As we overcome challenges, we discover new opportunities and real value.
Thank you for being with us this year – together, we can create a more sustainable, resilient, and innovative world.
This year’s challenges have helped us grow – the walls of our new modern factory are already rising. Even the flies we rear have shown resilience, which is why Musca domestica symbolically features on our holiday card.
We wish you a joyful Christmas, and may 2026 bring fresh ideas, bold decisions, and even more meaningful innovations.
As suddenly as they began, they ended. For several months now, there have been no fires at waste management facilities. Yet in spring and summer, waste sites were going up in flames several times a week. Have residents stopped throwing away lithium batteries? No – we still find them among waste every day.
“I believe that at the time we were experiencing yet another hybrid attack, but the question is whether we dare to admit this to ourselves,” says Algirdas Blazgys, CEO of our company, in an opinion article published on the news portal Delfi.
This year alone, at least twenty-three fires broke out at waste sorting and recycling facilities. Almost all of them occurred within just a few months, between late April and June. This had never happened before.
We often hear that lithium-ion batteries caused these fires. Yes, some fires are indeed caused by overheating or damaged batteries.
But certainly not all of them. We still find batteries among waste every day, yet the fires have stopped. Apartment fires caused by scooter batteries have not increased this year either – if batteries were the cause, they would be burning everywhere, not only at waste collection sites.
Throwing an explosive mixture or device into a waste container is an extremely easy task for hostile forces. Calculating exactly when it should ignite or explode is somewhat more complicated. That is precisely why we saw not only factories burning, but also garbage trucks and waste containers.
Identifying the person who disposed of such a device is practically impossible.
We must dare to admit to ourselves that in spring and summer, we experienced yet another hybrid attack. By failing to name our enemies and the real threats we face, we make ourselves even more vulnerable.
It is only a matter of time before the next attack occurs – the only question is where and when.
We invite you to read the full opinion article on the portal.
We are pleased to establish a productive partnership with Kaunas University of Applied Sciences (Kauno kolegija). Since early September, three student groups have been conducting analyses, surveys, and applying various methodologies to provide insights on enhancing our corporate image.
“Transparency and an innovative approach to waste management are central to our operations. We continuously seek new ways to recycle waste that generate greater added value. Likewise, we embrace innovation in communications and marketing – this is the mindset that guides all our activities,” says Algirdas Blazgys, CEO of our company.
We want to thank the students for their valuable contributions, as well as lecturers Ligita Zailskaitė, Ieva Kniukštienė, and Jūratė Maščinskienė, and the leadership of the Faculty of Business for providing the opportunity to present our challenge for student research.
It was encouraging to see that many surveyed residents in the Vilnius region are familiar with our brand, with a significant number already associating it with innovation in waste management.
We also received a recommendation to strengthen our social media presence. We welcome your feedback – what topics would you like to see covered in our updates?
This spring, when operations at our managed plant were temporarily suspended, waste flows were redistributed. This gave us a real-life test of our waste system’s crisis resilience and revealed what needs to be strengthened.
“It’s clear that right now we have a unique opportunity to create new, modern MBT facilities that would ensure more efficient sorting – it would be a shame not to use this opportunity. State support is crucial, as it will create value for the entire waste management system,” said Algirdas Blazgys, our company’s CEO, at the 22nd Druskininkai Forum “Waste Management 2025”.
It is also important to prepare for future crises – it’s only a matter of time before they happen again. To be ready, we need:
A national emergency MBT capacity reserve equipped with modular lines, screens, presses, and other mobile units.
Pre-agreed interregional arrangements for alternative (“detour”) routes and gate fees in case of stress situations.
Data from this spring and summer show that if we are not prepared, we will again face situations where:
Only partially sorted waste is sent for incineration – out of 10,310 tons received, 9,310 tons were burned.
Industrial SRF demand cannot be met – this summer, production was reduced tenfold.
A portion of waste remains untreated – around 18,500 tons were landfilled, left at waste operators’ sites, or otherwise unmanaged.
Thank you for the discussions – it was a pleasure to meet and talk about current market issues. Only through dialogue can we find the solutions our waste management system urgently needs.
We have repaired and restarted one of the three stationary sorting lines inside the factory. This enables us to process mixed household waste more quickly. We also resumed the production of the SRF product, which is once again being delivered to the cement factory in Akmene.
Additionally, we have doubled the amount of waste supplied to the Vilnius Combined Heat and Power Plant, from an average of 300 to 700 tons per day.
Line inside the factory
“We have taken a major step forward – we repaired and relaunched our shredder and stationary sorting line. With this line, we already sort about one-third of the mixed waste, separating plastics, metal, glass, electronics, tires, and other waste. This has accelerated our work and normalized waste flows within the factory,” says Algirdas Blazgys, Director of Energesman.
