The Estonian Environmental Investment Centre (KIK) has approved €19M in funding to construct four new biomethane production plants across the country, expanding Estonia’s renewable energy infrastructure. The new facilities will be in the Viljandimaa, Saaremaa, Pärnumaa, and Lääne-Virumaa counties.
The project represents a major boost to Estonia’s green gas production capacity, with the new plants expected to increase annual biomethane production by 26 million cubic meters. These facilities will join Estonia’s existing network of eight biomethane production plants, bringing the total to twelve nationwide. With one of the most ambitious and successful clean transition plans, Estonia is marching ahead of many European nations in biomethane production per capita.
“This initiative combines several crucial elements: reducing greenhouse gas emissions in agriculture, enhancing energy security, and promoting a circular economy based on local resources,” said Argo Peepson, head of bioresources and climate at the Ministry of Regional Affairs and Agriculture.
The funding has been distributed among four companies:
- Bioforce Viiratsi OÜ received €5M for a plant in Viiratsi village, Viljandimaa
- Mereranna Põllumajandusühistu was granted €5M for their Tahula village facility in Saaremaa
- Halinga OÜ secured €5M for their project in Langerma village, Pärnu County
- Viru Biojaam OÜ was awarded €4M for their facility in Kohala village, Lääne-Virumaa
Siimani biomethane plant from above
According to KIK’s project coordinator Tiiu Noormaa, these plants will be versatile in their output, capable of producing biogas for various applications including biomethane production, combined heat and electricity generation, and transport fuel. The facilities will also be able to feed into the natural gas network and produce fertiliser from fermentation residues.
The project is being funded through the European Union’s NextGenerationEU recovery fund, with support developed through collaboration between the Ministry of Regional Affairs and Agriculture and the Environmental Investment Centre. The initiative attracted significant interest, with eight applications submitted for funding totalling €39 million.
These new facilities will prioritise environmental sustainability by exclusively using renewable energy in their operations and processing primarily agricultural by-products and residues from local sources, minimising transportation needs.
While they are shaping up, some even bigger projects are coming together, with Dutch company Power2X recently announcing plans to build Europe’s largest green methanol plant in Pärnu. The billion-euro facility, scheduled to begin production in 2028, will produce 500,000 tons of green methanol annually using low-value wood materials.
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