So-called ‘blue’ hydrogen is produced by burning natural gas coupled with carbon capture and storage (CCS). Although hydrogen is favoured as a possible replacement for fossil fuels, its reliance on natural gas for its production is criticised by many.
A new report by analysts at non-profit financial group Carbon Tracker claims that UK government policies supporting blue hydrogen and gas-power CCS significantly under-estimate upstream liquid natural gas (LNG) emissions and risk derailing UK net zero targets.
Carbon Tracker is an independent financial think tank which provides in-depth analysis on the impact of climate change on capital markets and investment in fossil fuels.
The report, entitled Kind of Blue, calculates the carbon intensity of blue hydrogen and gas power CCS and concludes that it could consume up to 63% of the UK’s sixth carbon budget.
Carbon Tracker claims that many of the upstream carbon emissions associated with blue hydrogen production are often under-reported. It quotes independent studies that found that the carbon intensity of LNG from the US could be up to 150% higher that is reported by the UK’s North Sea Transition Authority.
The report’s author, Carbon Tracker associate analyst Lorenzo Sani, said: “Blue hydrogen and gas-CCS projects should not be considered low-carbon unless, on top of achieving high carbon capture rates, they can guarantee to only utilise natural gas with low upstream emissions. Green hydrogen, produced from renewable electricity, remains the only truly low-emission pathway.”
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