NZTC: “The Hydrogen Market is Expanding; Scotland Must Act Now”
The launch of The Net Zero Technology Centre’s ‘Energy Hubs: Fill the Backbone’ report has sent shockwaves through the Scottish hydrogen industry. NZTC’s report gives recommendations that will expand and optimise Scotland’s hydrogen-production, thus helping the country to become a leading figure in the European hydrogen economy.
Through primarily the development of large-scale energy hubs across the country, NZTC is confident Scotland can achieve its potential and become a leading exporter in green hydrogen. “The European Hydrogen Market is expanding rapidly, and the time for Scotland to act is now”, summarises Myrtle Dawes, CEO of Net Zero Technology Centre.
Phase one of the Energy Hubs Project
For Scotland to become a major exporter of zero emission hydrogen and its derivatives, NZTC comment that large-scale hydrogen production is crucial. Although the current infrastructure for small scale hydrogen production is useful, it must be expanded. Energy hubs will need to produce approximately 900,000 tonnes of hydrogen per year.
There are sufficient Scottish renewable energy resources to make this achievable. A minimum of 35 GW of electrolyser capacity could be installed at Energy Hubs – surpassing the Scottish Government’s target of 25 GW of renewable and low-carbon hydrogen production capacity by the year 2045.
With expansion will come costs
This means producing hydrogen as cheaply as possible is a necessity, Economic modelling indicated that a 10 GW scale energy hub producing green hydrogen from floating offshore wind could produce hydrogen for less than £4/kg in the late 2030s. However, the true cost will be heavily dependent on how far the cost of electricity from floating wind falls, thus developments in floating offshore wind are key to the commercial viability of Scottish Hydrogen production.
Location assessments identified Cromarty, Shetland, Aberdeen & Northeast, and Orkney to be optimal locations for hubs. This was due to them being the locations with the highest renewable power availability, strong export capability, and significant local hydrogen activity scored most favourably for green hydrogen. The Hydrogen is anticipated to be pivotal in decarbonising sectors which cannot be easily electrified such as Maritime and Aviation.
Aswell as the expansion of the production of hydrogen, NZTC also orders for the expansion of the hydrogen-storage industry. For Scotland to be able to meet its own domestic hydrogen demand, sufficient hydrogen-storage is needed for when there are dips in production (associated with low wind condition).
The report explains that “The subject of energy storage capacity would benefit from further assessment (including cost benefit analysis) to determine the sensitivity of hydrogen production rates (and electrolyser life) to varying levels of energy storage capacity”
The first phase of project has received support from partners including Kellas Midstream, Port of Aberdeen, Shell, Shetland Island Council, Altera, Crown Estate Scotland, EnQuest, SLB, Subsea 7, Verlume, Wood, Wood Mackenzie and Worley.
Phase two of the Energy Hubs project
Concluding in November 2025. Phase 2 will continue its focus on achieving large-scale hydrogen production at Energy hubs and will develop the ‘Super Hub concept’. This concept involves integrating several of the larger ‘Energy Hubs’ to create a ‘Super-Hub’ which will optimise the combined performance of each hub and improve productivity.
As well as this, the phase will look further into ‘system integration’ and how to make the best of ‘symbiotic processes’ – for example and to quote the report, “how to integrate thermal energy within Energy Hubs and how alternative fuels and by products may be leveraged to maximise the efficiency and economic viability of energy hubs.”
Phase 2 will also shift the impetus onto the development of crucial technologies. This includes providing direct financial support to accelerate the production of innovative electrolyser technologies.
