Estonian government to give state support to biomethane

Estonian companies will be able to begin applying for state subsidies for the production of biomethane, according to ERR news.

Estonia’s goal is for fuel produced from renewable sources to make up 10% of total fuel consumption by 2020, of which biomethane would account for one third.

The measure aimed at boosting the use of Estonian made, environment-friendly biomethane will be financed with proceeds from the auctioning of carbon dioxide emission credits.

Biomethane is to begin competing with other fuels on the Estonian market, and will cost-end users as much as natural gas, according to ERR news.

Producers of the green fuel can submit applications for the subsidy on a rolling basis between the beginning of 2018 and 30 November, 2020. Estonian transmission system operator Elering will pay out subsidies directly to producers based on volumes of produced and consumed biomethane.

The Environmental Investment Centre (KIK) will also support the construction of 12 gas stations offering biomethane fuel with a total of €2.23 million.

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