Lithuania is planning to set its 2030 quota for use of renewable hydrogen and derivatives in the transport sector in line with the EU's 1pc minimum, underpinned by penalties for non-compliance of €7.20/kg.
Like most other EU countries, Lithuania has missed the EU's 21 May deadline for transposition of the revised renewable energy directive (REDIII).
But the country is planning to amend its "law on alternative fuels" to meet the REDIII requirements, the energy ministry has told Argus. A draft proposal for this foresees that fuel suppliers would have to meet a 1pc share of renewable fuels of non-biological origin (RFNBOs), which are effectively renewable hydrogen and derivatives, in line with the minimum quota that countries have to reach.
The revised law would also set a 5.5pc combined target for advanced biofuels and RFNBOs by 2030. This too would be in line with the EU's minimum.
Unlike some EU peers, including Finland, France) and Romania, Lithuania is not planning a phase in for the RFNBO standalone quota or the combined advanced biofuels and RFNBO share.
Finland and Romania have opted for more ambitious 2030 RFNBO targets at 4pc and 5pc, respectively, while others like Denmark have also gone for the minimum necessary to meet EU requirements, prompting criticism from local hydrogen industry participants.
Lithuania's proposal foresees that companies failing to comply with the 2030 quotas would pay a penalty of €0.06 for each MJ that they fall short of their obligations under the energy ministry's plans. This would be equivalent to €7.20/kg of hydrogen based on hydrogen's lower heating value of 120MJ/kg.
This is lower than penalties foreseen by some peers, such as France and the Czech Republic where fees would be close to €10/kg.
Lithuania late last year aimed to boost development of renewable hydrogen production facilities through the European hydrogen bank's auctions-as-a-service mechanism. But it will not be able to award any subsidies because of a lack of bids.
