
Case Study
Consultation Towards a Future Grangemouth Hydrogen Hub
A strategic consultation engaging industry stakeholders to assess opportunities, challenges, and pathways for developing Grangemouth into a leading Scottish hydrogen hub.
PROJECT BACKGROUND
The Grangemouth Hydrogen Hub concept will help contribute to Scotland’s ambitious targets for reducing carbon emissions. Grangemouth, with its significant industrial activity, economic impact and associated emissions, is at the heart of Scotland’s Just Transition to net zero. The goal is to transform its industrial sector which includes major chemicals, fuels, and logistics companies into a comprehensive hydrogen hub, thereby supporting Scotland’s shift towards a greener economy.
We were tasked with engaging the local industry and other Scottish hydrogen ecosystem stakeholders to understand current and upcoming activities linked to the development of the Grangemouth hydrogen hub.
AIMS & OBJECTIVES



OUR APPROACH
Based on our deep understanding of the hydrogen ecosystem, we analysed Grangemouth’s existing capabilities and infrastructure, building on the baseline from the 2021 Wood Report and updating this information to reflect the latest hydrogen activities and policies in the region and nationally.
We compared Grangemouth with international hydrogen hubs to identify the cluster’s strengths and future support requirements. Then, through targeted stakeholder discussions, we identified potential synergies among current and planned hydrogen initiatives.
The study culminated in the development of a cohesive set of strategic recommendations to encourage the development of the Grangemouth Hydrogen Hub.
DELIVERY TEAM
OUTPUTS AND IMPACTS
The Grangemouth industrial cluster is expected to lead in hydrogen production through steam methane/biomethane reforming. Currently, publicly known projects predominantly address self-supply, highlighting a gap in interaction between producers and end-users, unlike other Scottish hubs that typically seek to serve non-producing offtakers. In addition, steam (bio)methane reformed hydrogen production faces infrastructure challenges, notably in carbon dioxide capture and storage, with the Acorn CCUS project being crucial yet uncertain in its funding and development timeline. Industry uncertainty and the need for clearer hydrogen usage hierarchies are barriers to development and there is a need for decisive leadership to deliver clarity and plot a robust way forward.
Grangemouth’s potential as a hydrogen hub is limited by its current composition. For success, it requires more end-user support to achieve fuel-switching and integration with Scotland’s wider hydrogen ecosystem. Electrolytic hydrogen production potential faces viability issues due to geographical and infrastructure constraints. There is an opportunity for Grangemouth to venture into e-fuel and sustainable aviation fuel production, especially if medium-term power demands are met.
Overall, it is concluded that there is a need to attract innovative business models and partnerships in the region that will help to capitalise on the existing infrastructure and unlock Grangemouth’s potential as a leading hydrogen hub.
"It was a pleasure to work with Optimat on the Grangemouth Hydrogen hub project. Optimat's deep industry understanding, and local knowledge helped to produce a clear synthesis of insights and identify opportunities and challenges for hydrogen in the Grangemouth cluster."