€33 Million Investment Project in Lēdurga to Strengthen Latvia’s Energy Independence

Renewable energy company HoSt Latvia plans to invest €32.9 million in Lēdurga Parish, fully modernising and expanding the existing biogas plant. A biomethane production facility will be developed, which could produce up to 70 gigawatt-hours of renewable energy annually from locally sourced agricultural feedstock, primarily manure. Following the modernisation and expansion works, the biomethane facility is expected to resume operations in early 2028. Of the total investment, €26 million will be provided through financing from the European Bank for Reconstruction and Development (EBRD), while the developer itself will invest €6.9 million in the project.

“The company’s decision to invest €32.9 million in Lēdurga demonstrates Latvia’s potential to attract significant international investment in the fields of renewable energy and the circular economy. By converting locally sourced agricultural feedstock into biomethane and injecting it into Latvia’s gas transmission system, the project will help strengthen the country’s energy independence while creating additional economic opportunities for farmers in the region. The EBRD’s involvement confirms the project’s economic viability and highlights the potential for further investment in Latvia’s renewable energy sector,” says Ieva Jāgere, Director General of the Investment and Development Agency of Latvia (LIAA).

HoSt Latvia is part of HoSt Group, a Dutch family-owned group that has been active in the renewable energy sector for 35 years. The company has been present and operating in Latvia for more than 20 years. During this time, with its involvement, four biomass combined heat and power plants and five biogas plants have been built. HoSt Group’s long-standing presence in Latvia and the experience of its local team were among the reasons why the group chose Latvia for this investment.

“We already have our own team and the necessary expertise in Latvia. We know the market, industry stakeholders and feedstock suppliers, so it was a natural decision to link our next stage of development specifically to Latvia. However, it is important to emphasise that a thorough analysis was carried out before selecting the site, with the aim of finding not only a biogas plant suitable for development, but one that would not potentially harm the environment or local residents. On the contrary, we wanted to find a site where the project could create additional value through new jobs, tax revenues and other benefits,” says Irina Krasta, Head of HoSt Latvia.

In searching for a suitable location for the investment project, the company evaluated several sites, and a number of important prerequisites for the project came together in Lēdurga Parish. As a biogas plant had already operated in Lēdurga, the necessary infrastructure was already available. A large cattle farm is also located nearby, while several other large farms operate in the surrounding area, with which the company plans to establish long-term cooperation.

The project involves not only modernising the existing plant, but effectively rebuilding its entire technological infrastructure. The current equipment will be dismantled, two new digesters will be constructed, and new technological equipment will be installed. The biogas upgrading unit will allow the biogas produced to be purified to natural gas quality. The project will also include carbon dioxide capture and liquefaction, an oxygen reduction unit and a digestate separation system.

In cooperation with AS Conexus Baltic Grid, the company also plans to construct a private biomethane injection point connecting the facility to Latvia’s gas transmission system. This will strengthen Latvia’s energy independence, as the biomethane will be produced from feedstock available in Latvia and injected into the country’s gas transmission system. The project will increase the amount of locally produced renewable energy and help reduce dependence on imported energy resources.

The filling of the digesters is planned to begin in November 2027, with the plant expected to produce its first biomethane in January or February 2028. The facility could reach full production capacity approximately six months after operations begin and will be capable of producing up to 70 gigawatt-hours of biomethane per year. The plant will process approximately 90,000 tonnes of liquid manure and 10,000 tonnes of bedding material, or solid manure, annually. The company will purchase manure from local farmers, creating a new additional source of income for farms. Following the fermentation process, digestate will be returned to the farmers.

Due to the high level of technology and automation, up to ten employees are expected to work directly at the facility. However, the project’s economic impact will extend beyond the number of jobs created at the plant itself.

“The economic impact of this project is not limited to the jobs created at the biogas plant. We will purchase feedstock from local farmers, entrust transport services to local carriers, and involve Latvian companies in construction and infrastructure development. This will generate additional economic activity throughout the region,” emphasises I. Krasta.

The facility will have to comply with strict regulatory and European Union requirements. Liquid feedstock is expected to be delivered in sealed tankers and pumped into hermetically sealed tanks. Both digestate storage lagoons will also be fully enclosed and hermetically sealed systems, while the unloading area for solid feedstock will be additionally equipped with doors and other solutions designed to limit the spread of odours.

“We are working closely with state institutions, the municipality and local residents, and we have listened to residents’ concerns on various issues. As a result, work on developing and improving the project is ongoing. We have also committed to carrying out an independent assessment of noise and road infrastructure so that any necessary improvements can be implemented during the construction phase. We will have to operate at this location and coexist with the surrounding community for many years, so we want to be both good stewards and responsible neighbours,” says I. Krasta.

More information about the project is available at www.vecklavinas.lv.