We are committed to industrial decarbonisation which is needed to reduce the pace of climate change and ensure a sustainable future for local industries. Speyside Hydrogen is an important part of the pathway to decarbonising the distilling industry in line with the sector’s net zero commitments by 2040 [Link: Sustainability in the Scotch Whisky Industry].

Speyside has 51 distilleries - a third of all distilleries in Scotland. Most of these distilleries use fossil fuels for their operations, especially for the energy-intensive heat needed for the distillation process. Whilst several distilleries plan to switch to bioenergy and/or electrification, for others, this is not a viable option. Speyside Hydrogen provides this group of distillers, alongside regional fleet operators and other large energy users within Moray, access to green hydrogen and an opportunity to decarbonise and ensure a sustainable future.

Speyside Hydrogen will use renewable power from the electricity grid. Concentrating power demand into one location will help to alleviate regional electricity grid constraints and provide a valuable outlet for the high quantities of renewable electricity generated in this region, which is often curtailed (wasted).

Moray is one of 14 locations identified by the Scottish Government, in its Hydrogen Action Plan, to help achieve net zero by 2045. Moray Council has its own Hydrogen Strategy to help support the Scottish Government plan.

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. Detailed visualisations of the site can be found on board 10 of our second public consultation boards.

The Speyside Hydrogen facility site at Ballindalloch, Marypark, was selected after a robust selection process, including a review of 25 locations, which were selected from 40 initial options.

Numerous brownfield sites were considered but size, access to power, water or existing pipelines, and a lack of landowner response ruled them out.

Consultation with landowners and other key stakeholders took place, and further site considerations included the proximity to large energy users (including but not limited to Speyside distilleries), access to renewable energy, access to water, and to the gas pipeline network for future transportation of hydrogen, as well as access to the A95.

Having carefully selected the site; we designed the hydrogen production facility to minimise the visual impact and the overall footprint of the facility. The build area is approximately two hectares in size (or the size of three football pitches), within the 42-hectare site. We reduced this by 25% during the consultation process and will keep around 84% of the overall redline boundary free from industrial development.    

Most of the area will be used for landscaping and tree planting to screen the site and limit the visual impact. We have carefully designed the buildings and plant to fit with the local environment and will incorporate grazing space to keep the loss of agricultural grazing land to a minimum. The buildings will architecturally blend with other distillery buildings in the area.

Dark sky lighting will be used to reduce any impact on neighbours and nocturnal species and a comprehensive rainwater harvesting system capable of holding approximately two months’ worth of water (harvested during periods of heavy rainfall) will be incorporated to enable us to operate without the boreholes during prolonged dry periods. 

Hydrogen can be produced, stored, transported and dispensed safely and is strictly controlled by regulations, codes and standards. We take all aspects of safety (including road safety) very seriously.

Speyside Hydrogen is classified as both a COMAH (Control of Major Accident Hazards) and PPC (Pollution Prevention and Control) site and will be held to the highest safety and environmental standards.

Initially our hydrogen supplies will be transported by road using HGV-hauled tube-trailers direct from the plant to customers, similar to the supply of oil, LPG or compressed natural gas by tanker. Approximately one truck per hour (averaged over 24 hours) will leave the site, with trucks travelling an average distance of around 18 miles.

We aim to contract with local hauliers to encourage regional investment and as a safety measure to ensure drivers are familiar with the road network and the challenges of driving HGVs on rural country roads with unpredictable Scottish weather.  

In response to concerns raised over road safety on accessing the site from the A95(T), we moved our site entrance to approximately 150m southwest of the nearby A&F Grant Ltd. The access has been designed to support two-way heavy goods vehicle movements, and we will adhere to all required road safety standards. We continue to work with Transport Scotland to ensure that we are taking all necessary precautions and helping support general road improvement schemes.

