Decarbonisation technology firm HGP (Scotland) Ltd has been awarded a £2 million research and development grant from Scottish Enterprise to accelerate the development of its integrated hydrogen and methanation technology. The funding forms part of a larger £4 million project aimed at manufacturing Scotland’s and the UK’s first integrated hydrogen and methanation system.

The grant will enable HGP to progress its work on creating scalable, carbon-neutral systems designed to reduce industrial emissions and contribute to Scotland's transition to clean energy. The project will involve the manufacture of a 1.5 MW modular, mobile, and containerised integrated system at MSIP in Dundee. This system will offer a carbon capture and utilisation solution, using captured waste carbon dioxide to produce e-fuels. These e-fuels can then be used by industrial customers or injected into the gas grid.

A second element of the project will see HGP utilise its existing methanation system to evaluate waste CO2 flue streams from various industrial sectors, including pharmaceutical, cement, anaerobic digestion, distilling, and waste incineration.

HGP’s power-to-gas technology enables industrial processes to convert waste CO2 into e-methane, facilitating the more efficient use of renewable energy sources and waste gases. This process reduces overall carbon footprints and generates renewable energy that can be stored within existing gas grid infrastructure.

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Geoff Carragher, CEO of HGP, stated: "This funding from Scottish Enterprise is a major boost to our R&D efforts and will enable us to fast-track our methanation technology to commercial readiness. We are excited about the potential of this technology to play a key role in Scotland’s ambitious net-zero targets. With this support, we aim to make a significant impact in reducing carbon emissions while contributing to the growth of the green economy in Scotland."

The R&D grant will also support the expansion of HGP’s research and testing capabilities, including the development of new prototypes and pilot projects in collaboration with industrial partners across Scotland. These projects aim to demonstrate the practicality of integrating methanation technology into existing energy infrastructure, facilitating a smoother transition to a low-carbon energy system.

Suzanne Sosna, Director of Energy Transition at Scottish Enterprise, commented: "We are proud to support pioneering companies like HGP who are seizing upon a once in a generation opportunity to transform our energy landscape. Scotland is well positioned to take an important role in green hydrogen production to accelerate the energy transition and maximise its economic benefits. We are aiming to accelerate technology innovation, supply chain capability and investment in manufacturing and key infrastructure and HGP is a prime example of the kind of company that encapsulates this ambition."

In line with the Scottish Government’s Net Zero by 2045 target, HGP is focusing on developing solutions that offer long-term sustainability and energy security. The company aims to establish a resilient, carbon-neutral gas supply that can mitigate the environmental impact of industries reliant on natural gas, while capitalising on Scotland’s growing renewable energy capacity.

John Reid GM Wilkie and MSIP Director added: "Recognising that green hydrogen and e-methane technology will be essential to the decarbonisation of industry and the achievement of net-zero, the process which is being developed by HGP will accelerate the spread and accessibility of the associated benefits. Having a company that specialises in green hydrogen technology located at the Innovation Parc is a significant asset, and a demonstration of our continued commitment to reducing climate harm."