Blue hydrogen and LNG import reliant gas-CCS projects could derail UK net zero target and exhaust carbon budget

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🗞️ Driving the news: UK policies supporting blue hydrogen and gas-power CCS projects risk derailing net zero targets due to underestimated upstream LNG emissions, consuming 22%-63% of the UK's Sixth Carbon Budget, according to a new Carbon Tracker report

🔭 The context: The report, Kind of Blue, highlights the significant carbon intensity of blue hydrogen and gas power with CCS, factoring in upstream emissions from extraction, processing, and transport of natural gas, which is crucial given the UK and Europe’s growing reliance on imported LNG, especially from the USA post-2022 energy crisis

🌍 Why it matters for the planet: High upstream emissions from LNG imports, particularly from the USA, could severely impact the UK’s climate targets, with potential emissions up to 2.5 times higher than UK standards, undermining the reported climate benefits of these projects

⏭️ What's next: The UK needs urgent policy updates to accurately account for upstream emissions, reduce reliance on blue hydrogen and gas-CCS, and focus more on green hydrogen from renewables and alternative technologies to meet net zero goals

💬 One quote: “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.” - Lorenzo Sani, Carbon Tracker Associate Analyst

📈 One stat: If all gas-based CCUS projects in the UK's Net Zero strategy are built and run on imported LNG, they could emit 210-600 million tons of CO2 equivalent by 2035

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