Scotland could become one of the world’s leading producers of green hydrogen, but only if the UK Government accelerates its support for the sector, according to a new report published by Scottish Renewables.

The industry body’s report, “Green Hydrogen Vision 2025”, outlines a set of priority actions that the UK Government and the National Energy System Operator (NESO) must adopt to secure Scotland’s leadership in the emerging hydrogen economy.

Green hydrogen—produced through electrolysis powered entirely by renewable energy—offers significant system-wide benefits, from strengthening energy resilience to supporting the UK’s long-term decarbonisation targets. With its abundant wind and renewable resources, Scotland is considered one of the best-placed regions in Europe to scale production.

Key Recommendations

The report calls for far closer coordination between the UK Government, the Scottish Government, NESO and Ofgem. It outlines several urgent measures:

• Grow demand for green hydrogen in hard-to-decarbonise sectors including heavy industry, maritime operations and long-duration storage.

• Create clear incentives for producers to develop projects in regions with high renewable energy generation—such as Scotland—to ease pressure on the electricity grid and maximise available capacity.

• Prioritise hydrogen-only infrastructure, including dedicated pipeline networks that connect production sites to industrial and commercial demand hubs.

• Ensure strong offtake frameworks, providing producers with the commercial certainty needed to invest in large-scale green hydrogen projects.

• Support both small and large projects, from distillery-scale, co-located hydrogen systems to major industrial offtakers capable of providing flexible, high-volume demand.

Scottish Renewables notes that a mature green hydrogen sector could deliver £25 billion annually to the UK economy and support more than 300,000 jobs by 2045.

Industry Reaction

Maggie Olson-Jow, Policy Manager for Offshore and New Technologies at Scottish Renewables, stressed the urgency of coordinated action:

“Scottish Renewables has worked closely with its members and stakeholders to set out the key recommendations and policy actions needed for Scotland to establish a thriving green hydrogen sector. For Scotland and the UK to become global leaders in this technology, both governments must establish and grow demand for green hydrogen in sectors that have traditionally been difficult to decarboniseThe UK Government must also develop clear incentives for producers to build and operate projects in regions rich in renewable resources, such as Scotland, ensuring maximum benefit to the UK energy system. Both governments have outlined their ambitions to lead the world in green hydrogen development. They must now collaborate closely with NESO to set out a clear pathway for delivering green hydrogen at scale in Scotland.”

The publication of “Green Hydrogen Vision 2025” comes at a pivotal moment for the UK’s hydrogen strategy, with industry leaders warning that decisive policy intervention is essential to turn ambition into reality.