Lithuania eyes economic opportunities in new energy sources

Lithuania views the shift towards new energy sources as a significant economic opportunity, aiming to foster new industries, attract investment, and enhance national competitiveness, rather than solely a climate policy imperative.

The country is moving beyond a singular focus on electrification, recognizing that different sectors require varied solutions. For heavy transport, public transit, and parts of industry, biomethane is emerging as a viable option. Green hydrogen is being eyed for sectors like steel and chemical production, as well as for shipping. Aviation, however, is expected to continue relying on liquid fuels for the foreseeable future, with synthetic fuels being a key alternative.

This multifaceted approach envisions an "energy ecosystem" rather than a single fuel source. Lithuania's strong agricultural sector, abundant biological waste, and developed gas infrastructure provide a favorable foundation for biomethane production. Currently, 14 biomethane plants are operational, with production nearly tripling in 2026 compared to the previous year. Biomethane is seen as a way to manage waste, bolster energy independence, and reduce emissions, while also offering new income streams for farmers and regional economies.

Green hydrogen is another promising avenue. Despite current high production costs, falling renewable energy prices and advancing technology are making it increasingly attractive for industrial decarbonization. Lithuania has already opened its first green hydrogen production and refueling station at the Klaipėda port in 2026, serving both land and sea transport. Plans are also underway for a green hydrogen production plant in Vilnius to supply public transport.

The development of these new energy sources hinges on substantial investment. Building biomethane plants, hydrogen electrolyzers, refueling infrastructure, and modernizing transport systems will require billions across Europe. A synergy between public and private capital is deemed essential, particularly for early-stage projects that carry significant technological and market risks.