Sign in Subscribe
European Union

European Commission Approves €158 Million Polish Measure for Renewable Hydrogen Production

Strategic Insights

— 2 min read

The European Commission has approved a €158 million Polish measure to support the production of renewable hydrogen through the LOTOS Green H2 project. The measure aims to contribute to the EU's Hydrogen Strategy and the European Green Deal targets, while helping to end dependence on Russian fossil fuels. The project will produce 13,600 tonnes of renewable hydrogen per year, avoiding the release of 2.5 million tonnes of carbon dioxide over its lifetime.

Key Takeaways:

  • The European Commission has approved a €158 million Polish measure to support the LOTOS Green H2 project, a special purpose vehicle ultimately owned by PKN Orlen SA, in the production of renewable hydrogen.
  • The measure will contribute to the achievement of the EU Hydrogen Strategy and the European Green Deal targets, while helping to end dependence on Russian fossil fuels and fast forward the green transition in line with the REPowerEU Plan.
  • The aid will support the installation of an electrolyser with a capacity of 100 MW, as well as the construction of 50 MW photovoltaic power plant and 20 MWh battery storage.
  • The project is expected to start operating in 2027 and will produce 13,600 tonnes of renewable hydrogen per year.
  • The measure was assessed under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union ('TFEU') and the Guidelines on State aid for climate, environmental protection and energy 2022 ('CEEAG').
  • The Commission found that the measure has a limited impact on competition and trade within the EU, and that it has sufficient safeguards to ensure that undue distortions of competition are limited.
  • The project will be subject to monitoring to verify its progress towards the objectives of CO2 emission savings, and the beneficiary will share the technical know-how gained through the project with other European industry players.
  • If the project turns out to be very successful, generating extra net revenues, the beneficiary will return part of the aid received to Poland (claw-back mechanism).

Statistics:

  • €158 million: The amount of public support provided to the LOTOS Green H2 project.
  • 100 MW: The capacity of the electrolyser that will be installed as part of the project.
  • 50 MW: The capacity of the photovoltaic power plant that will be constructed as part of the project.
  • 20 MWh: The capacity of the battery storage system that will be installed as part of the project.
  • 13,600 tonnes: The amount of renewable hydrogen that the project will produce per year.
  • 2.5 million tonnes: The total amount of carbon dioxide that the project will avoid releasing over its lifetime.
  • 2027: The year in which the project is expected to start operating.

Sources:

  • European Commission, "State aid: Commission approves €158 million Polish measure to support production of renewable hydrogen" (no date)
  • European Union, "Treaty on the Functioning of the European Union" (Article 107(3)(c))
  • European Union, "Guidelines on State aid for climate, environmental protection and energy 2022" (CEEAG)

Read more