Construction of the new Mestilla plant officially began in Klaipėda free zone

On Friday, an official start was given to the €60 million investment by the biodiesel producer Mestilla in the Klaipėda free economic zone (FEZ). The company started developing a new rapeseed processing plant, as well as an advanced biofuel technology within its current manufacturing infrastructure. With the completion of these projects by the end of 2025, Mestilla will become a significant competitor to major European companies and address the issue of residual odor.

Mestilla has begun constructing an entirely new rapeseed processing plant adjacent to its current infrastructure on Kretainio street in Klaipėda. Upon the completion of this €50 million project, the company’s rapeseed processing capacity will increase to 500,000 tons per year, biodiesel production will rise to 200,000 tons, and rapeseed protein additive production will reach 300,000 tons annually. These capacities will be 2-3 times greater than the current plant allows, enabling the company to compete more robustly with the largest biodiesel market players in Northern and Western Europe due to efficient technologies and economy of scale.

The current production lines, operating for almost two decades, will undergo substantial modernization to facilitate the processing of used cooking oil (UCO) and the production of advanced biofuels. This €10 million project will enable the extraction of 20,000-30,000 tons of advanced biofuels from used oil, which will be blended with conventional biodiesel.

The expansion of Mestilla will include various proven and new odor management technologies, such as two new 70-meter-high chimneys. These are expected to significantly improve odor dispersion and minimize its impact on the residential environment. Although Mestilla had already exceeded official odor standards, the new development phase aims to definitively resolve this issue.

During the capsule-laying ceremony for future generations, Mestilla’s CEO Arūnas Zubas stated that this step strengthens Lithuania’s strategic energy and environmental goals, the agricultural sector and the overall economy.

“Over our operational period, the amount of rapeseed grown in Lithuania has increased 4-5 times, and purchase prices have risen 2-3 times. Today, every car tank contains 7-10% of renewable Lithuanian energy, providing work for thousands of farmers, replacing imported raw materials, and keeping money in Lithuania. I am pleased that our business goals align with the country’s most important interests, and Klaipėda residents will soon be able to take pride in another strategic energy independence project,” said Zubas.

“It is gratifying that more and more industrial companies are turning to environmentally sustainable technologies and implementing them in production. These investments are no exception, and I hope many Klaipėda city and district residents will feel their impact. What delights me the most is that Mestilla’s multimillion-euro investments, including the construction of two 70-meter chimneys and technological changes, will reduce odor dispersion, and I believe that upon project completion, we will receive fewer complaints about the ‘pancake’ smell. This is a good example for all companies that take residents’ concerns into account, create added value for the city and invest in sustainable technologies,” said Klaipėda mayor Arvydas Vaitkus.

“Other responsible businesses in our country could learn from Mestilla’s ideas of sustainability and environmental friendliness. The problem of disposing of used oil will be solved, and we will have more eco-friendly fuels such as biodiesel. This plant is an excellent example of a circular economy, and the biodiesel it will produce in the future will help Lithuania strengthen its energy independence. I wish this company great and beautiful ideas. And I wish everyone to create sustainable businesses and the prosperity of Lithuania,” said the Environment Minister Simonas Gentvilas.

And according to Agriculture Minister Kęstutis Navickas, this plant is an excellent example of a bioeconomy, where high value-added products such as biodiesel and protein additives are made from raw materials grown by farmers.

“It is very important that the added value remains in Lithuania. The processing of used oil into second-generation fuel is particularly relevant – it’s a great example of circularity. All this will gradually allow us to move away from fossil fuels. We hope that the biofuels produced in this plant will be used in Lithuania,” said Minister Navickas.

The technologies of global leaders in their fields – Desmet, Cimbria and Alfa Laval – will be implemented in the Mestilla plant. The project is carried out in collaboration with companies such as Eika Development, Sweco, Budrių Statyba, Fern Group, Dotnuva Baltic, Vilniaus Rentinys, Daimena and Pajūrio Šaltinis. Swedbank is the financial partner of the project, and the logistics partner is Vakarų Krova – a subsidiary of BLRT Grupp.

100% of Mestilla shares belong to the shareholders of Akola Group (formerly Linas Agro Group), the largest agricultural and food production group in the Baltics. The company has been operating in the Klaipėda FEZ since 2005, and during 2005-2007 it developed the current €45 million plant, which was one of the largest greenfield investments in renewable energy in Lithuania at the time.

In 2023, Mestilla’s revenue exceeded €200 million. The company sells its products in Lithuania and the Baltic region, as well as in Scandinavia, Western Europe, and other countries. The company employs about 60 people.

