Innovation Scheme, which supports feasibility studies, technical demonstrations and testing facilities for new ideas about how to produce, store and distribute hydrogen.

“I am pleased to be able to confirm today that through this scheme, grants worth a total of £7 million have been allocated to 32 different projects.

“The projects cover a wide range of different areas - such as how to produce and store hydrogen on floating windfarms, and how to decarbonise agriculture and forestry work in rural areas. Together, they show the range of possible ways in which hydrogen can be produced, used and stored. They highlight the expertise and innovation that is already such an important part of the sector. And, of course, they demonstrate the scale of the opportunities that hydrogen can create.”

Comhairle nan Eilean Siar, University of The Highlands (UHI) and Islands Outer Hebrides and PlusZero have been awarded £1,129,000 for a green hydrogen production learning, test and research hub at Creed Park, Stornoway.

Comhairle nan Eilean Siar Head of Municipal Services David Macleod said:

“Project partners Comhairle nan Eilean Siar, UHI Outer Hebrides and PlusZero Ltd are delighted that the Creed Hydrogen Skills and Innovation Centre has been selected to receive funding.

“This ground-breaking public, private and university collaboration will help deliver the skilled workforce and robust hydrogen technology needed to support the Outer Hebrides ambitions to be Scotland’s leading green hydrogen production hub and play a key role in achieving the Scottish Government’s ambition for delivering 5 gigawatts of renewable and low-carbon hydrogen production by 2030.”


All-Energy Conference: First Minister’s speech – 10 May 2023

The Hydrogen Innovation Scheme was launched in June 2022 and is targeted at supporting innovation under the themes of renewable hydrogen production, hydrogen storage and distribution, and integration of hydrogen into Scotland’s energy system.

Hydrogen Innovation Scheme: successful projects



Media enquiries

Back to top