Lithuania gets EC nod to back Achema's 171-MW green hydrogen project

Lithuania has received the green light from the European Commission (EC) to provide EUR 122 million (USD 132.8m) in state aid to Baltic fertilised producer AB Achema so it could decarbonise its production processes.

Achema will get the financial support in the form of a direct grant, made available to it through the Just Transition Fund. The company will use the sum to install a 171-MW alkaline electrolyser at its production site in the Kaunas region and thus replace the natural gas-based hydrogen it uses to make ammonia for fertiliser production with renewable and low-carbon hydrogen.

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The electrolyser is expected to begin operation in 2026 and its hydrogen output is estimated to replace 30% of the hydrogen currently produced from natural gas.

The Commission said in a statement it finds providing state aid in this case to be “necessary and appropriate”. It has determined that the measure has an incentive effect and comes with sufficient safeguards.

(EUR 1.0 = USD 1.089)