en.Wedoany.com Reported - The European Bank for Reconstruction and Development (EBRD) is providing a €26 million loan to SIA Next Biogas, a subsidiary of the Netherlands-based HoSt Group, for the construction of a large-scale biomethane production plant in Lēdurga, Latvia. The funding will support the acquisition and modernization of an existing local biogas facility to expand renewable gas capacity and reduce the country's dependence on fossil fuels.

Once completed, the facility is expected to become one of the largest biomethane plants in Latvia, producing approximately 80,070 MWh of biomethane annually. This renewable gas will be injected into Latvia's natural gas grid for domestic consumption and export to other European markets. In addition to biomethane, the plant will capture biogenic carbon dioxide generated during production, creating a highly carbon-neutral production cycle.

EBRD President Odile Renaud-Basso stated that the project is a significant step in expanding biomethane production and strengthening energy markets in Latvia and the Baltic region, simultaneously promoting energy security and the transition to a low-carbon economy. HoSt Group Chief Financial Officer Arthur Vlaanderen noted that the partnership with the EBRD aligns with the company's strategy to develop, own, and operate renewable energy infrastructure, demonstrating the commercial viability of advanced biomethane projects. EU Commissioner for Economy, Productivity, and Implementation and Simplification Affairs Valdis Dombrovskis stated that the initiative is strategically significant for Latvia's biomethane sector and the development of the Baltic market, adding that replacing imported natural gas with locally produced renewable fuel helps enhance energy independence and supports decarbonization goals. The transaction agreement was signed during the EBRD's 2026 Annual Meeting in Riga, and the project has received EU support.

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