Regional Biogas Development Strategy and Action Plan - Tartu

Regional Biogas Development Strategy and Action
Plan
(Final report)
(Biogas plant in Aravete, ERR)
Tartu
2012

Contents
Table of Contents
Contents..........................................................................................................................................................................2
Definitions and Abbreviations........................................................................................................................................3
1. Introduction.................................................................................................................................................................4
1.1 The background of biogas sector and significance of the theme..........................................................................6
1.2 The biogas sector in relation to other fields ........................................................................................................7
1.3 Biogas production technology..............................................................................................................................8
1.4 Biogas production and consumption value chain...............................................................................................10
2. Biogas production and usage in Estonia...................................................................................................................11
2.1 Obstacles to expanding the use of biogas at the moment in Estonia
...................................................................................................................................................................................12
2.2 Estonian theoretical and actual biogas resource..................................................................................................13
2.3 Biogas production support measures in Estonia.................................................................................................15
2.3.1 Rural Development Plan (RDP) measure 1.4.3 ..........................................................................................15
2.3.2 Biomethane production and fuel excise.......................................................................................................16
3. Legal regulations.......................................................................................................................................................16
3.1. Laws of the renewable energy sector.................................................................................................................16
3.2. Energy policies of Estonia.................................................................................................................................18
3.3. Estonian legislation on renewable energy sector...............................................................................................20
3.4. National and European Union regulations of construction and operational safety of a biogas plant................22
4. Economic, social and environmental aspects............................................................................................................22
4.1. Biogas production and consumption, socio-economic aspects and impacts......................................................22
4.1.1. Impact on human health, well-being and comfort......................................................................................23
4.2. Environmental aspects and impacts of biogas...................................................................................................23
4.2.1. Impact on living nature...............................................................................................................................24
4.2.2. Impact on the soil and landscape................................................................................................................24
4.2.3. Impact on the air environment....................................................................................................................24
4.2.4. Impact on the water environment................................................................................................................26
4.2.5. Impact on the visual environment and cultural heritage.............................................................................26
4.2.6. Noise...........................................................................................................................................................27
5. Regional strategy for biogas production and consumption 2012-2020....................................................................28
5.1. Strategic objectives in biogas sector..................................................................................................................28
6. Implementation of biogas production and utilization...............................................................................................33
7. Summary...................................................................................................................................................................40
2

Definitions and Abbreviations
Bioenergy is renewable energy made available from materials derived from biological sources,
to be used for heat, electricity, or vehicle fuel
Biogas is the gaseous product of the anaerobic digestion (decomposition without oxygen) of
organic matter. It is typically made up of 50-70% methane, 30-40% carbon dioxide, and traces of
gases such as hydrogen, carbon monoxide, and nitrogen
Biomethane is a gaseous fuel that contains >97% methane, and is produced from biogas
generated through the anaerobic digestion of organic materials, or from landfill gas production.
Biomethane is biogas that is cleaned by removing contaminants such as hydrogen sulphide and
moisture. It can be used also in CNG vehicles
CNG (compressed natural gas), stored and distributed in hard containers at a pressure of 200–
300 bar
Digestate is solid material remaining after the anaerobic digestion of a biodegradable feedstock.
Digestate is nutrient-rich substance produced by anaerobic digestion that can be used as a
fertiliser.
Ktoe kilo-tons oil equivalent. That is, 1 ktoe is the amount of energy equivalent to that which is
contained in 1000 tons of oil = 41.868 TJ = 0.041868 PJ
Nm 3 (normal cubic meter), the N means the gas is at normal temperature and pressure, usually
taken to be 0 C and 1.01 bar (one atmosphere)
Methane fuel gas is very high octane (up to 130) which allows it to function with high output in
spark ignition engines (CNG, CBM, LNG, LBM), a spontaneous ignition temperature of 540°C
CHP cogeneration (also combined heat and power, CHP) is the use of a heat engine or a power
station to simultaneously generate both electricity and useful heat
EIC Environmental Investment Centre, www.kik.ee
ARIC Agricultural Registers and Information Centre, www.pria.ee
3

1. Introduction
The European Union (EU) has set the target of increasing the share of biofuels and so-called
alternative fuels, including natural gas, in traffic to 10 and 20 %, respectively, by 2020.
According to directive 2009/28/EC, Estonia must ensure that 25 percent share of energy achieved
from renewable energy sources in gross final energy consumption with at least 10 percent share of
bio-fuels of final energy consumption in transport sector. Achieving these goals requires the work
in local and regional level. Biogas plays an important keyrole in achieving these goals.
The BIO-EN-AREA project aims at exchanging and transferring experiences among partners in
order to increase their capacities to favour and optimize the use of bioenergy. The major
objective is to improve regional policies for bioenergy, and help partners to draft or implement
their Regional Biomass Action Plan, as the main expected result and operational objective. There
is a need to have very good integration among regional policies for bioenergy and regional
planning policies because there is a strong link between the development of bioenergy and the
territories/areas – concerned at subregional level.
Biogas and Networks – BaN is a sub-project of BIO-EN-AREA project. Aim of this project is to
promote and the use of biogas as an alternative to fossil fuels in the participating areas.
Based on document “National Development Plan of the Energy Sector until 2020”, Estonian
Government must implement actions which increases share of renewable energy in total energy
consumption. For promoting renewable energy, many documents have been developed e.g
“Development plan 2007-2013 for enhancing the use of biomass and bioenergy” and “National
Renewable Energy Action Plan 2020”.
Biogas production from anaerobic digester presents the additional advantage of treating organic
waste and reducing the environmental impact of these wastes. It contributes to a better image of
the farming community while reducing odor, pathogens and weeds from the manure and
producing an enhance fertilizer easily assimilated by plants, generating also electricity, heat or
motor fuel.
Despite of few biogas producing units in Estonia, it should be noted that biogas field is very
young and still under development phase, concerning practical experience, know-how, political
contribution and subsidies. Considering the current economic situation in Estonia and the (un)
profitability of bio energy, it is clear that transfer to bio-energy will not take place withoaut a
political decision and subsequent financial methods. In the case of biogas, support mechanisms
should take into account the source of biogas, location and size. Therefore current document
focuses on implementation of Regional Biogas Development Strategy and Action Plan based on
acts, supports, current knowledge and local biogas potential considering situation and the
development of previous bioenergy surveys and analysis.
4

It is important for each state's energy supply and transportation the diversity of energy sources
and fuels, thus enriching the biogas production of larger quantities could contribute to national
energy portfolio and increases in the proportion of the achievement of renewable energy
objectives.
This strategy document was implemented by Mõnus Minek SEES Ltd.
5

1.1 The background of biogas sector and significance of the theme
First biogas plants were founded already in Estonia during the Soviet period in 1980s.
Geographically these biogas plants were located in Pärnu Seavabrik (specifically in Sauga, near
the city of Pärnu) and Linnamäe collective farm (Läänemaa). After 10 years of action (1987-
1997) in Pärnu Seavabrik it stopped functioning as a biogas plant, because pork factory was
closed down. Linnamäe collective farm functioned for 8 years as a biogas plant (1987-1995),
because some fissures were found in the anaerobic container and also corrosion was noticed. All
devices have been dismantled 1 .
Operating with biogas is just one way of many to make a contribution to the development of
Estonia – it solves unemployment problems in different regions of Estonia, promotes renewable
energy and the process of producing it from local substrates, which affects environment,
recycling and balanced regional development in a positive way. Also, it heats up the economy
and the action of innovation. Generally, produced biogas will be consumed by local departments
and biogas producers lack interest in producing biomethane.
European Parliament Agriculture and Rural Development committee recognises biogas in their
last 2011/2114 (INI) 2 report as an important energy resource, which need to be supported in
order to make a contribution to a sustainable development of economy and agriculture, and
protection of environment as well. European Parliament’s resolution about agricultural inputs of
shipment chain brings forth:
• Whereas there is considerable potential in farming for saving energy and costs through
improved energy efficiency and local renewable energy production (especially wind,
solar, biogas, use of waste products, etc.);
• Calls on the Commission and the Member States to promote, through legislative
measures, investments in energy saving and renewable energy production on-farm or in
local partnership projects (wind, solar, biogas, geothermic etc.) with a special focus on
using waste and by-products on a local level;
• Also sewage systems of villages and towns should be considered as potential sources of
nutrients (biogas), if sufficient separation of potentially harmful substances can be
guaranteed.
In Estonia, the development of biogas has been a subject of public discussions during the last 2-3
years. At present, there are about 10 projects on biogas regarding its production, usage and which
are funded by different funds of European Union. In 2009 (March) Estonian Biogas Association
(EBA) was established in order to make its contribution to the strategic development and to
ensure systematization of legislation.
The field of biogas is closely related to other fields as well. It has strong and direct connections
with energetics and energypolitics, environmental protection, recycling, agriculture, regional
development, scientific and developmental action.
1 Resource and biogas production in Estonia. W-Fuel project database. Ülo Kask. Tallinn University of Technology
2
http://www.europarl.europa.eu/activities/committees/draftReportsCom.do?language=ET&body=AGRI
6

