Hydrogen & Fuel Cells - the business opportunity for a Net Zero Scotland

The recent imperative of Net Zero is stimulating the transition from existing fossil fuel energy supply chains towards new low carbon energy supplies. The report in May 2019 by the UK Committee on Climate Change concerning “Net Zero – The UK’s contribution to stopping global warming” set out the need for fast and ambitious action to tackle the threat of irreversible climate change.

The immediate response from the Scottish Government has been to accept the advice of the UK Committee on Climate Change, and to propose a revised target for a Net Zero Scotland by 2045. In May 2019 the Scottish Government set out progress in their first Annual Energy Statement, together with plans for delivering Scotland's energy strategy and the transition to a low carbon economy. 

We are at the dawn of a new low carbon industrial age, and with a maturing oil and gas province, we must develop alternative opportunities for our energy future. The use of renewables for production of hydrogen is now being considered at GW scale North Sea Region, anticipating the rapid growth of offshore wind. The challenge will be that the timescales required for building the multi-GW of offshore wind capacity may not be rapid enough to meet Scotland’s 2030 decarbonisation targets.

Projects such as Acorn in St Fergus offer an opportunity to establish a fully operational team for methane reformer carbon capture and storage at significant scale within 5 to 10 years. St Fergus is ideally positioned for future injection of hydrogen into the UK gas transmission infrastructure, as well as the development of new pipelines for the transmission of 100% hydrogen to Aberdeen. This would enable SGN, the gas distribution network operator for Scotland, to progress with their plans for decarbonising the gas network.

Low carbon hydrogen can be deployed into the ‘hard to treat’ areas such as heavy-duty transport, decarbonised gas networks for providing heat to homes and businesses as well as high grade heat for industry. There will be a key role for hydrogen pipeline infrastructure to provide the ‘linepack’ flexibility and resilience for transporting and distributing this low carbon hydrogen to the end users.

Scotland’s ambition for Net Zero emissions by 2045, will require low carbon hydrogen from renewables together with low carbon hydrogen from fossil fuels using carbon capture and storage. This dual approach fully reflects the advice from the UK Committee on Climate Change, driven by the need for urgent action to avoid the worst impacts of global climate change. The use of both renewables and carbon capture and storage will be essential to achieve a rapid reduction in greenhouse gas emissions: ‘we need to use all of the tools in the box’. There is considerable effort now underway on hydrogen initiatives in Scotland in support of the Scottish Energy Strategy and the updated Climate Plan.

The Scottish Hydrogen and Fuel Cell Association (SHFCA) promotes and develops expertise in fuel cells and hydrogen technologies. SHFCA supports the development of businesses and markets through our regular events and activities, including the “SHFCA2019 Annual Conference” which this year takes place in Aberdeen on 2nd October as part of the Hydrogen Festival week. Many of our members will be attending the conference to bring together the expertise and experience of specialised fuel cell companies, systems integrators, power generation companies, and energy consultants. SHFCA2019 offers a timely opportunity for local businesses from the existing Oil & Gas supply chain to identify key market opportunities and explore new opportunities for investment and diversification into clean hydrogen and fuel cell solutions.

Scotland has an early mover opportunity for significant growth with low carbon hydrogen and as a world-leading destination for clean hydrogen projects at scale. To achieve the speed and scale of the transition to a low carbon economy will require a fundamental shift in the energy industry. Aberdeen now has an opportunity to lead the change from being the oil & gas capital city of Europe, to become the new clean energy capital of Europe. 

The Aberdeen Hydrogen Festival takes place at the Hilton Treetop Hotel, Aberdeen from 1^st – 4^th October 2019 in association with :Aberdeen City Council, ERM, Pale Blue Dot, OGUK, OGTC, ONE, H2Aberdeen, Scottish Enterprise, Invest Aberdeen and Interreg North Sea Region.

Tuesday 1^st October: Hydrogen | A business opportunity for the North Sea Region

Wednesday 2^nd October: SHFCA2019 | Delivering the Energy Transition & Net Zero Target

Thursday 3^rd – Friday 4^th October: TAP2G | Trans-Atlantic Power to Gas Workshop

Friday 4^th October – Arcola Energy Schools Fuel Cell Challenge