INEOS: This is madness - We are being punished for cutting CO2 emissions

illuminem summarises for you the essential news of the day. Read the full piece on Hydrogen Central or enjoy below:

🗞️ Driving the news: INEOS Acetyls has completed a groundbreaking transition at its Hull site, switching from natural gas to low-carbon hydrogen, resulting in a 75% reduction in emissions
• However, the UK Environment Agency is threatening to reclassify the site, which would result in a £23 million penalty over the next three years due to withheld carbon credits, despite the plant's significant decarbonisation efforts.

🔭 The context: The Hull site’s conversion is part of INEOS's broader strategy to become the world’s first Net Zero acetic acid producer, a critical chemical used in industries like food production and pharmaceuticals
• The decision to switch fuel sources aligns with the UK’s climate goals, yet the reclassification by the Environment Agency could undermine these efforts, reflecting broader concerns about regulatory barriers to industrial decarbonisation in the UK

🌍 Why it matters for the planet: The penalty imposed on INEOS illustrates a broader issue in the transition to a greener economy: companies that are investing in decarbonisation may face regulatory hurdles that make their efforts financially unviable
• This not only hampers progress towards emission reductions but could also shift manufacturing to countries with laxer environmental regulations, such as China, which has much higher carbon footprints

⏭️ What's next: INEOS is calling for a straightforward solution that would allow the Hull site to receive its UK Emissions Trading Scheme (ETS) allowances according to the usual timeline, which would help offset the financial burden of the penalty
• The outcome of this case could set a precedent for how the UK supports or undermines clean industrial investments in the future

💬 One quote: "We’re being punished for doing the right thing [...] It’s costing us investment, jobs, and our industrial future." — INEOS CEO David Brooks

📈 One stat: The emission reduction from the Hull site’s transition to low-carbon hydrogen is equivalent to removing 160,000 cars from UK roads

See on illuminem's Data Hub™ the sustainability performance of over 8,000 companies

Click for more news covering the latest on hydrogen innovations.