Aberdeen City Council is aiming to establish a “hydrogen valley” in the North East that integrates production, storage, and end-use applications.
The TH2ISTLE project could significantly contribute to the region's decarbonisation goals, aligning with Scotland's 2045 net-zero target.
Aberdeen is bidding for £7.7 million funding from the Clean Hydrogen Partnership under the Horizon Europe programme.
The city, long recognised as one of Europe's energy capitals, has been at the forefront of hydrogen innovation for over a decade.
Cllr Christian Allard, Co-leader of Aberdeen City Council, said: "The TH2ISTLE project represents a bold step towards a sustainable future for North East.
“By harnessing the power of hydrogen, Aberdeen is set to lead the way in energy transition, driving economic growth, job creation, and environmental sustainability.
“With our rich energy heritage, skilled workforce, and strong partnerships, Aberdeen is the perfect location to spearhead this transformative initiative."
Cllr Ian Yuill, Co-leader of Aberdeen City Council, said: "We have been at the forefront of hydrogen innovation for over a decade, and the TH2ISTLE project is a testament to our dedication to a greener future.
"The region's extensive experience in energy production and its strategic location near significant renewable resources, such as offshore wind, further enhance its suitability for this initiative."
By integrating five hydrogen production sites across the region, TH2ISTLE would ensure a steady supply of green hydrogen, reducing reliance on fossil fuels and enhancing energy security.
The project is expected to produce up to 627 tonnes of hydrogen per year by 2028, with the potential to scale up significantly. Total investment, including leveraged national and regional funding, could reach £62 million.
It could generate between 700 and 1,000 jobs during the initial deployment phase, with long-term projections of up to 13,000 jobs by 2030 through the development of new skills and training programmes – particularly targeting the region's existing oil and gas workforce, which has a wealth of transferable skills.
The TH2ISTLE project brings together a diverse consortium of 30 partners.