Rijeka refinery (photo: INA)
Croatian oil and gas company INA received EUR 15 million from the Government of Croatia for its project for the production and distribution of hydrogen in transport.
The total value of the first project for the commercial production of green hydrogen in Croatia is estimated at EUR 45.5 million, according to the Ministry of Economy.
The ministry approved the grant to INA, owned by Hungary-based MOL Group, for investment in the project for the production and distribution of hydrogen in transport.
It provided the funds from the National Recovery and Resilience Plan (NRRP), under the European Union’s Recovery and Resilience Facility (RSF).
In April last year, INA signed a contract with the selected contractor for the construction of a green hydrogen plant at its refinery in Rijeka.
The hydrogen production and distribution project envisages the installation of a 10 MW electrolyzer and an 11 MW solar power plant, which would provide part of the electricity for electrolyzer operation, the ministry specified in its decision.
The investments in the electrolyzer and photovoltaic plant are estimated at an overall EUR 40.2 million
In addition, a hydrogen storage and distribution system would be established in the Rijeka refinery. Its aim is to supply operators in road, rail, and ship transport.
The investments in the electrolyzer and photovoltaic plant are estimated at EUR 40.2 million in total while EUR 5.3 million is planned for the storage and distribution system.
The subsidies aim to encourage the development of a hydrogen-based economy and to strengthen the decarbonization of transport through the use of alternative fuels, the ministry said.
It pointed out that the project would contribute to the goal with daily hydrogen production of 4,000 kilograms at the Rijeka refinery and the distribution of hydrogen to at least ten filling stations for road transport.
Of note, Croatia adopted a hydrogen strategy in March 2022. After that, more than 30 projects were launched, while the government started granting subsidies. For example, the North Adriatic Hydrogen Valley project envisages producing the first quantities of hydrogen by the end of 2026 while EUR 29.6 million was granted for the construction of hydrogen filling stations and electricity chargers for vehicles over the next three years.
INA: Everything is at the beginning
INA said the implementation of the project would mostly depend on the circumstances at the European and global markets, given the limited availability of the technology, Poslovni.hr reported.
Contrary to the government’s strategy and goals, the hydrogen-based economy is only taking its first steps, in the oil producer’s view.
The company underlined that its considering projects for filling stations, as are several other companies in Croatia.
The Rijeka refinery currently produces so-called gray hydrogen, from natural gas. The company uses it in the industrial processes for making derivatives.
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