Hydrogen: planning and consenting guidance

Annex B - Consenting Parameters & Thresholds Summary

Key development characteristics that will inform the necessary consenting, permitting, licensing and wider regulatory processes for hydrogen projects are set out below, along with relevant parameters and thresholds that will define requirements.

How large is the proposed site and buildings, including all land necessary to carry out the proposed development?

(e.g. land required to build a new access to site, all proposed built development / infrastructure, landscaping, parking and servicing areas)

More than 2 hectares; A building of ≥10,000 sqm^[31]; or A pipeline of ≥8 km^[32]: Development will be a Major Planning Application – with additional requirements to notify the Local planning authority and carry out formal pre-application consultation. Further detail is set out in Section 3 of the Guidance.

Less than 2 hectares; A building of <10,000 sqm; or A pipeline of <8km: Development will be a Local Planning Application. Pre-application consultation should still be undertaken, though does not need to be formally notified. Further detail is set out in Section 3 of the Guidance

How much hydrogen (and /or other hazardous chemicals) will be present at the site?

(N.B. It is important to consider the overall inventory of hazardous substances on a site through the ‘Addition Rule’ and whether HSC / COMAH requirements may arise even if no individual substance threshold is met)

Less than 2 tonnes: Development will not be classed as a COMAH Establishment, or a site requiring Hazardous Substances Consent (HSC). Further detail is set out in Section 6 of the Guidance.

Less than 5 tonnes: Development will not be classed as a COMAH Establishment. HSC will be required if storing or using two tonnes or more of hydrogen (and/or other hazardous substances as per the ‘Addition Rule’). Further detail is set out in Section 6 of the Guidance.

Between 5 tonnes and 50 tonnes: Development will be classed as COMAH LOWER Tier – requiring formal notifications to the Competent Authority and compliance with COMAH general duties.

HSC will be required from the planning authority for the storage or usage of hydrogen. Further detail is set out in Section 5 (COMAH) and Section 6 (HSC) of the Guidance.

More than 50 tonnes: Development will be classed as COMAH UPPER Tier – requiring formal notifications and submissions to the Competent Authority and compliance with COMAH general duties. HSC will be required from the planning authority for the storage or usage of hydrogen. Further detail is set out in Section 5 (COMAH) and Section 6 (HSC) of the Guidance.

How is water for the proposed development being sourced?

From a river or other waterbody (excluding the sea), or groundwater source, and less than 50m³ / day: The abstraction must be registered with SEPA. If less than 10m³ /day then only compliance with General Binding Rules for abstraction is required. Further detail is set out in Section 7 on Environmental Permitting.

From a river or other waterbody (excluding the sea), or groundwater source, and exceeding more than 50m³ / day: An EASR authorisation for abstraction is required from SEPA. Further detail is set out in Section 7 on Environmental Permitting.

From the sea (up to 3 nautical miles from land): Registration is required with SEPA under EASR for abstraction from coastal waters of >10m3 / day. A Marine Licence may also be required for any construction works and installation of the infrastructure / equipment involved in abstraction. Further detail is set out in Section 7 on Environmental Permitting and Section 8 on Offshore Consenting.

From a municipal (Scottish Water^[33]) or other existing private water supply infrastructure: No specific licence is likely to be required, though it should be considered whether any proposed infrastructure and equipment needs to be included in the planning application, or if a separate planning application will be required for works at a separate site in order to facilitate water supply.

Effluent from Waste-Water Treatment: As above

How is renewable energy for the development being sourced?

Private wire connection between the site and an existing renewable energy generator: No additional consents / licences required – though developers should consider whether installation of any cabling may require planning permission or Marine Licence (if offshore) and/or ensure that proposed infrastructure and equipment (eg. Sub-station) is included within the planning application.

Power Purchase Agreement with existing renewable energy generator: As above

New on-shore renewable energy generation of less than 20MW capacity: Planning permission is required for onshore renewable energy generation (e.g. On-Shore Wind / Solar) and can be combined with the hydrogen production facility. This may be a Local or Major application, depending on the site area, scale of any buildings and/or pipelines. Further detail on the planning process is set out in Section 3 of the Guidance.

New on-shore renewable energy generation of between 20MW and 50MW capacity: Planning permission is required for the onshore renewable energy generation (e.g. On-Shore Wind / Solar) and can be combined with the hydrogen production facility. This would be a Major application. Further detail on the planning process is set out in Section 3 of the Guidance.

New on-shore renewable energy generation more than 50MW capacity: In addition to planning permission for hydrogen infrastructure, a Section 36 consent is required from the Energy Consents Unit for the renewable energy generation. Further detail is set out in Section 3 of the Guidance.

New offshore renewable energy generation: Section 36 consent from MD-LOT will be required for any proposal to construct, extend or operate a generating station situated in:

• Scottish territorial waters (out to 12 nautical miles from the shore) with a generation capacity of >1MW; or
• Scottish Offshore Region (12 to 200 nautical miles) with a generation station of >50MW

A Marine Licence will also be required from MD-LOT for all ‘Licensable Marine Activities’ –including construction of offshore renewable generating stations and other construction in / over the sea or on the seabed.

Early engagement is also required with Crown Estate Scotland in respect of seabed rights required for offshore projects.

