A new business division focused on green hydrogen has been created by ScottishPower, with its first projects expected next year.
This follows its parent company Iberdrola unveiling its own dedicated unit in September, targeting 600MW by 2025.
ScottishPower’s first projects will be focused on decarbonising large industry, food and drink and heavy transport. It is looking to work with a range of organisations such as distilleries, the steel industry, petrochemicals and ammonia users, with this expected to support the government’s ambition of achieving 5GW of low carbon hydrogen production in 2030 as outlined in the energy white paper.
However, this will require “a mechanism from government to allow the investment needed to boost competition in green hydrogen going forward,” ScottishPower’s hydrogen director Barry Carruthers said.
“We’ve already seen this happen with offshore wind in the UK and we know, with the right support, green hydrogen will be another success story.”
On the same day as ScottishPower announced its new devision, the Scottish government unveiled its Hydrogen Policy Statement, with the sector set to receive £100 million over the next five years. The Scottish government outlined how it plans to “become a leading hydrogen nation”, setting its own ambition to generate 5GW of renewable and low-carbon hydrogen by 2030 and at least 25GW by 2045.
It is to publish its Hydrogen Action Plan next year, detailing how it will achieve the policies laid out this week.
Already, ScottishPower is working on the Green Hydrogen for Scotland project, which will include a 10MW electrolyser installed outside of Glasgow. It will be powered by a combination of solar and wind, with ITM Power and BOC also involved in the project. The partnership is targeting the decarbonisation of fleets with heavy duty vehicles, with green hydrogen production facilities with clusters of refuelling stations to be developed across Scotland.
The new business unit is to continue this work and look to replicate it with other partnerships over the coming years.
Carruthers pointed to how ScottishPower has a “proven track record of exploring and investing in new, emerging technologies”, having “led the onshore wind revolution” in the UK as well as being an innovator in offshore wind.
“We can take our expertise and knowledge in the development and operation of renewables and apply it to the roll-out of green hydrogen in areas where electrification can’t reach.”