The European Bank for Reconstruction and Development (EBRD) is supporting Latvia’s biomethane production capacity with a €26 million loan to SIA Next Biogas, a subsidiary of the Netherlands-based HoSt Group, according to a press release issued on 05 June 2026. The financing will enable the acquisition of an existing biogas plant in Lēdurga, Latvia, and its conversion into a biomethane production facility. The transaction was signed during the EBRD’s 2026 Annual Meeting in Riga. The investment aims to strengthen energy diversification while opening new opportunities for agricultural suppliers.
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 turns 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. It also creates new market opportunities for local agricultural suppliers. Growing biomethane capacity is a key priority for Latvia as it builds an independent and resilient energy system.
Once operational, the Lēdurga facility will rank among the largest biomethane plants in Latvia, producing around 80,070 MWh of biomethane per year. The output will be 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 and ensuring a highly carbon-neutral cycle. Latvia recently opened its first publicly accessible biomethane injection point and has advanced measures to boost local production. The EBRD’s loan benefits from a first-loss guarantee provided by the European Union through its InvestEU fund.
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, noted that the partnership accelerates the company’s strategy to develop, own, and operate critical green energy infrastructure. Valdis Dombrovskis, European Commissioner for Economy and Productivity, and Implementation and Simplification, described the project as strategically important for the nascent biomethane market in Latvia and the Baltics. He added that it aligns with EU decarbonisation and autonomy objectives.
Next Biogas is a special purpose vehicle newly incorporated in Latvia to develop and operate the Lēdurga biomethane production plant. It is ultimately owned by HoSt Group, a family-owned technology group specialising in renewable gases, heat, power and bioenergy. 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. The EBRD has invested more than €1.3 billion in Latvia to date. Its activities focus on supporting the country’s transition to a greener and more resilient economy.