Aker Solutions Wins FEED Contract for Baltic CO2 Terminal in Lithuania

Aker Solutions Secures Contract for Landmark CO₂ Terminal in Lithuania

Oslo-based Aker Solutions has been contracted by KN Energies to deliver front-end engineering and design (FEED) services for a planned carbon dioxide (CO₂) transshipment terminal in Klaipėda, Lithuania. The project, a cornerstone of the CCS Baltic Consortium, aims to establish the first cross-border carbon capture, transport, and storage (CCS) network in the Baltic Sea region. This development represents a significant step towards decarbonizing industries in Lithuania, Latvia, and potentially the wider Baltic area, with a projected annual capacity of 2.8 million tonnes of CO₂.

What is Carbon Capture and Storage (CCS)?

Carbon capture and storage (CCS) is a suite of technologies designed to prevent large quantities of CO₂ from being released into the atmosphere. The process typically involves capturing CO₂ emissions from industrial sources – such as cement and power plants – transporting the captured CO₂ via pipelines or ships, and then storing it permanently underground in geological formations. CCS is viewed by many as a crucial technology for meeting climate goals, particularly in sectors where emissions are difficult to abate through other means. The International Energy Agency (IEA) provides detailed information on CCS technologies and their role in global climate efforts.

The Klaipėda Terminal: A Key Component of the CCS Baltic Consortium

The Klaipėda CO₂ terminal is not an isolated project; it’s central to the broader ambitions of the CCS Baltic Consortium. Established in 2022, with KN Energies acting as both coordinator and partner, the consortium seeks to create a complete CCS value chain. This involves capturing CO₂ from industrial companies across the Baltic region, transporting it to the Klaipėda terminal, and then shipping it via sea to long-term geological storage sites under the North Sea. The terminal will initially serve two cement plants, one in Lithuania and one in Latvia, but is designed for open-access, allowing other sectors and companies to connect and utilize the infrastructure.

Aker Solutions’ Role and Expertise

Aker Solutions’ involvement centers on the FEED phase, a critical stage in project development. FEED involves refining the technical design specifications of the planned infrastructure, building upon previous technical evaluations, and assessing potential expansion routes. According to Henrik Inadomi, executive vice president of New Energies at Aker Solutions, the company brings over 30 years of CCS experience to the project, drawing on learnings from projects like Northern Lights, Brevik, and Oslo CCS. This experience spans the entire CCS value chain, from carbon capture integration to CO₂ transport, terminal infrastructure, and permanent storage.

European Union Support and Project Timeline

The Klaipėda terminal project has been recognized as a Project of Common Interest by the European Commission and receives co-funding through the Connecting Europe Facility (CEF) for Energy programme. This EU support underscores the project’s strategic importance for regional energy security and climate goals. The FEED phase is scheduled for completion in the third quarter of 2026, involving over 100 Aker Solutions employees across Norway, India, and the UK. A final investment decision is planned for 2027, with a targeted commercial operational date for the terminal set for 2030.

KN Energies’ Perspective and Regional Impact

KN Energies, the international energy terminal operator coordinating the project, views the FEED contract award as a significant milestone. Linas Kilda, chief business development officer at KN Energies, emphasized the company’s commitment to providing reliable and scalable CO₂ logistics services for industrial emitters in Lithuania and Latvia, supporting regional decarbonization efforts. The terminal aims to enable a fully integrated cross-border CO₂ value chain, facilitating the reduction of carbon emissions from various industrial sources.

What Remains Unclear

Whereas the broad outlines of the project are clear, some details remain unspecified. The exact locations of the long-term geological storage sites under the North Sea were not detailed in the available sources. The specific contractual terms between KN Energies and Aker Solutions, beyond the scope of the FEED contract, have not been publicly disclosed. It also remains unclear what specific criteria will govern access to the terminal for third-party users, although the intention is for open access.

This project represents a substantial investment in CCS infrastructure in the Baltic region, and its success will be crucial for achieving regional and European climate targets. The collaboration between Aker Solutions and KN Energies, backed by EU funding, positions the Klaipėda terminal as a potentially transformative project for decarbonizing industries and establishing a robust CCS value chain in the Baltic Sea area.