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European Union

European Commission Approves Polish Measure to Support Renewable Hydrogen Production

Strategic Insights

— 2 min read

The European Commission has approved a €158 million measure to support LOTOS Green H2 sp. z o.o., a special purpose vehicle owned by PKN Orlen SA, in the production of renewable hydrogen for use in fuel production processes in PKN Orlen's refinery in Gdansk, Poland. The measure aims to contribute to the achievement of the EU Hydrogen Strategy and the European Green Deal targets, while reducing dependence on Russian fossil fuels and fast-tracking the green transition in line with the REPowerEU Plan.

Key Takeaways:

  • The European Commission has approved a €158 million measure to support LOTOS Green H2 sp. z o.o. in the production of renewable hydrogen for use in fuel production processes.
  • The measure aims to contribute to the achievement of the EU Hydrogen Strategy and the European Green Deal targets.
  • The production of renewable hydrogen will be achieved through water electrolysis, using electricity generated from renewable sources.
  • The electrolyser is expected to start operating in 2027 and will gradually increase production up to 13,600 tonnes of renewable hydrogen per year.
  • The project is expected to avoid the release of 2.5 million tonnes of carbon dioxide over its lifetime.
  • The aid will take the form of a direct grant of €158 million and will support the installation of an electrolyser with a capacity of 100 MW, as well as the construction of a 50 MW photovoltaic power plant and 20 MWh battery storage.
  • The project is subject to monitoring to verify its progress towards CO2 emission savings and will have a claw-back mechanism to return part of the aid to Poland if the project generates extra net revenues.

Statistics:

  • €158 million: The amount of aid approved by the European Commission to support LOTOS Green H2 sp. z o.o.
  • 13,600 tonnes: The expected annual production of renewable hydrogen by the electrolyser.
  • 100 MW: The capacity of the electrolyser to be installed.
  • 50 MW: The capacity of the photovoltaic power plant to be constructed.
  • 20 MWh: The capacity of the battery storage to be installed.
  • 2.5 million tonnes: The amount of carbon dioxide expected to be avoided over the project's lifetime.

Sources:

  • European Commission (2023): "European Commission Approves Polish Measure to Support LOTOS Green H2 sp. z o.o. in the Production of Renewable Hydrogen"
  • European Commission (2022): "Guidelines on State aid for climate, environmental protection and energy 2022" (CEEAG)
  • European Green Deal (2021): "The European Green Deal Communication"
  • EU Hydrogen Strategy (2020): "EU Hydrogen Strategy"
  • REPowerEU Plan (2022): "REPowerEU Plan"
  • European Climate Law (2021): "European Climate Law"

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