AB Kaišiadoriu Paukštynas Aims to Construct a Biomethane plant for EUR 19.4 Million

AB Kaišiadoriu Paukštynas, a subsidiary of AB Akola Group, is embarking on a €19.4 million project to construct a biomethane production facility on its Kaišiadorys land. Slated for completion in Q1 2026, the plant is anticipated to commence operations in the following quarter, generating biomethane as a sustainable alternative to traditional natural gas. The company is actively pursuing EU funding to support this strategic initiative, which aligns with broader sustainability goals and positions the group as a leader in renewable energy production.

The planned biomethane plant will consist of four biogas reactors, designed to produce up to 1,000 cubic meters of biomethane per hour. It will process between 120,000 and 140,000 tons of biowaste annually, including chicken and cow manure, slurry, and other biodegradable waste. To support local agriculture, around 20,000 tons of raw materials will be purchased from farmers each year, fostering economic growth and reducing environmental pollution. The plant’s biomethane production will meet rigorous sustainability standards, being certified by ISCC or RedCert, which underscores the commitment to environmentally-friendly and sustainable practices in renewable energy generation.

Mažvydas Šileika, CFO of AB Akola Group, elaborated on their strategic investment in a new biomethane plant, which represents a significant step towards enhancing the company’s sustainability and financial performance. The biomethane facility is expected to provide a more sustainable approach to managing large volumes of bio-waste, leading to a substantial reduction in environmental pollution. Specifically, the plant is projected to cut CO2 emissions by around 29,000 tons annually, and significantly lower methane emissions. Financially, the project is anticipated to generate an annual EBITDA (operating profit before depreciation, amortization, and impairment of fixed assets) of EUR 4.3 million. This promising return is expected to result in the project paying for itself in approximately 7 years and 4 months. To fund this initiative, AB Akola Group plans to leverage borrowed funds, with a planned borrowing amount of around EUR 14 million, thus strategically balancing investment with financing.

Andrius Pranckevicius, Deputy CEO of AB Akola Group, outlined the company's ambitious plan to integrate biomethane into their operations as a sustainable alternative to natural gas, which is heavily used in poultry farming due to its need for stable heat. While a biomethane plant in Plyniai, Lithuania, is set to process a portion of the organic waste by the end of 2025, there will still be a significant amount—120 thousand tons annually—left unprocessed. To address this, the company is planning another biomethane plant in Kaišiadorys. This facility will help manage the excess bio-waste, reduce fossil fuel use, and produce nearly 85 GWh of renewable energy and biomethane each year. The initiative aims to eliminate unprocessed waste within the Group, generate over 285 thousand tons of digestate as a mineral fertilizer substitute, and save up to 42 thousand tons of CO2 annually, marking a substantial environmental benefit.