In parallel to this, we are developing the opportunity to deliver hydrogen by pipeline, either by blending into the existing natural gas network, or via a dedicated hydrogen pipeline. This would greatly reduce the requirement for tube-trailer transport.

Industrial decarbonisation is vital for our planet in the long term, and we are committed to not only minimising any impacts created by our project but seeking to create improvements where possible and to always be a respectful neighbour.

Our site will be permitted under the Pollution Prevention Control (PPC) legislation which means that the overall plant design must minimise emissions to land, water and air for the full lifecycle of the project.

During the construction phase of the project there will be some loss of biodiversity, so we have committed to a minimum of a 10% improvement in future biodiversity net gain (BNG) that we expect to achieve through woodland, tree and hedgerow planting, alongside sustainable drainage systems (SuDs) and associated wetland planting. We are also looking at the potential for riparian planting along the River Spey and tributaries, which would help to reduce water temperatures and improve the health of the aquatic life.

We have carried out ecological and habitat surveys to identify sensitive species that could be impacted by the project and our Environmental Impact Assessment (EIA) sets out the mitigation measures we will put in place to minimise impact on wildlife.

As both a Special Area of Conservation (SAC) and Site of Special Scientific Interest (SSSI) we are acutely aware of the importance of protecting the River Spey and the wider marine ecosystem. Before we can construct or begin operations, we will have to go through a rigorous permitting process with the Scottish Environmental Protection Agency (SEPA) and Nature Scot to ensure that all our processes and project designs will not negatively impact local flora and fauna including the highly protected and globally significant species of fresh-water pearl mussels and Atlantic Salmon found in the River Spey.

The whisky industry is a key pillar of Moray’s economy and tourist trade. Speyside Hydrogen is an important part of the pathway to decarbonising this sector and futureproofing this critical local industry.

The very nature of our business is decarbonisation which means we focus on creating the most sustainable outcome, always thinking about what we are trying to achieve for the environment in the long term. We recognise the concerns raised about the impact on the River Spey and local water supply, and we are committed to minimising our impact and operating responsibly to protect the Spey.

Water is a key element for making green hydrogen, which is made by splitting water into hydrogen and oxygen within an electrolyser. Water for the site will come from shallow (no deeper than 20 metres) boreholes and will be supplemented by rainwater harvesting. The number of boreholes is dependent on the yield achieved from each borehole. The site is designed to recycle water and reduce water consumption and waste, for example using air cooling in place of water cooling.

Large water storage tanks will be installed on the site to allow approximately two months’ worth of water to be stored. These tanks will be filled by overlifting from the boreholes during wet periods, when the water table and river level is high and by harvesting rainwater during periods of heavy rainfall. During prolonged dry periods, abstraction from the boreholes will be stopped and water from the tanks will be used instead, minimising any potential impact on the River Spey and nearby watercourses.

A licence will be required under Water Environment ‘Controlled Activity Regulations’ (CAR) to take water from the boreholes. This will be assessed by the Scottish Environmental Protection Agency’s (SEPA) water permitting team to ensure the water can be supplied to the site without affecting existing abstraction sources or impacting sensitive environmental species.

Whilst we are not abstracting directly from the River Spey, we recognise that the boreholes are hydraulically connected to the river given their proximity. However, the impacts on the River Spey have been assessed as minimal. The site’s net water use will be less than 0.05% of the flow of the River Spey as measured at one of its lowest flow periods such as during a prolonged drought.

We have also considered how the river flow may change in the future and to be climate resilient we have assumed a 20% reduction on the lowest flow rate.

The water used in the electrolyser needs to be of very high purity. Therefore, water lifted from the boreholes will be processed to deionised water quality using very fine filters. This results in a small amount of wastewater being generated which will be discharged from the site, into the River Spey. As we are discharging into a Site of Special Scientific Interest (SSSI), all water discharged will meet strict water quality limits.

