5 May 2022
The Cromarty Hydrogen Project (“Cromarty Hydrogen”) has been awarded a contract as part of the UK Government’s first Electrolytic Hydrogen Business Model allocation round (HAR1). Cromarty is one of 11 projects to be awarded a contract, collectively totalling 125MW of hydrogen production capacity across the UK.
Cromarty Hydrogen, being jointly developed by Storegga and ScottishPower, will play a key role in contributing to the decarbonisation of Scotland’s whisky industry, establishing a Regional Hydrogen Hub in the Inverness and Cromarty Firth region of Scotland. The construction of Cromarty Hydrogen will employ around 170 individuals during construction and create around 30 new high skilled jobs in the first phase, with more to follow as the project expands and develops. The site will supply green hydrogen to the local whisky distilling sector, enabling them to switch from fossil fuels in line with their own ambitions and targets.
With its abundant natural resources and strategic positioning, Scotland possesses immense potential for renewable energy, making it a frontrunner in pioneering sustainable energy solutions in the race to Net Zero. Cromarty Hydrogen will not only aid in decarbonising Scottish industry but will also help to kick-start the hydrogen economy in the North of Scotland which aligns seamlessly with the Scottish Government’s Hydrogen Action Plan, the broader national strategy encompassing the creation of 14 Regional Hydrogen Hubs and associated hydrogen use.
Cromarty Hydrogen’s Phase 1 will produce close to 5,500 kg of green hydrogen every day. The hydrogen production plant will use 100% renewable power to split water into hydrogen and oxygen via electrolysis. Long-term production, through future phases, has the potential to rise to over 100,000kg per day, for delivery throughout the region to distilleries and other industrial and transport sectors.
“After a lot of hard work by the integrated Storegga and ScottishPower project team, particularly over the past 18 months since the UK Government launch of HAR1, I’m delighted that Cromarty has been selected by the UK Government Department of Energy Security and Net Zero as one of 11 projects to be awarded a funding support contract. As an SME originating from North East Scotland, I believe Storegga is able to bring a unique perspective and ambition to deliver decarbonisation solutions for Scottish industry. We look forward to now being able to take the project forward to a final investment decision in 2024, with first production in 2026 and continuing to grow our hydrogen investments in the region”, said Sarah Potts, Storegga’s Hydrogen Managing Director.
Storegga is building a portfolio of low carbon hydrogen projects providing clean energy to industry and supporting the UK’s hydrogen strategy. With the support announced today, we look forward to continuing to develop these projects, which will generate 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.
Storegga is an independent, UK-based carbon management business at the forefront of the global Net Zero strategy. It aims to champion and deliver carbon capture and storage (“CCS”), hydrogen, and other subsurface renewable projects in the UK and internationally to accelerate carbon emission reductions in the race to Net Zero.
For more information, visit https://www.storegga.earth/
Dentons Global Advisors
Fern Duncan, Nishad Sanzagiri, Alishae Abeed
+44 207 664 5086