The hub will support decarbonisation of Scotland’s iconic whisky industry by creating clean energy and heat used for distilling and fuel for transportation.
Image (above): Richard Broadbent, Bairds Malt UK General Manager (far left), Gillian Martin, Acting Cabinet Secretary for Net Zero and Energy, Tim Dumenil Storegga Head of Hydrogen Business Development at the announcement on 14 August 2024.
Scottish Government funding of £3.1 million will support the construction of a new regional hub in Speyside, bringing approximately 100 permanent high skilled, high value jobs to the area.
The phased development by Storegga is expected to produce around 200MW of green hydrogen by 2032 supporting the switch from fossil fuels to clean energy for over 40 industrial sites across the region. It will also supply refuelling stations for “heavy” vehicles such as lorries.
Once fully operational the new hub is expected to save around 190,000 tonnes of CO2 per year. This is the equivalent of a 35% drop in the Scotch Whisky sector’s 2018 baseline emissions or the same as taking around 135,000 cars from roads in Scotland.
Green hydrogen is made by splitting water into hydrogen and oxygen using renewable energy, and can be used for fuel for transportation, commercial and industrial heat or stored to meet future demand.
The green hydrogen produced in Speyside will provide fuel and energy for whisky distillers and distiller hauliers across the region – supporting the decarbonation of the sector.
The Scottish Government’s funding will be matched by Storegga – with investment totalling £6.2 million. It complements a total of almost £7 million from the Scottish Government’s Hydrogen Innovation Scheme, which has supported 31 projects across the country since 2022.
Acting Energy Secretary Gillian Martin said: “This Scottish Government funding will support the construction of a new hub in Speyside, creating job opportunities for a hundred people in the local area.
“The hub will also support decarbonisation of Scotland’s iconic whisky industry, which currently relies on energy intensive production techniques – by creating clean energy and heat used for distilling and fuel for transportation.
“There is significant potential for the development of green hydrogen production in Scotland, due to our capability to generate so much renewable energy from offshore wind – crucial to the process of making green hydrogen.
“And as we continue with our transition to net zero, green hydrogen will play an increasingly important role within industry as organisations further decarbonise their operations and support Scotland’s transition to net zero.”
Tim Stedman, Storegga CEO said: "Storegga is thrilled to be leading the development of the green hydrogen hub in Speyside, a project that marks a crucial step in Scotland’s energy transition.
“We are deeply grateful to the Scottish Government for their support, which is instrumental in bringing this vision to life. This initiative highlights the importance of government and industry working together to achieve our shared net-zero goals.
“By harnessing Scotland’s rich renewable energy resources, we can significantly reduce carbon emissions and support the decarbonisation of Scotland's iconic whisky industry. Collaboration like this is essential to driving sustainable industrial practices and creating high-quality jobs that will benefit the region for years to come."
Storegga is an independent developer of low-carbon solutions including industrial CO2 storage and hydrogen, backed by a world-class shareholder group including Macquarie, GIC, ADNOC, Mitsui & Co., M&G and Snam. With a portfolio of CCS and hydrogen projects in the United Kingdom, the United States and Norway, Storegga is advancing industrial decarbonisation in sectors such as manufacturing, power generation, distilling, chemicals and others. Storegga projects include the Acorn CCS and Cromarty Hydrogen projects in the UK, Trudvang CCS in Norway and Harvest Bend CCS in Louisiana. For more information, please visit: storegga.earth