EBRD Supports Development Of One Of Latvia’s Largest Biomethane Facilities With €26 Million Financing

The European Bank for Reconstruction and Development (EBRD) is strengthening Latvia’s renewable energy sector through a €26 million loan to SIA Next Biogas, a subsidiary of the Netherlands-based HoSt Group. The financing will support the acquisition and conversion of an existing biogas facility in Lēdurga into a large-scale biomethane production plant, helping expand the country’s capacity to produce renewable gas and reduce dependence on fossil fuels.

Once the conversion is completed, the facility is expected to become one of the largest biomethane plants in Latvia. The plant will produce approximately 80,070 MWh of biomethane annually, with the renewable gas being injected into Latvia’s gas network for both domestic consumption and export to other European markets.

In addition to biomethane production, the facility will capture biogenic carbon dioxide generated during the process, creating an additional sustainable product and contributing to a highly carbon-neutral production cycle.The transaction agreement was signed during the EBRD’s 2026 Annual Meeting in Riga.

Speaking at the event, EBRD President Odile Renaud-Basso stated that the project represents an important step towards expanding biomethane production and strengthening energy markets in Latvia and across the Baltic region. She noted that the investment supports both energy security and the transition to a lower-carbon economy, particularly in sectors where reducing emissions remains challenging.

Arthur Vlaanderen, Group Chief Financial Officer of HoSt Group, highlighted that the partnership with the EBRD aligns with the company’s strategy of developing, owning, and operating renewable energy infrastructure. He explained that the investment demonstrates the growing commercial viability of advanced biomethane projects while reinforcing the company’s commitment to supporting Europe’s energy transition.

According to Vlaanderen, transforming the Lēdurga facility into one of Latvia’s largest biomethane plants will strengthen circular energy production in the region and contribute to improving Europe’s energy security.The project has also received support from the European Union. Valdis Dombrovskis, European Commissioner for Economy and Productivity, as well as Implementation and Simplification, described the initiative as strategically important for the development of Latvia’s emerging biomethane sector and the wider Baltic market.

He noted that replacing imported natural gas with locally produced renewable fuel will help strengthen energy independence while supporting the European Union’s decarbonisation and strategic autonomy objectives.Biomethane is increasingly viewed as an important renewable alternative to conventional natural gas.

It is produced through the processing of agricultural residues, food waste, and other organic materials, converting waste streams into renewable energy. By capturing methane emissions that would otherwise be released into the atmosphere and transforming them into usable fuel, biomethane helps reduce greenhouse gas emissions while promoting a more circular approach to waste management.

The technology also creates new economic opportunities for farmers and agricultural suppliers by generating demand for organic feedstocks. As Europe seeks to diversify its energy sources and reduce reliance on imported fossil fuels, biomethane is expected to play a growing role in supporting energy security and achieving climate goals.

For Latvia, expanding biomethane production has become an important national priority as the country works to build a more independent, resilient, and sustainable energy system. Recent developments include the launch of Latvia’s first publicly accessible biomethane injection point and the introduction of measures aimed at encouraging domestic biomethane production. The partnership between the EBRD, HoSt Group, and Latvian stakeholders highlights the importance of international cooperation in advancing these shared objectives.