The funding will help cover the development stage costs of green hydrogen production projects with production capacity of between 5 – 400 megawatts - the equivalent to the production of enough hydrogen to heat at least 200 to over 16,000 homes.

Support will also be available for work supporting the hydrogen supply chain and storage solutions, and will play an important role in helping the industry scale up as it responds to market demand.

Organisations have until the end of the month to apply for a maximum of £2 million of match-funding from the scheme, which has been co-developed with Scottish Enterprise, which will facilitate and manage the fund. It complements a total of almost £7m from the Scottish Government’s Hydrogen Innovation Scheme, which has supported 31 projects across the country since 2023.

Acting minister for climate action Alasdair Allan said: “Our energy sector, and the development of green hydrogen in particular, will play a crucial role in growing Scotland’s economy and delivering on our net zero targets.

“This is due to our capability to generate so much renewable energy which is crucial to the process of making green hydrogen.

“This funding – which will help support the development of green hydrogen projects and hydrogen hubs across the country, will, in time, help unlock opportunities in hydrogen for use and export and to power the clean energy intensive industries of the future.

“It demonstrates that Scotland is well positioned to lead the way in developing renewable energy in a way that delivers economic benefits and it also shows our commitment to help grow the hydrogen sector, one of the five priority areas set out in our new Green Industrial Strategy.”

Scottish Enterprise director of energy transition, Suzanne Sosna, said: “This new fund will help new green hydrogen projects get off the ground, something that is critical if we are to build the hydrogen economy as we aim to in Scotland.

“Renewable energy, including green hydrogen, has the potential to transform Scotland’s economy and Scottish Enterprise is fully committed to helping hydrogen production, storage and offtake businesses as part of that.”

Organisations have until 27th September to submit expressions of interest in the fund. More information about the funding and how to apply