Energy Minister Stephen Gethins announced on July 28, 2026, that the Scottish government is investing nearly £760,000 ($1 million) into the development of a clean fuels hub at Shetland's Sullom Voe Terminal.
The funding supports the third development phase of the project, led by Veri Energy, a subsidiary of EnQuest.
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The initial two phases received £2.2 million ($2.9 million) from Veri Energy and the Net Zero Technology Centre.
Project Details and Timeline
Targeted to become operational by 2030, the 50MW facility plans to manufacture green hydrogen and e-methanol.
The infrastructure aims to retain and retrain oil and gas personnel as activity at the terminal slows, following approximately 30 recent job cuts reported by the operator.
The produced e-methanol could eventually supply a proposed sustainable aviation fuel plant at Grangemouth on the Scottish mainland.
The site utilizes multi-gigawatt wind energy potential and existing gas pipeline networks, alongside planned subsea carbon capture and storage in the nearby Magnus and Thistle offshore fields.
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Government and Industry Support
Gethins underscored the importance of supporting the local workforce while expanding low-carbon energy infrastructure. "Sullom Voe Terminal is a crucial part of Scotland’s industrial landscape.
It has been at the heart of Shetland’s economy for many years, providing vital jobs and supporting local businesses," he said.
"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," Gethins added.
Veri Energy chief executive Gavin Templeton said the hub had the potential to transform the site into a centre for e-fuels.
"This support from the Scottish Government is a strong endorsement of the strategic opportunity at Sullom Voe," Templeton stated.
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The project previously received over £1.7 million from the UK Government to study green hydrogen production at the Shetland terminal.
