Vilnius has officially begun development of its first green hydrogen production facility, marking a major leap toward a cleaner, more sustainable urban energy system. On April 29, a full-scope Engineering, Procurement, and Construction (EPC) contract worth approximately €10 million was signed by Vilnius City Municipality, Vilnius Heat Networks—Lithuania’s largest centralized heating provider—and MT Group, an energy infrastructure developer.
The plant will play a central role in decarbonizing Vilnius’ public transport, with the green hydrogen it produces set to fuel 16 hydrogen-powered buses, replacing diesel vehicles and cutting 1,414 metric tons of CO₂ emissions annually.
“Vilnius is becoming a hydrogen energy leader in the Baltics,” said Mayor Valdas Benkunskas. “This is more than an infrastructure project—it’s our response to the climate crisis and a step toward smarter, cleaner public transport. The plant will reduce emissions and improve urban air quality.”
EU-Backed Clean Energy Investment
Roughly 70% of the project funding will come from European Union structural funds, while the remaining amount will be covered by the municipality. The plant is expected to be operational by the first half of 2026.
“Once completed, the facility will produce up to 3.45 million cubic meters of green hydrogen annually, equivalent to around 2,000 MWh of heat energy,” said Gerimantas Bakanas, CEO of Vilnius Heat Networks.
The hydrogen will be generated using renewable electricity and water via electrolysis, further aligning with Lithuania’s commitment to phase out fossil fuels and support its 2030 national energy and climate targets.
A Regional Benchmark in Urban Hydrogen
MT Group, the EPC contractor, is a major player in green hydrogen and carbon capture infrastructure across Europe. The company also co-founded the Green Energy Park, one of the world’s largest hydrogen production initiatives.
“This project is a perfect example of how political will and strategic planning can translate into real infrastructure,” said Mindaugas Zakaras, CEO of MT Group. “It will meet the highest standards for safety, efficiency, and quality—and set a benchmark for urban hydrogen solutions across the region.”
Hydrogen innovation is accelerating globally. Cities like Tokyo and Aberdeen already integrate hydrogen buses and refueling infrastructure, while the UK is testing hydrogen heating in homes. Vilnius now joins the ranks of pioneering cities adopting clean energy to future-proof urban infrastructure.
The new hydrogen facility also supports Lithuania’s Energy Development Program 2021–2030, making it a strategic milestone for the country’s low-carbon future.
