A Trading Nation - realising Scotland's hydrogen potential: plan for exports

7. Short-Term Actions and Conclusions

This plan outlines key actions essential for achieving our export goals. These actions, summarised below, must be developed and implemented in phases that align with the demand and supply of hydrogen and hydrogen products in both domestic and international markets.

Figure 10: Summary of key short-term actions

Assurance of Demand for Hydrogen and Hydrogen Products

• Assess, on an ongoing basis, market demand for hydrogen products, focusing on volumes, products, costs, timelines and potential market access barriers, including emissions and certification.
• Deepen bi-lateral collaborations with Germany and other key markets to support the development of hydrogen infrastructure and import demand from Scotland, and engage in international market mechanisms like Germany’s H2 Global as appropriate, where possible.

Assurance of Supply

• Create a supportive policy environment to enable the development of opportunities for hydrogen exports from Scotland, and work with the relevant authorities, to address gaps on hydrogen production, transport and storage.
• Collaborate with UK Government, making the case that UK hydrogen certification schemes must align with EU standards and approved certification schemes to support trade and investment.
• Work with UK Government and our Enterprise Agencies to develop regional hydrogen hubs within an integrated hydrogen trading market which connects production, transport and storage both domestically and internationally.

Connectivity Pillars

• Engage with EU partners and stakeholders in the North Sea neighbouring regions to advance the Hydrogen Backbone Link project and build evidence for a hydrogen pipeline and hydrogen derivatives infrastructure connecting Scotland and continental Europe.
• Work with Ireland to explore the viability of potential hydrogen export pipeline routes into the North of Europe over the longer-term, building on Scotland’s existing gas interconnection into Ireland.

Supply Chain

• SDI will support current and potential exporters in accessing global hydrogen supply chain opportunities through the provision of specific research, delivering trade delegations to target markets and linking Scottish companies products and services with potential buyers.
• Alongside SDI, we will improve our understanding of the project landscape and value chain opportunities for supply chain collaboration in the identified key and emerging export markets.

Critical Enablers

• Step up our work with the UK Government to utilise reserved and devolved powers, ensuring our collective vision for the development of the hydrogen sector recognises the significance of exports for all UK nations.
• Partner with Enterprise Agencies to facilitate investment and growth in Scotland’s hydrogen economy, enhancing infrastructure and capacity for increased export potential.
• Continue to encourage the UK Government to establish subsidy programs and market mechanisms that support early hydrogen export projects and enhance competitiveness in international markets.

It is clear that there are huge opportunities for the development of the hydrogen sector across the globe, and that Scotland can be a significant player both in commodity and within the supply chain in a number of key markets.

This plan provides specific focus on the significant international trade opportunities and sets out the key steps required to secure and maximise the economic benefits that can be delivered for Scotland.

The Critical Success Factor Framework that has been developed to support the plan helps to articulate a sequential and structured approach to growing the Hydrogen sector in Scotland. It is not intended to provide definitive answers but provide clarity of the direction we must all move in, with pace, to support the growth of export in the interests of ensuring a sustainable and successful hydrogen sector in Scotland.

Building strategic connections and strong relations in the UK and internationally will be central to our success. Our recent Green Industrial Strategy supplements the opportunities highlighted within this plan and the HAP, and helps to form a route map towards securing hydrogen export activity.

The Scottish Government will build on the work with the UK and overseas governments, industry, academia and other stakeholders to deliver a hydrogen sector in Scotland that will help address the sustainable balance required around hydrogen supply and demand.

Scotland should be one of the principal players within the north-western European nations for hydrogen as a commodity and within the supply chain of goods and services. We have the environment, skills, knowledge, and experience to become a driving force behind the growth of the hydrogen sector in Europe and beyond. It is an opportunity that could revolutionise the energy sector in Scotland and more widely. This “Energy Revolution”, and the transitioning of economies to a green and sustainable future, offers huge opportunity and we must ensure Scotland is front and centre in seizing these. By working together, in true partnership, we will have the greatest chance to turn this global ambition into an economic reality.