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Home Home - Projects
hydrogen

Delays Plague £45M Hydrogen Project

Arnes BiogradlijaBy Arnes Biogradlija16/09/20242 Mins Read
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Energy firm HY2GO promised to build a £45 million “green hydrogen” production plant in Scotland four years ago. This project was supposed to create hundreds of jobs and place Scotland at the forefront of renewable technology before the COP26 conference.

Background and Concerns

The proposed project involved constructing a large solar and wind farm around a hydrogen electrolyzer to produce fuel cells for eco-friendly buses. These buses were intended to transport delegates at the climate conference.

Site Visit Findings

A recent visit to the proposed development site near Lesmahagow in Lanarkshire showed no progress. Despite having over £10 million in shareholder funds, HY2GO employs only two people. Hydrogen projects are costly compared to electrification and may never be economically viable without government funding.

Government and Funding

The Scottish Government was aware of the project’s initial proposals but has not confirmed any public funding. Simon Coakley, HY2GO’s managing director, acknowledged delays but intends to proceed with construction next year. Much of the project’s money is borrowed against land bought for £300,000.

Involved Figures

HY2GO’s chairman is Benny Higgins, who helped establish the Scottish Government’s green investment bank. Millionaire Jo Bamford, son of JCB founder Lord Bamford, agreed to a significant fuel purchase once production began for hydrogen-powered buses built by his firm.

In 2020, Bamford called the plans an “inspirational prospect” and believed Scottish-made hydrogen could demonstrate Scotland’s potential as a leader in hydrogen production due to its abundant wind and water resources.

 

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