1.2 The biogas sector in relation to other fields
The production and consumption of biogas is a multi-pronged undertaking. Its diversity can be
expressed both in terms of its relationship to other fields of endeavour as well as the intrinsic
value adding capacities of various biogas related activities. The following passages contain a
brief overview of the effects attributed to the production and consumption of biogas in
conjunction with its linkages to miscellaneous associated disciplines. As is evident, the biogas
sector has close ties to fields ranging from energy and energy politics to environmental
protection, waste management, agriculture, regional planning as well as numerous scientific and
R&D related undertakings. The following passages outline the effects of biogas production and
consumption along with the relative impact it has on various occupations in Estonia.
The impact of biogas production on energy politics manifests itself among other things in
harnessing local level renewable energy resources, thereby diminishing dependence on imported
fuels. In addition to this, the production of biogas facilitates development of an autonomous
energy production capacity, which is not directly impacted by climate (i.e. – the production of
biogas is not contingent upon the severity of winds, the amount of sunshine, water levels, etc) –
thus enabling a more stable and dependable form of energy production. Biogas production can
serve the dual purpose of electricity production combined with heat generation (resulting in an
efficiency ratio exceeding 85% - vastly greater than 40% - i.e. the efficiency that can be achieved
when heat and electricity generation are kept separate). Future prospects also include the
possibility of re-selling purified biogas (bio methane) to gas networks or using purified biogas as
a form of renewable engine fuel.
The primary impact of biogas production on environmental protection finds expression in
diminishing the usage of fossil fuels together with a concomitant decline in air pollution. Biogas
usage also results in lower greenhouse gas emissions from the agriculture sector in general. The
residue from biogas production can be utilized as a form of fertilizer – provided that it is sprayed
on crops during the growth period and not in autumn. The storage of malodorous unfermented
slurry’s odour problems are bypassed as the residue from the fermentation process does not carry
a stench whilst maintaining its properties as a natural fertilizer - in the same way as manure or
slurry. Based on numerous researches the availability of nutrients to plants from fermentation
residue even increases up to 10% in relation to ordinary slurry.
The impact of biogas on waste disposal related activities lies primarily in utilizing effluvium
for biogas production. It addition to the above, various forms of decomposing waste can be used
as inputs for producing biogas. Therefore it is not prudent to incinerate decomposing waste along
with the general mass of inorganic waste. In essence the production of biogas can be regarded as
a form of waste disposal – anaerobic fermentation – i.e. the production of biogas is in fact one of
the most efficient forms of biological waste management and energy generation.
The impact of biogas on agriculture stems primarily from the ability to eliminate the need for
storing solid-state manure as this is replaced with liquid fermentation residue, thereby
simplifying the waste-handling process. During the process of biogas production the weed seeds
and pathogens present in the manure are terminated resulting in lower costs associated with the
purchase of various fermentation-enabling compounds. The process also diminishes the risks of
7

“methane tax”. Development of the biogas sector would facilitate a diversification of the
economies of rural regions in offering agricultural producers new sources of income by planting
energy crops, which could be fertilized by fermentation residue from biogas production. In
addition to this, biogas production would also enable a more widespread use of extant crops
together with planting of new classes of energy production specific crops.
The impact of biogas on regional policy is associated with its acting as a catalyst for
developing micro networks connecting small municipalities which should diminish heating costs
and provide an additional source of employment in rural regions. The development of biogas
production can thereby serve as a positive factor in creating a more amiable living environment,
which in turn should result in increasing competitiveness (i.e. solving the odour problem,
creating a better cultivated countryside, etc). Biogas can also be produced by bio energy
cooperatives, which carry several additional benefits such as increased community cohesion,
autonomous energy production, resulting in increased disposable incomes for small households,
etc.
The impact of biogas production on economic policy lies primarily in its advantageous effects
on rural production, agriculture, construction, employment prospects, investments and fostering
entrepreneurship.
1.3 Biogas production technology
Biogas production technological solutions depends on substrates. Quantity of substrates
determines technical equipment volumetric dimensions and dimensions of the digester. Substrate
quality (dry matter content, structure, origin) is largely determined by the technology used in the
construction of biogas plants.
8

Figure 1. Technologial scheme of biogas production. Variant 1 = electricity and heat production and variant 2=
biomethane production 3
Biogas production is a complex process, depending on many factors. There is no similar scheme
for the production of biogas, because each plant depends on the location and configuration of the
raw material mix. Biogas yield depends on the source material and additives, which are used for
energy production.
3
Mõnus Minek SEES Ltd illustration, www.monusminek.ee
9

1.4 Biogas production and consumption value chain
Regional Biogas Development Strategy and Action Plan are based on the biogas production and
use phases of the value chain (see Figure 2).
Figure 2. Biogas production and consumption value chain 4
Stages of biogas value chain:
I. Biogas inputs holder or producer - The first phase in biogas value chain is ownership
of resources, which are used for biogas plant inputs. Alternatively these inputs can be
produced, e.g. energy crops or being owner of cattle farm, which manure is suitable input
for biogas plant. The competitors in this case are all landfills, waste water companies,
waste companies, food processing companies, catering, hotel and restaurant owners
II.
Biogas production - Opportunities as a owner or co-owner of the biogas production
inputs (agriculture, industry, service, producing fertilizers, biomethane or produced
electricity and heat and together with the biogas production side products (digestateresidue)
III. Biogas purification - Today biogas is not up-graded to biomethane, used as a motor fuel
or inject into natural gas grid in Estonia. Biogas upgrading to biomethane means
independency and it depends on national legislation, entrepreneurs, local authorities and
support schemes
IV. Biogas storage and transport – standards and costs are unclear for injection biomethane to Eesti
Gaas natural gas grid. Priority must be the variety of motor fuels
4
Mõnus Minek SEES Ltd illustration, www.monusminek.ee
10

V. Marketing and sales – Economically profitable are electricity and heat production
(CHP) and biomethane production. Also selling biomethane via natural gas grid to the
end consumer. Variety of the status of biogas (as a motor fuel, container (cylinder)
transport, electricity or heat energy)
VI. Final consumer - Becoming end consumer of the biogas/biomethane means becoming
owner of the gas filling station, transport fleet or CHP. Using biomethane as a motor fuel
you save money comparing to diesel and petrol and you are in a pricemaker position and
independent
2. Biogas production and usage in Estonia
Biogas production in Estonia takes place in the Tallinn Waste Water Treatment Plant (AS
Tallinna Vesi, Paljassaare), Narva Waste Water Treatment Plant, Saare Economics Ltd,
Salutaguse Pärmitehas AS (yeast production company) and in the Kuressaare Water Company.
Landfill gas is collected in Väätsa, Jõelähtme, Uikala and Pääsküla landfills. Few months ago
Paikuse landfill started collecting landfill gas as well. All named landfills produces electricity
and heat energy except Uikala landfill. After biogas purification and upgrade to biomethane, it is
used as motor fuel in vehicles engines, parallel with CNG. At the moment there is no biomethane
production in Estonia. Many biogas production units are under construction as Aravete Biogas
OÜ. Financial support by EIC (Environmental Investment Centre) has received to Ilmatsalu,
Vinni, Oisu, Torma, Põlva and Loo biogas plant projects. In the near future will be completed
Tartu Waste Water Treatment anaerobic digestion project of sludge fermentation (figure 3) 5 .
Figure 3. Overview of biogas production in Estonia and planned projects 6
5
Oja. A, Trink. T, "Biogas as motor fuel, the situation in Estonia", Keskkonnatehnika, 2011-12
6
Mõnus Minek SEES Ltd database
11

On the assessment of EIER (Estonian Institute of Economic Research) on biogas 72 TJ heat and
42 TJ electricity (power) was produced in 2010. The amount was only 0,04% of European Union
whole biogas share. In 2010 Estonia produced 13,13 mln Nm 3 biogas (including landfills 9,32
mln Nm 3 , sewage sludge 2,92 mln Nm 3 , slurry 800 thousand Nm 3 ) 7 . Still, nearly half (6,16 mln
Nm 3 ) of the gas resource and was burned to prevent any sort of pollution.
2.1 Obstacles to expanding the use of biogas at the moment in Estonia
Biogas production and use in Estonia, along with the development is a relatively new issue.
Estonia lacks positive public attitude and political agreement in order to enhance renewable
energy and bioenergy (including biogas). First steps towards the national vision of biogas will be
made by National Renewable Energy Action Plan until 2020 (NREAP) 8 . The Ministry of
Economic Affairs and Communications in collaboration with the Ministry of the Environment
and the Ministry of Agriculture are expected to work out development and thematic plan focused
particularly on biogas. Estonian Biogas Association was also active in working out NREAP
making its contribution to action plan by giving measures regarding the development of biogas
field. Only problem could be that these measures cannot become a reality. A specific legislative
frame is one of the premises of biogas development. At present, if we look all renewable fuels,
then biogas is the least regulated, there is no biogas as a gaseous fuel regulation mentioned in the
laws of Estonia. At the same time, the prepositions by EAS methane fuel promotion group were
made to the ministry, which promised to implement the changes in the next EU budgeting
period.
Today, in addition to a market price of Nordlpool there is a valid renewable electricity subsidy
(fixed price premium is 0.054 €/kWh). This is one of the lowest in Europe. Furthermore, small
villages and settlements are not able to invest in the transition to bioenergy. It is necessary to
find measures in order to offer bioenergy to small boiler houses which will give a positive
social-economic impact in the form of job creation as well.
At present, potential producers of biomethane lack opportunities to sell biomethane into the
natural gas network grid, because legal obligation doesn’t exist to inject biomethane directly to
gas network grid. However, it is possible to use AS EG Võrguteenused service in order to
transport biomethane, which is similar to natural gas in terms of quality, in natural gas network
grids. The cost depends on the amount of gas which need to be transported and has been
regulated by the Estonian Competition Authority. Since the purchase price will be paid by the
final consumer, the price of biomethane cannot be higher than natural gas in order to guarantee
competitiveness.
Policy makers have little knowledge about the additional positive public benefits biogas sector
may offer. Similarly, owners of the biomass resource (farmers for example) and consumers do
not know much about positive sides of biogas either. Low awareness from one side and lack of
7
Overview of the Estonian bioenergy market in 2007th year. 2008. Estonian Institute of Economic Research (EKI)
8
http://www.mkm.ee/public/nreap_EE_final_101126.pdf
12

