Europe's energy independence begins in Latgale

Imagine a classic Soviet-era factory in southern Latgale: giant tanks of heavy fuel oil, broken roads, and railroad tracks that lead nowhere. Now imagine the same place in just over a year's time – one of the most modern second-generation biodiesel production plants in the Baltic states, which, in cooperation with partners, converts animal and waste fats into fuel supplied to giants such as Shell, BP, and PKN Orlen. This is precisely the future that Czech investor Jan Jirounek and his company Honest EU are bringing to Daugavpils, starting in the spring of 2026, thanks to a project worth a total of €15 million. The total implementation time for all phases of the project should not exceed four years. 

A small team that is faster than large corporations 

The company is the newest partner of a Central European group that already operates successful processing and biodiesel plants in Poland and the Czech Republic. The raw material is carefully sorted animal fats, which are converted into FAME biodiesel – a second-generation renewable fuel that reduces CO₂ emissions much more effectively than first-generation biofuels produced from crops. All operations comply with the strictest European ISO standards and ISCC sustainability certification, which can trace every kilogram from source to tank.

"We are not a slow-moving corporate giant. We are fast, flexible, and extremely well connected," says Jan, one of two managing directors in Latvia, who also manages the group's companies in Czechia and Poland. "Our management team consists of only five people, but together we speak at least five languages – Czech, Polish, Ukrainian, English, and Spanish. This allows us to make decisions for businesses from the Netherlands to Scandinavia to Ukraine and Israel in a single day, with a little exaggeration."

The €15 million investment will be implemented in three distinct phases: the first, beginning in spring 2026, will cost €1.5 to €2 million and will focus on removing environmental burdens caused by previous owners of the site, including old fuel oil reserves and the restoration of basic infrastructure and rail connections. The second phase will bring in €5 million worth of processing technology, and the third will add another €7 to €8 million to bring the plant to full capacity. Once completed, the plant will employ up to 50 to 100 people — a real game changer for Latgale — and will export most of its production to the Czech Republic, Poland, the Netherlands, and Scandinavia. 

Why Daugavpils? 

"The location is perfect – literally the gateway to Europe. I would happily sign off on the statement that Europe begins right here in Latgale," laughs Jan. The proximity of the Baltic Sea, existing railways, and the complete absence of similar animal fat processing plants in the region made the decision much easier. The reconstruction of the old Soviet factory and the decontamination of the soil so that it no longer poses a threat to the surrounding agricultural landscape are among the more costly items in the project. "I'll sleep more peacefully knowing that we've cleaned up the soil," he says. 

The project has already attracted engineers from the Czech Technical University in Prague and even the Czech president's energy advisor. "It's going to be much bigger and more international than we originally expected." 

The key to Latvian hearts? At least a few words in Latvian 

"I hate paperwork," Jan admits with a smile, "but in Latvia, I became best friends with eParaksts, the country’s electronic document-signing solution." In the past, he had to fly to Riga twice just to sign documents; today, everything can be handled remotely. In his view, Latvia’s public administration is already highly advanced and is rapidly moving toward full digitization. 

He has nothing but praise for the people he has met. "Every lawyer, the previous owner of the plant, the authorities – everyone was helpful. Even in Daugavpils, where we rent an apartment, the food is great. Riga reminds me of Prague, I feel at home there. And every time I say labdien (good day) or paldies (thank you), people's faces light up." 

His advice to other foreign investors is simple: "Don't be afraid of Latgale – business works there and people are helpful. Set aside time for paperwork and a few flights, but then everything runs smoothly. And learn at least one Latvian phrase – it opens doors faster than any contract." 

Honest plans to launch the first phase in the spring of 2026. Very soon, Latgale could become one of the greenest centers in the Baltic states: a project built with Czech precision, Polish experience, and unmistakable Latvian hospitality. 

Honest has ambitions to become one of the most influential players in the field of renewable fuel resources in the region. The long-term goal is clear: to become a major player in the European market for second-generation biodiesel feedstocks by combining Central European experience with new Latvian capacity. Jan says that their international network—from the Czech Republic, through Poland, the Netherlands, and Ukraine to Israel—gives them a speed and flexibility that large corporations cannot offer. "We are fast, connected, and speak many languages. That's why we have bold ambitions," he says. Once the plant is running at full capacity, Latgale will not only be a cleaner industrial site, but also a modern European supplier of sustainable biodiesel – a project built with Czech precision, Polish experience, and Latvian determination. And for Jan, this is just the beginning.