On Wednesday 12 April, the European Commission approved €158 million of Polish aid to LOTOS Green H2 sp. z o.o, a special purpose vehicle ultimately owned by PKN Orlen SA, in the production of renewable hydrogen to be used in refinery production processes.
The measure will contribute to the objectives of the EU Hydrogen Strategy and the European Green Deal, while helping to reduce dependence on Russian fossil fuels and accelerate the green transition, in line with the REPowerEU plan.
The LOTOS Green H2 project aims to produce renewable hydrogen through water electrolysis, rather than by steam methane reforming using natural gas. This renewable hydrogen will be used in the fuel production processes at the PKN Orlen refinery.
The direct grant will support the installation of a 100 MW electrolyser, as well as the construction of a 50 MW photovoltaic power plant and a 20 MWh battery storage system. The electrolyser is expected to start operating from 2027 and gradually increase its annual production to 13,600 tonnes of renewable hydrogen.
The project is expected to avoid the release of a total of 2.5 million tonnes of carbon dioxide into the atmosphere over the project lifetime. (Original version in French by Lionel Changeur)