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 Kestutis Jušcius, the Chair of the Board of AUGA group, AB.

According to Kestutis Jušcius, 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. Jušcius says.

Contacts:
CEO of AUGA group, AB
Elina Chodzkaite-Barauskiene
+370 5 233 5340