finances from other side creates a totally new situation where biowaste is taken as a problem not
as a potential secondary source of biomass for biogas production.
Estonia’s current state of development means that entrepreneur whose interest would be
undertaking biogas solutions is having usually little knowledge and in bureaucracy it is hard to
find advice and assistance from public servants whose knowledge is not better at all comparing
to entrepreneur. Biogas producers who would like to use gas for electricity generation and want
to sell it to the general electrical greed face some difficulties when investments need to be done:
administrative incapability of the network operator (Jaotusvõrk OÜ and/or Elering AS),
sometimes deliberate procrastination and too high costs of affiliation which could be in the worst
case up to one-fifth of the total investment in biogas plant construction.
2.2 Estonian theoretical and actual biogas resource
It is estimated that the total theoretical annual biogas quantity is about 1,322 million Nm³. The
six most important resource inputs for the production of biogas are: energy crops from unused
agricultural land; slurry and manure from livestock farms; semi‐natural grasslands; larger
landfills; biodegradable waste and wastewater sludge (figure 4) 9 . In reality the amount of 502
million biomethane is used, which could supply 375 000 households (862 000 people, 1.25
MWh/person) with produced electricity and 159 500 households (367 000 people, 3.23
MWh/person) with heat energy. Avoidable amount of CO 2 could be about 1,03 million t/a (1,05 t
CO 2 /MWh) 10 .
Substrate
Estimated
amount of
biogas
Actually
used
Biogas per
year
Biomethane
per year
Electricity
produced
from biomethane
Nominal
installed
capacity of
generators
Heat energy
produced
per year
Silage from
unused
agricultural
land
Silage from
5% of
agricultural
land
Silage from
half natural
land
10 *6 Nm³ % 10 *6 Nm³ 10 *6 Nm³ GWh el MWh GWh el
952 20 190 114 406 46,4 449
174 100 174 104 371 42,3 410
32 30 10 6 21 2,4 23
Cattle slurry 87 75 65 39 139 15,9 154
9
Trink, T. 2010. Obstacles, benefits and opportunities of biogas production in Estonia. Master Thesis, Tallinn
University, Tartu College, Department of Technology. Tallinna Tehnikülikooli Tartu Kolledž, Säästva tehnoloogia
õppetool, Tartu.)
10 Resource and biogas production in Estonia. W-Fuel project database. Ülo Kask. Tallinn University of Technology
13

Substrate
Estimated
amount of
biogas
Actually
used
Biogas per
year
Biomethane
per year
Electricity
produced
from biomethane
Nominal
installed
capacity of
generators
Heat energy
produced
per year
(9%)
Pig slurry
(6%)
Other
agrucultural
rejects
Biodegradable
rejects in the
food industry
Biodegradable
kitchen waste
11 65 7 4 15 1,7 17
5 90 5 3 10 1,0 11
19 80 15 9 33 3,7 36
4 80 3 2 6 0,7 7
Sewage sludge 6 80 5 3 11 1,2 12
Industrial
waste
ALL (without
landfill gas)
13 100 13 8 35 4,0 31
1,303 487 292 1,046 119 1,149
Landfill gas 19 80 15 9 32 4 36
ALL (with
landfill gas)
1,322 502 301 1,078 123 1,185
Figure 4. The theoretical potential of biogas by sources. Produced amount of biomethane, energy and heat.
In this overview the economically usable biogas potential of Estonia is estimated to be the
following percentage of the named substrates: 30% of the hay made at nature conservation areas
20 % of silage from unused agricultural land (yield 15 t/ha), 5 % of energy crops growing on
usable agricultural land (yield 15 t/ha), 80% of landfill gas is used for combined heat and power
production, 80% of sewage sludge is used for biogas production 65-75% of total manure and
slurry can be used for biogas production, 80% of bio waste (food industry, kitchen waste).
Total annually applicable biogas amount could be 502 million Nm³, which can be produce
electricity 1’078 GWh el /a and the nominal installed capacity of generators is 123MWel. The
annual biomethane (98% CH 4 ) production from applicable biogas amount is 301 million Nm³,
which is almost a half of Estonian annual natural gas consumption, 702 million Nm³ in 2010. 11
According to Statistics Estonia 2011 year data, consumption of petrol was 266 000 t and
consumption of diesel was 556 000 t.
1 litre of petrol weighs 0,76 kg
1 litre of diesel weighs 0,82 kg
11
AS Eesti Gaas, http://www.gaas.ee/index.php?article_id=103&page=30&action=article&
14

In 2011, thus consumption of petrol was 352’097’402 liters and consumption of diesel was
667’955’236 liters.
The amount of electricity given by one liter of oil or diesel equals one m 3 of biomethane, which
means that about 30% of oil and diesel used in 2011 could be replaced with biomethane. Since
one of the goals of the Government of Estonia is to replace 10% of the use of fossil fuels with
renewable energy, then biomethane solves the problem perfectly.
2.3 Biogas production support measures in Estonia
Investment support for economic diversification in rural areas (MAK Measure 3.1) determines
that medium-sized agricultural producers can apply financial support if their activity is related to
biofuel, heat or electricity production from biomass. Measure called "Increased use of renewable
sources of energy" offers financial support for renewable energy-based electricity and heat
production in cogeneration stations, including establishing necessary infrastructure.
Most oriented measure for bioenergy activities is still MAK Measure 1.4.3.
2.3.1 Rural Development Plan (RDP) measure 1.4.3
The production of biogas in Estonia is directly supported by the measure termed “Subsidies for
Investments in the Field of Bio energy (RDP measure 1.4.3)”, which explicitly states that the
development of bio-fuels usage benefits the formation of an efficient energy market by
increasing the proportion of renewable energy sources in the overall energy mix. The latent
potential for increased production of renewable fuels lies in increasing the production of biomass
from unused rural lands 12 .
The above-stated measure aims at supporting the production of biogas but is even more
orientated toward enhancing the consumption of bio methane by agricultural companies. This
can be attributed to the fact that, starting from this year, the measure includes subsidies for
converting the engines of agricultural machinery for running on bio methane. Applications for
subsidies can be filed in order to gain support for the purposes of planting energy crops, handling
biomass as well as production of heat, electricity and transport fuel. In cases where investments
are made to facilitate bio energy production, the only projects eligible for subsidies are such
where the energy produced as a result of the investment is to be consumed by the applicant’s
agricultural enterprise and/or personal household. In cases where investments are made to
facilitate transport fuel, the only projects eligible for subsidies are such where the fuel is to be
consumed by the applicant’s agricultural enterprise.
Investments eligible for subsidy will be financed ranging from 40-60% of the total cost of the
investment project. The maximum sums made available shall not exceed 512 000 Euros per one
applicant throughout the duration of the program. Even so, the above-stated measure has still not
been used.
12
http://www.pria.ee/et/toetused/valdkond/taimekasvatus/bioenergia_2011/
15

2.3.2 Biomethane production and fuel excise
Biofuels were exempted from excise duty until 27.07.2011. According to the National
Renewable Energy Action Plan until 2020 (page 18) the permission shall not be extended. Civil
servants responsible for the tax policy and excise policy in the governance of the Ministry of
Finance have stated that the impact of exemption of biofuel from excise duty is minor when
compared to its scope and administration costs. At the same time, discontinuation of exemption
of biofuels from excise duty may have negative impact on the production or import and
consumption of biofuels, which is quite insignificant at the moment (1 ktoe, 0.6% of final energy
consumption, target for 2020 is 92 ktoe).
A precondition for the development of the biogas sector is to have a more specific legislative
framework. At the moment biogas is the least regulated renewable fuel. In Estonian legislation
there is no regulation relating to using biogas as a gaseous fuel (neither in motors nor for heat
production). This means that this termination of the excise duty exemption becomes a
development obstacle-market barrier. The renewable energy producers support of course the
excise duty exemption for renewable fuels for next period, but it presumes tight cooperation
between renewable fuel producers, which is currently quite week. The change in attitudes among
governing political parties and their coalition is crucial, it can change after Estonian Parliament
elections in March 6 2011.
Without excise exemption use of biofuels in transport is not likely economically feasible. At the
same time the oil prices are increasing and when the oil price exceeds 100 US$ for barrel,
feasibility of biofuels might increase. According to subsection 14 of section 19 of the Alcohol,
Tobacco, Fuel and Electricity Excise Duty Act biofuel means fuel, which is produced from
biomass, including fuel for which the eight digits of the CN code are 3824 90 55 or 3824 90 80–
3824 90 99. The biodegradable fraction of products from agriculture, including vegetable and
animal substances, products, waste and residues from forestry and the biodegradable fraction of
industrial and municipal waste is deemed to be biomass. As the above described provisions have
been approved by the European Commission it means that it is a state support in the form of tax
exemption granted with the objective of environmental protection. However, biogas is not used
as motor fuel in Estonia because of lack of relevant competence and experience to
coordinate it with the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act. According to the
manager of the project ADORE IT (Production and Promotion of the Use of Transport Biofuels)
the coordination procedure with the Tax and Customs Board is clumsy and time consuming 13 .
3. Legal regulations
3.1. Laws of the renewable energy sector
In Europe the resources of raw material for energy are scarce and dependence of the European
Union from import of oil and gas is increasing rapidly, therefore, it is important to make
13
Amendments relating to excise from the field of biofuels 27.07.2011, e-mail information: Peeter-Tanel Orro
(Estonian Tax and Customs Board, www.emta.ee)
16

