AB Akola Group plans another investment in biomethane gas productionAB Kaišiadorių Paukštynas, an indirect subsidiary of AB Akola Group, plans to build a biomethane production plant for 19.4 million euros, which is expected to be constructed on the company's land plot in Kaišiadorys district in the first quarter of 2026. The biomethane, an alternative to natural gas, is expected to be produced in the second quarter of 2026, and the project is planned to apply for EU funding.
"This planned investment aims to increase the Group's sustainability and profitability. The biomethane plant will allow for more sustainable management of large volumes of bio-waste and reduce environmental pollution. CO2 emissions will be reduced by around 29 thousand tons annually, and methane emissions will diminish. We estimate that the biomethane plant will generate an annual EBITDA (operating profit before depreciation, amortization, and impairment of fixed assets) of EUR 4.3 million and pay for itself in 7 years and 4 months. We plan to implement the project largely with borrowed funds, with a planned borrowing amount of around EUR 14 million," says Mažvydas Šileika, CFO of AB Akola Group. The planned biomethane plant will have four biogas reactors and will be able to produce up to 1,000 cubic meters of biomethane per hour. Biomethane will be produced using chicken, cow manure and slurry, as well as other biodegradable waste, with 120-140 thousand tons of biowaste to be processed annually. A part of the raw materials for the future plant, around 20 thousand tons per year, is planned to be purchased from farmers, thus contributing to their economic growth and reducing environmental pollution. The production in the future plant will be certified according to ISCC or RedCert international standards. "Natural gas consumption is very high in poultry farming because birds need stable heat to grow, so farms are heated with gas. Biomethane could replace natural gas in many cases. As our farming companies generate a lot of organic waste, we are already implementing a project to construct one biomethane plant in Lithuania. However, the biogas plant that will start operating in the village of Plyniai in Šakiai district at the end of 2025 will only be able to process a part of the organic waste generated by dairy and poultry farms - every year, 120 thousand tons of waste would still be left unprocessed in the poultry farms and farming companies of AB Akola Group in Lithuania and would be accumulated. The biomethane plant in Kaišiadorys would avoid the problems caused by the accumulation of bio-waste and, at the same time, reduce the use of fossil fuels, producing almost 85 GWh (gigawatt hours) of renewable energy, biomethane, annually. We expect to have virtually no unprocessed organic waste within our Group after. Moreover, the production process will annually generate more than 285 thousand tons of digestate, a potential substitute for mineral nitrogen fertilizer. Once both power plants are operational, we will save up to 42 thousand tons of CO2 annually, which is already a significant environmental achievement," says Andrius Pranckevičius, Deputy CEO of the AB Akola Group, responsible for food production and farming businesses within the Group.
About AB Akola Group AB Akola Group owns the largest agricultural and food production group in the Baltics, employing 4.9 thousand people. The group operates along the entire food production chain from farm to fork, producing, preparing, and marketing agricultural and food products, as well as supplying goods and services to farmers. The Group's financial year starts in July and its revenue for the last financial year was almost EUR 2 billion. More information:
Mažvydas Šileika, CFO of AB Akola Group
Mob. +370 619 19 403
E-mail m.sileika@akolagroup.lt
|
