IEEFA - Blue Hydrogen: Not Clean, Not Low Carbon, September 2023

The IEEFA (Institute for Energy Economics and Financial Analysis) has released a report titled "Blue Hydrogen Not Clean Not Low Carbon", which challenges the notion that blue hydrogen is a clean and low-carbon solution for the energy industry. The report, authored by a group of experts, highlights the environmental and economic drawbacks of blue hydrogen production. According to the report, blue hydrogen is produced by converting natural gas into hydrogen while capturing and storing the resulting carbon emissions. However, the authors argue that the process of carbon capture and storage (CCS) is expensive, technologically challenging, and energy-intensive. It also requires large-scale infrastructure, including pipelines and storage facilities, which come with their own environmental impacts. The authors point out that the assumption of carbon neutrality in blue hydrogen production is misleading, as the process still emits significant amounts of methane, a potent greenhouse gas. They argue that the leakage of methane during extraction, transportation, and conversion of natural gas into hydrogen undermines the potential climate benefits of blue hydrogen. Moreover, the report emphasizes that blue hydrogen production would perpetuate the fossil fuel industry's dependence and delay the transition to cleaner, renewable energy sources. It contends that investing in renewable hydrogen production technologies, such as electrolysis powered by renewable electricity, is a more sustainable and cost-effective solution. Overall, the IEEFA report casts doubts on the claims of blue hydrogen being a clean and low-carbon energy option, urging policymakers and investors to prioritize renewable alternatives instead.