Kaipolan Strategy Update and Finnish Biomass Plans

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.

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

Notes