What’s the Low Carbon Hydrogen Standard?
The Low Carbon Hydrogen Standard (LCHS) sets a maximum threshold for the greenhouse gas (GHG) emissions allowed during the hydrogen production lifecycle. This includes feedstock acquisition to production, distribution and storage. If producers and the rest of the value chain combined maintain emission levels below the threshold, the hydrogen is regarded as ‘low carbon’.
The standard’s comprehensive methodology includes a lifecycle assessment of the feedstock that producers use to create the hydrogen. All hydrogen producers need to use this methodology to calculate their emissions.
The LCHS supports delivery of the policies outlined in the UK Hydrogen Strategy, the Energy Security Strategy, and Powering Up Britain – underpinning the country's move towards net zero emissions.
Companies benefit from being compliant with the LCHS because it:
- Offers a pathway to accessing UK Government support schemes.
- Provides evidence to support investment decisions that can help gain stakeholder and consumer confidence.
- Demonstrates commitment to a sustainable energy future.
Our supply customers and Power Purchase Agreement clients considering the production of green hydrogen on their sites can refer to the eligible production pathways mentioned within the LCHS. These are electrolysis, fossil gas reforming with carbon capture and storage (CCS), biogenic gas reforming, biomass gasification, waste gasification, and gas splitting producing solid carbon.
The production outputs have a range of associated inputs and outputs, which determine the ‘colour’ of the hydrogen produced. For more about the hydrogen rainbow, read this article.
The LCHS in action
The LCHS allows claimants to cluster half-hour periods of generation into consignments. These consignments help the generators prove that the average COշ emitted in the creation of hydrogen over a given period falls within the standard. This means a generator can still qualify for the LCHS if some half-hours fail to hit that target – as long as the period’s average overall falls within the parameters.
When LCHS-related figures were last published (December 2023), only 11 projects - totalling 125MW capacity – qualified. The aim is for some of these to become operational from 2025.
These figures show that the country’s still at the very early stages of low carbon hydrogen production overall. However, the Conservative government was targeting 10GW of hydrogen by 2030, and the Labour government explicitly mentioned hydrogen production in its general election manifesto. Businesses considering producing hydrogen should understand the LCHS, engage with advisors and government officials, and explore the opportunities available in the Net Zero Hydrogen Fund.
If you’d like to discuss any other aspects of your journey to net zero, we’d be delighted to help. Please get in touch.
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