maximum use of the European Union’s own renewable energy sources. The European Council
adopted the EU Action Plan for Energy Policy 2007–2009 (hereinafter: EU Energy Policy) in
March 2007. In the package of measures i.e. the so-called climate package (consists of 4
directives and 1 decision) developed for the implementation of the EU energy policy published
on 23 January 2008, the most important target values are the ones established for energy
efficiency, the use of renewable energy sources and biofuels, including for environmentally safe
carbon capture and storage for 2020:
• achieving at least a 20 % reduction of greenhouse gas emissions compared to the base year
1990 (by 2005 the greenhouse gas emissions had been reduced by 6 %);
• increasing the share of renewable energy to 20 % of the final consumption of primary energy
(in 2005 the average share in EU was 8.5 %);
• achieving 20 % more efficient use of energy in the final consumption of primary energy;
• increasing the share of biofuels up to 10 % in transport fuels provided that second-generation
biofuels are developed 14 .
Renewable energy supplies for the implementation of the so-called 20/20/20 targets for the year
2020 are available in Estonia; the biggest of these are wind and bioenergy, including biogas.
Development of the biogas sector is only in the initial stage and in the situation of economic
depression there is a risk that the development of this sector will be hindered in case
development of bioenergy is taken only for a cost item and is considered viable only with
support. On the other hand, if the public sector increases investments for research and
development of bioenergy, it will contribute to the security and knowledge of entrepreneurs for
the development of long-term renewable energy 15 .
The European Union Renewable Energy Directive 2009/28/EC provides that each member state
shall notify their national renewable energy action plans developed according to the requirements
specified in the directive to the Commission by 30 June 2010. The European Commission has set
up an Internet homepage “Transparency Platform” for the implementation of the Renewable
Energy Directive 2009/28/EC: http://ec.europa.eu/energy/.
Waste is an important raw material, i.e. input of biogas production; therefore, waste management
in Europe is regulated by the following acts:
• 1999/31/EC European Council directive on the landfill of waste;
• Opinion of the European Economic and Economic and Social Committee „Proposal for a
Directive of the European Parliament and of the Council establishing a framework for the
protection of soil and amending Directive 2004/35/” COM(2006) 232 final — 2006/0086 (COD)
(2007/C 168/05);
• Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on
waste and repealing certain Directives;
• Council Directive 1986/278 16 .
14
Biogas (Biomethane) and Natural Gas Market Concept. Ahto Oja ja Tauno Trink.
15
Biogas (Biomethane) and Natural Gas Market Concept. Ahto Oja ja Tauno Trink.
16
Biogas (Biomethane) and Natural Gas Market Concept. Ahto Oja ja Tauno Trink.
17

3.2. Energy policies of Estonia
This chapter describes the most important development programs, and laws governing the
Estonian energy sector, renewable energy, including biogas production.
Sustainable development strategy “Sustainable Estonia 21”
Sustainable Estonia 21 is a strategy for developing the Estonian state and society up to 2030.
The strategy establishes an overall framework for the integration of the social, economic and
environmental spheres in the long-term development of society and defines moving towards the
so-called knowledge society as the general development trend of Estonia. The strategy specifies
the following long-term development objectives: vitality of the Estonian cultural space (survival
of ethnic traditions), an increase in wellbeing, a coherent society (without acute social conflicts),
and ecological balance 17 .
Development Plan of the Estonian Electricity Sector until 2018 sets the strategic objectives
for the development of the electricity sector within ten years by describing the objectives and the
measures for the achievement thereof with regard to ensuring power supply, reduction of the
burden on the environment, creation of international energy links, opening of the electricity
market and increase of electricity consumption. The same objectives are of significant
importance also in this Development Plan of the Energy Sector 18 .
Estonian Environmental Strategy until the year 2030 19 The objective of the “Estonian
Environmental Strategy until the year 2030” is to define long-term development trends in
keeping the natural environment in good state, at the same time taking into account connections
between the sphere of environment and the economic and social sphere, as well as their influence
on the surrounding natural environment and people.
One of the objectives of the National Environmental Action Plan of Estonia for 2007–2013
(operational programme of Estonian Environmental Strategy until 2030) is to slow down and
stabilise the consumption of energy, while ensuring that the needs of people are met, i.e. to
ensure the preservation of the volume of primary energy while consumption grows 20 .
The National Strategic Reference Framework for the EU Structural Funds for 2007-2013
establishes an objective to use energy more efficiently which would enable to prevent potential
shortage of energy in future and thus provide international competitive and security advantages
for the state in the longer run. According to the implementation plan for the development of
housing the following areas shall be supported within the framework of the priority axis of the
development of the energy sector: 1) more extensive use of renewable energy sources; 2) use of
alternative energy sources in transport; 3) ambient air protection and mitigation of climate
changes; 4) development of energy conservation in housing (including informing the residents of
the possibilities of energy conservation in residential buildings). The development trends
provided for in the strategy are also reflected in the measures of the Development Plan of the
Energy Sector for diversification of energy supplies 21 .
17
Sustainable development strategy “Sustainable Estonia 21” https://www.riigiteataja.ee/ert/act.jsp?id=940717
18
Estonian Environmental Strategy until the year 2030 http://www.envir.ee/1045989
19
Ibid.
20
National Environmental Action Plan of Estonia for 2007–2013 http://www.envir.ee/1045989
21
The National Strategic Reference Framework for the EU Structural Funds for 2007-2013
https://www.riigiteataja.ee/akt/13315839
18

The Bases of the Security Policy of the Republic of Estonia (2004) brings out the strong
linkage of Estonian gas and power systems with the monopolistic energy systems and energy
suppliers outside Estonia as a significant risk factor. On the basis of the foregoing, the
construction of new energy connections in the Member States of the European Union has been
planned in the Development Plan of the Energy Sector 22 .
Energy sector is regulated by the following legal acts:
Sustainable Development Act
Sustainable Development Act was adopted by Riigikogu (101 seated Estonian Parliament)
already in 1995 providing the main objectives of sustainable use of the natural environment and
natural resources. According to the law a common action plan for the implementation of the
national strategy of sustainable development is not developed, instead, sectoral strategic
programmes and action plans are used. The Sustainable Development Act provides for the basis
of the national strategy of sustainable development and the basis of sustainable use of natural
resources. The objective of the sustainable use of the natural environment and natural resources
is to ensure living environment, which satisfies the people, and the resources required for the
development of economy without causing substantial damage to the natural environment and by
maintaining natural diversity. In the geographical and industrial sectors where the contamination
of the natural environment and the use of natural resources are likely to disrupt natural balance or
endanger the maintenance of biodiversity, the development is directed on the basis of a
development plan initiated by the state. A development plan shall be prepared for directing the
development of energy, transport, agriculture, forestry, tourism and chemical, building materials
and food industries 23 .
Electricity Market Act
The Electricity Market Act regulates the generation, transmission, sale, export, import and transit
of electricity and the economic and technical management of the power system. The Act
prescribes the principles for the operation of the electricity market based on the need to ensure an
effective supply of electricity at reasonable prices and meeting environmental requirements and
the needs of customers, and balanced, environmentally clean and long-term use of energy
sources 24 .
Natural Gas Act
The Natural Gas Act regulates the activities related to the import, transmission, distribution and
sale of natural gas by way of gas networks, and connection to networks. The above mentioned
activities shall be co-ordinated and conform to the principles of objectivity, equal treatment and
transparency in order to ensure a secure, reliable and effective gas supply at a justified price in
compliance with environmental requirements and the needs of the final customer 25 .
District Heating Act
The District Heating Act regulates the activities related to the production, distribution and sale of
heat by way of district heating networks and connection to networks. The above mentioned
22
The Bases of the Security Policy of the Republic of Estonia http://www.kmin.ee/?op=body&id=119
23
Sustainable Development Act https://www.riigiteataja.ee/akt/13148461
24
Electricity Market Act https://www.riigiteataja.ee/akt/13349296
25
Natural Gas Act https://www.riigiteataja.ee/akt/13342610
19

