The European Bank for Reconstruction and Development has agreed to provide a €17.4 million loan to SIA Next Biogas — a newly incorporated Latvian subsidiary of Netherlands-based HoSt Group — to support a €26.8 million project to acquire and convert an existing biogas plant in Ledurga, Latvia. The deal was signed at the EBRD’s 2026 Annual Meeting in Riga.
Once complete, the facility is expected to become one of the largest biomethane production plants in Latvia.
EBRD Extends €26 Million Loan for Ledurga Plant Conversion
The loan agreement was signed by EBRD President Odile Renaud-Basso and HoSt Group CFO Arthur Vlaanderen at the bank’s 2026 Annual Meeting in Riga. The transaction represents a substantive commitment to Latvia’s renewable energy infrastructure at a time when the country is actively working to reduce its reliance on imported fossil fuels.
The funds will cover the acquisition of the existing biogas plant in Ledurga and finance its full conversion into a biomethane production facility. Once operational, the plant is projected to produce around 80,070 MWh of biomethane per year — output that would place it among the country’s largest such facilities.
Why the EBRD and HoSt Group Are Investing in Latvian Biomethane
Latvia has made building an independent, secure, and resilient energy system a national priority. The country recently opened its first publicly accessible biomethane injection point and has introduced measures to accelerate domestic production — this project fits directly into that policy direction.
HoSt Group’s investment reflects a strategic shift. The Netherlands-based company has traditionally operated as a technology supplier in the renewable energy sector, but through its “Energy-as-a-Service” model, it is now moving toward owning and operating renewable plants directly, using hands-on operational experience to inform both innovation and commercial growth.
SIA Next Biogas, the Latvian special purpose vehicle created for this project, is wholly owned by HoSt Group. The EBRD loan also benefits from a first-loss guarantee provided by the European Union through its InvestEU fund, which reduces financial risk and improves the deal’s attractiveness to lenders and investors alike.
Expected Outputs: Grid Injection, CO2 Capture, and Agricultural Supply Chains
The biomethane produced at Ledurga will be injected into the gas grid for domestic use and export to European markets — positioning the facility not only as a local energy asset but as a contributor to regional supply.
The production process also captures biogenic CO2 as a secondary output. According to the EBRD, this generates an additional sustainable product while supporting a highly carbon-neutral production cycle. Local agricultural suppliers stand to benefit as well, since the plant will rely on agricultural and food waste as feedstock, creating new market opportunities for nearby producers and converting materials that would otherwise go unused into renewable energy and related products.
Broader Context: EU Energy Diversification and the EBRD’s Role in Latvia
European Commissioner Valdis Dombrovskis described the project as strategically important for developing a nascent biomethane market in Latvia and the wider Baltic region. He noted that it aligns with EU decarbonisation objectives and the goal of substituting imported natural gas with locally produced, low-carbon fuel.
The EBRD has invested more than €1.3 billion in Latvia to date, with work centered on supporting the transition to a greener and more resilient economy — particularly in renewable energy, capital market development, and innovation-driven sectors. At a broader level, the bank serves as a leading implementing partner of the EU’s InvestEU programme, an initiative designed to trigger more than €372 billion in additional investment across eligible sectors between 2021 and 2027. Between 2022 and 2027, the EBRD plans to leverage InvestEU guarantees worth €777 million to finance investments of up to €3.8 billion.
80,070 MWh of Biomethane Each Year
The Ledurga project brings together several converging priorities: Latvia’s push for energy independence, HoSt Group’s expansion into direct plant ownership, and the EBRD’s mandate to support green transitions across its regions of operation. The €26 million loan, backed by an EU first-loss guarantee through InvestEU, finances both the acquisition and conversion of an existing biogas site into a facility projected to produce roughly 80,070 MWh of biomethane annually.
Beyond energy output, the plant will capture biogenic CO2 and generate feedstock demand for local agricultural suppliers. For Latvia, the project adds meaningful capacity to a biomethane sector still in its early stages — and points to growing investor confidence in its long-term commercial viability.
