The Nordic Investment Bank (NIB) and UAB LT Energija have signed a 21-year loan for a 264 MW wind farm in Pagegiai, Lithuania.
AB Achema, the Baltics' leading fertiliser producer, will use this renewable energy to produce green ammonia, significantly cutting emissions.
The agreement amounts to €100 million, with €43.5 million backed by the InvestEU programme.
The Nordic Investment Bank (NIB) and UAB LT Energija have signed a €100 million loan for a 264 megawatt (MW) wind farm in Pagegiai, Lithuania. The European Union backs €43.5 million of this loan under the InvestEU programme, notably the NIB InvestEU framework operation on the clean energy transition.
The 21-year maturity loan will finance the construction of 40 wind turbines, as well as the associated civil and electrical infrastructure. The generated electricity will be purchased by AB Achema, the largest producer of fertilisers in the Baltics. The company plans to use this renewable energy to produce green hydrogen, which will be further utilised to produce green ammonia, used as fertiliser in agricultural production.
The Pagegiai wind farm will significantly increase energy generation capacity in Lithuania, which currently imports the majority of its power consumption. The wind farm will generate an estimated 602 gigawatt hours (GWh) of renewable energy annually, representing approximately 15% of the country's current total power production.
Currently, Achema's two ammonia production units represent around 80% of the company's total CO2 emissions. By substituting part of the natural gas consumption with renewable electricity, the company expects to significantly cut the emissions in this hard-to-abate sector.
Moreover, assuming the electricity from the wind farm replaces energy produced with an average carbon footprint in the European Union, the avoided greenhouse gas emissions associated with the project will amount to around 202,000 tonnes of CO2 per year.
Executive Vice-President for an Economy that Works for People, Valdis Dombrovskis, said: “I welcome this agreement that will not only boost Lithuania's energy independence by significantly increasing its renewable energy production capacity. It also paves the way for green growth and environmental sustainability across the Baltic region. Thanks to today's new InvestEU agreement together with the Nordic Investment Bank, we will give a further boost to economic resilience and sustainable growth in Europe.”
“This loan is in line with both our mandates – to improve productivity and benefit the environment,” says André Küüsvek, NIB President & CEO. “Not only will it help Lithuania build up its renewable energy capabilities, it will also reduce reliance on natural gas imports and advance the development of green technology, positively affecting the entire region.”
The wind farm is expected to commence commercial operations in the third quarter of 2026. The estimated total project cost is €460 million.
The project is being developed by UAB Renerga, the Achema Group-owned renewable energy company. The Borrower, LT Energija UAB, is an SPV established to develop and operate the project.
