HoSt Group Replaces Industrial Coal Plant with 25 MW wood waste-fired Facility in Germany
Energy as a Service
Under this ‘Energy-as-a-Service’ agreement, HoSt Group will provide the turn-key renewable energy technology and will remain the owner and operator of the facility. This model offers the energy-offtaker a comprehensive service package: HoSt handles the investment, permitting, and daily operations for at least 12 years of operations, whilst the industrial user invests solely in the purchase of the sustainable energy generated. This project represents a total investment value of approximately €35 million by HoSt Group, while the industrial energy end-user does not require investment and can remain focused on their core business.
Economic and ecological viability
The project, financed by Rabobank, demonstrates that moving away from fossil fuels has advantages by both reducing energy costs and boosting sustainability when the right technology and partners are selected. As European Trading System (ETS) carbon prices continue to rise and fossil energy costs remain volatile, this technology utilization and service model offers the customer a stable energy price that is attractive for the industrial heat and power user, providing financial benefits, stability and environmental advantages.
Process steam for the industry
The facility is designed with proven in-house technology for high-demand industrial processing. It delivers a continuous supply of up to 30 tons of high temperature process steam per hour and 2 MW of electrical power. The plant utilizes locally sourced waste wood. By doing so, it provides a circular solution that complies with strict EU emission laws and Renewable Energy Directive certification. It marks a shift from traditional fossil fuels like coal and natural gas to competitive, CO2-neutral residual streams. Compared to previous coal and gas use, the facility will cut approximately 65,000 tons of CO2 emissions every year.
Decarbonizing industry
The transition to carbon neutrality is an opportunity for industry to future-proof its operations. “The industry needs reliable energy infrastructure that accelerates and empowers a seamless transition. By focusing on sustainable residual streams for high-pressure steam, heat and electricity, we meet the specific energy demands that industrial processes require,” says Tjeerd Smit, Executive Director at HoSt Group. “This project serves as another example of how industrial users can offtake their essential energy needs to achieve carbon neutrality without compromising their core operations.”
Marc Schmitz, Head of Project Finance Europe Rabobank states: “The energy transition depends on a reliable energy infrastructure that supports decarbonisation while maintaining stable operations. As a cooperative bank, we are committed to financing the energy transition and enabling sustainable solutions. We are proud to support HoSt and how they illustrate with this project to secure competitive low-carbon energy in this critical pillar of the heat transition.”
This project is a direct extension of HoSt group’s broader vision to decarbonize industry by engineering and building high-tech green energy systems. The company has set an ambitious goal to reach 25 million tons of CO2 savings by 2032.
