Scotland unveils blueprint for £2.7 billion hydrogen export pipeline

According to a report published today (31 August 2023) by the Net Zero Technology Centre (NZTC), Scotland's hydrogen production and export potential could be significantly accelerated with the development of dedicated Marine pipelines. 

Research shows that investing in a purpose-built offshore pipeline, known as the Hydrogen Mainline (HBL), to transport hydrogen from Scotland to Europe is key to Scotland meeting its ambitious green export targets by 2045. The hydrogen link could create 700 new jobs initially and 300,000 green economy jobs by 2045. By the mid-2030s, Scotland could meet 10% of Europe's projected hydrogen import needs.

NZTC's Hydrogen Backbone Connectivity project explores the critical hydrogen transport infrastructure needed to deliver cost-effective pipeline solutions that will position Scotland as a frontrunner in the development of pan-European hydrogen export infrastructure.

The project, which received funding from the Scottish Government's Energy Transition Fund (ETF) and matching funding from industry, looked at the re-use of existing oil and gas infrastructure before determining that a new dedicated offshore pipeline connecting Europe is the best route for green hydrogen to reach the market in Scotland.

The new pipeline will enable Scotland to meet 10 per cent of Europe's projected hydrogen import needs by the mid-2030s. With continued investment in additional infrastructure, Scotland can maintain this proportion of exports beyond 2045, helping the Scottish government meet its green export targets and promoting the decarbonisation of industry on the continent.

The completion of the Hydrogen Link will create more than 700 jobs in Scotland and boost new and existing green hydrogen projects, supporting a further 300,000 jobs in the green economy.

To achieve this and gain a foothold in the growing market, the report makes the following key recommendations:

(a) Accelerate public and private investment to provide backbone pipelines;

2) Continue to invest in hydrogen and wind deployment to provide security of supply;

3. Formulate a national energy storage strategy;

4. Cross-border policy and standard adjustment;

5. Provide financial support to accelerate technology development and infrastructure deployment to make the vision a reality.

Callum Milne, hydrogen backbone project manager at the Net Zero Technology Centre, said: "Scotland is poised to take advantage of its vast natural resources, skilled workforce and proximity to hungry energy markets in North-West Europe, but to maximise this advantage will require accelerated and increased government and industry investment, rapid infrastructure development and cross-border collaboration."

"The Hydrogen Mainline (HBL) project is a key early enabler of this goal, providing cost-effective transport to market for Scottish hydrogen producers and supporting the transition to a low carbon energy system."

Scottish Energy Secretary Neil Gray said: "The Scottish Government recognises the importance of developing a hydrogen pipeline to unlock Scotland's export potential. We want to work with partners across Europe to advance the infrastructure, ensure security of supply in Europe and position the North Sea as a low-cost hydrogen production hub."

"The Scottish Government supports the Hydrogen backbone Link project as it provides valuable insight into the feasibility of repurposing or developing new pipelines. This can help us understand the areas where government support is needed to unlock investment and realise Scotland's export potential."

The project is supported by partners including Shetland Island Council, EnQuest, Kellas Midstream, Crown Estate Scotland and Shell, as well as Xodus, DNV-GL, Wood and others. Wood Mackenzie and Worley, along with National Grid Scotland and SGN, became strategic partners.

The second phase of the project will look at the next steps required for the construction and start-up of the hydrogen trunk.