Further detail on offshore consenting is set out in Section 8 of the Guidance.

Is the proposed development likely to have significant environmental effects?

Are there are any environmental designations or sensitive receptors at the site or in the vicinity?

The potential for significant environmental effects from the development may vary considerably between sites, depending on the size and nature of proposals or its location and the surrounding environmental character and sensitivity.

The designations, assets and environmental receptors noted here represent some of those that may be encountered in developing hydrogen projects. The potential for environmental impacts (both direct and indirect) should be considered early in project development and form part of pre-application engagement with the planning authority and other consultees as appropriate (SEPA, NatureScot, HES). This should include review of how impacts to the environment are avoided, minimised and mitigated. For some sites this may require specialist surveys and assessment to inform project design development and siting / micro-siting, though it is important that assessment is proportionate to the site and its specific environmental context.

In many cases, an EIA Screening request to the planning authority will be appropriate to determine whether significant environmental effects are likely and if an Environmental Impact Assessment is required as part of the planning process. Schedule 2 of the EIA Regulations ^[34] sets out applicable thresholds for development– with developments that fall within those requiring EIA where significant effects on the environment are likely. There are no direct specification thresholds for hydrogen projects – but a threshold of 0.5 hectares site area is applied for both energy and industrial projects.

This relates to Peat and Carbon Rich Soils, Groundwater Dependent Terrestrial Ecosystems, Sites of Special Scientific Interest / RAMSAR / SPA / SAC / GCR Sites, Watercourses / Streams / Burns / Rivers, Forestry, Native and Ancient Woodland, National Parks / National Scenic Areas / Country Parks, Listed Buildings, Scheduled Monuments, Conservation Areas, Habitats and Wildlife of Local or National Importance, Communities – including residences and other sensitive receptors such as schools, hospitals,

Further detail is set out in Section 4 of the Guidance.

Does the operation of the proposed development involve emissions to land, water or air, and emissions of noise and odour? (e.g. discharge to local watercourses, venting of gases)

An industrial activities authorisation of some form will be required for all hydrogen production projects^[35], as hydrogen production is prescribed as a EASR schedule 20 activity (Part 4 paragraph 17). The production of a number of hydrogen derivatives and/or carriers such as ammonia or methanol are also prescribed activities in schedule 20, as is capture of carbon dioxide for geological storage (which may be involved in blue hydrogen production).

Industrial activity authorisation will also consider any ‘Directly Associated Activities’ at the site / installation which are connected to hydrogen production, such as water treatment / processing, or production of derivatives, and could have an effect on pollution and emissions from the site to the environment. Electricity production that is co-located to hydrogen production or forms part of the same project may also be a ‘Directly Associated Activity’ subject to scale / nature of production relative to criteria.

It is essential to undertake early pre-application engagement with SEPA to review proposed operations and processes, determine potential for environment impacts and the requirements for Industrial activity authorisation. Specific guidance on the development of PPC Applications has been prepared by SEPA and with the Environment Agency they have produced additional guidance on: ‘Hydrogen Production by Electrolysis of Water: Emerging Techniques’. This is further detailed in Section 7 of the Guidance.

Is the proposed development offshore, or does it involve installation and operation of infrastructure in the marine environment?

Abstraction and treatment of sea-water as a feedstock to on-shore hydrogen production (within 3 nautical miles of the coast): Registration is required with SEPA under EASR for abstraction from coastal waters (up to 3 nautical miles from land) of >10m3 / day. A Marine Licence could also be required for any construction works and installation of the infrastructure / equipment involved in abstraction. Further detail is set out in Section 7 on Environment Permitting and Section 8 on Offshore Consenting.

Offshore production and/or storage & distribution of hydrogen: A Marine Licence will be required from Scottish Ministers (processed by MD-LOT) for all ‘Licensable Marine Activities’ – which could include marine construction in/over or on the seabed to create platforms, pipelines, installation of hydrogen production equipment, or deposit of substances in the sea.

Applications should review MD-LOT’s detailed guidance on Marine Licensing process and undertake pre-application engagement with MD-LOT at the earliest opportunity to determine specific requirements, which may also include EIA, European Protected Species Licences, Habitats Regulations Appraisal and other environmental assessments.

Separate from Marine Licensing required for marine construction or other Licensable activities associated with a hydrogen project, environmental permits and licences may also be required for operation. SEPA’s industrial activity authorisation regime applies for development up to 12 nautical miles from shore – meaning a permit may be required for hydrogen production within this distance. For offshore projects beyond 12 nautical miles, developers should undertake engagement with North Sea Transition Authority (NSTA) and Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) at the earliest opportunity to review the approach to environmental permits and licences.

Depending on the nature of offshore hydrogen production, storage and distribution it is also likely that other regulatory requirements and/or authorisations may apply – for example to the construction of offshore pipelines. These are summarised briefly in Section 9 – but should be discussed with MD-LOT, NSTA, OPRED, and Scottish Government’s Hydrogen Policy Unit early in project development to ensure clear understanding of requirements and approach to determining offshore projects.

Any offshore hydrogen projects should engage with Crown Estate Scotland early in the development process to ensure suitable property rights for activity on the Scottish Crown Estate are in place.