Until now, waste had been sorted with two mobile sorting lines, and this work was carried out in the factory yard. Space there was limited, since the yard also had to be used for unloading incoming waste and storing sorted fractions.
“The big advantage of the stationary line is that it is located inside the factory – this expands the area where we can work,” Blazgys adds.
The repaired stationary sorting line and shredder had suffered relatively little damage. Company specialists replaced motors, rotary drum parts, conveyor belts, and gearboxes. A shelter for employees was built, lighting was installed, testing work was completed, and the line was launched for continuous operation.
From the waste sorted and shredded on this line, we mainly produce SRF, which is transported to the Akmene cement plant. After the technological process, the waste becomes part of cement and is further used in construction.
Last year, we produced more than 18,000 tons of this product – the largest volume among waste sorting companies in Lithuania.
Increased supply for incineration
Together with UAB VAATC and regional municipalities, an agreement was reached with the Vilnius Combined Heat and Power Plant to increase the amount of waste supplied for incineration from an average of 300 to 700 tons per day.
Energesman has a contract with the Vilnius Combined Heat and Power Plant to deliver 125,000 tons of sorted waste per year for incineration. However, the plant wants to receive most of this flow during the winter heating season, while in summer, the amount accepted is significantly reduced.
“The amount of waste generated by residents does not decrease in summer – people produce household waste all year round. Our area for storing waste until the power plant accepts it is currently limited, so it is important for us that the CHP plant does not reduce the volume of waste it receives from us,” says Blazgys.
Preparing for reconstruction
The stationary waste sorting line could only be repaired after all inspections had been completed and damaged building structures in that part of the factory had been dismantled.
An assessment of the damage to the factory has already been carried out. Company specialists, together with experts in construction, equipment, and other fields, calculated that the damage to sorting equipment amounts to about EUR 2 million, and about EUR 1 million to building structures.
Demolition work is still ongoing in unused parts of the factory. Once it is completed, reconstruction will begin. First, the factory building will be renovated – part of the roof, wall cladding, and supporting structures will be replaced. After that, new sorting equipment will be installed.
“We aim to restore modern and up-to-date equipment and further improve sorting efficiency so that we can create as much value as possible from waste. At the moment, we are visiting equipment manufacturers and other waste processors – we are learning from their experience with robotic solutions and intend to apply this knowledge in our factory,” Blazgys explains.
Recovering more than other regions
Last year, 219,000 tons of mixed and food waste were sorted at the Vilnius MBT plant operated by Energesman.
From this amount, the following materials were recovered and sent for recycling:
2,433 tons of plastic
3,142 tons of glass
2,168 tons of metals
1,568 tons of paper
“We are the leaders among other regions in terms of the amount of secondary raw materials recovered – and we believe that after rebuilding a more advanced plant, we will be able to improve these figures even further,” says Blazgys.
We had already developed and implemented a technological process to extract almost all the glass from waste, which was then used to produce bricks and blocks for house construction.
Every year, our efficient work helps households in the Vilnius region save money. By comparing the costs of our plant with other regional mixed waste sorting centres (MBA), we see a clear result: we save the region EUR 23.6 million annually – that’s about EUR 73.4 for every household.
How do we achieve these savings?
1
Gate fee
For a ton of mixed municipal waste we accept, we are paid the lowest price in all of Lithuania: we receive EUR 51.56 (plus VAT), compared to EUR 106 in Kaunas and EUR 104 in Klaipeda.
Saving EUR 10.6 million
2
Pollution fee for waste disposal in a landfill
We make maximum use of waste, so we send little of it to the landfill. Last year, we sent only 19.4% of waste (unsuitable and technical compost) to the landfill, while this indicator exceeds 50% in Lithuania as a whole.
Saving EUR 5.5 million
3
Incineration cost
For a ton of waste delivered for incineration, we have negotiated a lower rate with Vilnius Cogeneration Plant than that set by the State Energy Regulatory Council (VERT). We pay EUR 32.5 instead of EUR 48.8 per ton of waste.
Saving EUR 2.0 million
4
Food and kitchen waste management
We process residents’ food and kitchen waste free of charge using an innovative larvae technology installed at our own expense. In other regions, the process of this waste costs EUR 80 per ton.
Saving EUR 1.0 million
5
Food and kitchen waste transport
Since food and kitchen waste is delivered in orange bags together with mixed waste – no separate collection or transport is required.
Saving EUR 4.5 million
Total annual savings:
EUR 23.6 million
When we divide the saved amount by the 322,118 households in the Vilnius region, it equals EUR 73.4 saved per each household every year.
