EC approves EIMIN measure of EUR 122 million to green Achema
The European Commission (EC) approved an aid measure of EUR 122 million by the Ministry of the Economy and Innovation for the company Achema. This funding opens the way for the implementation of innovative technology to reduce greenhouse gas emissions. To this end, hydrogen extracted using fossil fuels, which has been used in the fertiliser production process, will be replaced by green hydrogen.
“Through our efforts, an individual aid scheme for one of Lithuania’s most polluting companies has been prepared and agreed with the EC. This is a crucial step in Lithuania’s transition to a climate-neutral economy and becoming a less polluting country. Together with the company’s funds, the total value of the project will reach EUR 300.9 million and the project will be implemented by 2029,” said Aušrinė Armonaitė, Minister of the Economy and Innovation.
The aid will help achieve the objectives of the EU Hydrogen Strategy, the European Green Deal, and the Green Deal Industrial Plan, as well as help eliminate dependence on Russian fossil fuels under the REPowerEU plan.
“This is one of the biggest aid schemes for a single company that we have ever had. We started discussing it with the EC in June last year and now we are already seeing the results: the company will soon be able to replace the hydrogen from fossil fuels used in fertiliser production with hydrogen from renewable energy sources,” said Ieva Valeškaitė, Vice-Minister of the Economy and Innovation.
The aid is in the form of a direct grant to support the installation of an alkaline electrolyser at Achema’s plant in the Kaunas region of Lithuania. Achema currently uses hydrogen from natural gas to produce ammonia, a key raw material for fertiliser production, while the installed electrolyser will produce hydrogen from renewable energy sources and low-carbon hydrogen to be used for ammonia production.
The hydrogen produced by the electrolyser will replace 30% of the hydrogen currently produced from natural gas, reducing carbon dioxide emissions and reducing the need for natural gas.
The measure is being implemented with funding from the European Union funds investment programme (Just Transition Fund).
Lithuania has set a target to reduce harmful greenhouse gas emissions in industrial enterprises by up to 19% by 2030 for enterprises participating in the non-ETS trading scheme, and by up to 62% for enterprises participating in the ETS (EU Emission Trading Scheme).