Aberdeen City Council has announced a £15 million funding boost to accelerate delivery of its hydrogen hub and reinforce efforts to build a hydrogen economy in the city.

The announcement was made during the Scottish Government's Hydrogen Day at COP26, and came as part of the publication of the Scottish Government's Hydrogen Action Plan, which outlines how it aims to meet a target of 25GW of green and blue hydrogen production by 2045.

Aberdeen's track record of building hydrogen supply and demand featured as a case study in the launch of the Hydrogen Action Plan, which highlighted the city's credentials as a world-leading hydrogen pioneer and a blueprint for other regions looking to transition to low and zero carbon energy sources.

In October, Aberdeen City Council announced bp as its preferred bidder for a commercial partner for the Aberdeen Hydrogen Hub, which will incorporate solar power, green hydrogen production and a refuelling facility for public transport. The hub will strengthen the city's leading hydrogen position and support supply chain development, skills and training, and the creation and retention of jobs in the region.

-- Advertisement --

A final investment decision for the Hydrogen Hub will not take place until front end engineering design (FEED) work has been completed, however today's funding announcement will contribute to the hub becoming operational as soon as possible, increasing supply and demand in the city through applications in transport, rail, marine and heating.

Aberdeen City Council received significant interest from commercial bidders for the Hydrogen Hub, which highlights the city is now firmly on the map for inward investment in energy transition projects.

These recent announcements reflect over a decade of driving forward hydrogen use in the city, and Aberdeen City Council has demonstrated an enterprising approach to growing a hydrogen economy, with demonstration projects including buses, public sector vehicles and waste trucks.

Aberdeen City Council Leader Councillor Jenny Laing said: "The interest and investment in Aberdeen's hydrogen economy continues to grow and COP26 has been a catalyst for showcasing our credentials and positioning Aberdeen as a prime location for further green investment.

"Following our announcement of bp as the Aberdeen Hydrogen Hub preferred bidder, we have been really encouraged to see momentum build rapidly at an industry, government and community level.

"Our ultimate aim is to position Aberdeen as a climate positive city and at the same time, ensure jobs and training opportunities for those living and working here. We have a huge pool of talent in the city who can benefit as we move to clean energy sources through supply chain diversification, new and retained jobs, and the potential to create a strong export pipeline for green hydrogen production."

Aberdeen City Council Convener for City Growth & Resources Councillor Ryan Houghton said: "Today's funding announcement is another clear statement of the importance of the Aberdeen Hydrogen Hub to the UK, and underlines the crucial role that projects like this will play in our future integrated energy system.

"Hydrogen is here in Aberdeen, and with a 10-year track record of projects already under our belt, and the Council's commitment of £19m over the next five years to enhance the refuelling infrastructure and bus programme, our city is playing a leading role in the expansion of the sector."