Subscribe to our Construction Newsfeed
Scotland Construction Directory
Search our 13,917 companies....

Construction News

14/06/2022

SGN Announces Landmark Partnership With RWE

Scottish Gas Network (SGN) has announced a landmark partnership agreement with renewables generator RWE, which will focus on supplying Scottish towns and rural communities with sustainable hydrogen gas.

A Memorandum of Understanding (MoU) has been signed between the two companies to investigate the development of electrolysers, powered by RWE's 10 onshore wind farms in Scotland which have a combined capacity of 213 megawatts, to supply homes and businesses with hydrogen gas via Scotland's gas network.

Hydrogen has a crucial role to play in achieving net zero and is an essential component to decarbonise sectors like industry, heavy load transport, aviation and heat. Published in April 2022, the UK Government's Energy Security Strategy doubled its ambition for low carbon hydrogen production capacity to 10GW by 2030. Similarly, the Scottish Government's Hydrogen Action Plan aims to create 5GW of hydrogen by 2030 and 25GW by 2045.

The partnership will investigate the decarbonisation of homes and businesses connected to the networks of Campbeltown, Stornoway, Oban, Thurso and Wick, which are not connected to the mains gas network. These networks are currently supplied by Liquified Natural Gas (LNG) and Liquified Petroleum Gas (LPG), which when swapped with hydrogen could save 21,000 tonnes of carbon each year and decarbonise around 9,500 properties. The partnership will define how much hydrogen is needed, the requirements to convert these networks to hydrogen, and the supply of green electrolytic hydrogen from RWE's renewable onshore wind farms nearby. In doing so, the project could also unlock onshore wind farm developments in grid-constrained areas, by providing a use for the green electricity generated.

-- Advertisement --
NorthernAsbestosServicesLtd

A feasibility study will also be conducted over the coming months into a 100-megawatt (MW) electrolyser at RWE's Markinch CHP biomass plant. This could produce green hydrogen from local and grid connected renewable energy, to connect into SGN's gas network in Fife. It would build on the work SGN is already undertaking in Levenmouth on their world-first H100 Fife project.

Steve Boughton, RWE Director Hydrogen Development, said: "This MoU is a perfect partnership to develop options for the decarbonisation of domestic and business gas networks, and to help Government achieve its ambitions for 10GW of hydrogen production. Hydrogen will play an essential role in the pathway to net zero, particularly in industry and homes which are hard to decarbonise, and RWE is perfectly positioned to support the development of the UK hydrogen economy."

Fergus Tickell, SGN System Transformation and Business Development Lead, said: "We're delighted to partner with RWE which shares our belief that hydrogen gas has a leading role in the decarbonisation of homes, businesses and industry in Scotland and the rest of the UK.

"We'll explore how hydrogen produced locally can be delivered through the world-class networks we've been operating for decades, to all of Scotland's communities, including in Fife, Campbeltown, Stornoway, Oban, Thurso and Wick. We also look forward to investigating more opportunities across the UK."

The knowledge and experience gained from these initial studies will enable a better understanding of the practicalities and economics of the entire hydrogen cycle and will be an important precursor to a potential funding application under the UK Government's Net Zero Hydrogen Fund.

Latest Construction News

04/09/2026
Morgan Sindall Construction has been appointed by the Scottish Fire and Rescue Service (SFRS) to demolish and rebuild the Liberton station in the capital. Procured via the SCAPE Scotland Construction Framework, the £10m scheme marks a significant investment in SFRS infrastructure and will create a
Read More
03/09/2026
Network Rail says it has hit a key milestone in efforts to strengthen Scotland's railway against severe weather, with £130m invested in resilience over the last two years. The move comes amid tougher operating conditions, including higher temperatures, increasingly unpredictable rainfall and more f
Read More
04/09/2026
ESB has reached Final Investment Decision (FID) and executed the principal construction agreements for the 96MW Chleansaid Wind Farm, near Lairg in the Scottish Highlands. The move signals the start of delivery for one of the utility's most strategic renewable projects and its first ESB-developed on
Read More
04/09/2026
Glasgow City Region has welcomed confirmation of £22.7 million in first-year funding from the UK Government's Local Growth Fund, aimed at accelerating business growth, improving skills and employability, and creating new commercial space across the area. The award represents the opening phase of a
Read More
04/09/2026
A major planned maintenance scheme has begun across East Renfrewshire, with 190 council homes set to receive new kitchens in the first year of works. The initiative is part of East Renfrewshire Council's longer-term investment in its housing stock. Approximately 300 kitchens are due to be replaced
Read More
04/09/2026
A £9.8m Local Growth Fund programme for the Forth Valley has moved into delivery after the UK Government approved the region's Investment Plan, paving the way for projects to boost businesses, skills, housing and infrastructure across Falkirk, Stirling and Clackmannanshire. Following approval of th
Read More
04/09/2026
Approval of a new Local Growth Fund Investment Plan will deliver £11.8 million to Ayrshire between 2026 and 2029, targeting higher household incomes and stronger local economies through infrastructure, business support and skills. The funding reflects the collective ambition of the Ayrshire Regiona
Read More
04/09/2026
SNIPEF's State of Trade Survey for the first quarter of 2026 points to steady activity tempered by growing caution. Work volumes have held up, payment performance is broadly consistent and product availability remains manageable. However, order books are more finely balanced, margins are under press
Read More
04/09/2026
Farrans has been appointed by ESB to deliver the Civil Balance of Plant (CBoP) for the 96MW Chleansaid Wind Farm near Lairg in the Scottish Highlands. The contract signals the start of delivery on one of ESB's most strategically important renewable schemes and marks its first onshore wind project i
Read More
03/09/2026
Sky has secured planning permission for its new Livingston Campus, unlocking a major investment and underscoring the company's long-term commitment to Scotland. The decision marks a key step towards delivering a significant new workplace development in West Lothian. The approved plans will bring Sk
Read More
SEEIT3DG M Joinery Scotland LtdLogical Insulation Solutions LimitedK A Tree SurgeryClaymore Training LimitedCross BlindsK&C LandscapesThomas Haywood Aerial PhotographyEnvironmental Dust Solutions LtdIBT Building & Timber (Merchants) Ltd