“Achema” will no longer be using the state support for green hydrogen production project

Having assessed the technological and economic challenges as well as the pertaining risks company “Achema” postponed the implementation of project “Integration of Electrolysis into Production of Ammonia”, implementing which the company intended to construct a 213 megawatt (MW) device for the production of green hydrogen before fall 2027. Therefore, the company will no longer be using the state support for this project ratified by the European Commission (EC) and amounting to 122 million EUR.

According to the Chief Executive Officer of the company Audronė Kuskytė, the essential technical requirements for the project were amended in the course of coordinating it with the European Commission. As the new regulations were prepared by the EU, i. e. for the hourly green energy accounting, the sum of the project investment increased more than twice and the project became not cost-efficient.

“The hourly green electric power accounting requirement for green hydrogen production which will be enforced in 2030 makes the usage thereof in large chemical industry factories technically complicated and even impossible in certain cases,” stated Audronė Kuskytė.

Due to significantly increased investment expenses and the pertaining economic risk, project related to production of green hydrogen have recently been suspended or cancelled all across Europe one after another, even though millions of EU subsidies have been initially planned for them.

“Having taken into consideration the insufficient green hydrogen technology development level, high product price and complicated applicability thereof in chemical industry, nowadays more and more representatives of the chemical industry talk about blue hydrogen and burial of CO2 as the most realistic alternative for achieving decarbonisation goals,” emphasized the CEO of company “Achema”.