Scottish government provides funding for Phase 3 of Shetland clean-fuels hub
- The Scottish Government
- Jul 30
- 2 min read
The development of a clean-fuels hub on the Shetland Islands will get financial backing from the Scottish government, Energy Minister Stephen Gethins announced July 28 ahead of a visit to Sullom Voe Terminal.
Veri Energy will receive almost £760,000 (USD$1.01 million) to support the third phase of work to develop the hub.
When it comes into operation by 2030, it is expected to produce hydrogen and eMethanol, with manufacturing capacity scaling up into the following decade.
Work to establish the hub will retain and retrain skilled oil-and-gas workers, support local businesses and contribute to the development of clean-fuels manufacturing expertise in Scotland.
It will also pave the way towards supplying eMethanol to a proposed sustainable aviation fuel (SAF) plant on the site of the former refinery at Grangemouth.
“Sullom Voe Terminal is a crucial part of Scotland’s industrial landscape,” Gethins said. “It has been at the heart of Shetland’s economy for many years, providing vital jobs and supporting local businesses, and I welcome the opportunity to tour such a significant site.”
Gethins said the site has faced challenges recently because of reduced activity.
“So it is absolutely correct that we help where we can in order to secure a viable future for its valued workers,” he said. “That is why the Scottish government is contributing almost £760,000 to support Veri Energy as it continues to develop its ambitious plans for a clean-fuels hub. We need an approach to our energy future that sees us manage oil-and-gas activity while seizing the opportunities that come from increasing the deployment of new technologies and fuel sources. Our renewables revolution has been two decades in the making, and the economic opportunities from what comes next could be transformational.”
He said that transformation needs to benefit communities across Scotland, delivering jobs, energy security and growth.
“Shetland and our island communities have a vital role to play in this process,” Gethins added. “Shetland has been a vital part of Europe’s security for decades and will continue to be for decades to come.”
Veri Energy CEO Gavin Templeton said, “This support from the Scottish government is a strong endorsement of the strategic opportunity at Sullom Voe. Our clean-fuels hub has the potential to transform nationally significant existing energy infrastructure into a platform for the production of eFuel at scale, creating long-term economic value for Shetland and contributing to Scotland’s net-zero ambitions. The project will build on the skills, experience and industrial heritage of the region while helping establish a new center of expertise in clean-fuels manufacturing. We continue to engage and work with the SVT owners and are excited to take this next step and to work with stakeholders across Scotland to realize the full potential of the opportunity.”
The Scottish government will provide nearly £760,000 to support Phase 3 of Veri Energy’s work to establish a clean-fuels hub at Sullom Voe Terminal.
The company and other partners will provide additional support.
Phases 1 and 2 were funded by Veri Energy and the Net Zero Technology Centre at a total cost of £2.2 million (USD$2.92 million).