activities shall be co-ordinated and conform to the principles of objectivity, equal treatment and
transparency in order to ensure a secure, reliable and effective heat supply at a justified price in
compliance with environmental requirements and the needs of the final customer 26 .
In addition to sectoral regulations the development of the energy sector is influenced by
environmental legal acts concerning the quality of ambient air, CO2 emissions trading etc.
Biogas and biomethane have not been mentioned in legal acts and regulations concerning
transport fuel.
3.3. Estonian legislation on renewable energy sector
The following provides an overview of action plans and legal acts having the biggest impact on
the renewable energy sector (including biogas). The National Development Plan of the Energy
Sector until 2020 approved by Riigikogu provides actions to be implemented by the Government
of the Republic aiming at increasing the share of renewable energy (including biogas) in final
consumption of energy in Estonia. The following will be focused on:
• National Strategy 2007−2013 for the Use of Structural Instruments
• The National Development Plan of the Energy Sector until 2020
• National Renewable Energy Action Plan until 2020 (NREAP)
• The Development Plan 2007-2013 for Enhancing the Use of Biomass and Bioenergy
The Strategy for Structural Instruments will be drawn up as part of the “State Budget
Strategy 2007−2010” and will be included in the Common Budget Strategy. According to the
analysis of the strategy, the main environmental protection issue in Estonia is the reduction of the
load of economic activity (including pollution caused by economic activity) on the environment
and ensuring health safety, including ensuring the sustainable use of natural resources as well as
preventing environmental emergencies and increasing the ability to react to them 27 .
The National Development Plan of the Energy Sector until 2020 is the main so-called
umbrella strategy of the energy sector. The aim of the national energy sector is to relate the
specific development plans of the sector and provide general guidelines until the year 2020.
Measure 2.4 of the plan provides the development of the National Renewable Energy Action
Plan (NREAP).
National Renewable Energy Action Plan (NREAP)
The first steps in moving towards the national vision for the biogas sector have been made by the
development of the National Renewable Energy Action Plan (NREAP) by the Republic of
Estonia. The document is focusing on renewable energy development, including development of
biogas sector. Stakeholders of the Estonian biogas sector also expect the public officers
(Ministry of Economic Affairs and Communications in cooperation with the Ministry of the
26
District Heating Acthttps://www.riigiteataja.ee/akt/13349182
27
The Strategy for Structural Instruments 2007 – 2013 http://www.fin.ee/index.php?
id=80480&highlight=struktuurivahendite,strateegia,2007%E2%80%932013
20

Environment and the Ministry of Agriculture) to compile a spatial plan for biogas production
perspectives in Estonia.
National Renewable Energy Action Plan includes actions for promoting the development of the
biogas sector in Estonia:
1. technical standards for biomethane; sales conditions for gas network; fixed feed-intariffs;
obligation to buy the produced biogas and set quantities (similar to renewable
electricity);
2. in case an entrepreneur is applying for subsidies for building a manure storage facility, a
precondition for the construction of methane collection facility has to be set;
3. subsidies (financial support for investments) for using biofuel in public transport and
developing necessary infrastructure, e.g. construction of filling stations;
4. making use of biofuel as a condition in public procurements for passenger transport;
developing and implementing incentives for increasing the use of vehicles running on
other alternative renewable energy sources; developing incentives (e.g. taxation,) that
would influence the structure of vehicle use.
Actual implementation of these methods may prove to be a problem.
According to the Renewable Energy Directive 2009/28/EC Estonia has to ensure than the share
of renewable energy has to increase to 25% of the gross final consumption of energy by 2020.
The estimated gross energy consumption after the adjustment will be 3,451 (ktoe) 28 , of which
25% is 863 (ktoe), of which heating and cooling contributes to 17.6% (606 ktoe), renewable
electricity to 4.8% (165 ktoe). Renewable energy sources used for transport fuel should account
for 2.7% (92 ktoe) of total transport fuel by 2020. In 2010 the relevant indicators were: gross
consumption of energy 666 ktoe, heating and cooling 612 ktoe, electricity 53 and transport fuels
1 ktoe (table 2). The latter indicator was 0.6% in 2009, thus in 10 years the share of biofuels used
in transport has to increase 4.5 times. The estimated share of heating and cooling will be the
same and the share of renewable electricity has to increase three times. The biggest growth has
to be ensured in the use of renewable energy sources in transport. Estonian Renewable
Energy Action Plan until 2020 has been approved by the Decree No 452 of 26.11.2010 of the
Government of the Republic of Estonia 29 .
Table 2. The share of renewable energy in gross final consumption in 2005, 2010 and 2020 expressed as % and
thousand tonnes of oil equivalent (ktoe).
2005 2010 2020
Share of renewable energy of gross final consumption (%) 16,6 20,9% 25%
Share of renewable energy of gross final consumption (ktoe) 514 666 863
Including heating and cooling (ktoe) 505 612 606
Renewable electricity (ktoe) 9 53 165
Transport fuels (ktoe) 0 1 92
The objective of the Development Plan for Enhancing the Use of Biomass and Bioenergy for
2007–2013 is to create favourable conditions for the development of the production of domestic
biomass and bioenergy in order to decrease the dependence of Estonia on imported resources and
28
Ktoe = 41.868 TJ = 0.041868 PJ
29
http://www.mkm.ee/nreap-2/
21

fossil fuels and to reduce pressure on the natural environment. The objective of the development
plan is to reduce the dependence of Estonia on imported energy resources and to enhance the use
of biomass as a raw material for energy which coincides with the objective of the Development
Plan of the Energy Sector to guarantee continuous energy supply by diversification of energy
sources and more even distribution in the energy balance 30 .
3.4. National and European Union regulations of construction and operational safety
of a biogas plant
The construction and operational safety of a biogas plant are governed by several national and
European Union regulations, of which the following are the most important:
1) Directive of the European Parliament and Council of 23 March 1994 on the approximation of
the laws of the Member States concerning equipment and protective systems intended for use in
potentially explosive atmospheres (94/9/EU); and
2) Directive of the European Parliament and Council of 17 May 2006 on machinery, and
amending Directive 95/16/EU (2006/42/EU).
The construction of a biogas plant must conform to the following Estonian legislation:
1) Building Act, adopted on 15 May 2002;
2) Planning Act, adopted on 13 November 2002;
3) Water Act, adopted on 11 May 1994;
4) Ambient Air Protection Act, adopted on 5 May 2004;
5) Waste Act, adopted on 28 January 2004;
6) Environmental Impact Assessment and Environmental Auditing Act, adopted on 22 February
2005;
5) Machinery Safety Act, adopted on 10 October 2008;
7) Public Health Act, adopted on 14 June 1995;
8) Public Procurement Act, adopted on 24 January 2007;
9) Requirements for noise, noise level measuring and noise level tracing in equipment used
outdoors and conformity assessment procedure of equipment used outdoors. Regulation no. 124
of the Minister of Economic Affairs and Communications of 16 December 2009; and
10) Noise limit values in residential and recreational areas, dwellings and public buildings and
noise level measuring methods, stated in the Regulation no. 42 of the Minister of Social affairs of
4 March 2002.
4. Economic, social and environmental aspects
4.1. Biogas production and consumption, socio-economic aspects and impacts
Major socio-economic impact related to the construction of a biogas plant is:
1) labour force;
30
Development Plan 2007 – 2013 for Enhancing the Use of Biomass and Bioenergy http://www.agri.ee/index.php?
id=11014
22

2) social issues, and
3) waste management.
Labour force
New jobs will be established for builders, engineers and (indirectly) servicing transport (drivers)
and equipment manufacturers. Increasing technological and professional know-how among local
workers depends on the requirements in the construction process at the plant 31 .
Social issues
The ‘NIMBY syndrome’ hinders the biogas development processes. People living in the area
may oppose the construction of the plant. Nobody doubts the need to build the plant, but they do
not want it close to where they live. Opposition may be caused by emotional arguments 32 .
Waste management
Construction waste and mixed domestic waste is generated during construction. These are sorted
and handed over to a waste handler who acts pursuant to the requirements stipulated in the Waste
Act. Generation of volatile waste at the construction site will be avoided. Covered containers will
be used 33 .
4.1.1. Impact on human health, well-being and comfort
Transport (traffic load)
The transport load depends on the traffic of machinery transporting construction materials.
Critical impact on human health, well-being and comfort is not foreseen 34 .
Accidents
The probability of accidents causing a significant impact on the environment is little if building
safety and environmental requirements are followed 35 .
31
Feasibility and profitability study - Construction of a biogas plant to produce fuel for Tartu city buses
.ERKAS, Valduse OÜ, 2011.
32
Ibid.
33
Feasibility and profitability study - Construction of a biogas plant to produce fuel for Tartu city buses
.ERKAS, Valduse OÜ, 2011.
34
Ibid.
35
Ibid.
23

4.2. Environmental aspects and impacts of biogas
The structure describing the environmental impact caused by commissioning a biogas plant is
similar to the description of impact caused by its construction. Environmental impact caused by
the commissioning of a plant is divided as follows:
1) impact on living nature;
2) impact on the soil and landscape;
3) impact on the air environment;
4) impact on the water environment;
5) impact on the visual environment and cultural heritage;
6) noise and vibration 36 .
4.2.1. Impact on living nature
Impact on vegetation
There will be no impact on vegetation during the biogas production process itself. Yet biogas
production has an indirect impact on plant production via the use of fermentation waste as
fertiliser. In addition to fertilising properties, the use of fermentation waste reduces the spread of
weeds on fields, since the majority of such seeds are destroyed during the production process.
Yet it has to be considered that in the event that the digestate used as fertiliser contains pieces of
plastic (for instance plastic bags), the value of it is much lower than that of a clean digestate 37 .
As a rule, the ratio of carbon and nitrogen is smaller in fermentation waste than in biomass itself.
Thus the binding capacity of nitrogen with the soil is lower and the availability of nitrogen
contained in fermentation waste for plants improved. To reduce ammoniac losses, fermentation
waste should enter the soil as soon as possible (Biogas production and use. Manual 2009).
Impact on animals
Biogas production has no critical impact on animals 38 .
4.2.2. Impact on the soil and landscape
Operating a biogas plant involves the use of grease in small quantities and maintenance
chemicals required for the operation of machines. Impact on the soil is related to emergency
cases and accidents, the probability of which is very low 39 .
36
Feasibility and profitability study - Construction of a biogas plant to produce fuel for Tartu city buses
.ERKAS, Valduse OÜ, 2011.
37
Ibid.
38
Ibid.
39
Feasibility and profitability study - Construction of a biogas plant to produce fuel for Tartu city buses
24