Without our efficient solutions, residents’ waste management bills would be that much higher.
We work to turn waste into value – and ensure every resident in the region feels the benefit!
Do you know where e-cigarettes should be disposed of? Definitely not in the mixed waste bin!
“A lot of vapes are being thrown away. The damage can be serious, because every e-cigarette has a lithium battery inside – a potential fire hazard,” said Algirdas Blazgys, our company’s CEO, in an interview with LNK News.
We often find batteries, e-cigarettes, and various electronic devices mixed in with waste – and recently, their numbers have increased even more.
Most likely, people are rushing to get rid of them after several fires broke out at waste management facilities. These incidents may have been caused by improperly discarded e-cigarettes or batteries, or by devices misused for sabotage.
So, where should you take e-cigarettes, batteries, and electronics?
Return them to the store where you purchased them.
Drop them in special electronics collection containers.
Bring them to bulky waste collection points.
Check where your nearest collection point is – many are located near large shopping centers or municipal buildings. You can learn more by reading the full article or watching the news report.
Thank you for helping us manage waste responsibly!
We will challenge in court the decision of the Chief Official Ethics Commission, which we believe is incorrect. We aim to prove that we did not violate the Lobbying Law when we brought the Ministry of Environment’s attention to what we think is a discriminatory and flawed legal regulation related to EU funding.
We contacted the ministry after noticing a clause in the funding guidelines that conflicts with EU project selection and funding criteria, basic legal principles, and higher-level laws.
“It’s strange that we are being punished for addressing the ministry that oversees our sector about an inconsistency in the funding rules. The rules discriminated against mixed waste operators and gave unfair advantages to companies handling plastic from sorting containers. We believe this goes against the law, equality principles, and fair competition,” says Algirdas Blazgys, CEO of Energesman.
Energesman raised concerns about the funding rules under the program “Expansion of Plastic Waste Recycling Capacity”, which allowed EU funding only for companies processing plastic waste collected from yellow recycling containers.
However, currently, residents separate only about half of their plastic packaging into these containers. The other half ends up in mixed municipal waste, which is later sorted at mixed waste sorting plants operating across Lithuania.
According to the CEO, if EU funding is aimed at boosting plastic recycling, then all companies involved in recycling, including those handling mixed waste, should be eligible for support.
Under the existing guidelines, Energesman and other operators of Mechanical Biological Treatment (MBT) plants would not be allowed to apply for funding.
“After seeing the discriminatory rule, we contacted the Ministry of Environment and the Central Project Management Agency, urging them to fix this legal flaw that excludes mixed waste operators,” says Blazgys.
The ministry responded that the funding was intended to support the recycling of hard-to-recycle plastic.
Blazgys noted that plastic sorted from mixed waste is actually more difficult to recycle than that collected from yellow containers, which makes it even more important to include mixed waste operators in the funding program.
“We know that other waste companies also contacted the ministry about the same issue, and they were not penalized for lobbying, even though they are not registered as lobbyists,” he adds.
The Lobbying Law states that expressing an opinion about legislation is not considered lobbying, unless a company drafts a specific law and proposes it for consideration.
“We did not prepare or propose any legal draft. We simply expressed our opinion about a discriminatory rule and requested that the responsible institutions ensure fair treatment. We believe we did nothing wrong and will challenge the commission’s decision in court,” says Blazgys.
Energesman believes the funding rules conflict with the Competition Law, Waste Management Law, the 2021–2027 National Waste Plan, and the Constitutional principle of equality, which all have higher legal authority than a minister’s order.
“We still haven’t received the full Commission’s decision and explanation, even though we’ve already been labelled as violators publicly. This doesn’t help build a cooperative relationship between businesses and regulators,” Blazgys notes.
Once Energesman receives the full documents, it will finalize its court appeal. The company has 30 days from receiving the decision to submit the appeal.
The Ministry of Environment has already suspended the current funding guidelines for plastic recycling and is now revising them.
Last year, Energesman recovered and supplied 2 481 tons of plastic for recycling from mixed waste.
The flies have moved into what’s being playfully called a “wellness retreat” – that’s how Energesman employees describe the new, temporary home of their houseflies. Following the fire at the Vilnius waste sorting facility, fly larvae bred on household kitchen waste have been relocated to the Chemical Ecology and Behaviour Laboratory (CHEEL) at the Nature Research Centre (NRC), part of the State Research Institute, where they will remain under the care of scientists until the facility’s infrastructure is restored. Fortunately, the colony of Musca domestica – specially imported from the Netherlands for organic waste processing – has been preserved.
