Energy Hubs Phase 2 : Clean Fuel Transition Strategy

This document summarises the work carried out during Energy Hubs Phase 2 (NZTC, 2026) to develop a strategy for the near-term clean fuels transition. Its main focus is hydrogen as a feedstock for clean fuels, especially liquid drop-in fuels that can work with existing engines, turbines, fuel storage systems and fuel transport infrastructure.

This report draws on the work delivered during Scope 18, including spatial analysis, stakeholder engagement, case studies and policy assessment, to examine how clean fuels production could scale in Scotland and support wider UK energy goals. It also examines the barriers currently preventing these projects from progressing at pace, including power costs, planning complexity, market uncertainty and the absence of a clear mission led framework.

A central element of Energy Hubs Phase 2 was the construction of detailed mathematical models to optimise the economics of an e-fuels plant, delivered through Scope 17 Phases 1 and 2. The findings are crucial to demonstrating the economic feasibility of clean fuels production in Scotland and are also summarised in this report.