New investor will manufacture biofuel, wood vinegar and biochar products

Lithuanian furniture manufacturer Porinda plans to develop an 8.27 million EUR pilot project for a biofuel pellet and high value-added agricultural products factory in Akmenė Free Economic Zone (FEZ) by the end of 2027.

EU funding has been approved for a part of the project amounting to 6.43 million EUR, while the remaining amount will be invested by the company itself. Upon completion of the project, 40 new sustainable jobs are expected to be created, with employee training and retraining programs also planned.

Porinda itself is a wood furniture manufacturing company that has been operating since 2020, creating chairs, armchairs and other high-quality products from natural materials and exporting to Germany, Denmark and other European markets.

To expand its business directions and utilize the by-products of wood processing more effectively, the company decided to invest in secondary biomass processing activities. After conducting a feasibility study, the decision was made to invest in a modern technological production line that would transform wood chips, shavings, and sawdust into high value-added products beneficial to the environment and commercial activities.

To successfully implement this project, Porinda applied for funding under the measure by the Ministry of Economy and Innovation of  Lithuania. With the application positively evaluated and funding approved, Porinda is moving forward with the next steps of project implementation.

According to Artūras Juciūnas, Porinda’s Head of Technology and Development, the decision to develop such a project in Akmenė FEZ was due to the already successful business community and potential synergy with it.

“We also chose Akmenė FEZ due to favorable conditions for business development. While searching for a suitable place for investment, we could not find a municipality better ensuring the accessibility of infrastructure needed for project development. The chosen plot for the project perfectly meets the business expansion needs with its designation, size, and location, and the nearby road and utility infrastructure ensure convenient conditions for project development and organization. We hope that Akmenė FEZ will become our new home, where we can continue expanding the company after the project is completed,” comments A. Juciūnas.

During the project implementation, a 1,140 sq. m building complex is planned to be constructed and equipped, creating jobs and training and employing 40 specialists. The complex will include production, storage, and administrative facilities. The production facility will feature modern technological equipment that will process wood biomass into high calorific value biofuel pellets, wood vinegar, and biochar products for agriculture, as well as green heat and electricity.

Small amounts of wood vinegar and biochar produced during manufacturing will be used to create environmentally safe products that improve soil and promote plant growth. The project aims to install equipment and technologies that meet the highest EU quality and sustainability standards. The production processes will generate no waste, with all technological operations conducted in enclosed, isolated environments with low-volume continuous operation equipment, ensuring effective control over production processes, safety, and cleanliness.

Porinda plans to begin active project design work in 2025, with construction expected to be fully completed by the end of 2027. The project in the initial phase is considered a pilot, and if the activities prove successful, Porinda would consider expanding the scale in the future.

Lina Mockutė, the CEO of Akmenė FEZ, remarked that Porinda’s investment will not only strengthen the portfolio of renewable materials and circular economy initiatives within the existing business community but also create new collaboration opportunities among companies.

“There are already several companies in our area involved in wood processing and recycling, so I am confident that the new investor will not face a shortage of raw materials, which can be transformed into sustainable, high-value new products,” said Mockutė.