Scotland’s whisky distillers are to benefit from Scottish Government funding of £3.1 million towards the development of a green hydrogen hub in Moray.
The Scottish Government’s funding will be matched by carbon reduction firm Storegga – with investment totalling £6.2 million.
This 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.
The new funding 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 -– the equivalent to the production of enough hydrogen to heat over 8,000 homes.
Storegga is a private company backed by shareholders GIC, Mitsui & Co., Ltd., M&G Investments, Macquarie Group and Snam.
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 Scottish 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 over 40 industrial sites across the region including whisky distillers and distiller hauliers – supporting the decarbonation of the sector.
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.”
Storegga CEO Tim Stedman 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.
“We are also committed to engaging with the local community through ongoing public consultations, ensuring that this project benefits both the region and its residents.
“Collaboration like this is essential to driving sustainable industrial practices and creating high-quality jobs that will benefit the region for years to come.”