The Commission has approved a EUR 122 million support measure proposed by the Lithuanian authorities in favour of AB Achema for the decarbonisation of its fertiliser production processes. According to the Commission’s statements, the measure will contribute to the achievement of the EU Hydrogen Strategy, the European Green Deal and the Green Deal Industrial Plan targets, while helping to end dependence on Russian fossil fuels in line with the REPowerEU Plan.
AB Achema's project is aimed at replacing fossil-based hydrogen by renewable and low-carbon hydrogen in its fertiliser production processes with the installation of a 171 MW alkaline electrolyser. The electrolyser will produce renewable and low-carbon hydrogen that will be used to produce ammonia. The hydrogen produced by the electrolyser will replace 30% of the hydrogen currently produced from natural gas, thereby reducing carbon dioxide (‘CO2') emissions and demand for natural gas.
The aid will take the form of a direct grant and be made available through the Just Transition Fund.
The Commission has assessed the aid measure on the basis of the Guidelines on State aid for climate, environmental protection and energy (‘CEEAG'), which allow Member States to support measures reducing or removing CO2 emissions and considered it compatible.
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