A year for hydrogen to flourish: reflections from the Hydrogen Innovation Programme (HIP) event

09 March 2026 | 3 minute read

The Scottish Government’s hydrogen action planopens in a new window shows the crucial role hydrogen will play to accelerate both economic growth and progress towards net zero. We were delighted to collaborate with the Energy Technology Partnership to host the Making Hydrogen Count event. It brought together those who are jointly responsible for realising Scotland’s hydrogen ambitions.

Investigating focus areas

Scotland is set for major hydrogen growth and will play a key role in delivering the updated UK Hydrogen Strategy. Scotland has the key foundations required to become a global leader in hydrogen products and services. These include strong net zero commitments, a vibrant innovation community, research capabilities, and world-class renewable resources. 

However, Scotland must back ambition with economics. Hydrogen must be cost competitive, and innovation is essential for cutting costs, removing barriers, and making projects commercially viable.

This event explored how Scotland can leverage its renewable energy advantage. The topics discussed include attracting investment, creating robust markets, and developing the necessary infrastructure. Through these key aims, Scotland can develop strategic and commercially viable projects and demonstrations.

Convening key hydrogen stakeholders for a day of interactive discussion and debate, the event offered a mix of plenary talks and specialised panel discussions. They provided a space to discuss both the challenges and opportunities for the sector across the whole supply chain. The sessions covered:

• A hydrogen sector update from Scottish Enterprise
• Investor guidance and top tips
• Transport and storage innovation and regulations
• Hydrogen products and off takers
• Supply chain innovation challenges and support

Panellists included Scottish hydrogen leaders, innovators and experts, including member universities which are part of the Scottish Partnership in Energy and Engineering Research & Innovation (SPEERI)opens in a new window.  

The sessions provided a platform to explore the key stakeholders, technologies and conditions needed to develop a thriving hydrogen economy.

Investor guidance and top tips

One of the plenary sessions focused on how to attract investment into the sector, and what investors look for when deciding on their next investment. The session looked at what makes a hydrogen project or innovator an attractive investment opportunity, and barriers that may prevent investment.

The Panel included investment specialists from Longspur Capitalopens in a new window, the Royce Hydrogen Accelerator (RHA)opens in a new window and SHINe.

Investors working in the hydrogen sector provided their insights for hydrogen related businesses and projects looking to raise finance. One insight shared by investors was that an investable proposition must promise a clear return potential, evidence of demand for the project/initiative, realistic modelling, and a unique selling point. 

While many hydrogen projects have a significant amount of interest from potential off takers, some lack binding agreements. This can be a concern for investors. 

Investors are cautious about propositions with optimistic performance estimates and those lacking full value-chain engagement. Capital flow depends on strong alignment across policy, demand, and project economics. 

Investors often also see wind or battery storage projects as lower risk than hydrogen projects. To counter these risks, the panellists suggested that projects should de-risk through strong delivery partners, contracts with off takers, and demonstrable team experience.

Transport and storage

The transport session highlighted that the wider hydrogen industry has yet to decide on the best way to transport hydrogen. The session revealed that the industry is considering several potential approaches. Key to this is the risk of energy loss when transporting hydrogen.

Hydrogen storage is important, but not all attendees were convinced that this is an immediate issue. The session revealed that some innovators are designing projects that do not need significant storage capacity. This approach shows that the safe and efficient transportation of hydrogen is more important than storage capacity in the short term. 

Hydrogen products and off takers

Attendees in this session saw binding offtake agreements as crucial for securing investment for hydrogen projects. They also saw how uncertainty in this area can hamper projects and make it difficult to raise funding. 

There are positive signs. Attendees suggested that 95 green hydrogen projects in Scotland are at concept or feasibility stages, and many of these have secured off takers. These projects include hydrogen applications for food and drink processing, road transport, glass and paper manufacturing sectors. 

These projects largely remain reliant on market conditions. However, panellists highlighted that longer-term hydrogen projects and pipelines can provide the confidence that new customers require.

Supply chain innovation

The third session provided unique insights on both the benefits of Scotland for the hydrogen supply chain, and the challenges it faces. Scotland offers unique transferable skills and infrastructure from the oil and gas sectors. However, the supply chain feels that if hydrogen project development isn’t accelerated soon, the industry may lose these capabilities.

The session also revealed that smaller innovators and early-stage firms require clearer routes into existing supply chains. Standardisation and collaborative communications could help to support these routes. Initiatives like SHINe can help to facilitate this, guiding innovators and investors towards Scotland’s existing hydrogen value chain.

Conclusion 

The event helped us to gain a better understanding of the priorities, support needs, and focus areas required to accelerate innovation in the Scottish hydrogen sector.

As the sector continues to evolve, we encourage hydrogen stakeholders and innovators to reach out to the SHINe team to explore new opportunities emerging across Scotland. If you’re looking to explore the opportunities available across Scotland, contact the SHINe team.