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Scott Hamilton, Renewables Division Manager at Xodus Group said:

“The commitments set out in the Scottish Government’s Hydrogen Policy Statement send a clear vote of confidence in the potential of green hydrogen from offshore wind. We are pleased to have contributed through our assessment on the scale of the opportunity. It shows the potential to unlock a massive clean power generation resource, creating a clean fuel for Scottish industry and households and a valuable export commodity, supporting the supply chain and creating high value jobs.

Green hydrogen will help abate the emissions of historically challenging sectors such as heating, transport and industry. Modelling three hydrogen demand projections and also the levelised cost of hydrogen production (LCoH), our analysis supports a long-term outlook of price competitiveness by 2032.

A decade of serious action is now required to realise the full potential and strategic investment in hydrogen transportation and storage will be essential to unlock the economic opportunity for Scotland.  The supply chain is well positioned to support green hydrogen development, however gaps in the areas of design, manufacture and maintenance of hydrogen production, storage and transportation systems will need to be addressed. Today’s funding commitment provides a welcome catalyst for plugging the technology gaps.  Support including apprenticeships and reskilling will be required to develop indigenous skills and capabilities in these areas.

As Scotland gets set to host COP26 next year, the latest hydrogen commitments demonstrate the world-leading position the country is taking on a net zero transition and enabling new sources of energy production.”

Background briefing note

Xodus Group’s ‘Scottish Offshore Wind to Green Hydrogen Opportunity Assessment’was commissioned by the Scottish Government, Scottish Enterprise, Highlands and Islands Enterprise and a consortium of industrial partners led by EMEC.

Xodus conducted a supply chain survey and developed a database of Scottish companies active in the green hydrogen sector. Modelling three hydrogen demand projections and also the levelised cost of hydrogen production (LCoH), Xodus’ analysis supports a long-term outlook of price competitiveness by 2032 and highlights the potential to create significant high value jobs to enable production over the next decade.

Scotland has extensive port and pipeline infrastructure that can be repurposed for hydrogen export to the rest of the UK and Europe, with Germany, Netherlands and Belgium expected to be the primary export routes.

As architects of integrated energy, Xodus is helping to deliver more rapid net zero progress.  Working independently and responsibly, Xodus advises governments, regulators, investors and industries, breaking down supply chain barriers and enabling transformation to the world’s energy systems.

The Scottish Government press release can be viewed at:  https://scottishgov-newsroom.prgloo.com/news/building-a-new-energy-sector

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