4.2.3. Impact on the air environment
The closed system of biogas production is not influenced by weather conditions. Also, smell is
kept under control, since gas is directed into tanks where it is used for consumption: nothing is
emitted into the outside air 40 .
Smells
Although the production process of biogas takes place is in a closed system, unpleasant smells
may still be produced. This is mainly during the storing of substrate before production of biogas
starts. Spread mostly depends on the direction of the wind. According to data from 2005 received
from Tartu-Tõravere meteorological station, the prevailing winds in the Tartu area are southwest
and west (Tartu Biogaas OÜ Ilmatsalu biogas and co-generation plant. Pre-assessment of
strategic evaluation of environmental impact. 2010). It is estimated that in the fermentation
process, the smell of manure and other biodegradable waste will be reduced by up to 80%
(according to Tuomisto Mattila, 2005). In order to reduce smell pollution, the substrate must be
stored according to requirements (for as short a period as possible, with good ventilation in the
room) and emission of gases collected in the fermentation process and smells into the outside air
should be avoided 41 .
Emission of greenhouse gases
On average, biogas contains 60-70% methane, 30-40% carbon dioxide, less than 1% hydrogen
sulphide and to a lesser extent other gases. In high temperature conditions the fermentation
process is shorter, methane production is greater and the substrate is sanitised more efficiently
(Tuomisto 2005). A biogas plant emits relatively few greenhouse gases, but emission of
ammonia is relatively high due to the fact that fermentation waste and digestates generated after
gas production are spread on the surface. To reduce ammoniac losses, the digestate should enter
the soil as quickly as possible (Biogas production and use. Manual 2009).
In the process of biogas production, nitrogen is bound in the digestate, reducing the emission of
nitrogen oxide (a strong greenhouse gas) compared to the composting of biodegradable matter or
storing in landfill. At the same time, fermentation waste must meet certain quality requirements
(to be probably stipulated in future) so that it can be used as a fertiliser on fields 42 .
Methane generated in biogas production is used for energy production. This reduces the total
emission of methane as a greenhouse gas. In general, the use of fossil fuels is reduced as is the
emission of greenhouse gases caused by it 43 .
.ERKAS, Valduse OÜ, 2011.
40
Ibid.
41
Ibid.
42
Feasibility and profitability study - Construction of a biogas plant to produce fuel for Tartu city buses
43
Ibid.
.ERKAS, Valduse OÜ, 2011.
25

Impact of total pollutants
The energy consumption of a biogas plant is relatively high, which means that part of the
generated biogas must be consumed locally for the production of electrical energy. If the source
material includes toxic matter, the fermentation process may slow down or toxic compounds
(e.g. ammonium) may be generated. In anaerobic processes, many pollutants may also be
damaged. Yet it has to be considered that the content of heavy metals is not reduced in the
process. Bacteria are killed more easily than viruses. Manure can be pasteurised before or after
fermentation by keeping it at a temperature of app. 70 o C for one hour so that the pathogens are
killed (according to Tuomisto Bendixen 2005). It has to be considered that the production
process depends on many factors (such as temperature, pH level and quantity of incoming source
material) and a change in one of the parameters may slow down the entire process.
A small quantity of pollutants is also emitted into the outside air during the transport of substrate
(exhaust gases of trucks), but on the whole this does not have a critical impact on the
environment (the daily substrate needs of a plant are app. 3-4 trucks) 44 .
4.2.4. Impact on the water environment
Impact on ground water
The daily ground water consumption of a plant is approximately 250 m 3 , which does not have a
critical impact on the environment. At present it is not known whether the water required for the
operation of the plant will be taken from a bored well or the local water system, or whether
surface water will be used instead. In the latter case, active coal filters are likely to be used to
purify production water 45 .
Impact on surface water
Liquid used in the biogas production process must meet stipulated criteria, which depend mostly
on the parameters of the biogas equipment used. Important factors are the content of dry matter
and biologically easily decomposing organic carbon compounds, as well as the concentration of
compounds, which may hinder fermentation (for instance salts). Solid particles may create
problems in the nozzles of a sewage system, biologically decomposing carbon compounds may
cause bad smells and a high content of NH x -N or sulphides may impair the anaerobic
decomposition process. Sewage generated in the production and purification of biogas must be
collected according to requirements and further management must be arranged. Soil planning
shall foresee the feeding of storm water into green areas, where it will filter into the soil 46 .
44
Feasibility and profitability study - Construction of a biogas plant to produce fuel for Tartu city buses
.ERKAS, Valduse OÜ, 2011.
45
Ibid.
46
Ibid.
26

4.2.5. Impact on the visual environment and cultural heritage
Landscape
The planned biogas plant will not cause significant changes to the visual environment of either
location or have any impact on cultural heritage. The premises of AS Tartu Veevärk and
Aardlapalu landfill are located outside of the City of Tartu and residential areas.
4.2.6. Noise
During operation of the plant, noise will be emitted by operating gas equipment (the compressor
and gas purification system). Thus equipment must be installed in a sound-insulated closed
construction so that the noise level for the external environment remains below limit values
stipulated in the regulation ‘Noise limit values in residential and recreational areas, in dwellings
and public buildings and methods to measure noise level’ (category III – mixed area; equivalent
level of industrial companies in a new planned area: during daytime 55 dB, at night 45 dB) 47 .
47
Feasibility and profitability study - Construction of a biogas plant to produce fuel for Tartu city buses
.ERKAS, Valduse OÜ, 2011.
27

5. Regional strategy for biogas production and consumption
2012-2020
Biogas sector has larger impact and importance to the society than only in the meaning of the
renewable energy production. These implications occur in environmental protection (soil, water
and air pollution prevention), waste management, regional development, local employment and
economy, decentralized energy production and energy security. Thus objectives and action plan
of Regional Biogas Strategy follow the steps of the value chain of biogas production and
consumption (p. 1.4; chapter 6). Additionally the objectives and actions of raising public
awareness, information sharing and research and development section is added.
5.1. Strategic objectives in biogas sector
Estonia has focused until now on so called German model in the development of the biogas
sector, which based on biogas production from the agricultural inputs and using biogas in CHP
for renewable electricity production. The Swedish biogas sector development path, on contrary,
focuses on biogs consumption as vehicle fuel after purification to the quality of natural gas.
Estonia has to develop both options and leave the choice of biogas consumption to the end-user.
Estonia has huge biogas potential and the Strategy has to focus on increasing the incentives to
the biogas production in order to use this potential. Current incentives (e.g. feed-in-tariff) has to
be differentiated according to the energy source, location, size and consumption. The incentives
have to lead the biogas and biomethane production for vehicle fuel, as this national target is least
achieved. The target share of renewable energy in electritćuty and heat has been almost achieved
with wind and wood based renewable energy sources.
I. The strategic objective in the use of economically and technically feasible inputs for
biogas production for 2030 is to establish conditions, which support the maximum
use of all biogas substrates for biogas production. To achieve this:
I.1 To define preferable biogas producing crude material;
I.2 To include the obligation to produce biogas from biomass to the criteria of the
investment support subsidy for biogas input (substrate) owners and holders (landfills,
farmers, waste water purification plants, biowaste companies, food industry, etc),
either directly or via joint companies;
I.3 To work out the support scheme for the production or taking into use the inputs of
biogas the biogas production;
I.4 To subsidise grasslands and encourage to make use of all the biomass. All of the
potential costs of producing biomethane will be covered ;
I.5 To use 30% of the hay made at nature conservation areas for biogas production;
I.6 To use 20 % of silage from unused agricultural land, in two harvests (yield 7.3 t/ha)
for biogas production;
I.7 To use 5 % of energy crops growing on usable agricultural land (830,000 ha), in twothree
for biogas production;
28

