Baltic CO2 storage project gets EU funding

The European Commission has signed a grant agreement with Lithuanian liquefied natural gas (LNG) terminal operator KN Energies (KN) for technical and commercial studies for a future CO2 terminal in Klaipėda, Lithuania.

Under the agreement, the European Commission will provide more than €3 million in funding, or 50% of the study costs, for the technical and commercial studies necessary to bring the CO2 terminal in Klaipėda to life. 

The terminal is part of a cross-border carbon capture, transport, and storage (CCS) value chain, which is currently under development in Lithuania and Latvia by the CCS Baltic Consortium.

Since the project was declared a Project of Common Interest (PCI) at the end of 2023, it is eligible for the Connecting Europe Facility (CEF) program for Energy funding, where the payment will come from. 

This is expected to enable a final investment decision (FID) to be taken by the end of 2027, followed by the CO2 terminal’s anticipated start of commercial operations in 2030. It is estimated that the project will reduce CO2 emissions in Lithuania and Latvia by 24.9 million tonnes over its lifetime. 

CO2 will be collected from industrial emitters in Lithuania and Latvia and transported to the Klaipėda terminal. From there, it will be shipped by sea to designated offshore sites for permanent geological storage in the North Sea and/or Danish waters.

The project is currently in the pre-FEED phase, with FEED studies expected to begin in Q1 2026. This phase will build on insights gained during the studies to further refine the technical design specification of the planned infrastructure.

“We are honoured to receive the European Commission’s support for the technical and commercial studies of the CO2 terminal in Klaipėda. This Grant Agreement marks a significant milestone in our journey towards creating a sustainable carbon capture, transportation and storage (CCS) value chain in the Baltic region,” said Darius Šilenskis, CEO of KN Energies.

“By collaborating with our partners, we are committed to advancing national, regional and EU’s energy and climate goals, and paving the way for a greener future. This initiative not only underscores our dedication to environmental sustainability but also highlights the importance of cross-border cooperation in tackling global challenges.”

Through this project, the CCS Baltic Consortium partners expect to enable hard-to-abate sectors to continue with industrial activity. Furthermore, it is envisaged to contribute to the EU’s and Lithuania’s 2050 net-zero goals, while addressing the lack of CCS infrastructure in Lithuania and Latvia. 

Formed in 2022, the CCS Baltic Consortium includes Akmenės Cementas, KN Energies (which is the coordinator), Larvik Shipping, Mitsui O.S.K. Lines, and SCHWENK Latvija SIA. 

The consortium also collaborates with Lithuania’s gas transmission system operators Amber Grid and Latvia’s Conexus Baltic Grid to assess CO2 transportation via an onshore pipeline and remains open to the participation of other regional emitters.

On June 4, market consultation was launched to gauge the interest of industrial CO2 emitters and other market participants in using the planned infrastructure and understand potential users’ volumetric needs, operational patterns, and timeframes. The end of the consultation period is foreseen for June 17.

Based on this consultation and future interest, the Consortium intends to carry out a non-binding and subsequently binding Open Season for Klaipeda CO2 terminal capacity during 2026–2029.

According to the Consortium, the Klaipėda liquid CO2 terminal will be designed to serve as a multimodal import/export hub with an initial design capacity of up to 2.8 million tonnes of CO2 per annum (mtpa). It will include buffer storage and flexible reception systems for liquid and/or dense CO2 delivered by pipeline and/or by rail tank wagons and semi-trailers.

KN Energies also operates the Klaipėda LNG terminal. Active since 2014, with commercial activities starting a year later, it consists of a permanently moored FSRU Independence, a 450-meter-long berth, a connecting nearly 18-kilometer-long gas pipeline, and a gas metering station.

The FSRU’s technical operator was initially Hoegh LNG Klaipėda, with KN Energies taking over the ownership in December 2024. Last month, the Lithuanian firm selected AB Kauno tiltai to work on the terminal’s electrification project.