Construction of the new Mestilla plant officially began in Klaipėda free zone

On Friday, an official start was given to the €60 million investment by the biodiesel producer Mestilla in the Klaipėda free economic zone (FEZ). The company started developing a new rapeseed processing plant, as well as an advanced biofuel technology within its current manufacturing infrastructure. With the completion of these projects by the end of 2025, Mestilla will become a significant competitor to major European companies and address the issue of residual odor.

Mestilla has begun constructing an entirely new rapeseed processing plant adjacent to its current infrastructure on Kretainio street in Klaipėda. Upon the completion of this €50 million project, the company’s rapeseed processing capacity will increase to 500,000 tons per year, biodiesel production will rise to 200,000 tons, and rapeseed protein additive production will reach 300,000 tons annually. These capacities will be 2-3 times greater than the current plant allows, enabling the company to compete more robustly with the largest biodiesel market players in Northern and Western Europe due to efficient technologies and economy of scale.

The current production lines, operating for almost two decades, will undergo substantial modernization to facilitate the processing of used cooking oil (UCO) and the production of advanced biofuels. This €10 million project will enable the extraction of 20,000-30,000 tons of advanced biofuels from used oil, which will be blended with conventional biodiesel.

The expansion of Mestilla will include various proven and new odor management technologies, such as two new 70-meter-high chimneys. These are expected to significantly improve odor dispersion and minimize its impact on the residential environment. Although Mestilla had already exceeded official odor standards, the new development phase aims to definitively resolve this issue.

During the capsule-laying ceremony for future generations, Mestilla’s CEO Arūnas Zubas stated that this step strengthens Lithuania’s strategic energy and environmental goals, the agricultural sector and the overall economy.

“Over our operational period, the amount of rapeseed grown in Lithuania has increased 4-5 times, and purchase prices have risen 2-3 times. Today, every car tank contains 7-10% of renewable Lithuanian energy, providing work for thousands of farmers, replacing imported raw materials, and keeping money in Lithuania. I am pleased that our business goals align with the country’s most important interests, and Klaipėda residents will soon be able to take pride in another strategic energy independence project,” said Zubas.

“It is gratifying that more and more industrial companies are turning to environmentally sustainable technologies and implementing them in production. These investments are no exception, and I hope many Klaipėda city and district residents will feel their impact. What delights me the most is that Mestilla’s multimillion-euro investments, including the construction of two 70-meter chimneys and technological changes, will reduce odor dispersion, and I believe that upon project completion, we will receive fewer complaints about the ‘pancake’ smell. This is a good example for all companies that take residents’ concerns into account, create added value for the city and invest in sustainable technologies,” said Klaipėda mayor Arvydas Vaitkus.

“Other responsible businesses in our country could learn from Mestilla’s ideas of sustainability and environmental friendliness. The problem of disposing of used oil will be solved, and we will have more eco-friendly fuels such as biodiesel. This plant is an excellent example of a circular economy, and the biodiesel it will produce in the future will help Lithuania strengthen its energy independence. I wish this company great and beautiful ideas. And I wish everyone to create sustainable businesses and the prosperity of Lithuania,” said the Environment Minister Simonas Gentvilas.

And according to Agriculture Minister Kęstutis Navickas, this plant is an excellent example of a bioeconomy, where high value-added products such as biodiesel and protein additives are made from raw materials grown by farmers.

“It is very important that the added value remains in Lithuania. The processing of used oil into second-generation fuel is particularly relevant – it’s a great example of circularity. All this will gradually allow us to move away from fossil fuels. We hope that the biofuels produced in this plant will be used in Lithuania,” said Minister Navickas.

The technologies of global leaders in their fields – Desmet, Cimbria and Alfa Laval – will be implemented in the Mestilla plant. The project is carried out in collaboration with companies such as Eika Development, Sweco, Budrių Statyba, Fern Group, Dotnuva Baltic, Vilniaus Rentinys, Daimena and Pajūrio Šaltinis. Swedbank is the financial partner of the project, and the logistics partner is Vakarų Krova – a subsidiary of BLRT Grupp.

100% of Mestilla shares belong to the shareholders of Akola Group (formerly Linas Agro Group), the largest agricultural and food production group in the Baltics. The company has been operating in the Klaipėda FEZ since 2005, and during 2005-2007 it developed the current €45 million plant, which was one of the largest greenfield investments in renewable energy in Lithuania at the time.

In 2023, Mestilla’s revenue exceeded €200 million. The company sells its products in Lithuania and the Baltic region, as well as in Scandinavia, Western Europe, and other countries. The company employs about 60 people.