Hydrogen: planning and consenting guidance

7. Environmental Permitting

The process of hydrogen production, transport and storage can involve a range of potential emissions to the environment, as well as interaction with the water environment either through discharges, abstractions or other engineering works. It is important for developers of hydrogen projects to ensure that potential impacts are appropriately prevented, reduced, and monitored. This is regulated and authorised by SEPA through The Environmental Authorisations (Scotland) Regulations 2018 (EASR). Authorisation is likely to be required for both hydrogen production as an industrial activity (formerly known as a Pollution Prevention and Control (PPC) permit) authorisations and for a water activity (formerly known as a Controlled Activities Regulations (CAR) authorisations). Further advice can be found on the SEPA web pages:

Environmental Authorisation (Scotland) Regulations

SEPA hydrogen

7.1. EASR Industrial Activity

EASR industrial activities are described in schedule 20 of the regulations and implement the requirements of the Industrial Emissions Directive (IED)^[18]. SEPA is designated as the competent authority responsible for carrying out the obligations arising from the IED and is therefore responsible for processing and determining applications for industrial activity authorisation.

EASR applies an integrated environmental approach to the regulation of certain industrial activities. Industrial activity authorisation will be required for all hydrogen production projects including those situated up to 12 nautical miles offshore, as hydrogen production is prescribed as a schedule 20 activity (part 4 regulation 17 inorganic chemical production). The production of other hydrogen products and/or carriers such as ammonia or methanol are also prescribed activities in schedule 20, as is capture of carbon dioxide (which may be involved in blue hydrogen production).

There is no minimum threshold for the quantity of hydrogen being produced however it must be on an “industrial scale” – more information can be found in SEPA guidance

The application will also need to consider any ‘Directly Associated Activities’ at the site/installation which are connected to or directly associated with hydrogen production and could have an effect on pollution and emissions from the site such as water treatment/processing, production of derivatives, or storage. 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.

Best Available Techniques

EASR requires design and controls for permitted industrial activities such as hydrogen production and storage to be based on the principle of ‘Best Available Techniques’ (BAT)^[19] to prevent or reduce emissions and protect the environment as a whole. Through the authorisation application process it should be demonstrated by developers and operators how BAT has been considered in the selection, design and operation of technologies and plant / equipment to be used by hydrogen projects and will be considered by SEPA in determining authorisation conditions.

For more established industrial activities, BAT have been defined between operators, regulators and other stakeholders through BAT Reference Documents (BREF) and BAT conclusions which form the basis of assessment for authorisation applications. At present, neither of these exists for hydrogen production, although SEPA (along with the other UK environmental agencies) have produced Guidance on Emerging Techniques (GET) for preventing and minimising environmental impacts of hydrogen production by electrolysis of water and from methane with carbon capture.

As detailed below, this Guidance should be reviewed by all developers to inform preparation of applications, the assessment of the environmental impact of the proposed installation, and the approach to preventing and reducing impacts on the environment in line with the principles of BAT.

Pre-Application Advice & Guidance

It is important to undertake pre-application engagement with SEPA to review proposed operations and processes, the approach to BAT and how emerging techniques have been considered in the design process, and specific requirements for permitting. With reference to the SEPA Guidance on the development of PPC Applications and specific hydrogen guidance referenced above, this should include details of environmental performance in terms of:

• Energy demand and efficiency, and process efficiency – minimising energy and raw materials needed to produce hydrogen. CO₂ capture efficiency will be an additional key area of environmental performance for blue hydrogen projects.
• Water demand and efficiency– minimising water use and treatment, and measures to segregate, treat and re-use waste water where possible.
• Emissions to the environment - including to air, water, ground and groundwater.
• Waste and its treatment in accordance with the waste hierarchy.
• Noise and vibration.
• Unplanned emissions and accidents.
• Monitoring of energy, resource and water efficiencies and emissions to the environment.

