The state expects to pay out nearly €28 million in support, the funding for which will be sourced from carbon credit revenues, ERR News writes.
Estonia’s goal is for fuel produced from renewable sources to make up ten percent 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.
Producers of the green fuel can submit applications for the subsidy on a rolling basis between the beginning of 2018 and Nov. 30, 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.