Lithuania's gas transmission system operator Amber Grid and the company Ernst & Young Baltic have signed a contract for the economic and financial analysis of the Lithuanian section of the Nordic-Baltic Hydrogen Corridor (NBHC).

 

The Nordic-Baltic Hydrogen Corridor is important for Lithuania due to the opportunity to become part of the emerging regional hydrogen market, make use of the country's renewable energy potential, and strengthen the conditions for the development of the hydrogen market.

 

"The analysis will include an assessment of the investments required at the national level, along with the detailed preparation of a revenue and business model. A project budget and financial plan will also be developed. An important part of the analysis will be a cost-benefit analysis, covering not only the project's financial indicators, but also its social and economic benefits for Lithuania. This will help assess the broader impact of the infrastructure on the country's economy and on the development of the hydrogen market," says Nemunas Biknius, CEO of Amber Grid.

 

Several infrastructure and market development scenarios

The Lithuanian section of the NBHC envisages the transmission of renewable hydrogen via pipeline from the northern part of Lithuania to the southern part, along with a branch running from the north-western part of Lithuania toward the main hydrogen pipeline.

 

The new infrastructure will be planned taking into account several hydrogen market development scenarios in Lithuania – a base scenario, based on a moderate assessment; a risk-mitigation scenario, reflecting a lower market development trajectory; and an ambitious scenario, envisaging greater market potential. The assessment of these scenarios will take into account costs, hydrogen demand, economic growth, and other factors relevant to market development.

 

The results of the analysis will be used as input and a data source for the joint NBHC project's commercial study, covering all Member States participating in the project.

 

The corridor will span six countries

The main pipeline is planned to be approximately 2,500 kilometres long and will run through Finland, Estonia, Latvia, Lithuania, Poland, and Germany. Within Lithuania's territory, approximately 350 km of the main hydrogen transmission pipeline is planned, along with a branch of more than 200 km running from the north-western part of Lithuania toward the main pipeline.

 

The entire planned hydrogen corridor – approximately 2,500 km – will begin in Finland and run through Estonia, Latvia, Lithuania, and Poland to Germany.

 

According to the preliminary feasibility study, by 2040 the NBHC hydrogen transmission network could transport up to 2.7 million tonnes, or 91 TWh, of hydrogen annually.

 

Energy resilience and industrial competitiveness

The project would contribute to Europe's energy resilience, reducing dependence on imported fossil fuels and the associated economic and geopolitical risks.

 

For Lithuania, the corridor would be significant for its ability to harness the country's renewable energy potential for hydrogen production, to supply surplus hydrogen to other European markets, and to create conditions for the development of hydrogen-related industrial and business value chains. This would also contribute to reducing emissions in hard-to-decarbonise sectors and to strengthening the competitiveness of European industry.

 

The Nordic-Baltic Hydrogen Corridor was granted Project of Common Interest (PCI) status by the European Union in 2023, reflecting the project's importance at the EU level.

 

The commercial and financial analysis, valued at EUR 204,000 (excluding VAT), will be carried out by Ernst & Young Baltic within 6 months of signing the contract. Six participants submitted bids in the public procurement procedure for the analysis. The analysis is partly funded under the Connecting Europe Facility.

 

Source:  FCW Team