I.8 To use 80% of landfill gas for combined heat and power production or for
biomethane production;
I.9 To use 65-75% of total manure and slurry can be used for biogas production;
I.10 To use 80% of sewage sludge for biogas production;
I.11 To use 10% of bio waste (food industry, kitchen waste) for biogas production;
I.12 To keep and to up-date the records of the annual estimates and actual use of the
amounts of biogas inputs for biogas production;
I.13 To establish the Estonian Data Base of Biogas Substrates and to up-date it
regularly as part of the Estonian Biogas Portal. To create a directory of biogas crude
material that can be used as a fertiliser
II.
The strategic objective for biogas production is to achieve the economically feasible
amount of annual biogas production - 235 million Nm 3 /a (equal to 900 GWhel/a or
electric nominal capacity 110 MW by 2030. To achieve this:
II.1 To define biomethane as a preferable biofuel;
II.2 To set the target of Estonian annual economically feasible biogas amount of 300 million
Nm 3 /a biomethane (equal to 110 MW electrical nominal capacity) by 2030 into
National Renewable Energy Action Plan 2020 ;
II.3 To work out the support scheme for biogas infrastructure development to achieve half of
2030 target by 2020, equal to 150 million Nm 3 /62 MW electrical nominal capacity;
II.4 To adopt the incentives to promote biogas production. The size of the subsidies is
connected to the clearing level. Subsidy for selling the product until the sale goal has
been achieved. Subsidy must cover the difference between the net value of biomethane
+1% benefit norm and the cost of natural gas;
II.5 To set the financial investment support (up to 50%) for biomethane producing devices,
until the level of 92 ktoe (industrial biowaste);
II.6 To complete the natural gas law with the biomethane topic. Producers of biomethane will
be subsidised to compensate the operating costs of biogas producing stations when selling
biomethane to natural gas grid or local gas stations;
II.7 To increase, expand or create agriculture and environment measures for investment
subsidies in biomethane production (in KIK, PRIA etc) in the next budgeting period of
the EU. To complete Estonian Rural Development Plan and Strategy 2014+.
II.8 To keep renewable electricity feed-in-tariff at level of 0.054 €/kWh, if justified, to
increase it for small biogas producers;
II.9 To work out legal framework in form of long-term contracts (e.g. for 15 years) with
biogas producers to ensure the incentives and to secure the investments;
II.10 To increase the price-support by different components in maximum up to 14
€c/kWh, additionally to Nordpool market price;
II.11 To introduce the fixed-price-support to biomethane 80 €c/kg;
II.12 To introduce the clear legal framework for using digestate as organic fertilizer;
II.13 To calculate all public external costs and benefits of biogas production to justify
the incentives to bioas production (to find out, whether public benefits are higher than
public cost);
II.14 To introduce legal framework for long-term contracts with biomethane producers
with strategic objective to replace natural gas with biomethane.
29

III. The strategic objective on biogas purification is to purify biogas up to adopted
biomethane quality standard and according to the conditions of the consumption.
To achieve this:
III.1To work out biomethane standards, both for injection to the natural gas grid as well
as for use biomethane in off-grid applications, where methane content can be lower;
III.2 To change the natural gas standard so that the content of biomethane would be
around 95-98%;
III.3 To work out infrastructure for biomethane quality measurement standards,
procedures, laboratories, etc;
III.4 To work out procedure, conditions, cost-shring, rights and obligations of all
parties for injection of biomethane to natural gas grid;
III.5 To work out incentives for biogas purifiction and injection to the natural gas grid;
III.6 To create the precise rules about the use of zymase recremet as a fertiliser or
another beneficial way (to create the list of possible uses of zymase recremet as a
fertiliser).
IV. The strategic objective on storage and transport of biogas and biomethane is to
establish legal framework and infrastructure to promote biogas To achieve this:
IV.1 To work out or apply appropriate EU or international legal framework and
procedure for safety of biogas storage and transport;
IV.2 To work out support mechanisms for biogas storage and transport;
IV.3 To adopt obligation to develop biomethane infrastructure and mitigation of
technical and legal conditions of the biomethane infrastructure;
IV.4 To create an adjustment which would oblige natural gas grid operators to use
standardised biomethane since 2015;
IV.5 The natural gas grid operator has to finance 50% of the cost of injection of the
biomethane into the natural gas grid;
IV.6 The priority in biogas use is given to purification towards biomethane and
injection into the natural gas grid, the investment support up tp 50% is provided to the
cost of biogas purification and injection in case of distance of the biogas and
biomehtane plant is up to 10 km from natural gas grid connection point;
IV.7 To evolve the support system for developing biomethane the grid of the gas
stations.
V. The strategic objective on marketing and selling of biogas is to create favourable
conditions to increase the competitivness of biogas. To achieve this:
V.1 To work out clear criteria and procedure for all stakeholders on process, contracts and
cost-sharing for connection of renewable energy producer to electricity grid;
V.2 To create conditions of injection of biomethane to natural gas grid or renewable
electricity to electricity grid more favourable for biogas producer;
V.3To agree on the process of price formation structure of the biomethane;
V.4 To reduce 40% the corporate income tax if the company uses CNG/CBM vehicles;
V.5 To adopt lower vehicle tax to efficient vehicles with CO 2 emission lower than 120
g/km;
30

V.6 To introduce the obligation to inject biomethane to natural gas grid up to 20% of
annual methane gas consumption by 2020;
V.7 To work out incentives to support the coversion or creation of vehicles which use
methane fuels;
V.8 To establish the support scheme for investments to methane fuel filling station;
V.9 To establish free parking plots and zones for methane fuel vehicles;
V.10 To establish priroty traffic lines for methane fuel vehicles in airports, railway
stations and harbours and separate lines for methane fuel taxis in all kind of transport
terminals;
V.11 To establish clean vehicle premium for private consumers supporting the purchase
of methane fuel vehicles, which CO 2 emission is less than 120 g/km. The clean
vehicle premium is up to 5000 EUR per vehicle;
V.12 To establish new financial support mechanism under Environmental Fund
renewable energy support schemes (e.g. using also AUU mechanism) to support
biomethane production only (without option to use biogas in CHP).
Also:
• To develop the re-building of the vehicles in order to use biogas as well as oil and natural
gas, the excise of biofuel need to be stable until the year of 2022;
• The use of biomethane vehicles by all the consumers should also be stressed and
encouraged;
• The special free parking lots for natural gas and biomethane vehicles should be created.
The special parking areas for non-fossil fuel vehicles can be developed;
• To encourage the use of methane fuel in the public transportation, the changes can be
made in paragraphs 17 and 18 of the Public Transportation Law. Procurements must
stress the transition into the new age of biomethane fuel use;
• To encourage self-governing bodies to get biomethane fuel vehicles;
• To secure the excise freedom for biomethane by changing legislation if required;
• To create model example procurements to promote biomethane fuel.
VI. The strategic objective in promotion of final consumption of biogas is to maximise
the production and consumption of biogas and biomethane. To achieve this:
VI.1 To adopt the obligation for public institutions to include methane fuel vehicles
into public procurement procedure;
VI.2 To introduce the tax for fossil fuel vehicles (either on purchase or annually) which
is differentiated according to the level of emissions; the methane fuel vehicles should
be excempted from vehicle tax;
VI.3 To introduce the investment support to public passanger transport fleets for
conversion to methane fuels and to establishment of corporate methane fuel filling
stations;
VI.4 To introduce the pre-condition to use methane fuel buses in passanger transport
public procurement, when applying public subsidies and to work out additional
measures to promote alternative fuels on public transport; to introduce measures
(incentives, taxes) for influence to the structure of public transport;
31

VI.5 To work out the proposal for methane fuel testing, production, refining, supply,
storage, refueling, and safety techniques to the Development Fund, Environmental
Fund, Agricultural Register and Information Board via setting up partial financing of
the biomethane pilot plant; the economic indicators, risks and risk management
measures of this pilot plant should be publicly available to encourage other
companies to invest in the market of methane fuels;
VI.6 To support the creation and activities of the bioenergy cooperatives which
produce and sell biogas and biomethane to the local community to reduce dependence
from central energy supply.
VII. The strategic objective in public awarenss building on biogas is to achieve the
common knowledge that biogas is as well know as logs or pellet in Estonia. To
achieve this:
7.1 To inform public on public benefits and positive impact to society of biogas and
biomethane;
7.2 To collect and merge the results, outcomes and information of all biogas related
projects into Estonian Biogas Portal and to support Estonian Biogas Association to
manage this portal;
7.3 To investigate and to inform public on positive impact of digastate as organic
fertilizer;
7.4 To ensure the availability of biogas related easy understandable knowledge to large
public;
7.5 To implement campaigns to promote methane fuels as alternative, clean, local
renewable energy source and solution for Estonia;
7.6 To support the biogas related, research, development and training on management
and technology of biogas production and consumption.
32

6. Implementation of biogas production and utilization
The implementation scheme of Estonia concerning production and utilization of biogas is
presented in Table 3 by the value chain. Each stage of the value chain is illustrated with a
strategic objective and descriptions of actions, also method of implementation and period are
pointed out. Actions whose have the highest priority and can be urgently feasible own
preferential position (I, II, III, etc.) in the table of implementation. Selection has been made on
the principle that with the best low expense of resource will be achieved maximum effect.
Table 3. Biogas development strategy and its implementation Action plan for the years 2012 – 2020
Nr. Description of action Method of implementation
Period of
implementation
1. The production of biogas inputs – Strategic objectives of the production of biogas inputs
for 2030 is to take advantage of cost-effective amounts of biowaste and biomass for biogas
production
I The subsidy to the owners of biogas inputs
(landfills, animal farms, etc.) to their
Regarding the conditions of investment
supports, to introduce the prerequisite
investment project should be made to produce biogas from biomass.
mandatory with precondition to start to Members of the investment supports
2012 – 2020
produce biogas from biomass.from commission have to pass special
II
Elaborate measures of biogas inputs
implementation.
III Introduce an obligation to local
governments to collect biowaste
separately. In addition to that there will be
garden and park waste. 50% of
biodegradable waste must be collected by
the year 2020.
IV Biomass (silage) production support lands
that have not been used and from wildlife
preserves according to their management
rules
V To link sewage sludge purification
investment subsidies with the obligation on
build a sewage sludge based biogas
production units
VI To link the investment support to the cattle
breeders for manure storage with the
obligation to build a biogas production
VII
VIII
units
80% of landfill gas should be used to
convert energy into useful energy
Keep records of annual biomass forecasts
and amounts of consumption of the last
year’s biomass. To have clear data on how
much available biomass potential has been
used every year
training concerning the field of biogas.
Making a costs-benefits analysis of
biogas inputs measures in order to find
inputs with the highest efficiency.
The obligation of separate biowaste
collection must be legalised in local
government’s waste regulations.
Calculate costs and benefits of the
action and develop an appropriate
action
Calculate costs and benefits of the
action and develop an appropriate
action
Calculate costs and benefits of the
action and develop an appropriate
action
Obligate to collect biogas generated
from landfills and use biogas as a
renewable energy
Practical calculation methods of biogas
production will be introduced to the
biogas procedures to enable them to
report the amounts of produced biogas
to the Estonian Statistics Agency,
2012 – 2020
2012 – 2020
2012 – 2020
2012 – 2020
2012 – 2020
2012 – 2020
2012 – 2020
33

