REG - Cindrigo Hldgs Ltd - Kaipolan Strategy Update and Finnish Biomass Plans

Cindrigo HoldingsAnnouncement

23/12/2025 07:00

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RNS Number : 5592M  Cindrigo Holdings Limited  23 December 2025

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INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

23 December 2025

Cindrigo Holdings Limited

("Cindrigo", the "Company" or the "Group")

 

Revised Strategy for Kaipolan, Proposed Expansion into Finnish Biomass Market

And Expected Timing of Commencement of Operations at Kaipola Plant

 

Expansion supports Kaipolan commercial start-up and broadens participation in
Finnish biomass market

 

Cindrigo Holdings Limited (LSE: CINH), an integrated renewable energy producer
and developer, is pleased to announce that it has reviewed its strategy for
the commencement of its Finnish operations and has decided this can best be
achieved by taking a more direct role in the biomass value chain through
Kaipolan Energia Oy ("Kaipolan"), the Group's majority-owned operating company
for the Kaipola 110 MW biomass combined heat and power ("CHP") plant in
Finland. It is hoped that this will also reduce reliance on individual
third-party off-takers and enhance the scale, resilience and earnings
visibility of the Group's Finnish biomass operations.

 

Accordingly, it is now envisaged that in place of the original target of
selling steam/heat from the Kaipola Plant to one of the two identified
potential industrial customers during December 2025, Cindrigo is now
finalising plans to have a direct interest in the commencement of wood pellet
production at Kaipolan, with sales to other biomass plants in Finland and
abroad targeted to begin in Q1 2026.

 

Highlights

·     Strategic review of Finnish operations follows slower-than-expected
progress by the two potential industrial customers identified in the Company's
recent prospectus.

·     While discussions with these counterparties continue, decision taken
to expand the Group's involvement in the broader biomass value chain through
upstream biomass production

·     Proposed expansion will integrate upstream biomass production,
including wood chip and wood pellet activities with downstream heat and power
generation

·     Advanced discussions underway with potential biomass joint venture
partners and funding parties to support the Group's biomass expansion, with
further updates to be provided in due course

·     It is envisaged that Cindrigo will provide some of the required
financing and take a shareholding and operational role in the biomass joint
venture

·     Proposed expansion expected to deliver operational, cost and
commercial synergies, reduce reliance on individual counterparties and
increase the scale of the platform in terms of revenue and profit potential

·      Plans being finalised to commence wood pellet production, with
domestic and international sales to other biomass plants targeted to begin in
Q1 2026

·      Integration will enhance earnings visibility through multiple
complementary revenue streams, including heat, power and biomass product
sales, with further expansion over time

 

This revised strategy aligns Cindrigo with the transition of industrial and
retail users, district heating schemes and baseload coal-fired generation to
sustainable fuels, strengthening the Company's position within the Finnish and
broader European biomass market

 

Lars Guldstrand, CEO of Cindrigo, commented: "The strategic review of our
Finnish operations has confirmed that broadening Kaipolan's role within the
biomass value chain is the most cost effective way to support the commercial
start-up of the Kaipola Plant and strengthen the long term resilience of the
platform.

 

"Progress with two targeted industrial customers has been slower than
anticipated and, while discussions with those parties continue, this has
helped accelerate the Board's decision to take a broader and more proactive
commercial approach.

 

"Finland has a strong and growing biomass market, and by integrating upstream
biomass production alongside heat and power generation we create greater
commercial flexibility, diversify revenue streams and reduce reliance on
individual off-takers. We believe this positions the Group to capture a wider
range of opportunities within Finland's expanding biomass market, while
continuing to progress our geothermal portfolio in Germany. This balanced
strategy supports disciplined growth and strengthens Cindrigo's position
within Europe's energy transition.

 

"We are in advanced negotiations with potential biomass joint venture
partners, as well as with parties regarding financing to support this biomass
expansion, and are confident that this enhanced, integrated approach puts us
in a much stronger position for future growth and development. Our focus now
is on finalising these negotiations and commencing revenue generation as
quickly as possible in the New Year. We look forward to sharing further
updates in due course."

