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Alternative Low Carbon Fuels: National Targets and Key Current (and Expected) Policies

Published September 2023

National Targets

  • By 2030, at least 22% of non-electrical heat in buildings to be supplied by renewable sources (such as biomass or heat pumps) up from the current estimated level of 4% (Heat in Buildings Strategy).
  • By 2030, a production capacity of 5 GW of renewable low carbon hydrogen, and 25 GW by 2045 (Hydrogen Action Plan). (Note it has not been specified what proportion of this, if any, is intended to be used for heating purposes!)

Key Legislation and Policies

  • The Bioenergy Update (March 2021) set out the Scottish government’s programme of work to appraise the potential of Scotland’s bioenergy sector. It established an internal Bioenergy Working Group and set up an Expert Panel.
  • Hydrogen Policy Statement (2020) and Hydrogen Action Plan (2022) details the government’s approach to the development of the hydrogen economy in Scotland and the various applications of hydrogen in our energy system.
  • The Heat in Buildings Strategy discusses the Scottish government’s current position on the role of bioenergy and hydrogen for heating.
  • The draft Energy Strategy and Just Transition Plan (published Jan 2023) sets ambitions and actions over the course of this decade relevant to bioenergy and hydrogen (chapters 3.1 and 4.1)

Looking Ahead

  • The Scottish Government does not have all the powers necessary to deliver the transformational change required in our buildings as policy related to the regulation of the gas and electricity grids are reserved for the UK Government and the Office of Gas and Electricity Markets (Ofgem). The UK government’s strategic decision on the role of hydrogen in decarbonising heat is intended to be made in 2026.
  • The Bioenergy Action Plan is expected in 2023 to provide a strategic framework for the most appropriate use of finite bio-resources.