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The PurSUIT of a just enERGY transition is accelerating, and it's time for our energy mix to diversify MAKING A SUSTAINABLE ENERGY FUTURE POSSIBLE 

Hydrogen has the potential to significantly reduce emissions in sectors that are typically hard to decarbonise, aligning with the Scottish Government’s goal of achieving net zero by 2045.

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Storegga has advocated for the creation of a hydrogen economy through the development of regional hydrogen hubs, which can bring substantial benefits to local communities by introducing this low-carbon energy source. Speyside Hydrogen in Moray is one of 14 proposed regional hydrogen hub developments identified by the Scottish Government to increase the scale of the hydrogen economy across the country.

The Project

Speyside Hydrogen is a pioneering project that will produce green hydrogen to fuel operations across distilleries and other businesses in Moray enabling them to decarbonise in line with their own ambitions and sector targets. When used, hydrogen produces mainly water vapour, making it a cleaner alternative to fossil fuels which release carbon dioxide (CO2) into the atmosphere.

Speyside Hydrogen will deliver an operational 70MW electrolyser facility at Ballindalloch, near Marypark. A planning application for the proposed development will be submitted to Moray Council in Q1 of 2025.

Moray has a strong heritage of whisky production and innovation and boasts excellent access to renewable energy and transport infrastructure as well as supply chain expertise.
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THE NEED

Responsible whisky distillers, in common with many businesses in Scotland and around the globe, face a challenging net zero journey on the back of long-standing reliance on fossil fuels for heat and transport. 

The challenges facing those harder to decarbonise segments of the economy are exacerbated by remote and/or rural locations, which add further hurdles to deployment of alternatives including heat recovery (where heat produced from industry is captured and transported to heat homes), electrification (such as electric vehicles), and bioenergy (where waste is turned into cleaner energy). 

As part of the transition, this type of energy complements other decarbonisation solutions by converting locally produced, but often constrained, renewable electricity into green hydrogen that can be used to meet industry demands for power, heat and transport. 

The technology will play a significant part in meeting carbon reduction targets from both the Scottish and UK governments. Hydrogen is recognised as a key element in the Scotch Whisky Association Pathway to net zero.

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the impact

Speyside Hydrogen represents an economic opportunity for the communities of Moray and the north-east.

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Decarbonisation

The development will support the decarbonisation necessary to help safeguard existing employment at distilleries and their supply chain partners while creating new highly skilled, high-value jobs during the construction and subsequent operation of the facility.

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Opportunities

Speyside Hydrogen can help open the door to new opportunities in the global clean energy sector, while anchoring and attracting new industries, engineering, and suppliers to the region.

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Sustainability

And of course, by cutting emissions across distilling and other sectors, the project will help to keep Scotland on an accelerated path to net zero, enhancing the country's global renewable reputation and helping secure the future of one of our most important exports.

THE TIMELINE
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We are currently in the design concept selection and planning pre-application consultation process.

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When consultation is complete, we hope to submit a planning application to Moray Council,
in Q4 of 2024.

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Subject to approval of our development plans and confirmation as the development progresses, construction of the Phase 1 facilities could commence in late 2025, with first hydrogen production and delivery to customers in 2027.

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Phase 2 construction would follow in 2026, with both phases in operation from 2029, providing a total of 70MW of electrolytic hydrogen production.

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We are currently in the design concept selection, planning and pre-application consultation process.

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Subject to the planning approval, construction of facilities could commence in mid-2026.

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When our consultation is complete, we will submit a planning application to Moray Council, in Q1 of 2025.

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The facility will be up and running, with the first delivery of hydrogen to customers in 2028, providing a total of 70MW of electrolytic hydrogen.

What is Speyside Hydrogen?

Speyside Hydrogen is Storegga’s proposed green hydrogen development at Ballindalloch, near Marypark, which is supported by over 150MW of established demand for hydrogen from customers across the Moray region and particularly the whisky industry. 

The site at Ballindalloch comprises a 70MW capacity electrolyser facility and will produce 25 tonnes of electrolytic green hydrogen per day, supplying green energy to distilleries in the region and saving over 50,000 tonnes of CO2 emissions each year.  

What will it look like?

Our plans now comprise of one 70MW facility at Ballindalloch which has meant a 25% reduction in the overall footprint of the plant compared to our first set of plans, which included two 35MW facilities on the same site. The earlier plans were shared during our first consultation in August and can be viewed on the consultation page here.

Detailed layout and architectural plans are still being progressed, but work is focused on blending the facility into the local landscape and reducing visual impact. For example, buildings will be designed to mimic the architecture of nearby distillery buildings with dark-pitched roofs and white walls and bunding will be used to screen the site from the A95.

