How do you build a hydrogen economy in the Highlands?

It is an exciting time to be involved in energy in the Highlands. The Inverness and Cromarty Firth Green Freeport recently set out its plans to develop a state-of-the-art hub in the Cromarty Firth for the production, storage and distribution of green hydrogen throughout Scotland, the UK and even out to Europe. In the next ten years, hydrogen will become a key element in the energy transition matrix, and the readily-available water supplies, coupled with significant excess electricity from offshore wind power sites that are abundant in the region, means the Highlands is a prime location to base these types of projects.

So, if the Highlands is going to be at the centre of large-scale production of green hydrogen, what steps are needed to build a hydrogen economy?

Project development

There are already a number of projects across the Highlands focused on hydrogen generation. As well as the Cromarty Hydrogen Hub, there is a hydrogen hub in development in Oban, and several distilleries are investigating independent hydrogen generation and proposals for hydrogen refuelling sites throughout the region.

While it's early days for these projects, there is a need for specific supplies to support this growing industry.

Location and logistics

The diverse nature of the Highlands – steep hills, sweeping A-class roads and winding, sometimes single-track roads - means that ensuring appropriate infrastructure is in place for hydrogen transport is key to unlocking the viability of the economy. Whether this would be by road or pipeline is undecided for now, but there are several factors at play for determining the best option.

Currently, there is a shortage of road tankers suitable for the haulage of hydrogen. Coupled with a shortage of viable steel for building more tankers, there is a need to adapt or import more tanker capacity. Road hauliers should consider how best to meet that growing need for transport options in the near term.

Moreover, the opportunity to develop a bespoke hydrogen pipeline network, traversing Scotland, the UK and extending over to Europe, remains under consideration. The Net-Zero Technology Centre in Aberdeen continues to assess the viability of constructing the 'Hydrogen Backbone Link,' which would connect Scotland with Ireland and either the Netherlands and/or Germany. This follows a direct request from the German government to the UK, to consider constructing a North Sea pipeline that would deliver hydrogen into the German market.

Bigger picture

Ongoing construction requirements for each of the development projects, alongside the possibility for pipeline construction, means that there are going to be significant developments required in other areas, to meet the demand for resources.

Movement of skilled workers from other regions (permanently and/or on a transient basis) will increase the need for suitable accommodation, while movement of both hydrogen and people will need improvements to key infrastructure – an area the public sector needs to be encouraged to develop.

There will also be increased demand for raw materials and manufacture of component parts for hydrolysers, control panels, pipework and a range of other production elements. These items will need transported and stored during the construction phase, leading to other opportunities for hauliers and those with yard space.

First steps

For those with the stock, skills and services to support the development of the Highland hydrogen economy over the next ten years, now is the time to be refreshing your terms and conditions, overhauling stock and preparing your position for tendering as the projects progress.

In addition, continual lobbying to upgrade infrastructure and have a transport network in place, will support the growing hydrogen industry, and ensure that once produced, the hydrogen has somewhere to go.

Laura Petrie is a partner at Brodies LLP, specialising in energy.