New installation converts renewable electricity into process heat and integrates into balancing energy market in partnership with VERBUND

Lenzing Group has commissioned a new 14-megawatt power-to-heat (P2H) facility at its industrial site as of April 08, 2026. The system converts renewable electricity into process heat and is fully integrated into the site’s heat network. It is also linked to Austria’s balancing energy market through project partner VERBUND.

The Lenzing Group has successfully put into operation a power-to-heat facility with an electrical capacity of 14 megawatts. The installation converts renewable electricity directly into process heat and is integrated into the existing heat infrastructure at the industrial site. According to the company, it forms an important component for a fossil-free heat supply.

VERBUND, as the project partner, was responsible for energy-market integration and will operate the facility for balancing energy marketing. This setup enables the system to respond to short-term fluctuations in the electricity grid.

The facility is designed to operate primarily during periods when wind and solar generation place higher load on the grid and electricity prices are low. In such situations, it can ramp up quickly, absorb renewable electricity, and supply heat to the site’s heat network. This operation reduces pressure on the Austrian power grid and limits curtailment of renewable electricity generation while supporting supply security at the Lenzing site. Flexible operation also allows the use of lower-cost renewable electricity and the replacement of fossil fuels, contributing to reduced CO₂ emissions.

Georg Kasperkovitz, member of the Managing Board of the Lenzing Group, stated: “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.”

The project was implemented jointly by Lenzing and VERBUND. Lenzing handled technical design, construction, and integration into the site’s energy and heat management system. VERBUND contributed expertise in infrastructure, energy marketing, and market operations, and integrates the facility into Austria’s balancing energy market to support optimal system deployment.

VERBUND Chairman of the Executive Board Michael Strugl said: “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.”

VERBUND has also been implementing renewable energy projects at the Lenzing site for several years, including photovoltaic installations and EV charging infrastructure, supporting a broader approach to industrial decarbonization.

With the commissioning of the 14 MW power-to-heat facility, Lenzing adds capacity for climate-friendly production, increases flexibility in energy use, strengthens heat management, and improves utilization of renewable energy. The company states that the system contributes to industrial heat transition and supports the long-term implementation of climate-neutral production pathways.