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Grangemouth Hydrogen Hub

Summary

Aims

This report provides a baseline study towards a future Grangemouth Hydrogen Hub.

Methods

The methodology consisted of structured interviews with relevant stakeholders.

Findings

Grangemouth is at the core of evolving infrastructure and has a hydrogen future. In Grangemouth hydrogen production and use is largely self-sufficient at present, however evolving process and fuel producers in the area will increase demand and availability. Land available for hydrogen production can support industrial decarbonisation and offer demand for offshore power generation. The cluster logistics chain will provide increasing hydrogen demand (hauliers, rail, port). The evolution of the national gas network will provide infrastructure for transport of large hydrogen volumes and carbon capture. However, there are challenges facing hydrogen development. There is no clear statement of fuelling infrastructure requirements for bus, rail, HGV or shipping. Market ready transport options are limited to buses, there is no price premium to drive hydrogen uptake in transport. The transformation of haulage market is difficult without targeted capital funding and revision of fuel duty. Increasing hydrogen production before distribution infrastructure is in place risks stranded capital. There is a need to target investment effectively to avoid competitive disadvantage.

Recommendations

The study recommends maintaining infrastructure development, engaging the cluster logistics chain, building a public transport market for hydrogen, supporting evolving transport fuel production and continuing the fiscal review of fuels. The study also details several next steps spanning infrastructure, supply, demand and policy.

Record metadata
Documents
Report (3 MB, pdf)
ConsultantWood
Published year2021
Pages87
Document TypeResearch
Theme/SectorEnergy, Innovation, Investment, Sectors