Amber Grid, the Lithuanian gas transmission system operator, conducted a survey of hydrogen market participants for 2025, which showed that the country‘s potential to become an important hydrogen production and export country remains high. Although in the short term, compared to 2024, the forecasts for some market indicators are more cautious, the market participants do not give up their ambitions, and are actively seeking solutions to the challenges that have arisen.
“Lithuanian market participants are realistic. However, they believe in our country‘s potential to become an important player in the green hydrogen sector in the region. Despite the fact that the development timeline for hydrogen projects has been slightly delayed, the long-term perspective for the period until 2050 remains clear and unshakeable - Lithuania can and must become an important regional player in the hydrogen market“, notes Nemunas Biknius, head of Amber Grid.
According to N. Biknius, green hydrogen production in Lithuania is inseparable from the rapid development of renewable energy resources and hydrogen transfer system. This is also emphasised by the survey participants - the development of the hydrogen pipeline system will accelerate the growth of the hydrogen market, by creating conditions for the efficient storage and export of surplus renewable energy, and for promoting the establishment and expansion of production capacities for hydrogen and hydrogen-derived products such as synthetic methane, methanol and others.
Currently, 23 hydrogen projects are planned in Lithuania, and four of them have already reached the design stage. Most of the companies surveyed focus on hydrogen production for both domestic needs and export, while eight companies plan to produce higher value-added hydrogen derivatives.
“The Klaipėda port project, which will produce hydrogen for direct supply to shipping, and the green hydrogen plant being developed by Vilniaus Šilumos Tinklai are among the most prominent examples in Lithuania. The green hydrogen produced at this plant will be supplied to Vilnius‘ public transport infrastructure. These projects prove that companies in the country are already finding practical ways to use hydrogen, even without connecting to a common network“, says N. Biknius.
According to experts, the infrastructure developed by Amber Grid, especially the North-Baltic Hydrogen Corridor (NBHC), is a key condition for market growth and realising export potential.
“Without this corridor, the Lithuanian market would be extremely shallow. Therefore, the projects we are developing are critically important for the country‘s energy transformation process,“ adds the head of Amber Grid.
Strict EU regulations on the certification of green hydrogen production (RFNBO) were identified as one of the main market challenges in the survey. They require particularly close synergies between electricity and hydrogen production. These requirements increase investment costs. Therefore, market participants expect them to be simplified in the near future.
Most of the hydrogen produced in Lithuania, according to current guidelines, should be used for internal industrial needs, primarily to the fertiliser production and oil refining sectors, as well as transport sectors such as shipping and aviation, where the use of hydrogen is regulated by strict EU obligations. The remaining part will be allocated to exports. However, exports are seen as a significant part of the future economy.
Biknius points out that special subsidies or support measures, such as contract-for-difference, would be the most effective way to promote the development of the hydrogen market. This would ensure competitive hydrogen production and faster project development.
“Lithuanian market participants remain optimistic and continue to work actively to ensure that these goals become a reality by 2050. If we will rapidly develop our infrastructure and optimise the regulatory environment in the country, then it is safe to say that we can secure regional leadership, even become an important European green hydrogen export hub,“ Nemunas Biknius, head of Amber Grid, expresses his opinion.
Read more about the results of the hydrogen market stakeholder survey here.
