AB Akola Group, an investment company that owns one of the largest agricultural and food production groups in the Baltic States, has temporarily postponed the construction of a biomethane gas production plant in the Kaišiadorys district through its indirectly controlled company AB Kaišiadorių paukštynas. This investment project remains part of AB Akola Group's long-term development plans.
"The future investment in a biomethane power plant is our strategic response to three key challenges: rising energy costs in poultry farming, excess biological waste, and our responsibility to reduce our negative impact on the climate. In the future, the project will enable the processing of up to 140,000 tons of organic waste per year, generate 85 GWh of renewable energy, and reduce CO2 emissions by up to 29,000 tons per year. In terms of financial return, we estimate that the power plant will pay for itself in less than 7.5 years," says Mažvydas Šileika, CFO and member of the Board of AB Akola Group.
"The project in Kaišiadorys remains one of our priorities, as biomethane production is an important step in reducing our group's carbon footprint and increasing energy independence. The postponement allows us to ensure that all processes are carried out efficiently and effectively," says Andrius Pranckevičius, Deputy CEO of AB Akola Group, responsible for the group's food production and farming businesses.
AB Akola Group is currently focusing on the construction of a biofuel plant in Lukšiai, Šakiai district, which is the first project of this scale for the group. Once this project has been successfully completed, the group plans to make further investments to increase sustainability and profitability.
Despite the postponement of the construction of the biogas plant, Kaišiadorių paukštynas continues to implement sustainable organic waste management solutions. Currently, most of the poultry manure that the company planned to process at the Kaišiadorys biogas plant is transferred to farmers, and in the future, part of this organic waste will be directed to the newly built Lukšiai biogas plant. This allows for more efficient use of organic waste and compliance with sustainable business principles without waiting for the local facility to start operating.
The project in Kaišiadorys was planned to receive €19.4 million in investments, and an application for European Union funding was submitted for its implementation. The project is currently on hold, and the possibility of applying for EU funding will be considered later, once a decision has been made to resume the project.
About AB Akola group
AB Akola Group owns the largest group of agricultural and food production companies in the Baltic States, employing over 5 thousand people. The Group operates along the entire food production chain from field to fork, producing, preparing, and marketing agricultural and food products, and providing goods and services to farmers. The Group's financial year begins in July, and the consolidated revenue of the companies it controls (the Group) for the 9 months of the 2024/2025 financial year exceeded EUR 1,165 million, representing a 3.59% increase compared to the same period of the previous year.
For more information:
Mažvydas Šileika, Chief Financial Officer of AB Akola group
Mob. +370 619 19 403
E. p. m.sileika@akolagroup.lt
