The European Bank for Reconstruction and Development (EBRD) has approved a €26 million loan to SIA Next Biogas, a subsidiary of the Netherlands-based HoSt Group, to support the expansion of biomethane production in Latvia. The financing will be used to acquire an existing biogas facility in Lēdurga and convert it into a large-scale biomethane production plant.
Once completed, the facility is expected to become one of Latvia’s largest biomethane plants, producing approximately 80,070 MWh of biomethane annually. The renewable fuel will be injected into the national gas grid for domestic consumption and export to European markets, contributing to regional energy diversification and sustainability goals.
The project will also capture biogenic carbon dioxide during production, creating an additional sustainable product while maintaining a highly carbon-neutral production cycle. By transforming agricultural and food waste into renewable energy, the facility will help reduce greenhouse gas emissions and promote a more circular economy.
The investment supports Latvia’s efforts to strengthen energy security and reduce reliance on imported fossil fuels. As the country accelerates the development of its renewable energy sector, biomethane is emerging as a key component of a more resilient and independent energy system.
The EBRD loan is backed by a first-loss guarantee from the European Union through the InvestEU programme, which aims to stimulate sustainable investment and innovation across Europe. The project also highlights the growing role of international partnerships in advancing clean energy infrastructure and supporting the transition to low-carbon economies.
HoSt Group, a family-owned renewable energy technology company from the Netherlands, continues to expand its presence in the renewable gas sector through its Energy-as-a-Service model, which focuses on developing, owning and operating sustainable energy facilities.
The EBRD remains one of Latvia’s leading institutional investors, having invested more than €1.3 billion in the country. The bank continues to support projects that advance renewable energy, innovation and long-term economic resilience.
