Lithuanian nitrogen producer Achema was announced as the recipient of a €122 million ($133 million) aid package from the European Commission for decarbonizing its fertilizer production process. The aid will be delivered as a direct grant to fund the installation a 171 MW alkaline electrolyzer at Achema’s production site in the Kaunas region of Lithuania.
Achema currently uses natural gas-based hydrogen to produce ammonia. The electrolyzer will produce renewable and low-carbon hydrogen that will be used to produce ammonia. The hydrogen produced by the electrolyzer will replace 30% of the hydrogen currently produced from natural gas, thereby reducing carbon dioxide emissions and demand for natural gas.
The electrolyzer is expected to start operating in 2026. Once completed, the project will abate the release of at least 5.8 million tons of CO2 over the 19 years of expected operation of the electrolyzer.
The project will contribute to the EU Hydrogen Strategy and the European Green Deal targets, while helping to end dependence on Russian fossil fuels in line with the REPowerEU Plan, according to the European Commission’s press release.