Recently, Klaipeda Port, the engine of the Lithuanian economy, has emerged as a leader in energy transformation, spearheading Lithuania's transition to sustainable hydrogen energy and setting an example for the Baltic region. “By taking steps toward sustainability, our port is pursuing increasingly ambitious goals, demonstrating through action that Lithuania’s maritime industry hub can be not only environmentally friendly but also proactive,” emphasized Algis Latakas, CEO of the Klaipeda State Seaport Authority, in an interview with The Baltic Times magazine.
How has the year 2004 been for the port?
Despite a challenging geopolitical environment, the year 2024 was both very interesting and, overall, successful. However, our estimate of cargo volume proved slightly imprecise – while we planned for 30–31 million tons, we ultimately handled 35 million tons.
Since 2020, the volume of cargo handled at Klaipeda Port has been gradually declining each year due to COVID-19 pandemic-related supply chain disruptions and the geopolitical situation. However, 2024 marked a turning point, with a 7–8 percent increase compared to the previous year.
The result of 35 million tons demonstrates that the situation is improving. Local businesses and enterprises have adapted, and, importantly, the Lithuanian economy has remained resilient.
For the third consecutive year, Klaipeda Port surpassed the one-million-TEU mark. This achievement reflects not only investments in infrastructure but also the stability, dedication, responsibility, and professionalism of the people whose efforts enable Klaipeda Port to remain one of the strongest ports on the eastern coast of the Baltic Sea.
Currently, container handling at Klaipeda is primarily managed by two port companies.
Growth was observed in containerized goods, vehicles transported by ferries, iron and steel products, metal structures, and timber products, while frozen goods volumes declined.
Bulk cargo, primarily consisting of agricultural products and construction materials, also saw an increase last year, year-on-year. The growth was driven by a significant rise in construction materials, grains, and bulk fertilizers.
However, liquid cargo – including oil products, liquefied natural gas (LNG), liquid fertilizers, and oils – declined compared to the same period last year. The decrease in cargo volume in this category was further impacted by repairs to our LNG terminal, “Independence”, throughout June.
Among the most notable positive developments for us last year was the resumption of operations at the Kedainiai-based phosphate fertilizer plant “Lifosa.” Due to international sanctions, the plant had been operating under restrictions and the supervision of a temporary administrator. “Lifosa” relies on Klaipeda Seaport for exporting its products and importing essential raw materials.
Notably, the overall improvement in 2024 occurred despite an adverse economic environment, including the imposition of additional sanctions on Russia and Belarus.
During the last couple of years, Klaipeda Port has firmly been on the sustainability path and is now considered one of the region's most environmentally friendly ports. How did you accomplish this, and what actions were taken in 2024?
The green transition is an inevitability that one must embrace – sooner or later. I believe we are doing it sooner than others.
Look, climate change is evident to the naked eye, without needing scientific conclusions. The global average temperature rise of 1.2°C – though some studies suggest it may be even higher—is wreaking havoc, even here in Lithuania.
In short, climate change is happening and affecting everyone on the planet. Geopolitical tensions and conflicts come and go, but climate change is here to stay – and our port is preparing for it.
Speaking of marine trade, it involves approximately 12 billion tons of cargo every year, with vessels emitting roughly 940 million tons of CO₂. Shipping accounts for about 2–3 percent of global CO₂ emissions, according to the International Maritime Organization (IMO).
It is not surprising, then, that ports – ours included – are paying close attention to the issue of climate change and acting accordingly. Certainly, the primary activity of a port remains transporting cargo, but the issue of energy sustainability is critical, and no port – including ours – can turn a blind eye to it.
What sets our port apart is its location within the city, surrounded by residential and recreational areas, which drives us to act responsibly – seeking the best environmental solutions in our economic activities.
So, in 2020, we started the conversation about creating a green port, encouraging the companies operating within the port to join us in this endeavor. In 2022, we developed the green Klaipeda Port concept and strategy – despite some initial skepticism, with critics saying it was a waste of time.
Our sustainability efforts have already yielded results and recognition – we are the first port in the Baltic States and one of the 35 ports in Europe to be certified under the Port Environmental Review System (PERS).
PERS (Port Environmental Review System) is the only environmental management standard for seaports. It is based on ESPO (European Sea Ports Organisation) policy guidelines and a tailor-made scheme to help ports comply with legislation, develop sustainable port activities, protect the environment, improve public health and tackle climate challenges.
Thus, our port can be called an environmentally friendly port, meaning that it is abiding by 34 sets of indicators as the prerequisite for the certification.
Our key environmental performance indicators include reductions in greenhouse gas (GHG) emissions, air emissions from ship movements and cargo transport, energy consumption, and the number of environmental incidents in port areas.
