Ineos risks ETS allowance loss after hydrogen switch at UK plant

  • Gas
  • July 1, 2025

A UK chemicals facility that cut emissions by 75% by switching from natural gas to low-carbon hydrogen could miss out on millions in emissions trading scheme (ETS) allowances for two years due to a potential reclassification of the site.

Ineos Acetyls said its Saltend site in Hull, acquired from BP in 2021, had cut 75% of its emissions due to its switch to blue hydrogen.

The company said the move should have secured it millions in ETS allowances.

However, the chemicals maker claims that the UK Environment Agency (EA) is mulling a reclassification of the site as a “new installation,” which would mean the site would not be eligible for ETS funds until 2028.

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