Aberdeen bids to become UK’s next hydrogen valley with £62million TH2ISTLE project

Aberdeen has thrown its hat in the ring to become the UK’s next hydrogen valley, with a £62 million project designed to connect green hydrogen production, storage, and end-use across the North East of Scotland.
The city council has submitted a £7.7 million funding application to the Clean Hydrogen Partnership under Horizon Europe, backing a new initiative called TH2ISTLE.
If successful, the programme could produce up to 627 tonnes of hydrogen annually by 2028 and serve as a launchpad for a large-scale hydrogen economy in the region.
Aberdeen hydrogen valley
Spread across five hydrogen production sites, the valley would integrate every stage of the hydrogen value chain and make use of Aberdeen’s strategic location near renewable energy sources like offshore wind.
The council says total investment could reach £62 million, with plans already in place to scale output beyond 2028.
More than 30 partners are backing the bid, including public, private, and academic institutions.
“By harnessing the power of hydrogen, Aberdeen is set to lead the way in energy transition, driving economic growth, job creation, and environmental sustainability”, said Cllr Christian Allard, Co-Leader of Aberdeen City Council.
The initiative is projected to create 700 to 1,000 jobs during initial deployment, with long-term forecasts of up to 13,000 jobs by 2030, many of them aimed at reskilling oil and gas workers into new low-carbon roles.
Part of Scotland’s energy transition
Aberdeen has long been recognised as a European energy capital, and the council is keen to position the city at the forefront of the hydrogen transition.
Over the past decade, it has built a reputation for piloting hydrogen buses, vehicles, and refuelling infrastructure.
“The region’s extensive experience in energy production and its strategic location near significant renewable resources further enhance its suitability for this initiative”, added Cllr Ian Yuill, Co-leader of the Council.
The TH2ISTLE bid forms part of the wider effort to meet Scotland’s legally binding net-zero target for 2045, with hydrogen seen as a crucial component in decarbonising transport, industry, and heat in the decades ahead.