The PERS is issued for 2 years, and its maintenance requires annual improvement in environmental protection every year. Specifically, as part of the PERS, the CO₂ and other pollution emissions will be measured for every single vessel entering/leaving the seaport, as well as the level of noise.
By 2030, we aim to reduce greenhouse gas emissions by 50–60 percent. In recent years, some companies operating within our port have installed solar panels and other sustainable energy generation systems. Additionally, certain stevedoring companies handling metal scrap have constructed barriers to prevent metal dust from spreading beyond their premises.
Knock on wood – recently, we have neither faced significant environmental issues nor received any environment-related concerns from the local community.
Klaipeda Port has been preparing for green hydrogen production as part of its green energy transition. What progress was made in this initiative during 2024?
Indeed, the green hydrogen production project at Klaipeda Port is moving closer to the implementation phase. We initiated this project in 2022 to align with other modern, sustainability-driven European ports.
Frankly, this energy source is still a novelty for many, including ports. None of the Baltic seaports is tapping the source of energy, so we are breaking the ground being inspired by exemplary transitions, like those undertaken by the Port of Antwerp in Belgium.
I believe that a port with hydrogen production is more commercially viable, as it opens new business opportunities through so-called green corridors and other initiatives. However, I agree that, in the short term, the project and the transition may seem burdensome.
The green hydrogen production and refueling station projects are partially funded by the European Union's 2021–2027 investment program and the “Next Generation Lithuania” Recovery and Resilience Plan. The total project cost is estimated at 12 million euros, with approximately 6,3 million euros provided by EU funds.
Initially, the greatest challenge was meeting the requirements of the environmental impact assessment (EIA).
We narrowed down the potential sites to two locations but, following the EIA, we chose an area in the southern part of the port. Frankly, given that this energy source is relatively new and sometimes met with resistance, I am grateful that the project has become viable and is now set for implementation.
Having reviewed various hydrogen equipment production technologies. We visited a factory in Italy, where the electrolyser for the Port Authority's hydrogen production base will be manufactured, together with MT Group, which will supply the equipment for green hydrogen production and the stationary public refuelling station, and got an insight into hydrogen equipment production technologies. Klaipeda will receive a state-of-the-art, safe, and reliable system.
In October, we signed a contract with MT Group, which will supply, install, and commission the equipment. Interestingly, Italy has advanced hydrogen technology significantly.
In addition, Klaipeda Port is building an electricity and hydrogen-powered vessel designed to collect and store sewage water as well as other waste, including litter. This vessel is part of the port's ongoing efforts to improve environmental sustainability and reduce pollution in the surrounding water. It is intended to help manage waste more efficiently and ensure that waste from ships and other sources does not negatively impact the local ecosystem.
Who will be the end client for the hydrogen?
The green hydrogen produced at Klaipeda Port will primarily serve port needs. For instance, the aforementioned “litter ship” being constructed for collecting waste from vessels entering and leaving the port will be powered by this hydrogen. According to our estimate, it will use approximately 30 tons of hydrogen annually. This equipment will produce approximately 500 kilograms of hydrogen per day and up to 127 tons annually.
Notably, the port authority has recently signed a memorandum with Lithuanian Railways, which envisions the use of hydrogen to power trains in the near future, and other companies are showing interest in adopting hydrogen for their fleets.
When do you expect to have the necessary equipment installed at Klaipeda Port? When will hydrogen production be launched?
By the end of 2025, we expect to have it installed, including the 1.27 MW electrolyzer, which will produce 127 tons of hydrogen annually. Green hydrogen production and the fueling station at Klaipeda Port are expected to begin in the spring of 2026.
Is the electrification of the port's quays part of the sustainability agenda?
It is. Currently, ships arriving at Klaipeda Port primarily use diesel fuel, which powers their generators both during navigation and while docked. According to research conducted last year evaluating the port's environmental impact, shore power infrastructure for ships could significantly reduce emissions.
Initially, this infrastructure will be introduced for ferries operated by "DFDS Seaways" and "TT-Line" calling at Klaipeda Port and, later, for container ships and cruise ships. The entire quay electrification project is anticipated to be completed by 2028. Klaipeda Port plans to purchase electricity from suppliers who generate it using renewable sources, such as wind and solar energy.
The Klaipeda Port quay electrification project is partially funded under the European Union’s Connecting Europe Facility (CEF) Transport program. Of the project’s total estimated cost of 11 million euros, the EU will provide 8.6 million euros.
So, Klaipeda Port has fully embraced sustainability and encourages others to do. Looking ahead, we are optimistic about maintaining similar cargo volume levels and advancing the green plan we are following.
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