AB Kaišiadorių Paukštynas, an indirect subsidiary of AB Akola Group, plans to invest 19.4 million euros in constructing a biomethane production facility. The plant is slated to be built on the company’s land in the Kaišiadorys district, with construction expected to commence in the first quarter of 2026 and biomethane production anticipated to start in the second quarter of 2026. The project will seek EU funding support.
Mažvydas Šileika, CFO of AB Akola Group, stated, “This investment is intended to enhance the Group’s sustainability and profitability. The biomethane plant will enable more sustainable management of substantial amounts of bio-waste and reduce environmental pollution. It is projected to cut CO2 emissions by approximately 29 thousand tons per year and decrease methane emissions. We estimate that the plant will generate an annual EBITDA of 4.3 million euros and will pay for itself in 7 years and 4 months. We plan to finance most of the project through borrowed funds, with an estimated borrowing requirement of about 14 million euros.”
The planned facility will feature four biogas reactors and will be capable of producing up to 1,000 cubic meters of biomethane per hour. Biomethane production will utilize chicken and cow manure, slurry, and other biodegradable waste, processing 120-140 thousand tons of bio-waste annually. Approximately 20 thousand tons of raw materials per year will be sourced from farmers, supporting their economic growth and reducing environmental impact. The plant’s production will comply with ISCC or RedCert international certification standards.
Andrius Pranckevičius, Deputy CEO of AB Akola Group, explained, “Poultry farming relies heavily on natural gas for stable heating, which is essential for bird growth. Biomethane could replace natural gas in many cases. As our farming operations produce a significant amount of organic waste, we are already working on another biomethane plant in Lithuania. However, the biogas plant in Plyniai, Šakiai district, which is set to begin operations at the end of 2025, will only handle a portion of the organic waste from dairy and poultry farms. Each year, 120 thousand tons of waste will still be left unprocessed within our poultry farms and farming companies. The new biomethane plant in Kaišiadorys will address the challenges of bio-waste accumulation and reduce fossil fuel use, producing nearly 85 GWh of renewable energy annually. We anticipate no unprocessed organic waste within our Group once both facilities are operational. Additionally, the production process will generate over 285 thousand tons of digestate annually, which can serve as a substitute for mineral nitrogen fertilizer. With both plants in operation, we expect to save up to 42 thousand tons of CO2 each year, marking a significant environmental accomplishment.”
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