EBRD Helps HoSt Group Boost Biomethane Production in Latvia

by Nigina Mirbabaeva (European Bank for Reconstruction and Development) EBRD lends €26 million to Next Biogas, a subsidiary of HoSt Group from the Netherlands; Loan to finance the acquisition of an existing biogas plant and its conversion into a biomethane production facility; Biomethane supports energy supply diversification and creates new opportunities for agricultural suppliers

The European Bank for Reconstruction and Development (EBRD) is boosting Latvia’s biomethane production capacity and use of renewable fuels with a €26 million loan to SIA Next Biogas, a subsidiary of the Netherlands-based HoSt Group.

The Bank’s investment will help HoSt Group to acquire an existing biogas plant in Lēdurga, Latvia and convert it into a biomethane production facility. Once operational, the facility will be one of the largest biomethane plants in the country, producing around 80,070 MWh of biomethane per year, which will be transported and injected into the gas grid for both domestic use and export to European markets. The production process also captures biogenic CO₂, creating a secondary sustainable product while ensuring a highly carbon-neutral production cycle.

Signing the transaction agreement at the EBRD’s 2026 Annual Meeting in Riga, EBRD President Odile Renaud-Basso said: “We are pleased to support HoSt Group in expanding biomethane production and strengthening the energy market in Latvia and the wider Baltic region. This project boosts energy security while accelerating the low carbon transition, especially for hard to abate sectors”.

Arthur Vlaanderen, Group CFO of HoSt Group, added: “On top of our own investments, our €26 million partnership with 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 advanced biomethane projects and underscores our shared drive to power the energy transition. By transforming the Lēdurga 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."

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.”

Biomethane is a scalable alternative to fossil-based natural gas, produced by converting agricultural and food waste into renewable gas and related products. The process captures methane emissions and converts them into renewable energy, reducing greenhouse gas emissions. It supports the more circular use of agricultural waste and plays a strategic role in Europe's efforts to diversify its energy supply, while also creating new market opportunities for local agricultural suppliers.

Growing the country’s biomethane production capacity is also a key priority for Latvia, as it accelerates its efforts to build an independent, secure and resilient energy system. Latvia recently opened its first publicly accessible biomethane injection point and has advanced measures to boost local biomethane production. This cross-border partnership further exemplifies the international collaboration essential to achieving these shared energy goals.

The EBRD’s loan benefits from a first-loss guarantee provided by the European Union through its InvestEU fund.

The EBRD is a leading implementing partner of the EU’s InvestEU programme, which supports sustainable investment, innovation and job creation in the region. It aims to trigger more than €372 billion in additional investment in 2021-27. Between 2022 and 2027, the EBRD will leverage InvestEU guarantees worth €777 million to finance investments of up to €3.8 billion in eligible sectors.

Next Biogas is a special purpose vehicle newly incorporated in Latvia for the purpose of developing and operating the Lēdurga biomethane production plant. It is ultimately owned by HoSt Group, a Netherlands-based family-owned technology group specialising in renewable gases, heat, power and bioenergy. Moving beyond its traditional role as a technology supplier, HoSt Group uses its "Energy-as-a-Service" model to own and operate renewable plants, leveraging operational experience to accelerate innovation, deeply understand customer needs, and drive a sustainable energy future.

The EBRD is a leading institutional investor in Latvia, having invested more than €1.3 billion in the country to date. The Bank’s activities focus on supporting Latvia’s transition to a greener and more resilient economy through investments in renewable energy, capital market development and innovation-driven sectors. READ MORE