AB Akola Group announces $22 mn biomethane project

AB Akola Group, the largest agricultural and food production conglomerate in the Baltics, plans to invest €19.4 million (approximately $21.5 million) in a new biomethane production plant through its subsidiary AB Kaišiadorių Paukštynas (Lithuania). Set for construction in the Kaišiadorys district, the plant is expected to begin operations in the second quarter of 2026, with EU funding applications underway.

The plant will process significant volumes of bio-waste, reducing environmental pollution and CO2 emissions by approximately 29,000 tons annually. Methane emissions will also see a reduction. The project is anticipated to generate an annual EBITDA of €4.3 million (approximately $4.8 million), with a payback period of just over seven years.

The facility will house four biogas reactors, capable of producing up to 1,000 cubic meters of biomethane per hour. The plant will process 120,000 to 140,000 tons of biowaste annually, sourced from chicken, cow manure, slurry, and other biodegradable materials. Around 20,000 tons of raw materials will be purchased from local farmers, promoting economic growth and environmental sustainability. The biomethane production will adhere to ISCC or RedCert international standards.

The Group is already constructing a biomethane plant in Plyniai, Šakiai district, slated to begin operations by the end of 2025. The new Kaišiadorys plant will further mitigate bio-waste accumulation, producing nearly 85 GWh of renewable energy annually. Additionally, it will generate over 285,000 tons of digestate, a potential substitute for mineral nitrogen fertilizer. Combined, these plants will save up to 42,000 tons of CO2 emissions annually.