EIMIN implements Plan B after Achema decides not to make changes
The Ministry of the Economy and Innovation (EIMIN) received news this week from Achema that it will not use a green subsidy of historic proportions to help it transition to a climate neutral economy. As a result, EIMIN intends to reallocate the unused funds for regional development and job creation.
“We have been working for several years to ensure that the most polluting and greenhouse gas emitting company in Lithuania takes advantage of the green subsidy to transform itself and start producing green hydrogen. However, the company has publicly stated that it will not make changes and will not use the support, so we are switching to a different plan: we will distribute the funds to the regions of the country. This will ensure that the regions have more well-paid jobs,” said Ieva Valeškaitė, Vice-Minister of the Economy and Innovation.
Earlier this year, the European Commission (EC) approved the aid measure of EUR 122 million for Achema. This funding was intended to open the way for the deployment of innovative technology to reduce greenhouse gas emissions. To this end, the hydrogen used in the fertiliser production process, which is obtained using fossil fuels, was to be replaced with green hydrogen.
“This was the first subsidy of this magnitude for a Lithuanian company. However, Achema, which decided not to take advantage of the subsidy, will probably have to stop its activities in the long run as this will prevent it from remaining competitive. The company will not be in line with EC regulatory requirements and common national policies. Although we are dealing with the situation swiftly, Achema’s decision not to follow the principles of sustainability was really disappointing”, says Iveta Paludnevičiūtė, Chancellor at the Ministry of the Economy and Innovation.
“After Achema postponed the implementation of the project, it is planned to allocate the operational funds to another activity of the Just Transition Fund, i.e. to attract foreign and local investors with a high potential for job creation in Kaunas, Šiauliai and Telšiai districts, creating favourable conditions for the creation of new sustainable jobs. EIMIN will also continue to look for ways to help industrial companies reduce harmful greenhouse gas emissions in their operations.
The Ministry of the Economy and Innovation has been negotiating with the European Commission on funding for Achema since 2021, and since June 2023 it has been in intensive negotiations with the responsible unit of the European Commission on the granting of individual aid.
As early as 2021, the EU set ambitious targets for the industrial sector — to phase out fossil fuels and replace them with climate-neutral materials by 2045, and to achieve a 100% reduction in greenhouse gas emissions from industry by 2050 compared to 2005.
The analysis carried out for the 2021-2022 period shows that Kaunas County is the largest emitter of greenhouse gases, with 47% of emissions coming from Achema.