JSC Balticovo to invest up to EUR 10 million in biomethane and liquefied carbon dioxide plant

On Thursday, June 29, JSC Balticovo in its territory in Iecava will lay a cornerstone for a plant where biogas will be turned into biomethane, thus, strengthening the country’s energy independence and implementing principles of circular economy in the company, Balticovo board chairman Vladimirs Mhitarjans informed.

Investments in design, construction and equipment of the plant will reach about EUR 8 million. The plant is scheduled to launch operations in November. The plant has been designed and now is being built by Latvian JSC Siltumelektroprojekts.

So far, Balticovo has invested about EUR 12 million in wastewater treatment equipment and plant SIA Egg Energy, processing chicken manure and generating biogas.

“We use biogas for generation of power and heating. Electricity is sold by our subsidiary to electricity traders on the bourse and some of it is used for our own consumption. The generated heating is used for technological processes in producing biogas and production of high-quality granulated organic fertilizers,” the Balticovo board chairman said.

Biomethane plant is the next step as it is produced by refining and separating biogas. “Biomethane is a 100% alternative for natural gas, and it is an absolutely renewable resource that we plan to sell to natural gas traders in Europe. It will be the first project in the Baltics of such a scale, we plan to generate up to 100 GWh of biomethane a year,” said Mhitarjans.

Agriculture Minister Didzis Smits commended the company’s development. “JSC Balticovo always has had high ambitions and huge plans, constantly developing and improving its manufacturing. Development of an efficient, modern and self-sufficient biomethane plant in Latvia combines care for climate, use of environmentally friendly energy, ensuring alternative heating and power sources, at the same time, increasing energy efficiency and preventing release of harmful emissions into the atmosphere, as well as creating higher technological awareness of energy efficient agricultural policy which includes considerable additional options in development of different auxiliary plants. Refining of biogas to clean biomethane opens additional opportunities to get involved in generating renewable energy resources, reducing emissions of methane and ammonium, which are significant sources of harmful emissions in Latvia. Good luck!” said Smits.

A byproduct in refining biogas is liquefied carbolic acid (CO2), used, for example, in fire extinguishers, production of carbonated beverages and other places, and which Latvia’s largest egg producer plans to sell. The company also plans to sell green energy source certificates.

The company believes that this is the way to apply sustainability and circular economy in real life. First, producers are using maximum of the available resources, processing and using them repeatedly. This helps to cut production costs and the prime cost of the products, which in turn, makes the products more affordable to the buyers. Second, by generating biomethane, the country’s energy independence is strengthened, and, third, using competence of local entrepreneurs, the supply chains are shortened and investments are made in Latvia’s national economy.

“Eggs are one of the most affordable protein sources, and they contain many vital and valuable nutrients. Therefore, we feel especially responsible to take care so that we have such a range of products and such prices that eggs as a food product are affordable for a broad range of buyers,” Mhitarjans concluded.

Along with the plant project, since 2020, JSC Balticovo has started a way towards freer life for laying hens – by 2027 the company will make a complete transition to keeping poultry cage free. So far, more than EUR 40 million have been invested in development of the new infrastructure.

JSC Balticovo

Balticovo is a 100% Latvian capital company and has been working since 1972. Balticovo is the largest egg and egg products manufacturer in northern Europe, producing more than 900 million eggs a year. In 2022, Balticovo generated EUR 101.8 million in turnover, up 63% from a year ago. About 70% of its output is exported to more than 20 countries.