Green hydrogen projects aimed at industrial decarbonization increasingly face a nontechnical constraint that is proving decisive: local consent. That reality came into sharp focus in Speyside, where plans for a hydrogen production facility backed by £3.1 million in Scottish Government funding have been abandoned after sustained opposition and a planning refusal by Moray Council.
The project, proposed by developer Storegga, would have extracted up to 500,000 liters of water per day from the River Spey to produce green hydrogen intended primarily for nearby whisky distilleries. Despite government backing and claims that the investment would create up to 100 local jobs, the proposal failed to demonstrate sufficient environmental mitigation or local economic demand to satisfy planners.
Moray Council rejected the application in October after nearly four hours of deliberation, citing unresolved concerns around biodiversity impacts and the absence of clear community benefit. Storegga had the option to appeal the decision to the Scottish Government but has now confirmed it will not do so, effectively halting the project in its current form.
The scale of local opposition was material rather than symbolic. A total of 381 formal objections were lodged, significantly outweighing expressions of support. Residents raised concerns over water abstraction from one of Scotland’s most ecologically sensitive rivers, increased heavy vehicle traffic on rural roads, and uncertainty over whether local distilleries would actually use the hydrogen produced. Notably, Glenfarclas, one of the nearest distilleries to the proposed site, submitted its own objection, undermining the project’s stated offtake rationale.
Councillors were unconvinced by Storegga’s argument that the site, located near Marypark south of Aberlour, was ideally suited for hydrogen production. Forres Green councillor Draeyk van der Horn framed the decision around planning standards rather than opposition to hydrogen itself, stating that mitigation measures did not meet the threshold for biodiversity enhancement and that the land could not credibly be described as unused or underutilized.
The case highlights a broader challenge facing hydrogen deployment strategies that target niche industrial clusters. While distilleries are frequently cited as early hydrogen adopters due to their thermal energy needs and decarbonization pressure, the Speyside example illustrates the difficulty of translating theoretical demand into bankable local projects. Without firm offtake commitments and demonstrable local economic integration, hydrogen facilities risk being perceived as externally imposed infrastructure rather than community assets.
Government support alone proved insufficient. When the Scottish Government announced its £3.1 million grant in August 2024, it emphasized matched funding from Storegga and the project’s potential contribution to decarbonizing the whisky sector. However, planning authorities ultimately assessed the proposal on environmental and socioeconomic grounds, not alignment with national hydrogen targets.
Local campaign groups framed the outcome as a precedent for community influence over energy policy implementation. Friends of Speyside, which coordinated opposition efforts, argued that the decision protected both residents and the river ecosystem, reinforcing the message that small communities can shape infrastructure outcomes even within national decarbonization agendas.
Storegga has since indicated that the Speyside project may be transferred to new owners as part of broader portfolio management, leaving open the possibility of future redevelopment under a different structure. Any renewed proposal would likely face the same scrutiny unless it materially addresses water use, biodiversity impact, and verifiable local demand.
