Lithuania's Green Initiative: AB Achema Decarbonisation with Renewable Hydrogen Support
Key Ideas
  • The European Commission approved a €122 million Lithuanian measure to support AB Achema in decarbonising its fertiliser production by replacing fossil-based hydrogen with renewable and low-carbon hydrogen.
  • The project involves installing a 171 MW alkaline electrolyser in the Kaunas region, aiming to reduce CO2 emissions by replacing 30% of hydrogen currently produced from natural gas.
  • AB Achema commits to sharing technical knowledge gained from the project to promote clean technologies in the fertilisers industry, aligning with key EU initiatives like the European Green Deal and the EU Hydrogen Strategy.
  • The Commission's assessment recognized the measure's positive impact on reducing CO2 footprint, supporting economic activities, and aligning with EU policy objectives while ensuring safeguards against competition distortions.
The European Commission has approved a €122 million Lithuanian measure to support AB Achema in decarbonising its fertiliser production processes by transitioning to renewable and low-carbon hydrogen. The project, funded through the Just Transition Fund, will involve installing a 171 MW alkaline electrolyser at AB Achema's production site in Kaunas, Lithuania. By replacing natural gas-based hydrogen with renewable hydrogen, the initiative aims to reduce carbon dioxide emissions and decrease dependence on Russian fossil fuels. The electrolyser is expected to be operational by 2026 and is projected to prevent the release of at least 5.8 million tonnes of CO2 over its 19-year lifespan. The European Commission's approval of the measure under EU State aid rules highlights its contribution to key EU strategies like the European Green Deal and the EU Hydrogen Strategy. AB Achema has committed to sharing the technical knowledge acquired from the project to promote the adoption of clean technologies in the fertilisers industry. The Commission's assessment found the measure to be necessary, proportionate, and effective in promoting fertiliser production with reduced CO2 footprint, while also ensuring safeguards to prevent competition distortions. Overall, the initiative aligns with the EU's goal of achieving climate neutrality by 2050 and demonstrates a positive step towards sustainable and green industrial practices.
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