International energy terminal operator AB KN Energies has signed a Grant Agreement with the European Commission to conduct technical and commercial studies for a planned CO2 terminal in Klaipėda. The terminal is a part of the CCS Baltic Consortium’s cross-border carbon dioxide (CO2) capture, transport and storage value chain currently under development across Lithuania and Latvia.
Under the agreement, The European Commission will contribute more than EUR 3 million for the CO2 terminal in Klaipėda technical and commercial studies from the Connecting Europe Facility programme for Energy (CEF). The EU will co-finance 50% of the study costs. The funding will support technical, commercial, and environmental assessments, enabling a Final Investment Decision (FID) by the end of 2027. The CO₂ terminal is expected to begin commercial operations in 2030.
“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. 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,” notes Darius Šilenskis, CEO of KN Energies.
The CCS Baltic Consortium, coordinated by KN Energies, aims to create the first integrated carbon capture, transport, and storage (CCS) value chain in the Baltic region. The project is intended to significantly contribute to the EU’s and national climate neutrality goals for 2050, while addressing the lack of CCS infrastructure in Lithuania and Latvia. This value chain offers a much-needed decarbonisation pathway for hard-to-abate sectors, enabling continued industrial activity in line with climate goals and supporting the long-term resilience of the Baltic economy.
In recognition of its strategic cross-border importance, the project was granted Project of Common Interest (PCI) status by the European Commission at the end of 2023, making it eligible for CEF funding.
Formed in 2022, the CCS Baltic Consortium currently includes Akmenės Cementas AB, KN Energies AB, Larvik Shipping AS, Mitsui O.S.K. Lines, Ltd., and SCHWENK Latvija SIA. The consortium also collaborates with gas transmission system operators Amber Grid (Lithuania) and Conexus Baltic Grid (Latvia) to assess CO₂ transportation via onshore pipeline the consortium remains open to the participation of other regional emitters.
The project will enable CO₂ to 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. It is estimated that the project will reduce CO₂ emissions in Lithuania and Latvia by 24.9 million tonnes over its lifetime.
