Companies “Klaipėdos Nafta” (KN), “Akmenės cementas” and “Orlen Lietuva” have signed letters of intent for a joint feasibility study to assess the potential and feasibility of liquefied carbon dioxide (CO2) capture and storage technology for industrial companies in the country. The feasibility study will analyse the potential to reduce atmospheric emissions through the whole carbon dioxide management value chain concept in Lithuania and the applicability of this solution to companies with unavoidably high greenhouse gas (GHG) emissions from their business processes.

The signatories to the Letter of Intent have agreed to cooperate on a study that will assess the potential for companies to reduce their CO2 emissions by capturing, liquefying CO2 and transporting it by adapted vessels to a permanent storage site in Europe. The economic viability of these solutions will be assessed and, if agreed, a pilot project may be implemented.

The feasibility study will contribute to the analysis launched by KN, “Larvik shipping” (LS) and “Mitsui O.S.K.” Lines Ltd. (MOL) in 2021 regarding a CO2 project that could be implemented using the existing KN infrastructure in Klaipėda. The insights gained from a study carried out by KN and its international partners have attracted the interest of “Orlen Lietuva” and “Akmenės Cementas”, which are actively looking for solutions to reduce GHG emissions. In 2021, “Orlen Lietuva” and “Akmenės Cementas” emitted 1.5 million tonnes and 997,000 tonnes of GHG respectively. Both companies are among the most GHG-emitting companies in Lithuania.

When analysing the CO2 value chain in Lithuania, KN contributes by providing its knowledge and expertise gained from the construction and operation of the marine oil and LNG terminals in Klaipėda, and facilitates the assessment of the role this infrastructure could play in the carbon dioxide capture and storage (CCS) value chain.

“The transition to climate neutrality is a real challenge for companies in heavy industry, where replacing fossil fuels with renewable energy sources in production and rapidly reducing emissions is a complex, time-consuming and investment-intensive process. Carbon dioxide capture and storage in dedicated sites is one of the most realistic alternatives to decarbonisation, when CO2 is basically returned to where it was originally produced. As a company in the logistics sector, KN has the necessary expertise in transporting and storing the different types of energy. Accordingly, we see that we could also become an exporter of liquefied CO2 and a part of the entire value chain, thus contributing to the EU’s obligations for countries to reduce emissions and achieve zero emissions by 2050, and for businesses to adapt sustainably to this change”, says Darius Šilenskis, KN CEO.

“We are one of the largest industrial companies in Lithuania and we pay significant attention to environmental protection, which is a priority area of our business. Over the past decade, €115 million has been invested in modernising facilities and introducing new technologies to reduce the environmental impact of production. These projects have enabled the company to reduce the consumption of fossil fuels (coal) and consequently reduce GHG emissions, and to increase the capacity to burn alternative fuels. However, by replacing fossil fuels with alternative fuels is only one part of a complex set of measures to reduce GHG emissions, as in the cement industry, GHG emissions are not only generated by the combustion of fossil fuels, but also by the decomposition of limestone, which is the main raw material for cement. Therefore, carbon capture and storage would be one of the most advanced technological solutions that could make a significant contribution to the decarbonisation of the cement industry,” says Artūras Zaremba, Managing Director of Akmenės cement.

“Climate change is also changing the priorities of business leaders. As part of the move towards full decarbonisation, we have signed MoUs with businesses that are also interested in reducing CO2 emissions and are planning to provide carbon liquefaction/storage/transhipment services in their operations,” said Michal Rudnicki, CEO of ORLEN Lietuva. “We believe that this partnership will help achieving the ORLEN2030 strategy’s goal of reducing carbon emissions by 20 per cent by the end of this decade and achieving zero CO2 emissions by 2050.”

Worldwide, CCS is a technological solution that makes a significant contribution to the future of sustainable energy. In Europe, several CCS projects are currently underway with a clear commitment to develop an environmentally and economically beneficial emission capture solution for industries that are more difficult to decarbonise. Here, countries such as Norway, Belgium and the Netherlands are leading the way in the field of CCS. Projects in these countries are supported by the EU Structural Funds (EU Innovation fund, CEF) and by the political will of the countries themselves.

In the context of the European Green Deal, CCS is seen as crucial to achieve the goal of a zero-emission economy by 2050. To achieve the climate neutrality objectives, the EU is giving priority to promoting energy efficiency and the development of renewable energy. However, in some sectors, such as cement production, GHG emissions are difficult to reduce and CCS will be the only option to achieve that. Meanwhile, in other energy-intensive sectors, this solution will ensure that GHG reductions are affordable during the energy transition period.

KN, Akmenės Cementas and Orlen Lietuva plan to complete the feasibility study within one year.