Application

Applicants should view the information on the appropriate activity page on SEPA’s website. SEPA has produced a draft application form specifically for low risk electrolysis activities. Applicants should discuss if this applies to their individual project and request a copy of the alternative application form.

The activity page for inorganic chemical production can be found here.

Specific application requirements should be confirmed with SEPA at the pre-application stage, but broadly the application must include a range of information in accordance with information on the activity page to include the following:

• Description of activities within the installation. For hydrogen this is likely to include a combination of water treatment, hydrogen production via electrolysis of water or natural gas reformation, hydrogen purification and compression, hydrogen storage, odorization and metering, and other plant / activity such as an energy centre or sub-station and staff welfare facilities.
• A site report and a baseline report^[20] - the main purpose of the site and baseline reports is to provide a documented record of the condition of the site prior to operation under EASR.
• Justification for any emission limit value proposed. As noted above, the achievable emission limit values and approach to reaching these should be discussed and agreed with SEPA at pre-application stage.
• Information on the nature, quantities and sources of foreseeable emissions (both frequent and in-frequent) from the installation or mobile plant into each environmental medium, and a description of any foreseeable significant effects of the emissions on the environment and on human health. Emissions from hydrogen production may be likely to include hydrogen itself, oxygen, waste-water from pre-treatment, cooling and steam systems, water vapour, and occasional other gases.
• A description of the proposed technology and other techniques for preventing or, where that is not practicable, reducing and rendering harmless emissions.
• If applicable, how the best available techniques are applied to the operation of the installation – with reference to Guidance on Emerging Techniques.
• Safety report.
• The proposed measures to be taken to monitor the emissions.
• Relevant information obtained or conclusions arrived at in relation to a COMAH safety report or environmental impact assessment.
• A description of measures to be taken for the prevention, preparation for re-use, recycling and recovery of waste produced by the operation of the installation.
• A description of additional measures to be taken to comply with the general principles in section 21(2) and (3) of PPC Regulations.^[21]

There are application charges associated with a submission, to be paid to SEPA. There is an Activity (Application) charge paid at the point of making the authorisation application as well as an annual activity (subsistence) charge. Guidance on charges is provided by SEPA and reviewed annually.

Consultation & Decision-Making

Once an application has been made, SEPA must give notice of the application and a copy of the application to various public bodies, for example, the relevant local authority, Food Standards Scotland or Scottish Water. In addition, in most cases, the applicant is also required to advertise the application for public consultation. SEPA may also choose to undertake additional consultation under their own procedures on a non-statutory basis. SEPA must consider any representations made to them within the statutory representation period.

SEPA can either refuse an application or grant a permit subject to conditions. As hydrogen production is a schedule 20 activity it will typically take 4 months to reach a draft decision which may then need to be advertised for a period of public consultation before a final decision is made and a permit issued.

Further detail on the decision-making and consultation process is set out in SEPA’s guidance IND-G-019 Practical guide to schedule 20 and 26 permit level industrial activities

Following implementation of a project, the operator will be required to continue carry out monitoring and supply data returns in compliance with the decision and permit conditions.

7.2. EASR Authorisations for activities having impact on the water environment

In the context of a changing climate, it is important to fully consider water source for hydrogen production at an early stage in design development and feasibility. SEPA have produced a National Water Scarcity Plan and publish regular water scarcity reports which are based on monitoring data. It is important that applicants take into account the effects of climate change on water availability and look to review with SEPA as part of pre-application engagement.

Authorisations emissions activities and activities affecting the water environment moved to the Environmental Authorisations (Scotland) Regulations 2018 (EASR) on 1 November 2025 EASR water activities are described in schedule 10 of the regulations and apply regulation over activities which may affect Scotland’s water environment. SEPA is the competent authority for EASR authorisations. Guidance and information for applicants are available on SEPA’s website.