Speyside Hydrogen will also produce a significant quantity of oxygen. Work will be undertaken to understand if this by-product can be put to good use to help improve the oxygen content of the River Spey. During prolonged periods of low flow, the river temperature can rise resulting in the oxygen content of the water dropping. Pumping the oxygen into the river could help reduce stress on the fish and other species during these unfavourable conditions.

The very nature of our business, decarbonisation, means we focus on creating the best, most sustainable outcome, always thinking about what we are trying to achieve for the environment in the long term. This includes minimising any impact on the environment and the communities where we operate.

We operate in a highly regulated industry, where we must demonstrate, through the design and operation of the plant, that the overall facility has minimal impact on the environment during its lifecycle. The site must also meet ongoing conditions overseen by SEPA for the duration of its operation.

Construction

All work undertaken during the construction phase will consider legislation such as The Control of Noise (Scotland) Order 2002 and any requirements related to ecology.

Preliminary work completed for the Environmental Impact Assessment assessed likely noise levels and determined these would not be significant.

Equipment such as temporary compressors and power generators will meet the highest emission standards, chemical use will be minimised and where possible chemicals will be replaced with those that have minimal impact. Water use will be kept to a minimum, re-used where possible and any runoff will be controlled and contained, to make sure it does not enter streams and rivers.

Operations

A full noise impact assessment is required prior to a Pollution Prevention and Control (PPC) permit being granted and operations being permitted. This will consider the equipment on site, housing in the surrounding area and operational hours.

The initial Environmental Impact Assessment, based on the preliminary design of the plant, deemed that operational noise would not be significant.

The purpose of hydrogen manufacture is to provide an alternative green energy source whilst minimising the direct and indirect emissions to the environment. The site will be designed with Best Available Techniques (BAT) to minimise emissions.

Once the plant is operational, road haulage trucks will be low emission, as will any future pipeline transportation.

We are committed to ensuring that our projects bring tangible benefits to the local communities where we operate, as well as wider societal benefits to help tackle climate change and supporting industries to become sustainable in a low carbon future.

During the construction of Speyside Hydrogen, we expect to create hundreds of jobs and around 30 long-term skilled jobs once the plant is operational. We have committed to prioritising local suppliers and working with local skills development agencies and institutions to raise awareness of opportunities and support schemes to develop local talent.

We are working alongside Developing the Young Workforce Moray (DYW), local schools, and the University of Highlands and Islands (UHI) to start to develop opportunities for young people including apprenticeships, work experience and STEM activities, as well as building in mentoring schemes into the project plan.

We are also working closely with the UK and Scottish Governments to help shape recommendations for hydrogen developments in terms of community benefit packages.

A Community Wealth Building Plan (CWBP) was submitted along with our planning application. We will continue to work with Moray Council and other stakeholders to develop this and aim to include:

• Economic benefits such as job creation, training programs, local hiring, and contracts for local businesses
  • Environmental and ecological benefits include enhancing local ecosystems, creating healthier environments, and improving residents' quality of life
  • Educational and skills-based benefits which bring value through partnerships with schools, internships, apprenticeships, and workshops, especially around STEM activities
  • Social and cultural benefits that can enhance community cohesion and well-being such as funding for community centres, public art installations, events, and recreational spaces
  • Health and well-being benefits can include improvements to healthcare facilities, mental health support programs, or recreational amenities like walking trails, parks, and sports facilities
  • Infrastructure and public services such as improvements to public transportation, roadways, utility systems and digital connectivity.

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.

Our development will provide opportunities for the involvement of suppliers from Moray and across Scotland. The range of activities suppliers can get involved in include: research and development, design, project management, civil engineering, component fabrication and/or manufacture, installation, and maintenance.

We will prioritise local suppliers and we will work with local education institutions to explore gaps in the development of skills relevant to the growing hydrogen sector. There is a legacy of skills and expertise in the region from the oil and gas sector which we will look to capitalise on and in turn we aim to support a just transition.