Scotland has the potential to become one of the world’s top producers of green hydrogen, but only if the UK Government moves faster to back the sector, according to a new report released by Scottish Renewables, reports Review Energy.
The report, Green Hydrogen Vision 2025, sets out key actions that the UK Government and the National Energy System Operator (NESO) must take to help Scotland secure a leading position in the fast-growing hydrogen economy.
Green hydrogen—made using electrolysis powered entirely by renewable energy—could strengthen energy security and support the UK’s long-term climate goals. With its strong wind resources and large renewable capacity, Scotland is seen as one of Europe’s most promising locations for major green hydrogen development.
Key Recommendations
The report calls for closer coordination between the UK Government, the Scottish Government, NESO and Ofgem, and highlights several immediate priorities:
Increase demand for green hydrogen in sectors that are difficult to decarbonise, such as heavy industry, maritime activities and long-duration energy storage.
Introduce clear incentives for companies to build projects in areas with abundant renewable power, including Scotland, to reduce pressure on the electricity grid and make better use of existing capacity.
Prioritise hydrogen-only infrastructure, including dedicated pipeline networks linking production sites with industrial and commercial users.
Establish strong offtake frameworks that give producers the financial confidence to invest in large-scale projects.
Support both small and large projects, ranging from hydrogen systems at distilleries to major industrial users that can offer stable, high-volume demand.
Scottish Renewables said a mature green hydrogen industry could contribute £25 billion a year to the UK economy and create more than 300,000 jobs by 2045.
Industry Reaction
Maggie Olson-Jow, Policy Manager for Offshore and New Technologies at Scottish Renewables, said urgent action is needed to unlock Scotland’s full potential in green hydrogen.
She said the organisation worked with members and stakeholders to outline the steps required to build a successful green hydrogen sector in Scotland. She added that both governments must focus on growing demand in sectors that have been challenging to decarbonise and must offer clear incentives to encourage companies to set up projects in renewable-rich regions like Scotland. She noted that while both governments have stated their ambition to lead in green hydrogen, they now need to work closely with NESO to lay out a clear plan for delivering large-scale production.
The release of Green Hydrogen Vision 2025 comes at a crucial time in the UK’s hydrogen policy debate, with industry leaders warning that strong policy support is needed to turn Scotland’s green hydrogen ambitions into reality.
