AUGA group starts production and sale of biomethane as new commercial activity
March 12 2024 - 10:17AM
UK Regulatory
AUGA group starts production and sale of biomethane as new
commercial activity
On 12 March 2024, AUGA group, AB and its
subsidiaries (hereinafter – the Group), which develop sustainable
agricultural technologies and solutions, commenced the supply of
biomethane gas through the natural gas system operated by the gas
transmission system operator Amber Grid, AB. This green gas
produced in Lithuania will be sold on the German market, which has
the most developed biomethane infrastructure in Europe.
The project capacities of 3 biogas power plants allow for
the generation of 61 thousand megawatt hours of
gas per year.
The group of companies sells biomethane gas to
the company Tube Green, UAB. The gas is transmitted into the
natural gas system using the company's gas intake point. This
opportunity to supply biomethane gas to the natural gas system via
a remote intake point not directly connected to the gas production
facility only emerged at the end of 2023.
’’Although we have been able to start producing
biomethane gas for some time, laws of the Republic of Lithuania did
not envisage the supply of such gas through an intake point
separate from the production facility. We are pleased that, as the
result of long and steady work, we and other biomethane gas
producers in the country now have the opportunity to produce green
gas in regions where sufficient raw material demand can be ensured,
and the gas that is produced can later be successfully sold on the
local or international market,” says Kęstutis Juščius, the Chair of
the Board of AUGA group, AB.
According to Kęstutis Juščius, sustainable
technologies and products, like the production of biomethane from
agricultural secondary raw materials, while requiring investments,
can be successfully commercialized today and will ensure a new
stable source of income for the group of companies. Additionally,
biomethane is one of the most advanced types of renewable energy
and is an integral part of the circular economy business model that
Group is developing. In the future, this gas will be used in the
AUGA M1 tractors developed by the group of companies.
The Group produces biomethane from secondary raw
materials of livestock farming activities, namely cow slurry and
chicken manure. According to the Directive of the European
Parliament and of the Council on the promotion of the use of energy
from renewable sources, the use of biomethane as an alternative to
fossil fuels in the transport sector saves between 70% and 206% of
greenhouse gas emissions from the production, transmission and use
of the fuel. Thus, when agricultural secondary raw materials are
utilized effectively, the energy accumulated in them is not wasted
but returned to the market in a more universal form, at the same
time generating additional income.
The production and use of biomethane in varied
sectors will contribute significantly to the energy independence of
the European Union as a whole. Under RePowerEU plan approved by the
European Commission, the aim is to increase biomethane production
in the EU to 35 billion cubic meters by 2030.
Potential demand for biomethane in Lithuania is
boosted by the Alternative Fuels Law of the Republic of Lithuania,
approved in 2021, which stipulates that by 2030 there should be at
least a 15% share of energy from renewable sources in the country’s
transport sector. Note that emissions from agricultural vehicles
(tractors) are attributed to the transport sector.
‘‘Biomethane can be used in a variety of
sectors, like agriculture, transport, and industry. We see
successful examples of its use in European countries. In Sweden,
for instance, biomethane is primarily used instead of fossil fuels
for cars and buses, while in Italy, it is used for heating and
cooling. The biomethane map of the European Union produced by the
European Biofuels Association and Gas Infrastructure Europe shows
that the number of biomethane plants in the EU has increased by
almost 30% from 2021 to April 2023, which is a clear sign that
demand for biomethane gas is growing significantly,” K. Juščius
says.
Contacts:
CEO of AUGA group, AB
Elina Chodzkaitė-Barauskienė
+370 5 233 5340
Auga Group Ab (LSE:0IR4)
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