December 14, 2023 [H2 View]- Cromarty Hydrogen Project has been awarded a contract as part of the UK Government’s £2bn ($2.5bn) first hydrogen allocation round (HAR1).
One of the 11 projects to be awarded a contract, collectively totalling 125MW of hydrogen production capacity across the UK, Cromarty Hydrogen is being jointly developed by Storegga and ScottishPower.
The project’s first phase will produce almost 5,500kg of green hydrogen per day, using 100% renewable power and plans to reach over 100,000kg a day in future phases. The produced hydrogen will be delivered throughout the Cromarty Firth region of Scotland to distilleries and other industrial and transport sectors.
Specifically, the site will supply green hydrogen to the local whisky distilling sector, enabling them to switch from fossil fuels in line with its own ambitions and targets.
Sarah Potts, Storegga’s Hydrogen Managing Director, said, “We look forward to now being able to take the project forward to a final investment decision (FID) in 2024, with first production in 2026 and continuing to grow our hydrogen investments in the region.”
Being based in the Inverness and Cromarty Firth region, the regional hydrogen hub will employ around 170 individuals during construction and create around 30 new jobs in its first phase.
The project will support the hydrogen economy in the north of Scotland, aligning with the Scottish Government’s Hydrogen Action Plan, the broader national strategy encompassing the creation of 14 Regional Hydrogen Hubs and associated hydrogen use.
The selected projects under HAR1 will receive a share of £2bn in revenue support from the Hydrogen Production Business Model. The revenue support will start to be paid once the projects become operations – in this case 2026 – with over £90m ($113.7m) allocated to support their construction from the Net Zero Hydrogen Fund.
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