The Highland Council has granted planning permission for the Cromarty Green Hydrogen Production Facility, a 15-megawatt electrolysis plant in Alness near Inverness that holds the distinction of being the only hydrogen project in Scotland awarded a contract for difference subsidy under the UK Government's Hydrogen Allocation Round 1.

A Landmark Approval for Highland Energy

The permission announced covers the first stage of what Protium, the project's developer, is calling the Highland Hydrogen Hub. Protium describes itself as one of the UK's leading green hydrogen companies and acquired the Cromarty project in May 2026.

Following that acquisition, the company tailored the hydrogen offtake strategy to maximise energy efficiency while reducing local traffic, noise, and visual impact on the surrounding landscape.

The facility will produce green hydrogen through electrolysis powered by local renewable energy sources, primarily drawing on the region's wind resources. By generating and consuming the hydrogen within the Highlands, Protium says all economic and environmental benefits are intended to remain within the region rather than being exported elsewhere.

Kim McCann, Chief Commercial Officer at Protium, framed the planning decision as validation of the company's regional approach. "We view ourselves as long-term partners in the Highland economy," McCann said.

"This planning approval is a huge vote of confidence in our approach: producing Highland green energy for Highland use. By turning the region's natural wind wealth into a local asset, Cromarty will build energy independence, reduce reliance on global fuel markets, and catalyse long-term economic growth."

The Contract for Difference Distinction

The Hydrogen Allocation Round 1 contract for difference, awarded by the UK Government, provides significant financial support from Westminster that Protium says will directly lower energy costs for the locally produced fuel.

The company states that Cromarty is the only hydrogen project in Scotland to have secured this form of subsidy, positioning it as a nationally significant piece of renewable energy infrastructure within Scotland's broader decarbonisation landscape.

The project is intended to support The Highland Council's own net-zero target, which aims to achieve net-zero greenhouse gas emissions by 2045. Protium characterises the development as part of a just transition, ensuring the shift away from fossil fuels delivers tangible benefits to the communities most directly affected by industrial change.

Jobs, Procurement, and Economic Impact

Protium has committed to anchoring approximately thirty permanent green-collar jobs and apprenticeships in Cromarty, alongside local contracting roles during the construction phase.

The company says access to affordable green hydrogen is expected to act as a catalyst for wider regional industry growth, generating secondary job creation beyond those directly tied to the facility itself.

On the supply chain side, Protium has pledged direct investment into regional contractors, logistics providers, and training hubs. The company's stated procurement strategy prioritises partnerships with regional businesses across the entire project lifecycle rather than drawing exclusively on national or international supply chains.

Community Benefits Scheme

Alongside the planning announcement, Protium detailed a Community Benefits Scheme built around four pillars developed through engagement with regional stakeholders.

The first pillar covers employment and fair work, with a focus on local recruitment, upskilling, and apprenticeships designed to retain young talent within their home communities.

The second pillar addresses local procurement, committing the company to work with regional businesses throughout the project's development and operational phases.

The third pillar involves community funding, with financial contributions directed toward what Protium describes as the real socio-economic and environmental needs of the region, determined in consultation with local stakeholders.

The fourth pillar covers educational outreach, including STEM workshops, site visits, and green skills development programmes aimed at local schools, colleges, and universities.

Decarbonisation Targets and Applications

The facility is designed to decarbonise off-grid generators, heavy transport, and regional industry across the Highlands and Aberdeenshire. Protium states that the green hydrogen produced at Cromarty will cut harmful emissions and reduce operational noise compared to the diesel-powered alternatives currently used in many of those applications.

Protium's broader business model spans the full hydrogen value chain, including production, distribution, and on-site deployment, supported by technical services and commercial development guidance.

The company describes its approach as delivering practical hydrogen solutions that are operational today rather than dependent on future technological development.

Wider Scottish Strategy

Protium positions Cromarty as the primary and active focus of its long-term strategy in Scotland. The company states the project is intended to establish a community-first model that will inform potential future developments across the Highlands, with specific locations mentioned, including Speyside and Islay as possible future hub sites.

Construction timelines and further community engagement updates for the Cromarty Green Hydrogen Production Facility have not yet been announced, with Protium stating these will be confirmed in due course.

Tracking United Kingdom's Hydrogen Infrastructure Pipeline Has Never Been More Critical

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