Green Hydrogen Projects Suspended by ScottishPower Shake UK Market

The UK’s clean-energy scene got a real jolt on 2 September 2025 when ScottishPower dropped the bombshell that it was waving goodbye to its flagship green hydrogen projects at Whitelee and Cromarty. These ventures had snagged hydrogen subsidies in the first Hydrogen Allocation Round (HAR1), yet never firmed up an investment decision or drew down any public funds. It’s a stark reminder of how policy ambition and raw market forces don’t always see eye to eye.

Why has ScottishPower pulled the plug?

Spokespeople for ScottishPower pointed to three main hurdles:

• High production costs: Even with the hydrogen subsidies secured at around £241/MWh, electrolytic hydrogen still costs more than fossil-derived gas.
• Weak demand signals: Promised offtake agreements and big industrial buyers never materialised at scale.
• Policy unpredictability: Slowroll on support measures has left investors feeling uneasy.

“We threw everything we had at these green hydrogen projects, but the economics just don’t add up right now,” says a ScottishPower spokesperson. Across Europe, more than one in five announced renewable hydrogen schemes in 2024 have hit the brakes or been cancelled.

The Tech Behind Renewable Hydrogen

At both Whitelee and Cromarty, onshore wind farms were set to power alkaline electrolysers, splitting water into hydrogen and oxygen—zero direct emissions in action. The plan was to funnel that low-carbon fuel into:

• Local whisky distilleries aiming to shrink their carbon footprints
• Industrial heating and heavy transport around Glasgow

Who’s at the Table?

• ScottishPower (an Iberdrola arm): project developer
• UK Department for Energy Security and Net Zero: HAR1 gatekeeper
• Storegga: Cromarty partner (still staying mum)
• HyMarnham Power: fellow HAR1 awardee already cranking out green hydrogen
• Iberdrola: parent company, talking up headwinds in the UK hydrogen market

Potential Upsides Left on Hold

• Slashing CO₂ in key sectors, from distilleries to logistics
• Creating new jobs in construction, operations and maintenance
• Fortifying supply chains for electrolysers and related services

What’s Next for Hydrogen in the UK?

Even with ScottishPower bowing out, most HAR1 winners are still full steam ahead—and HyMarnham Power kicked off its production line in July 2025. But everyone’s watching closely. “This pause underscores the need for robust and predictable frameworks to support green hydrogen projects at scale,” says an Iberdrola spokesperson.

The bottom line? Big ideas need rock-solid policy backing and real market pull. Without them, more renewable hydrogen schemes might stall before they even spark to life. If the UK is serious about hitting net-zero by 2050, closing that gap will be mission-critical.