Biomethane

Biomethane is an environmentally friendly renewable fuel obtained through anaerobic fermentation, which can be mixed with natural gas if necessary and which could replace fossil fuels used in the transport sector in the future.

The goal of the Estonian State is to use 14% of renewable fuels in transportation by 2030, part of which is planned to be covered by biomethane. To this end, the State is developing the biomethane market, creating the necessary conditions to meet the goal.

Elering, as the owner and system operator of the gas transmission system, plays an important role in promoting the production and consumption of biomethane in Estonia, and can assist in transporting the produced biomethane to consumers and accounting for biomethane. In order for biomethane to reach consumers, Elering creates effective conditions for biomethane producers to connect to the gas network, advises producers on finding connection opportunities, and enables filling stations to quickly connect to existing and new gas networks. In addition, Elering has developed a system for guarantees of origin for gas (register) to prove the origin of gas to consumers, and pursuant to section 2⁶ of the Liquid Fuel Act, Elering is developing the register with the aim of creating a digital environment for trading biomethane, renewable electricity and biofuel statistics. To raise awareness about biomethane, Elering has developed the website www.biometaan.info (in estonian).

According to the National Energy and Climate Plan until 2030, the proportion of renewable energy in the transport sector must be 14% by 2030. The target stems from the EU Renewable Energy Directive 2018/2001/EU. A total of over 9.1 TWh of transport fuels are consumed in Estonia, of which nearly two-thirds is diesel fuel and the rest is gasoline. In order to increase the consumption of biofuels in Estonia, the country plans to develop biomethane production based on local raw materials and to start using biomethane widely in the transport sector.

According to a study of Estonian biomethane resources prepared by the Development Fund in 2014, Estonia has an estimated annual production capacity of up to 4.7 TWh (=483 million m³) of biomethane, the raw materials for which would be predominantly biomass from grasslands (83%), agricultural production residues (9.8%) as well as biodegradable residues from industry, landfill gas and municipal waste from wastewater treatment plants. The launch of biomethane production will bring a new source of supply based on local raw materials to the gas market and open up a new area of gas consumption in the transport sector. Renewable fuel produced from local raw materials promotes sustainable regional development, diversifies the rural economy and reduces dependence on imported fuels, while promoting distributed energy production and reducing environmental pollution.

Development of biomethane market, final report 2016

The final report on the biomethane market development study is available in the attachment of the page. In the course of the study, maps of the optimal locations of gas filling stations were also prepared, which can be requested from [email protected] if interested.

Hydrogen

Hydrogen, H2, is a colourless, odourless, very light gas under normal conditions and is the most abundant element in the universe. Due to global warming and growing energy demand, we have turned our attention to hydrogen as it can be produced from regular water through electrolysis.

According to the Energy Sector Organisation Act, Elering, as the system operator, is also the issuer of guarantees of origin for hydrogen. Elering is also conducting pre-feasibility studies on the development of hydrogen transmission infrastructure, which is planned to be initiated in cooperation with neighbouring countries. In 2022, Elering entered into a cooperation agreement with the gas system operators of Finland, Latvia, Lithuania, Poland and one German gas system operator to jointly explore the establishment of a hydrogen transmission pipeline from Finland through Estonia to Germany.

The Estonian Hydrogen Roadmap (in estonian), completed in 2023, describes Elering as one of 31 transmission system operators that have joined the European Hydrogen Backbone initiative, which will create a European Union-wide hydrogen transmission infrastructure by 2040. The hydrogen transmission infrastructure is expected to cross 21 countries and be approximately 40,000 km long. The Hydrogen network initiative will, among other things, assess the possibilities for establishing the 20-million-tonne hydrogen transmission capacity mentioned in RePowerEU by 2030. In neighbouring countries, the planning of hydrogen value chain and the related legislation are still in their early stages. Therefore, the framework for regional cooperation at the national level is still being developed.

In 2020, the European Commission presented a communication titled “A Hydrogen Strategy for a Climate-Neutral Europe”, which prioritised the development of green hydrogen and envisaged its gradual widespread deployment by 2050, together with the creation of new renewable energy generating capacities. The described goals are also the starting point for the Fit for 55 package of the European Commission’s climate and energy laws. Hydrogen production is considered carbon neutral if no carbon dioxide is emitted during the production process or if it is captured or recycled. Clean, renewable or green hydrogen is produced by the electrolysis of water using electricity generated from renewable energy sources.

More information on the topic is available in the “Gas Market Handbook”(in estonian).