NEXT Generation Invest, a specialist in impact investments, has selected Austrian SYNCRAFT GmbH as its technology partner for the biochar plant in Zwickau. This partnership forms the basis for generating climate-positive energy from woody biomass and is intended to sustainably strengthen regional heat and energy supply. The appointment of SYNCRAFT marks the beginning of the implementation phase for this infrastructure project.
The undertaking, which has an investment volume of approximately EUR 29 million, is being realised through the NEXT Infrastructure Fund of NEXT II S.C.A. SICAV. The investment was announced last year. Now, the involvement of SYNCRAFT represents a significant development step that will substantially advance the project's progress.
Technology and Location Factors
SYNCRAFT is considered a leading provider of reverse power plants. Their technology is based on a thermochemical process in which materials are heated to up to 850 degrees Celsius under strong oxygen exclusion and molecularly broken down, rather than combusted. This process enables the simultaneous recovery of renewable heat, electricity, and green carbon, also known as biochar or plant carbon, from regionally available woody biomass.
The biochar produced has the property of permanently binding CO₂ and is used in various industrial sectors as well as in agriculture. Thus, the project not only contributes to the supply of renewable energy but also supports long-term decarbonisation. Mr. Marcel Huber, Managing Director of SYNCRAFT, stated that the project in Zwickau exemplifies how modern wood energy plants can contribute to a secure, regional, and climate-friendly energy supply. He emphasised their pleasure in collaborating with NEXT and bringing their many years of experience to the realisation.
In parallel with the selection of the technology partner, other crucial project steps have been initiated. The granting of the BimSch permit, which includes the building permit, represents a central milestone for the project's further progress. At the same time, detailed technical planning has begun. Mr. Hannes Ressel, Managing Director of NEXT Generation Invest, highlighted that in SYNCRAFT, an experienced partner with globally proven technology has been secured. He explained that this creates the conditions to move the project into implementation. Mr. Ressel stressed that the undertaking demonstrates how institutional capital enables economically viable infrastructure projects that also make a measurable contribution to the energy and heating transition.
Economic Prospects and Sustainability
The heat generated by the biochar plant will be used in cooperation with a municipal company in the city of Zwickau. The green electricity produced will be fed into the public power grid. The use of locally available residual wood also promotes regional value creation and reduces dependence on fossil fuels and energy imports. The project combines several stable revenue streams.
- —Heat supply
- —Electricity production
- —Revenues from the use of biochar
- —Potential from CO₂ storage
This combination creates a resilient, decentralised infrastructure investment that generates long-term predictable cash flows. The project benefits from the growing demand for renewable heat and the political frameworks for decarbonisation.
