The HoSt Group has started construction of a 25 MW combined heat and power plant based on industrial waste wood in the Osnabrück region. The project makes a direct contribution to the industrial energy transition, as it completely replaces a pulverised lignite firing system and two gas boilers previously used by industrial customers. The plant, which is expected to be fully operational in mid-2027, serves as a strategic model for industrial heat and electricity consumers who want to phase out fossil fuels through reliable and cost-efficient renewable energy in the form of a contracting model.
As part of a contracting model, the HoSt Group provides the turnkey technology and remains the owner and operator of the plant at the same time. This concept offers the energy consumer a comprehensive all-round carefree package: HoSt takes care of the investment, obtaining permits and daily operation for at least twelve years. The industrial user pays exclusively for the sustainable energy purchased – without their own CAPEX and with full concentration on their core business. The project involves an investment volume of around 35 million euros on the part of the HoSt Group.
Economic and environmental viability
The project, financed by Rabobank, shows that phasing out fossil fuels can be an economically viable business model – provided that technology and partners are a good fit. In view of rising CO₂ prices in the European Emissions Trading System and continued volatile fossil energy costs, this technology and service model enables stable energy prices in the long term. It thus offers industrial heat and electricity consumers not only financial advantages and predictability, but also clear ecological added value.
Process steam for industry
The plant continuously supplies up to 30 t/h of high-temperature process steam and 2 MW of electrical power. The fuel is locally available industrial waste wood – a true circular solution that both meets the strict EU emission requirements and meets the requirements of the Renewable Energy Directive. The plant marks the transition from fossil fuels such as coal and natural gas to competitive, CO₂-neutral residue streams. This saves around 65,000t of CO₂ annually.
Decarbonization of industry
The path to CO₂ neutrality offers industrial companies the opportunity to secure their energy supply in the long term. “Industry needs a reliable energy infrastructure that enables a smooth and rapid transition. By using sustainable residual flows for high-pressure steam and electricity, we cover exactly the specific energy requirements that industrial processes require,” explains Tjeerd Smit, Managing Director of the HoSt Group. “This project shows how industrial users can decarbonize their essential energy needs – without negatively impacting their core processes.”
Marc Schmitz, Head of Project Finance Europe at Rabobank, explains: “The energy transition depends on a reliable energy infrastructure that supports decarbonisation while ensuring stable operations. As a cooperative bank, we are clearly committed to financing the energy transition and enabling sustainable solutions. We are proud to support HoSt and how this project exemplifies how competitive, low-carbon energy can be secured in this crucial pillar of the heating transition.”
The project is another building block of the Group’s vision to decarbonize industry through sophisticated green energy systems. The company is pursuing the goal of saving a total of 25 million tons of CO₂ by 2032.
