ASCO and Buchan CHP, the company behind plans to build a multi-million-pound green energy plant in Peterhead, have joined forces to develop proposals for one of the first hydrogen fuel production plants in Scotland.

ASCO and Buchan CHP, the company behind plans to build a multi-million-pound green energy plant in Peterhead, have joined forces to develop proposals for one of the first hydrogen fuel production plants in Scotland.

The renewable energy development, which would be centred on Buchan CHP's proposed residual waste-to-energy plant, follows a recent announcement about the company's plans for the first dedicated oilseed rape commercial-scale biodiesel plant in Scotland at Peterhead.

The plans would see the creation of a hydrogen production plant which would be powered from the energy produced by using the region's residual, non-hazardous waste as a fuel source.

Experts see hydrogen as the fuel of the future for transportation. Concerns over air quality and climate change have been the principal motivation for developing these new technologies.

Walter Robertson, managing director of Asco UK, a major employer in Peterhead, said: "The opportunity to participate in this project has come at a time when all businesses are being challenged to minimise atmospheric emissions and reduce their carbon footprint.

"We firmly believe that the development of hydrogen fuel cell technology will significantly reduce both our emissions and operating costs."

Buchan CHP unveiled its plans in February for the £50m waste-to-energy plant that would incinerate a third of the north-east's rubbish and produce enough power for approximately 10,000 homes. A planning application is currently with Aberdeenshire Council.

Glenn Jones, managing director of Buchan CHP, said energy produced by safely burning non-hazardous, residual waste would replace fossil fuel-based energy sources to power a new generation of the energy industry and a hydrogen production plant. It in turn would power vehicles without the current emissions caused by using petrol.