Cromarty Hydrogen enters UK Government negotiation stage

The Cromarty Hydrogen Project is moving forward to commercial negotiations and further due diligence in the UK Government’s first Electrolytic Hydrogen Business Model allocation round (HAR1).

Contracts totalling up to 250MW of capacity are expected to be awarded by the UK Government in HAR1 before the end of 2023.

In April, Cromarty was shortlisted at the launch of the UK Government’s Energy Security Plan, “Powering Up Britain”, and moves into the final negotiation stage as one of 17 projects totalling 262MW across Scotland, England, and Wales.

The project, being developed by Storegga, along with ScottishPower, will play a key role in decarbonising Scotland’s whisky sector with a potential capacity equivalent to Beinn Tharsuinn wind farm – some 29MW – to yield c.11,000kg of hydrogen every day.

Long-term production has the potential rise to 110,000kg per day, for delivery throughout the region’s to distilleries and other industrial and transport sectors.

“This week’s announcement is an encouraging step for Cromarty, and we remain optimistic about moving towards a government contract in the next stage of HAR1. Storegga is building a pipeline of electrolytic hydrogen projects providing clean energy to industry which supports the UK’s hydrogen strategy for generating clean-burning fuel to transition the industrial and transport sectors while delivering jobs and positive economic impacts through new employment opportunities and investments across the UK.” said Sarah Potts, Storegga’s Hydrogen Managing Director.

If successful, commencing the construction of Cromarty Hydrogen will enable the creation of 90 jobs in the first phase, with more to follow as the project expands.

The first of those new jobs should arrive during 2024, ensuring an early contribution to the opening of opportunities to encourage young people to choose the Highlands as a place to live and work.

Award of a Hydrogen Business Model Contract before the end of 2023 would enable Storegga and ScottishPower to proceed with the Final Investment Decision and installation of the Cromarty Hydrogen Project.

For more information on Storegga, contact storegga@dentonsglobaladvisors.com