5. To ask the Scottish Government what discussions the net zero secretary has had with ministerial colleagues regarding how the £7 million of grants allocated through the hydrogen innovation scheme will support Scotland’s low-carbon economy. (S6O-02280)

I regularly engage with ministerial colleagues on maximising the economic opportunities presented by the global transition to net zero, including our drive to reach 5GW of installed hydrogen production capacity by 2030.

We have backed up that ambition by providing grants totalling over £7 million, which have been offered to 32 Scottish projects through the hydrogen innovation scheme. Those will advance innovative solutions to scaling up hydrogen production, storage and distribution.

As I highlighted to industry stakeholders at a meeting of the Aberdeen and Grampian Chamber of Commerce earlier this week, that funding—together with our just transition fund and the energy transition fund—demonstrates our commitment to supporting Scotland towards achieving a fair, prosperous and speedy transition.

H100 Fife is a first-of-its-kind demonstration project that is leading the way on decarbonising home heating. It will provide evidence for future low-carbon policy decisions and a clear pathway towards net zero heating for Scotland. Does the cabinet secretary agree that hydrogen power offers a promising opportunity as we look to transition from fossil fuels and decarbonising home heating?

I agree with David Torrance’s point. We know that hydrogen power will form a key part of our journey to net zero. Complementing electricity, it will play a role in industrial decarbonisation, transport and heating homes and other buildings.

The SGN H100 Fife neighbourhood trial will feed into that work, as will other large village and town trials in the United Kingdom. The H100 Fife project is currently under construction, and it aims to fit 100 per cent hydrogen boilers in 300 homes in Leven. I understand that the project is scheduled to go live in 2024 and will operate until March 2027. The Scottish Government has gladly provided £6.9 million-worth of grant funding to the project.

I know that the cabinet secretary agrees with me that we have a fantastic opportunity to be world leading in the green hydrogen economy, but we are behind the curve: behind Germany, Holland, Belgium, the middle east and the USA.

What will the Scottish Government do to address the red tape that business has reported to me in respect of accessing the pump-primed funding for early-stage hydrogen companies that the cabinet secretary mentioned to ensure that, in turn, we release further money from private investment to fully realise our hydrogen potential?

The Deputy Presiding Officer:

Before I ask the cabinet secretary to respond, I remind all members that they are required to be here for the start of proceedings should they wish to contribute to those proceedings. If they wish to contribute, therefore, they should apologise before they make their contribution.

We absolutely recognise Scotland’s potential in hydrogen and we are committed to doing everything that we possibly can to maximise its realisation. That includes our “Hydrogen Action Plan”, but we are not just planning—the plan is supported by £100 million of capital funding, which is designed to accelerate and maximise the production of renewable hydrogen in Scotland for use in Scotland.

In addition, analysis suggests that there is also a very large hydrogen export opportunity for Scotland, with some estimates stating that there could be between 70,000 and more than 300,000 jobs protected or created, and that the impact of those export scenarios on gross value added could range from £5 billion to £25 billion per annum by 2045.

The Scottish Government is doing everything that we can to realise those opportunities. We very much need the UK Government to do its part and to act with the speed that we are demonstrating in order to realise that potential fully.

The Deputy Presiding Officer:

Question 6 has been withdrawn.