The Nordic Investment Bank (NIB) and UAB LT Energija have signed a 100 million euro loan for a 264 megawatts (MW) wind farm in Pagėgiai, Lithuania. The European Union has supported 43.5 million euros of the loan under the NIB’s InvestEU Framework Operation on 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 Pagėgiai wind farm will significantly increase energy generation capacity in Lithuania, which currently imports the majority of its power consumption. It will generate an estimated 602 gigawatt-hours (GWh) of renewable energy annually, representing approximately 15 per cent of the country’s current total power production.
All the generated electricity will be purchased by AB Achema, the largest producer of fertilisers in the Baltics. The company plans to use renewable energy to produce green hydrogen, which will be further utilised to produce green ammonia.
Currently, Achema’s two ammonia production units represent around 80 per cent 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.
“This loan is in line with both our mandates – to improve productivity and benefit the environment,” said André Küüsvek, NIB President and 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 Pagėgiai project is an important continuation of our strong traditions and commitments to renewables,” added Lidija Lubienė, Chair of the Board of Achema Group. “We believe that this project is a very significant step forward both for our renewables group as well as Lithuania’s renewable energy goals in general.”
The wind farm is expected to commence commercial operations in the third quarter of 2026. The estimated total project cost is 460 million euros.