Blog
18th July 2025
Image Source: Akola Group
In a move grounded in long-term vision and operational pragmatism, Akola Group, one of the largest agricultural and food production investment companies in the Baltic States, has temporarily postponed the construction of its biomethane gas production plant in the Kaišiadorys district of Lithuania.
While the decision may appear cautious at first glance, it reflects a strategic and measured approach to ensuring the project's success amid evolving market conditions and ongoing large-scale investments elsewhere in the group's renewable energy portfolio.
Despite the temporary hold, the Kaišiadorys biomethane plant remains firmly integrated into Akola Group’s future development roadmap. The facility, to be implemented through AB Kaišiadorių paukštynas, is expected to play a critical role in the company’s green transition.
“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,”
says Mažvydas Šileika, CFO and Board Member of AB Akola Group.
Once operational, the plant is projected to:
Process up to 140,000 tons of organic waste annually
Generate approximately 85 GWh of renewable energy
Reduce CO₂ emissions by up to 29,000 tons per year
Achieve payback in less than 7.5 years
The group emphasized that the postponement is not a cancellation, but rather a step to ensure operational readiness and financial optimization.
“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,”
stated Andrius Pranckevičius, Deputy CEO of Akola Group.
“The postponement allows us to ensure that all processes are carried out efficiently and effectively.”
Akola Group continues to explore European Union funding options, with €19.4 million earmarked for the project. The decision to reapply for EU co-financing will be revisited when the project is ready to resume.
As attention temporarily shifts from Kaišiadorys, Akola Group is progressing with the construction of a biofuel plant in Lukšiai, Šakiai district—a landmark project that sets the tone for the company’s broader clean energy initiatives.
This facility is expected to be a proof point for the company’s ability to scale green infrastructure and will directly influence how and when the Kaišiadorys project is brought back online.
Even during the project pause, Kaišiadorių paukštynas continues to implement responsible organic waste management practices. Currently, most of the poultry manure intended for the Kaišiadorys plant is transferred to farmers for agricultural use. In the future, a portion of this organic waste will be processed at the Lukšiai facility, ensuring that sustainability objectives are maintained without delay.
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