Our ambition is to honour the scale, scope and heritage of the existing environment across Speyside and Moray, and above all else to be responsible neighbours. More detailed and updated visualisations of the site will be available at our second consultation event in November.

What is green hydrogen?

Green hydrogen is produced by splitting water into hydrogen and oxygen within an electrolyser using renewable energy.  

The use of renewable energy ensures that the production process has a low carbon footprint. Our hydrogen will comply with the UK Low Carbon Hydrogen Standard and can be used as an alternative to hydrocarbons across a wide range of applications including heavy transport and industrial heat, producing only water vapour when burned.

The electricity will be provided by a grid connection to the local electricity network at Glenfarclas substation. Our power supplier will be required to comply with the UK Low Carbon Hydrogen Standard, which ensures the electricity we use is from green sources generated with an emission intensity of less than 20 gCO2e/MJ.

The UK Government requires Speyside Hydrogen to demonstrate that all purchased power meets the standard and Storegga will be able to demonstrate which assets produced the power used in each 30 minutes of operation.

Why Ballindalloch?

The proposed location for construction and operation of the green hydrogen production facility was identified through a comprehensive site selection process which started with 40 possible options for which the key aspects of proximity to hydrogen users, how best to route hydrogen from that option to the users including access to existing gas pipeline network for future use of pipeline for the export of hydrogen, availability of power and water in proximity to the options and the suitability for development of each potential site. 

Is hydrogen safe?

The UK is a leader in the hydrogen market and has been producing and distributing hydrogen for over a century. Hydrogen is not a new fuel.

Like other flammable substances such as petrol and natural gas, hydrogen is regulated by international codes, regulations and standards to ensure safe production, transportation and use. It has been used in the UK for a range of industrial processes for decades and the UK has a strong track record in the safe distribution and storage of combustion gases. 

We will comply with all regulations as required by the UK Health and Safety Executive (HSE).

The Speyside Hydrogen facility will be designed so that it is inherently safe with a wide range of safety measures incorporated into the design to reduce or eliminate potential hazards.

What benefits will there be for the local community?

Community benefits from development projects typically fall into several key categories, each with a unique impact on the local area.

While community benefit agreements are not currently required for hydrogen projects or considered by the Regulator as part of project development in the same way it is for other decarbonisation projects like wind, we are considering ways to establish voluntary benefits that can reflect local priorities and enhance our shared space.

This list below explains different types of benefits that can be achieved.  

Biodiversity net gain is guaranteed with Speyside Hydrogen and educational and skills-based benefits, particularly around Science, Technology, Engineering, and Mathematics (STEM) subjects, are important to us. On other projects, we have successfully collaborated with schools and community organisations to promote STEM education and create learning opportunities. 

In time, your ideas and insights will be essential in guiding our positive contributions. We will keep you updated on opportunities to share your thoughts and help to shape our approach.

Economic Benefits: These include job creation, training programs, local hiring, and contracts for local businesses. Economic community benefits stimulate the local economy by boosting employment and providing residents with skills that support long-term career growth.

Environmental and Ecological Benefits: These benefits focus on enhancing local ecosystems, as seen in biodiversity net gain initiatives. Biodiversity net gain can be a powerful community benefit by enhancing local ecosystems, creating healthier environments, and improving residents' quality of life. When a development project leaves biodiversity in a better state than before, it can lead to cleaner air and water, greater resilience to climate impacts, and green spaces that support both mental well-being and recreational activities. 

Educational and Skills-Based Benefits: Development projects can bring educational value through partnerships with schools, internships, apprenticeships, and workshops, especially around Science, Technology, Engineering, and Mathematics (STEM). These benefits help inspire future generations and build pathways into high-demand sectors, empowering young people and contributing to a skilled workforce.

Social and Cultural Benefits: Social benefits enhance community cohesion and well-being. Examples include funding for community centers, public art installations, events, and recreational spaces. Cultural benefits may also reflect the community's unique identity or heritage, creating places that foster social connections and a sense of pride.

Health and Well-being Benefits: Initiatives like healthcare facilities, mental health support programs, or recreational amenities like walking trails, parks, and sports facilities. These benefits encourage healthy lifestyles and support the overall physical and mental well-being of residents.

Infrastructure and Public Services: Infrastructure-focused benefits could include improvements to public transportation, roadways, utility systems, and digital connectivity. Enhanced infrastructure can reduce travel time, improve safety, and ensure that communities have access to modern amenities that improve daily life. 

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