Lenzing launches advanced power to heat system in Austria to boost renewable energy use and grid flexibility

Lenzing launches advanced power to heat system in Austria to boost renewable energy use and grid flexibility

(IN BRIEF) Lenzing Group has commissioned a 14 MW power-to-heat facility at its Austrian site, developed in collaboration with VERBUND, to convert surplus renewable electricity into process heat while supporting grid stability. The system can respond quickly to fluctuations in supply and demand, participating in the balancing energy market and helping to optimise energy use. By reducing reliance on fossil fuels and improving efficiency, the project represents a significant step toward industrial decarbonisation and climate-neutral production.

(PRESS RELEASE) LENZING, 9-Apr-2026 — /EuropaWire/ — The Lenzing Group has taken a further step toward decarbonising industrial production with the commissioning of a new 14-megawatt power-to-heat facility at its site in Lenzing. Developed in partnership with VERBUND, the installation converts renewable electricity into process heat while also supporting the stability of Austria’s power grid.

The system is designed to absorb excess electricity generated from renewable sources such as wind and solar, particularly during periods of low demand and falling prices. Instead of allowing this surplus energy to go unused, the facility rapidly converts it into heat that feeds directly into the site’s existing energy network. This dual function not only improves efficiency at the industrial level but also reduces strain on the national electricity system.

With an electrical capacity of 14 MW, the installation ranks among the most powerful industrial power-to-heat systems in Austria. Its flexibility allows it to respond within short timeframes to fluctuations in the grid, effectively acting as a balancing mechanism. By participating in the balancing energy market, operated with the support of VERBUND, the facility helps align industrial energy consumption with real-time grid conditions.

Georg Kasperkovitz described the project as a practical demonstration of how industrial decarbonisation can be achieved through solutions that are both technologically advanced and economically viable. The system enables the company to reduce reliance on fossil fuels, cut carbon emissions, and optimise energy costs by making use of lower-priced renewable electricity.

VERBUND played a central role in integrating the facility into the broader energy market, contributing expertise in infrastructure, grid operations, and energy trading. Michael Strugl highlighted that such collaborations allow industrial operations to become active participants in a more flexible and resilient energy system, where supply and demand can be balanced more efficiently.

The project builds on an ongoing partnership between the two companies, which has already included renewable energy initiatives such as photovoltaic installations and electric vehicle charging infrastructure at the Lenzing site. Together, these efforts form part of a wider strategy to modernise industrial energy use and accelerate the transition toward climate-neutral production.

By combining renewable electricity utilisation with advanced heat management, the new facility strengthens energy security, enhances operational flexibility, and sets a benchmark for future industrial applications of power-to-heat technology. It also highlights the growing role of industry in supporting grid stability as renewable energy sources continue to expand.

About the Lenzing Group

The Lenzing Group stands for the responsible production of specialty and premium fibers based on regenerated cellulose. As an innovation leader, Lenzing is a partner of global textile and nonwoven manufacturers and drives many new technological developments. The Lenzing Group’s high-quality fibers are the raw material for a wide range of textile applications – ranging from functional, comfortable, and fashionable clothing through to durable and sustainable home textiles. TÜV-certified biodegradable and compostable Lenzing fibers are also ideal for demanding use in everyday hygiene applications.

The Lenzing Group’s business model extends far beyond that of a traditional fiber producer. Together with its customers and partners, Lenzing develops innovative products along the value chain, adding value for consumers. The Lenzing Group strives for efficient utilization and processing of all raw materials and offers solutions for the transition of the textile industry from the current linear economic system to a circular economy. In order to align its commitment to limiting man-made climate change with the goals of the Paris Agreement, Lenzing has a clear, science-based climate action plan that provides for a significant reduction in greenhouse gas emissions (Scopes 1, 2, and 3) by 2030 and a net-zero target by 2050.

Key Facts & Figures Lenzing Group 2025

Revenue: EUR 2.60 bn
Nominal capacity (fibers): 1,110,000 tonnes
Employees (full-time equivalents): 7,738
TENCEL™, LENZING™ ECOVERO™, VEOCEL™, LENZING™, and REFIBRA™ are trademarks of Lenzing AG.

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

Media Contact:

media@lenzing.com
+43 7672 701 2743

SOURCE: Lenzing