The Nordic Investment Bank (NIB) and UAB LT Energija have finalized a loan agreement amounting to €100 million to facilitate the development of a 264-megawatt (MW) wind farm in Pagegiai, Lithuania. Notably, the European Union supports €43.5 million of this loan through the InvestEU program, specifically under the NIB InvestEU framework operation focusing on the transition to clean energy. With a maturity period of 21 years, the loan will facilitate the development of 40 wind turbines, along with the necessary civil and electrical infrastructure.

The electricity generated from this wind farm will be procured by AB Achema, the largest fertilizer producer in the Baltics. AB Achema intends to harness this renewable energy to produce green hydrogen, subsequently utilizing it to manufacture green ammonia, a crucial component in agricultural fertilizers. The establishment of the Pagegiai wind farm is poised to significantly augment Lithuania's energy generation capacity, particularly noteworthy as the country presently relies heavily on imported power.

Forecasts suggest that the Pagegiai wind farm will yield approximately 602 gigawatt-hours (GWh) of renewable energy annually, constituting approximately 15% of Lithuania's current total power production. Presently, Achema's two ammonia production facilities are responsible for around 80% of the company's total CO2 emissions. By substituting a portion of natural gas consumption with renewable electricity, Achema anticipates substantial reductions in emissions within this challenging-to-abate sector.

Furthermore, by assuming that the electricity generated by the wind farm will replace energy produced using an average carbon footprint prevalent in the European Union, it's estimated that the project will avert approximately 202,000 tonnes of CO2 emissions annually. Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, lauded the agreement, highlighting its potential to bolster Lithuania's energy independence and foster green growth across the Baltic region.

NIB's President & CEO, André Küüsvek, underscored the loan's alignment with the bank's dual mandates of enhancing productivity and promoting environmental sustainability. Küüsvek emphasized that beyond assisting Lithuania in fortifying its renewable energy capabilities, the loan will also contribute to reducing dependence on natural gas imports and propelling the advancement of green technology throughout the region.

The wind farm project, spearheaded by UAB Renerga, a renewable energy firm owned by the Achema Group, will be executed under the auspices of the Borrower, LT Energija UAB, established as a special purpose vehicle (SPV) for the development and operation of the project.

Scheduled to commence commercial operations in the third quarter of 2026, the wind farm project is anticipated to incur an estimated total project cost of €460 million.