Scotland's whisky distillers are set to gain from a £3.1 million investment by the Scottish Government, aimed at developing a green hydrogen hub in Moray.

The new facility in Speyside will create around 100 high-skilled, high-value permanent jobs in the region.

The phased development by Storegga is expected to produce around 200MW of green hydrogen by 2032 -– the equivalent to the production of enough hydrogen to heat over 8,000 homes.

Once fully operational the new hub is expected to save around 190,000 tonnes of CO2 per year. This is the equivalent of a 35% drop in the Scottish whisky sector’s 2018 baseline emissions or the same as taking around 135,000 cars from roads in Scotland.

Green hydrogen is made by splitting water into hydrogen and oxygen using renewable energy, and can be used for fuel for transportation, commercial and industrial heat or stored to meet future demand.

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The green hydrogen produced in Speyside will provide fuel and energy for over 40 industrial sites across the region including whisky distillers and distiller hauliers – supporting the decarbonation of the sector.

The Scottish Government's funding will be matched by Storegga – with investment totalling £6.2m. It complements a total of almost £7 million from the Scottish Government’s Hydrogen Innovation Scheme, which has supported 31 projects across the country since 2022.

Acting Energy Secretary Gillian Martin said: "This Scottish Government funding will support the construction of a new hub in Speyside, creating job opportunities for a hundred people in the local area.

"The hub will also support decarbonisation of Scotland’s iconic whisky industry, which currently relies on energy intensive production techniques – by creating clean energy and heat used for distilling and fuel for transportation.

"There is significant potential for the development of green hydrogen production in Scotland, due to our capability to generate so much renewable energy from offshore wind – crucial to the process of making green hydrogen.

"And as we continue with our transition to net zero, green hydrogen will play an increasingly important role within industry as organisations further decarbonise their operations and support Scotland's transition to net zero."