EASR authorisations relate to rivers, lochs, transitional waters (estuaries), coastal waters, groundwater, and groundwater dependant wetlands and activities regulated include discharges, diffuse pollution, abstractions, impoundments and engineering works in inland waters. SEPA’s website provides an overview of these activities and the EASRauthorisation process.

EASR may apply in different circumstances/instances to a range of hydrogen projects and any proposed interaction with the water environment as a part of the development. EASR authorisation will be relevant for any hydrogen projects requiring abstraction from inland or coastal water bodies to ensure supply of water as a critical production feedstock. Engineering works needed to facilitate the abstraction will also be authorised as part of the authorisation.

Discharges to the water environment from hydrogen production may also be covered under an EASR authorisation, however in most instances discharges will be already addressed within the industrial activity permit and the EASR authorisation will be in relation to abstraction and associated engineering works.

Levels of Authorisation & Application Requirements

Under EASR water abstraction authorisation, SEPA risk assesses proposed activities before granting, if appropriate, an authorisation. For abstraction, the type of authorisation required depends on the volume of abstraction and environmental risk of the proposed activity. The thresholds for different levels of authorisation for abstraction are summarised below.

Surface Water Abstraction: Levels of Authorisation

• General Binding Rules (GBRs) provide statutory controls over certain low risk activities and can be carried out without a licence subject to standard measures to protect the environment. Key GBRs for inland and coastal abstraction include a means of measuring the rate of abstraction or a means of demonstrating that the maximum volume that could be abstracted cannot exceed 10m³ / day, and ensuring that water leakage is kept to a minimum.
• Registration is intended to cover low risk activities which cumulatively pose a risk to the water environment. Operators must apply to SEPA to register these activities, including details of the scale of activity and its location, and there will be a number of conditions to be complied with.
• A permit^[26] is needed if site-specific controls are required, particularly if constraints upon the activity are to be imposed. For abstraction this may include a maximum abstraction limit and/or defined river flow conditions in which abstraction can take place. Operators must apply to SEPA for EASR authorisation and receive their permit before carrying out abstraction or other works requiring authorisation. EASR permits require a ’Fit and Proper’ person to be held accountable for securing compliance with the terms of the permit. Specific guidance on the application form and information required for EASR permit applications should be reviewed by all applicants, though the key information required can be summarised as:
• Total quantities of water (per hour / day / year) required, the maximum rate of abstraction, and percentage of abstracted water returned.
• The measures taken to ensure efficient use of abstracted water (e.g. re-use & recycling, minimising leakage).
• What sector(s) water will be used in (e.g. hydrogen production) and what processes it is required for (e.g. electrolysis, cooling).
• Details of the specific abstraction point, intake infrastructure, and means of measuring water abstraction.

Application Process

Where an authorisation is required, it is important for applicants to undertake pre-application engagement with SEPA prior to the submission of the water abstraction authorisation applications. This can ensure understanding of proposed development and requirements for regulated activities such as abstraction, discharge or engineering works. It can also ensure that relevant conditions or limitations are reviewed and agreed in advance based upon shared understanding of water availability and full consideration of other potential impacts (e.g. water quality, riparian habitats).

Applications for registration are assessed and issued within 30 days (unless an extension is agreed by both parties). Where a licence is required, the application is assessed and determined within four months (unless an extension is agreed). Depending on the complexity of the application and the level of detail provided, SEPA can request additional information which may prolong assessment and determination timescales. Where SEPA considers that activities are likely to have a significant adverse impact on the water environment or the interests of other users of the water environment they will also require the applicant to advertise the application and provide an opportunity for representations to be made. SEPA must also then consult with any public authorities with an interest in the application. Representations made must be considered by SEPA in determining the application.

Obtaining an appropriate water supply for a hydrogen project may require works that are remote from the main development site. Where possible, this should be presented and consulted upon, considering all infrastructure including water supply. Selection of supply should also take account of potential prohibition of raw water transfer between catchments to prevent spread of invasive non-native species.