Lenzing Commissions 14 MW Power‑to‑Heat Facility, Strengthening Grid Stability and Heat Management

Lenzing Commissions 14 MW Power‑to‑Heat Facility, Strengthening Grid Stability and Heat Management

• Commissioning of the 14‑MW power‑to‑heat facility combines climate protection, cost efficiency, and system stability, setting a benchmark for modern industrial energy supply
• Renewable electricity converted into process heat – facility stabilizes Austria’s power grid through participation in the balancing energy market
• Joint project by Lenzing and VERBUND sets a technological standard for the industrial heat transition

Lenzing, April 08, 2026 – The Lenzing Group has successfully commissioned a new power‑to‑heat (P2H) facility with an electrical capacity of 14megawatts. The installation converts renewable electricity directly into process heat, is fully integrated into the existing heat network at the industrial site, and represents a key building block for a fossil‑free heat supply. As project partner, VERBUND was responsible for the energy‑market integration and will operate the facility for balancing energy marketing, enabling it to respond flexibly to short‑term fluctuations in the power grid. The P2H facility ranks among the most powerful of its kind in Austria’s industrial sector and helps stabilize the electricity system by converting surplus renewable energy into usable process heat.

The facility is primarily deployed during periods when wind and solar generation place a heavy load on the grid and electricity prices fall. In such situations, it can ramp up within a very short time, absorb renewable power, and feed it directly into the site’s heat network. This relieves pressure on the Austrian power grid, reduces curtailment of renewable electricity generation, and simultaneously enhances security of supply at the Lenzing site. Its flexible operation allows Lenzing to make economically optimal use of low‑cost renewable energy. At the same time, fuels – including fossil energy sources – can be replaced and CO₂ emissions effectively reduced.

“The new power‑to‑heat facility demonstrates how industrial decarbonization can be implemented in practice – technologically sophisticated, economically viable, and with a clear positive impact on the site,” says GeorgKasperkovitz, member of the Managing Board of the Lenzing Group.

The project was implemented through close cooperation between Lenzing and VERBUND. Lenzing was responsible for the technical design, construction, and full integration of the facility into the site’s energy and heat management system. VERBUND contributed its expertise in infrastructure, energy marketing, and market operations, integrates the facility into Austria’s balancing energy market, and ensures its optimal deployment within the power system. In addition, VERBUND has been implementing renewable energy projects at the Lenzing site for several years, including photovoltaic installations and EV charging infrastructure, thereby supporting a holistic approach to industrial decarbonization.

“Our partnership with Lenzing clearly demonstrates the potential that lies in close collaboration between industry and the energy sector. By integrating the power‑to‑heat facility into the balancing energy market, industrial processes become an active part of a flexible energy system. Solutions like this are essential to making optimal use of renewable energy while sustainably strengthening security of supply,” emphasizes MichaelStrugl, Chairman of the Executive Board of VERBUNDAG.

With the commissioning of the 14‑MW power‑to‑heat facility, Lenzing unlocks additional potential for climate‑friendly, future‑oriented production. The new installation increases flexibility in energy use, strengthens heat management, enables efficient utilization of renewable energy, and makes a significant contribution to the industrial heat transition and the long‑term implementation of climate‑neutral production pathways.

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About VERBUND

VERBUND is Austria’s leading energy company and one of the largest producers of hydroelectricity in Europe. The Group generates around 95 % of its electricity from renewable energy, primarily from hydropower. VERBUND trades electricity in 12 countries and generated around € 1,489 m group result and € 2,737m in EBITDA in 2025 with approximately 4,400 employees. With its subsidiaries and partners, VERBUND is active in the generation of electricity, transmission and in international trading and sales. VERBUND has been quoted on the Vienna Stock Exchange since 1988 with 51% of the share capital being held by the Republic of Austria. Further information: www.verbund.com