LOGAN Energy has been selected for a €3.6 million project to build that converts seawater into hydrogen, which can then be used as fuel for islands transport.

The building of the station is under way at Logan Energy’s Technology Centre in Wallyford and the firm will deploy the equipment in Tenerife at the end of 2019.

The Seafuel project intends to pave the way for renewable energy policies to promote clean and sustainable transport systems, as well as providing a solution for remote islands like Tenerife, which face the specific challenge of fuel imports, and dependency on mainland infrastructure.

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Bill Ireland, chief executive of Logan Energy, said: “We are delighted that Seafuel has been given the go ahead and that Logan Energy is to be the hydrogen partner for this innovative project.

"This project is unique in that it examines the conversion of seawater into hydrogen with the specific purpose of being used as transport fuel.

"Our extensive experience in Scotland of connecting renewable electricity generation to hydrogen production and refuelling makes us the right people for the job."

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The firm said it will work with project partners to review the feasibility of transferring the technology to other similar island regions where 30% of fuel consumption comes from transport.

Mr Ireland said: "It’s important to remember that this project is hugely significant not just for remote communities in Europe but around the world.

"The islands and their inhabitants rely on imported fossil fuels but can in fact become partially or wholly self-sufficient in terms of energy.

"The Seafuel project will go a long way to facilitating the transition to a low carbon economy.”

As well as securing all the relevant certifications, Logan Energy said it will ensure that there are local operatives in Tenerife with working knowledge of the specialist hydrogen installations to support the deployment and help expand the local economy.