Lithuania has received approval from the European Commission (EC) to allocate EUR 122 million (USD 132.8 million) in state aid to AB Achema, a Baltic fertiliser producer, aimed at facilitating the decarbonisation of its production processes.
The financial support, granted through the Just Transition Fund as a direct grant, will enable Achema to install a 171-MW alkaline electrolyser at its production site in the Kaunas region. This investment will allow the company to replace its current reliance on natural gas-derived hydrogen with renewable and low-carbon hydrogen for ammonia production used in fertiliser manufacturing.
Expected to commence operations in 2026, the electrolyser is anticipated to replace approximately 30% of Achema's current hydrogen production sourced from natural gas.
The European Commission, in a statement, affirmed its endorsement of providing state aid in this instance, deeming it necessary and suitable. The Commission highlighted the measure's incentivising effect and the implementation of adequate safeguards to ensure its effectiveness.
