The EU has awarded more than €3 million (~$3.4 million) in funding to KN Energies, the operator of Lithuania’s Klaipėda LNG terminal, to support preliminary technical and commercial studies for a planned CO2 terminal in Klaipėda.
This funding will cover half the costs of the initial research required to develop the terminal, which forms a key part of a broader cross-border carbon capture, transport, and storage (CCS) network spanning Lithuania and Latvia. The initiative is being developed by the CCS Baltic Consortium.
After being designated a Project of Common Interest (PCI) in late 2023, the Klaipėda terminal became eligible for financial support through the EU’s Connecting Europe Facility (CEF) for Energy.
The aim is to reach a final investment decision (FID) by the end of 2027, with the terminal expected to begin commercial operations in 2030.
Once operational, the terminal could help cut CO2 emissions in Lithuania and Latvia by nearly 25 million metric tons over its projected lifetime. Industrial sources in both countries will supply CO2, which will be transported to Klaipėda and shipped to offshore storage locations in the North Sea and Danish waters.
The project is currently in the early planning stage, with Front-End Engineering Design (FEED) studies scheduled to begin in the first quarter of 2026. These studies will build upon findings from the current technical evaluations to refine the infrastructure blueprint.
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KN Energies CEO Darius Šilenskis hailed the grant as a critical step forward in building a CCS network across the Baltic region. “This initiative not only underscores our dedication to environmental sustainability but also highlights the importance of cross-border cooperation in tackling global challenges,” he said.
The CCS Baltic Consortium aims to support carbon-intensive industries in maintaining operations while cutting emissions. The initiative is aligned with the EU and Lithuania’s 2050 net-zero targets and helps address the regional lack of CCS infrastructure.
Formed in 2022, the consortium includes Akmenės Cementas, KN Energies (as project coordinator), Larvik Shipping, Mitsui O.S.K. Lines, and SCHWENK Latvija SIA.
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