The example of AB "Achema", a producer of nitrogen fertilizers, shows that state-subsidized greening does not pay off

 

"Sometimes people walking on the beach who want to take trash out of the water are lucky - they find a message in a bottle brought to the shore by the waves.

 

Nitrogen fertilizer manufacturing AB "Achema", at least on paper for several years considered the flagship of the green transformation of Lithuanian industry, released its message in a bottle. It stops the production greening project and refuses to take 122 million EUR state support.

 

It seems that such a decision should have been like a thunderbolt from the blue for the representatives of the energy and industrial sectors, but it disappointed and unpleasantly surprised only the state officials. They were the only ones who unexpectedly found that message bottle on the beach, although speaking to industry representatives, it is clear that many of them already knew that the company would have to make this decision.

 

Developers of renewable energy projects interviewed by "Verslo žinios" repeatedly repeated as if by convention that the math in hydrogen production projects does not add up at all, even after evaluating various support mechanisms.

 

Without cheap electricity, producing hydrogen by electrolysis is too expensive, period.

 

However, in the case of Achema, somehow everything was supposed to be different. Unfortunately, a miracle did not happen even in the bend of the Neris near Jonava.

 

Officials, who, you understand, have not been interested in the progress of the project and mathematics for some time, were quick to express their displeasure.

 

"For many years in office, we worked to ensure that the most polluting company in Lithuania, which emits the most greenhouse gases, would take advantage of the green support and reorganize and start producing green hydrogen," Ieva Valeškaitė, Deputy Minister of Economy and Innovation, was quoted in the report.

 

"This was the first subsidy of this scale for a Lithuanian company. However, if Achema decides not to use it, it will probably have to stop its activities in the long run, as it will prevent it from remaining competitive. The company will not comply with the regulatory requirements of the EC and the common policies implemented by the countries. Although we promptly resolve the situation, Achema's decision not to adhere to the principles of sustainability was really disappointing", added Iveta Paludnevičiūtė, Chancellor of the Ministry of Economy and Innovation.

 

The Ministry of Economy and Innovation started negotiations with the European Commission (EC) on financing for Achema in 2021, and from 2023 conducted intensive negotiations with the responsible unit of the European Commission regarding the provision of individual aid, so that disappointment is probably justified.

 

True, we want to return to the question, how much did the institutions that promised support and defended the EC communicate with "Achema" itself? Wasn't it a deaf and dumb debate?

 

Now the participants of the Lithuanian hydrogen ecosystem and other polluting companies see that a large company that does not even need to transport hydrogen somewhere, cannot or does not want to implement the project. Why should they want to take the risk?

 

The ecological hydrogen pipeline project also looks quite risky. The hydrogen released by electricity from Finnish wind farms should travel through the Baltic countries and reach Germany. Along the way, all interested producers could inflate their hydrogen into the pipeline like a balloon. Hydrogen storage facilities would appear along the way.

 

The theory is beautiful, the potential is great, the technology is known. 

 

There is a lack of Lithuanian hydrogen producers.

 

Yes, maybe the situation will be changed by the offshore wind farm near Palanga or the plans of "Ignitis grupė" to produce hydrogen in Elektrėnai, but that production and even consumption hole is still an eyesore.

 

In VŽ's opinion, the most important thing is for business and state offices to talk, maybe ask each other more often how things are going and how one or another problem can be solved.

 

Now, it seems that even those who were ready to write out 122 million euro check do not know what is happening in the most polluting company in Lithuania.

 

RhesusPlus

 

A strange vz rubric, stupid as never before. It's even funny to think that the state authorities did NOT talk to Achema, but came up with "be clean, well take 122 M?" Why is such a banal angle raised as a type of breaking news? 100% that they talked and both sides know everything, so vz is an asshole."