Akola Group unit to build €19.4mn biomethane plant in Lithuania

Kaisiadoriu Paukstynas, an indirect subsidiary of Lithuania’s Akola Group, plans to construct a biomethane production plant for €19.4mn ($21mn), Akola Group announced on July 25. The plant is expected to be built on the company's plot in the Kaisiadorys district in central Lithuania, with construction set to begin in the first quarter of 2026. Biomethane production is anticipated to start in the second quarter of 2026, and the project will apply for EU funding.

Mazvydas Sileika, CFO of AB Akola Group, stated that the biomethane plant is projected to generate an annual EBITDA (operating profit before depreciation, amortisation, and impairment of fixed assets) of €4.3mn and pay for itself in about seven and a half months. “We plan to implement the project largely with borrowed funds, with a planned borrowing amount of around €14mn," Sileika said.

The planned biomethane plant will have four biogas reactors and will be able to produce up to 1,000 m³/hour of biomethane. Biomethane will be produced using chicken, cow manure and slurry, as well as other biodegradable waste, with 120,000 to 140,000 tonnes/year of biowaste to be processed.

A portion of the raw materials for the future plant, around 20,000 tonnes/year, is planned to be purchased from farmers, contributing to their economic growth and reducing environmental pollution, the company said. The production in the future plant will be certified according to ISCC or RedCert international standards.