Working with SGN Commercial Services phase one has seen the successful deconstruction of the city's former gas holder, paving the way to convert the site into a future green hydrogen storage and distribution facility.
Due to Inverness's location, hydrogen presents a valuable and cost-effective route for widespread decarbonisation of the wider Highland region.
Welcoming the announcement, Council Leader, Councillor Raymond Bremner, said: "I am delighted to see the progress being made by H2 Green and SGN on the new hydrogen hub for Inverness.
"Their continued commitment to this project highlights how strategically important Highland is to H2 Green as part of its development of green hydrogen in Scotland."
He added: "This development feels even more real now with the completion of the first phase and will see Inverness become one of the first cities in the UK to establish commercial production of green hydrogen. It will also bring benefits to the wider Highland region.
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"This presents huge economic and decarbonisation potential and it's very exciting to see Highland and H2 Green play a pioneering role in the transition to zero carbon fuel sources."
SGN's former gas holder site on Harbour Road lies between Inverness's rail depot and industrial area and will provide green hydrogen directly to large volume anchor customers, including rail, bus, and heavy goods vehicles (HGVs).
The hub capacity is expected to scale in the medium term to eight tonnes of hydrogen per day, which could service 800 HGVs per day and have the capacity to reduce carbon emissions by 30,000 tonnes per year.
The hydrogen generation can also provide zero-carbon heat and medical-grade oxygen for hospitals, aquiculture and water treatment works in the area.
Inverness is to be the first site developed by the partners after they signed a Memorandum of Understanding (MOU) in January 2021 to explore the establishment of hydrogen supply hubs across Scotland and England, with 21 SGN sites earmarked for development.
Green hydrogen is produced when an electrolyser is used to split water into hydrogen and oxygen. If the electrolyser is powered by a renewable source, such as solar or wind, the resulting hydrogen is green, and the only by-product is oxygen.
Ownership of the site was transferred from SGN to H2 Green and SGN prepared the site for development, which included removal of the redundant gas holder, work which has now been completed.
H2 Green is also aiming to assist Eversholt Rail with the introduction of hydrogen powered trains in Scotland and the train operator sees Inverness as a key strategic refuelling station.
