Funding boost for build of hydrogen hub set to support whisky sector’s decarbonisation

Artist's impression
Image: Storegga

PLANS for the build of a green hydrogen hub in Moray to support the whisky sector has received £3.1 million in funding from the Scottish Government.

The region is home to 50 of Scotland’s 151 distilleries, with the phased Speyside development by Storegga expected to produce around 200MW of green hydrogen by 2032 to support the decarbonisation of the whisky sector.

Once fully operational, the hub is expected to save around 190,000 tonnes of CO2 per year – which would be the equivalent of a 35% drop in the Scottish whisky sector’s 2018 baseline emissions.

The green hydrogen produced at the hub, which is expected to create 100 new permanent jobs, will provide fuel and energy for over 40 industrial sites across the region – including whisky distillers and distiller hauliers.

Green hydrogen is made by splitting water into hydrogen and oxygen using renewable energy, and can also be used for fuel for transportation, commercial, and industrial heat or stored to meet future demand.

The Scottish Government’s funding will be matched by Storegga, with investment totalling £6.2 million.

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, added, “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.”