HoSt Group secures €26 million EBRD financing to build one of Latvia’s largest biomethane plants
Read here the EBRD press release.
A complete plant transformation
To realize this vision, HoSt Group is transforming an existing biogas site into an innovative biomethane facility. The biogas plant will be expanded and equipped with two new anaerobic digesters, membrane biogas upgrading, CO₂ liquefaction technology and De.OXO oxygen removal system.
“Rebuilding an existing biogas site from the ground up allows us to maximize our environmental impact, turning a proven location into a state-of-the-art facility,” says Irina Krasta, Managing Director of HoSt Group Latvia. “We are deeply committed to advancing Latvia’s vision for a secure, independent renewable energy system. By producing bioCNG as our final end-product and adding innovative CO2 liquefaction, we are creating an even more carbon-neutral cycle that brings lasting value to our partners”.
Each year, the facility will process approximately 137,500 tons of locally sourced farm by-products, including manure and grain residues, into 7.3 million Nm³ of biomethane – equivalent to the annual gas consumption of roughly 6,500 households – and 9,800 tons of biogenic CO₂. By injecting the green gas into the grid, the project provides a scalable, direct alternative to natural fossil gas. The biomethane will serve the German transport sector to decarbonize heavy mobility, diversifying Europe’s clean energy supply, while the remaining organic matter from the anaerobic digestion process is returned to local farmers as nutrient-rich fertilizer, supporting local agriculture.
Strategic partnership with the EBRD
The financial backing of this project by the EBRD underscores its critical role in advancing Europe’s energy security, scaling up biomethane production capacity, and accelerating the decarbonization of hard-to-abate sectors. The EBRD is a leading implementing partner of the EU’s InvestEU programme, which supports sustainable investment, innovation and job creation in the region.
Speaking at the event, EBRD President Odile Renaud-Basso said: “We are pleased to support HoSt Group in scaling up and playing an important role in both Latvia’s and the wider Baltic region’s energy market. Investing in biomethane is an essential part of accelerating the transition to low-carbon energy systems, particularly in hard-to-abate sectors. This project will contribute to strengthening Latvia’s and Europe’s energy security while advancing the green transition.”
Seeing the agreement as a major catalyst for the company’s long-term vision, HoSt Group CFO Arthur Vlaanderen highlighted: “On top of our own investments, this €26 million financing from the EBRD directly accelerates HoSt Group’s strategy to develop, own, and operate critical green energy infrastructure. This sustainable investment proves the strong commercial viability of biomethane projects and underscores our shared drive to power the energy transition. By transforming the plant into one of Latvia’s largest biomethane facilities, we are anchoring circular energy production in the region and making a tangible contribution to Europe’s energy security.”
Signing ceremony
The official signing ceremony took place Friday June 5th in Riga and was attended by HoSt Group CFO Arthur Vlaanderen, HoSt Group Latvia Managing Director Irina Krasta, HoSt Group Business Developer Mariusz Badura, EBRD President Odile Renaud-Basso, Valdis Dombrovskis, European Commissioner for Economy and Productivity, Māris Kučinskis, Minister of Finance of Latvia, H.E. Mr. Carl Peersman, Ambassador of the Kingdom of the Netherlands in Latvia, Andreea Moraru, EBRD Managing Director for Central Europe and the Baltics, Jean-Marc Petterschmitt, EBRD Managing Director for Corporate Sector, Natalia Lacorzana, EBRD Director, Head of Natural Resources.
Valdis Dombrovskis, European Commissioner for Economy and Productivity, and Implementation and Simplification, said: “This strategically important project is supporting the development of a nascent biomethane market in Latvia and the Baltics. It will enhance energy security by substituting imported natural gas with locally produced low-carbon fuel, aligned with EU decarbonisation and autonomy objectives. The loan extension stands again as a testament to the EBRD as a key EU partner, active on shared priorities.”
Energy-as-a-Service model
By investing in and operating its own renewable energy plants, and through in-house manufacturing, HoSt Group improves its technology faster, deeply understands customer needs, and maximizes its contribution to a renewable and future-proof energy system. Through this ‘Energy-as-a-Service’ model, HoSt acts as the sole owner and operator via its subsidiary, Next Biogas. By fully managing the facility’s engineering, daily operations, and commercial output, the company allows the original owners to benefit from the partnership while focusing entirely on their agriculture.
