Clean fuels hub in Shetland secures government funding

The Scottish government has announced investment of almost £760,000 in work to develop a clean fuels hub at the Sullom Voe Terminal in Shetland.

The hydrogen and e-methanol facility, which is being developed by Veri Energy, will aim to retain and retrain oil and gas workers.

The operator of Sullom Voe has announced about 30 job cuts because of reduced activity.

A Scottish government spokesperson said its investment of £755,720, in phase three of the project, would help to secure a "viable future" for skilled workers.

Clean fuels are energy sources that produce very low or zero harmful air pollution and greenhouse gas emissions compared with standard fossil fuels like regular petrol and diesel.

Veri Energy chief executive, Gavin Templeton, said the hub had the potential to transform the site into a centre for e-fuels.

He said the project would build on the "skills, experience and industrial heritage of the region".

The Scottish government said the facility could one day supply e-methanol to a proposed sustainable aviation fuel plant in Grangemouth.

Energy minister Stephen Gethins said green investment would bring economic opportunities.

"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," he said.

The clean fuels hub is expected to be up and running by 2030.