Akola Group delays construction of biomethane plant in Lithuania

Baltic agricultural and food production giant AB Akola Group has announced it is temporarily postponing construction of a planned biomethane plant in Lithuania’s Kaišiadorys district, while reaffirming the project’s importance to its long-term sustainability strategy.

The €19.4 million project, led by its subsidiary AB Kaišiadorių paukštynas, was designed to process up to 140,000 tonnes of organic waste annually, producing 85 GWh of renewable biomethane and cutting carbon dioxide emissions by an estimated 29,000 tonnes per year.

Akola said the delay would allow it to ensure 'efficient and effective' implementation of the plant, which remains a priority for the group.

“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,” said Mažvydas Šileika, CFO and board member of AB Akola Group.

Andrius Pranckevičius, deputy CEO responsible for food and farming operations, added: “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.”

In the meantime, the group is focusing on completing a separate biofuel plant in Lukšiai, Šakiai district — its first project of this scale.

Once operational, some of the poultry manure originally destined for the Kaišiadorys facility will instead be sent to the Lukšiai plant, enabling more efficient use of organic waste and supporting the group’s sustainability principles.

Currently, most of the manure generated by Kaišiadorių paukštynas is distributed to farmers for use as fertiliser.

An application for European Union funding for the Kaišiadorys project has already been submitted, and the company said it would revisit the funding opportunity when a decision is made to resume construction.

Despite the pause, Akola underlined its commitment to investing in renewable energy and sustainable waste management, viewing the Kaišiadorys plant as a key part of its long-term plans to increase both profitability and environmental performance.