EC greenlights state aid for 100-MW Polish green hydrogen project

The European Commission on Wednesday approved the provision of EUR 158 million (USD 172.6m) in state aid to Polish oil refiner PKN Orlen SA (WSE:PKN) for a 100-MW renewable hydrogen project.

PKN Orlen’s special purpose vehicle LOTOS Green H2 sp. z o.o will get a direct grant of the abovementioned amount to install an electrolyser system for green hydrogen production along with a 50-MW solar power plant with 20 MWh of battery storage.

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The EC has cleared the project under the Guidelines on State aid for climate, environmental protection and energy 2022 (CEEAG) rather than as part of the IPCEI programme. It has been determined that the measure has an incentive effect and limited impact on competition and trade within the EU, and comes with sufficient safeguards.

The electrolyser is seen to begin operation in 2027 and gradually ramp up its production to 13,600 tonnes of hydrogen per year. The output will be used in the fuel production processes in PKN Orlen's refinery in Gdansk.

(EUR 1.0 = USD 1.093)