State continues to subsidize biomethane production

Biogas bus.
Biogas bus. Source: Siim Lõvi /ERR

The state extends subsidies for the production of biomethane used for transportation until June 30, 2024, according an order signed by Minister of Economic Affairs and Infrastructure Riina Sikkut (SDE).

The time for biomethane subsidies was set to expire at the end of 2023, but increased renewable energy targets and subsidy budgets have made it possible to prolong the period, the ministry said. The earnings from the sale of CO2 quotas will be used to provide an additional €11.8 million to the development of the biomethane market.

The state will provide a subsidy of €100 minus the average market price of natural gas per megawatt-hour for the current month for biomethane supplied to the transportation sector. If the gas price exceeds this threshold, no subsidy will be paid.

Since 2018, Elering has paid the biomethane production subsidy directly to the producer based on the amount of produced and consumed biomethane. As of 2022, payouts total €25,3 million.

The support will help achieve the renewable energy goal of at least 65 percent of total domestic final energy consumption by 2030.

Renewable energy used in road and rail transport must account for at least 14 percent of all energy consumed in the transport sector by 2030.


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Editor: Kristina Kersa

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