This pioneering solution for managing kitchen waste in the Vilnius region recently attracted international attention: the BBC published a feature on this Lithuanian innovation, highlighting the use of fly larvae to process kitchen waste. You can read the full article here.
Favourable conditions for survival and research
“Shortly after the incident, we moved the flies and their larvae to the NRC CHEEL lab, where they have adapted well. Scientists are now ensuring they have suitable conditions to survive and thrive until we’re able to bring them back to the facility. This period also provides valuable opportunities for observation and research,” says Algirdas Blazgys, CEO of Energesman.
In the lab, scientists are carefully managing reproduction to avoid overpopulation. Cooler temperatures are used to slow the development of the pupae, or puparia, ensuring population stability rather than rapid growth.
“Most puparia – also called cocoons or ‘beans’ – are stored at lower-than-normal temperatures to slow down their development and preserve the existing population. The same applies to adult flies and larvae – we maintain a cooler environment to support a stable colony,” explains Gabriele Bumbulyte-Zukeviciene, PhD candidate at the NRC and a researcher working with the colony.
Currently, puparia are kept at 6°C, while adult flies and larvae are maintained at 18°C. Once the larvae reach the puparia stage, they are moved to cooler conditions to further slow development.
Tailored habitats for every species
At CHEEL, each species is kept in a separate space to ensure that their unique environmental needs are met. According to Bumbulyte-Zukeviciene, the houseflies and larvae from the waste sorting facility have a dedicated environment where temperature, humidity, and food supply are carefully controlled.
Flies are housed in special enclosures equipped with food and water sources, egg-laying substrates, and temperature controls that support their natural life cycle. Eggs are routinely collected and moved through the growth stages. Once larvae reach the puparia stage, they are either returned to the breeding cycle or stored to maintain population continuity.
“Until now, we’ve been feeding the flies and larvae with standardised, balanced feed to ease the transition to the lab environment, but we’re now preparing to introduce food waste and test additives that improve nutritional value,” adds Bumbulyte-Zukeviciene.
Market-ready innovation
Earlier this year, Energesman publicly introduced one of Europe’s most innovative solutions for processing household kitchen waste: breeding fly larvae on food scraps collected in orange bags from Vilnius county residents.
After being shredded and mixed with water, the contents of the orange bags were processed into an organic feedstock for the larvae. Once grown and dried, the larvae were intended for use in the production of biofuels and protein-based industrial materials – including paints, furniture, adhesives, and lighting – while the leftover biomass served as fertiliser or fishing bait.
Energesman invested EUR 1 million into bespoke larval rearing equipment designed in the Netherlands specifically for Vilnius needs. An additional EUR 1.1 million was invested by the regional waste management centre, VAATC, into automated systems for unpacking the orange bags and cleaning the food waste, preparing it for larval processing.
Return to facility in sight
“The equipment for processing food waste was not damaged – only covered in soot. We’re currently repairing one of the fixed sorting lines and working towards fully restoring factory operations, including larval rearing,” says Blazgys.
The full facility is expected to be operational again later this year. Scientists note that the fly colony is ready to return at any time – their stay at the lab is only temporary. It also offers researchers an opportunity to study the species and ensure its continuity.
“The most important thing is that the flies survived and have retained their potential,” says Bumbulyte-Zukeviciene.
At the Vilnius Mechanical-Biological Treatment (MBT) facility operated by Energesman, mixed and organic waste from across the region is again being processed – currently with mobile equipment, while preparations are made to rebuild the plant.
Vilnius region is among the global frontrunners in using fly larvae to process kitchen waste – and this is precisely why our innovation is now featured by the BBC. Journalist MaryLou Costa highlights our experience in managing household food waste in the Lithuanian capital in one of the world’s most recognised news outlets.
As the article notes, similar initiatives do exist globally, but they are typically small-scale – for instance, private projects handling food scraps from a single hotel or apartment building.
“Our pilot deliveries of larvae have already begun – with partners in the paint, glue and furniture sectors,” shared our CEO, Algirdas Blazgys, in the interview.
Key takeaways from the article:
• We’ve already produced prototype lamp shades and paint batches using our larvae. The paint technology is still being refined to achieve the right colour, but the lamp shades have turned out remarkably well.
• We continue to collaborate with universities, supplying fly larvae for research and for use in bacterial cultivation.
• Our technology will enable the Vilnius region to save up to EUR 2 million annually – we do not charge municipalities for collecting and processing food waste from residents.
Our goal for next year is ambitious: to process 12,000 tonnes of kitchen waste. To help us get there, we encourage residents to separate food waste and use the orange bags provided – we’ll ensure the waste reaches the larvae!
