A £1.5 million fund to develop new technology for the energy industry was opened today.

Companies are now invited to bid for a share of the Renewable Hydrogen and Fuel Cell Support Scheme which will support developing projects in Scotland.

Hydrogen and fuel cells are seen as a vital part of the future of the renewables industry with reports estimating the sector has the potential to net £500 million for the Scottish economy and sustain 10,000 jobs.

Deputy First Minister Nicol Stephen said:

"Earlier this year I launched a £20 million strategy to develop clean, green energy in Scotland.

"Included within that package was significant investment to strengthen the role that hydrogen fuel cells could play in the future of renewable energy in this country.

"From today, I am pleased to invite Scottish companies to come forward and bid for a share of the fund.

"I am committed to making Scotland the European powerhouse of clean, green energy, but our investment in this new technology is not simply about a sustainable energy supply.

"In October the Hydrogen Energy Group (HEG), highlighted the importance that hydrogen and fuel cells could have in creating jobs and generating considerable growth for the economy.

"I want to see home-grown companies seize the opportunity created by this new fund to deliver a cleaner, more sustainable future for Scotland."

Some helpful explanations of the technology:

A fuel cell is an electrochemical energy conversion device similar to a battery. However, it differs in that it is designed for continuous replenishment of the reactants consumed i.e. it produces electricity from an external supply of fuel and oxygen as opposed to the limited internal energy storage capacity of a battery.

Hydrogen is not an energy source in its own right but an energy carrier like electricity. It can be produced from a variety of resources like natural gas, methanol, or biomass. When produced from renewable energy, like wind, hydrogen has the advantage of being completely emissions free.

Hydrogen can be used in three principal ways

• standard combustion engines
• gas turbines
• fuel cells

Of these methods, fuel cells are the most attractive for renewable energy applications due to the high efficiency as well as the avoidance of pollutants.

To find out more about hydrogen fuel cell projects, their applications and a project evaluation tool, please click here.