Meeting of the Parliament 01 May 2025
Hydrogen is a key part of our journey to net zero. Although we can decarbonise many parts of our economy through electrification or renewables, hydrogen is necessary in the areas where that is not viable.
The sector has immense potential. The Hydrogen Energy Association has estimated that hydrogen technologies will be worth £700 billion globally by 2050 and will deliver hundreds of thousands of jobs in Scotland alone. Given our existing knowledge in our energy sector, we should be pursuing those opportunities, and I am glad that there is agreement across parties and Governments on that point.
The shortlisting of eight Scottish sites in the second hydrogen allocation round should be welcomed, particularly that of the Selms Muir hydrogen project in Livingston, which could deliver 6 tonnes of hydrogen a day and fuel the Lothian bus fleet. That would be complemented by Grangemouth hydrogen and a pipeline to Forth Ports in Leith, which could enable exports to other countries. All that would build a cluster of hydrogen knowledge in the central belt.
If we want to be successful, we must build up capacity quickly. However, as we have seen in other areas, the planning system is sluggish and inefficient in introducing new energy infrastructure. We have heard from the Improvement Service that understanding of hydrogen among planners and decision makers is limited and can vary between areas. I welcome the fact that the Scottish Government is establishing a planning hub to improve that situation.
We need knowledge to be embedded in all parts of the system—including local development plans—and a clear pipeline of projects so that decision makers can have clarity. In addition, as with all planning, we need to ensure that there are enough planners working to make decisions.
Public engagement is also key. Some industry figures report public unease regarding hydrogen proposals. Much has been said about community input in energy infrastructure. When people hear the word “hydrogen”, many think of the Hindenburg disaster, so ensuring understanding of the safety of such systems should be a priority.
I come back to skills. With our expertise in oil and gas, Scotland is well placed to enable the hydrogen economy. Those sectors include people with transferable technical skills, such as those in engineering and project management, and people with skills in safety, risk and regulatory compliance. Creating a clear pathway from oil and gas to hydrogen should be on the cards to ensure that workers can adapt and to guarantee them a just transition.
However, ClimateXChange found that skills transfer from industry alone will not be sufficient in the long term to meet the objectives of the hydrogen action plan. Therefore, this is a great opportunity to boost apprenticeships and deliver opportunities for young people across all areas of the country.
That brings me to my last point on infrastructure. Hydrogen is a versatile element. It can be transported in liquid or gas form and by pipeline or boat. Infrastructure to ensure that hydrogen can flow cheaply and easily from where it is produced should be delivered at the same time as investment in green generation so that we do not find ourselves playing catch-up in the years to come.
I again welcome the shortlisting of eight Scottish sites in the latest hydrogen allocation round. That reflects the talent and appeal of Scotland in the hydrogen sector. However, we cannot just hope to be a world leader in green hydrogen. The Scottish Government should tackle the planning and skills issues that I have outlined and develop a clear strategy that ensures that green hydrogen can be used in as many areas of our economy as possible in order to hit our net zero target.
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