 

Strategic Review and Platform Strengthening

The strategic review considered the timing and structure of Kaipola's
commercial start-up in the context of market conditions and counterparty
readiness. While progress by the two identified  potential industrial
customers has been slower than anticipated, the Board believes this has
reinforced the case for broadening Kaipolan's role within the biomass value
chain.

 

The Board believes that Kaipolan's location, infrastructure and fully
refurbished 110 MW biomass CHP plant provide a strong foundation to integrate
upstream biomass production, including wood chips and wood pellets, with
downstream heat and power generation.

 

While commencement of full CHP operations may be deferred by a limited period,
broadening the biomass offering is expected to increase utilisation of
existing assets, enhance earnings visibility and strengthen the resilience and
robustness of the platform. Kaipolan is expected to generate multiple
complementary revenue streams, including heat sales, power sales and the sale
of biomass products.

 

Strong Market Demand

The Finnish biomass market is undergoing a period of significant structural
change and increased demand. Changes in industrial energy consumption
patterns, growth in renewable electricity generation and the conversion of
coal-fired facilities to sustainable fuels are expected to release significant
volumes of energy wood into the market, improving feedstock availability and
cost profiles.

 

The Board believes these conditions provide an attractive opportunity for
growth and support the decision to expand Cindrigo's participation across the
biomass value chain.

 

Balanced Growth Across Biomass and Geothermal

While expanding its biomass activities, Cindrigo continues to progress its
geothermal portfolio in parallel, maintaining a balanced approach across
renewable technologies. Biomass and geothermal are viewed as complementary
pillars within the Group's long-term strategy, combining near-term revenue
generation with long-duration baseload renewable development.

This balanced approach enhances diversification, resilience and long-term
value creation across the Group's renewable portfolio.

 

Funding Discussions

Cindrigo is in advanced discussions both with potential biomass Joint Venture
partners and parties regarding funding to support its biomass expansion. A
further announcement will be made upon completion of these discussions.

 

The timing of commencement of full CHP operations at Kaipolan is not expected
to impact the Company's geothermal development plans, and Cindrigo remains
sufficiently capitalised to meet its day-to-day operational requirements.

 

**ENDS**

 

To sign up for future news and updates from the Company please subscribe here:
https://www.cindrigo.com/mailing-list/
(https://www.cindrigo.com/mailing-list/)

 

For further information, please visit www.cindrigo.com
(http://www.cindrigo.com) , follow us on social media (LinkedIn
(https://www.linkedin.com/company/cindrigo/posts/?feedView=all) and X
(https://x.com/CindrigoH) ), or contact:

 

Cindrigo Holdings Limited

Lars Guldstrand,
CEO
lg@cindrigo.com

Beaumont Cornish Limited (Sponsor)

Roland Cornish / Asia Szusciak / Andrew Price        Tel: +44 (0)207
628 3396

Capital Plus Partners Limited (Broker)

Jonathan
Critchley
Tel: +44 (0)207 432 0501

St Brides Partners (Financial PR)

Paul Dulieu / Charlotte Page / Will Turner
cindrigo@stbridespartners.co.uk (mailto:cindrigo@stbridespartners.co.uk)

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Sponsor as
defined in the FCA UK Listing Rules and is authorised and regulated by the
FCA. Beaumont Cornish Limited is acting exclusively for the Company and for no
one else in relation to the matters described in this announcement and is not
advising any other person and accordingly will not be responsible to anyone
other than the Company for providing the protections afforded to clients of
Beaumont Cornish Limited, or for providing advice in relation to the contents
of this announcement or any matter referred to in it.

 

Notes

Cindrigo is a sustainable baseload energy producer and developer that is
building a high capacity, clean baseload power generation portfolio across
Europe. This includes an integrated biomass operation in Finland and three
geothermal energy projects in Germany. Alongside this, the Company maintains
an active development strategy with several additional renewable energy
projects and licenses under evaluation.

 

Cindrigo has a clear vision to create shareholder value by delivering clean
baseload power solutions that address two global priorities: meeting rising
energy demand while improving environmental outcomes.

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