allowing them to monitor annual
quantities of produced biogas;
Biogas producers notify Estonian
Statistics Agency about their annual
quantities of biogas produced.
IX Create a register of biogas inputs To establish public Estonian Biogas
Portal with database on how much
biogas could be produced from inputs
owned by large companies whose
substrates.. The government can 2012
outsource the service which constantly
updates the database from NGOs, e.g.
Estonian Biogas Association (EBA) or
from other institutions.
2. Biogas production – To achieve by the year 2030 usage of full biogas technical potential
I
II
III
IV
To supplement the NREAP 2020 with
biogas and biomethane target as following:
50 MW by 2020 and 110 MW (nominal
electric power) in 2030 and by the year of
2020, 100 million m3 biomethane and by
2030, 235 million m3 of biomethane
Not to reduce the existing renewable
electricity feed-in-tariff (€ 0,054/kWh)
To develop a legal framework for the
biogas producer, e.g. to work out the legal
frame for the long-term contract (e.g 15
years) for electricity, heat or biomethane
production with additional benefits.
Summarizing grants, maximum subsidy
would be 14 €c/kWh, plus the Nord Pool
market price
Biomethane purchase support (fixed-price)
80 euro cents per kg;
(235 million Nm 3 of biomethane)
Various studies and latest results in the
field of biogas should be forwarded to
the Ministry of Economic Affairs and
Communications, which introduces the
concept of the biogas in the Action
Plan of the NREAP an Annex in
NREAP 2020
In collaboration with Estonian
Renewable Energy Association to
suggest that feed-in-tariff of renewable
electricity is not reduced and would not
be the same for all energy sources, but
is differentiated by the source, location,
size of renewable energy production.
To add for current biogas production
feed-in-tariff following additional
benefits:
1.Support for small-scale production- 2
€c/kWh(for smaller than 1MWel
biogas plants);
2.Decentralised renewable energy
generation subsidy (regional political
and security aspect of energy) support
– 2 €c/kWh;
3.Farm waste recovery subsidy 2
€c/kWh;
4. Maintenance grant for unused land
(producing biomass (silage) on the land
that is out of use) - 2 €c/kWh;
5. Heat usage support 2 €c/kWh;
6. Production of renewable fuel
(biomethane) support - 6 €c/kWh.
To order a feasibility study, which
supports the fixed purchase price
system for natural gas operator, at a
fixed price 0.80 €/kg or the difference
between the price of CNG and 80
€c/kg
2012
2012-2013
2012-2015
2012-2014
V To set exact rules for digestate use as To create a working group consisting 2012 - 2020
34

VI
fertilizer. It must cover the whole circle of
all participants including investors,
entrepreneurs, planners, local
governments, energy companies,
(food)waste and potential users/customers
of digestate
To implement the biogas sector costbenefit
analysis, including the definition
and measurement of public goods and
benefits of biogas production; the target is
to find that the biogas production total
benefits to society are greater than its
economic cost (including subsidies).
of input producers, representatives of
research institutions/universities,
entrepreneurs, representatives of the
ministries, which deals the following
issues:
1) What is the current situation
regarding the use of digestate as
fertilizer?
2) How much substrates do we have
for biogas production?
3) Which digestate handling
technology is now used as models, and
whether they are best suited for
Estonia?
4) to create the Estonian Digestate
Centre of Excellence and to fix the list
of these inputs/substrates, which
digestate can be used as fertilizer after
the biogas production process;
5) to analyse the digestate outlets and
how to develop it to be competitive
with mineral fertilizers;
6) to create an awareness-raising
campaign to introduce the digestate so
that the technological steps are clearly
shown in the waste management and
energy production processes;
7) To improve public understanding of
economic, environmental and social
public benefits of digestate, depending
on the fermentation technology;
8) To identify in detail the obstacles in
legislation that prevents wider use of
the digestate as organic fertilizer;
9) To compare and to publish the
experiences of the use of digestate in
neighboring countries (Latvia, Finland,
Sweden)
10) To ensure that the use of digestate
as fertilizer has been legally settled,
that digestate is not a waste and thus
the waste regualtion is not approritate
for handling digestate but that
digestate is a useful and naturefriendly
product.
EBA implements such a study itself or
outsources it from some biogas
competence consultancy/development
company; to assess the public benefits
properly, the life cycle analysis on
value chain should be used.
2012
35

I
II
III
IV
3. The biogas purification – the strategic objectives is the need to clean the biogas,
according to the use of biogas and biomethane also to ensure biomethane quality and
compliance with agreed standards
To develop standards for biomethane for
biomethane injection into natural gas grid
and also standards for off gas grid networks
(where methane content can be lower);
To develop the support structure for
biomethane production and and its
measurement technologies and standards
(laboratories, inspection procedures for
measuring, etc.);
To develop an agreed standard of
biomethane quality for biomethane
injection into natural gas grid and
procedure of parties' rights and obligations
To develop a financial support for the
establishment of biogas and biomethane
purification process and to network
connections
To identify the options to apply the
quality standards of natural gas grid, in
case the biomethane is injected into
natural gas grid; the separate quality
standards for biomethane can be
applied, if not using the existing
natural gas grid
The enhancement of cooperation in
laboratories and universities on biogas
measurements. Establishment of
modification of the procedure rules
To establish the legal procedure of
biomethane injection to natural gas
grid
To find sources for such support and to
establish this support with legislative
act after proper calculations and public
consultation.
2012-2015
2012-2020
2012-2013
2012-2015
4. Biogas storage and transport – The strategic objective on storage and transport of biogas
and biomethane is to establish legal framework and infrastructure to promote biogas
I To work out or apply appropriate EU or To identify the costs and benefits of
international legal framework and technological capabilities concerning
procedure for safety of biogas storage and
transportation.
production of biomethane and injection
into the natural gas system in Estonian
2012-2015
II
To develop support measures for the
storage and transportation of biogas;
conditions.
To define biomethane as the priority
local renewable gaseous biofuel. 2012
III
IV
V
VI
To adopt obligation to develop biomethane
infrastructure and mitigation of technical
and legal conditions of the biomethane
infrastructure
To set the legal obligation for gas grid
operator to allow the injection of
biomethane into natural gas grid since
2015;
The natural gas grid operator has to finance
50% of the cost of injection of the
biomethane into the natural gas grid;
The priority in biogas use is given to
purification towards biomethane and
injection into the natural gas grid, the
investment support up tp 50% is provided
to the cost of biogas purification and
injection in case of distance of the biogas
and biomehtane plant is up to 10 km from
To develop the support conditions of
biomethane infrastructure development
in cooperation with the The Ministry of
Economic Affairs and
Communications and gas producers.
To adopt this obligation by law and in
parallel to provide the biomethane
quality assurance procedure.
Gas network connections’ (biomethane
injection) costs will be shared equally
between the supplier of biomethane
and gas grid operator
To create the opportunity to apply for
investment support for biogas
purification until national renewable
energy targets are achieved. Source for
this support can be in fossil fuel excise
tax.
2012
2012-2015
2012-2020
2012-2030
36

I
II
III
IV
V
VI
VII
VIII
natural gas grid connection point.
5. Marketing and sales – strategic objective is to create conditions to increase the
competitiveness of biogas and biomethane
To work out clear criteria and procedure
for all stakeholders on process, contracts
and cost-sharing for connection of
renewable energy producer to electricity
grid;
To create conditions of injection of
biomethane to natural gas grid or
renewable electricity to electricity grid
more favourable for biogas producer.
To identify the price formation structure of
the biomethane (with purpose to find out
the difference between biomethane
production cost and market price of natrual
gas; if it is unfavourable towards
biomethane, to consider the option to cover
the gap).
To reduce 40% the corporate income tax if
the company uses CNG/CBM vehicles.
To adopt lower vehicle tax to efficient
vehicles with CO 2 emission lower than 120
g/km;
To introduce the obligation to inject
biomethane to natural gas grid up to 20%
of annual methane gas consumption by
2020.
To work out incentives to support the
coversion or creation of vehicles which use
methane fuels;
To establish the support scheme for
investments to methane fuel filling station.
IX To establish free parking plots and zones
for methane fuel vehicles.
X To establish priority traffic lines for
methane fuel vehicles in airports, railway
stations and harbours and separate lines for
methane fuel taxis in all kind of transport
terminals.
XI To establish clean vehicle premium for
private consumers to support the purchase
of methane fuel vehicles, which CO 2
emission is less than 120 g/km. The clean
vehicle premium is up to 5000 EUR per
vehicle.
XII To establish new financial support
mechanism under Environmental Fund
renewable energy support schemes (e.g.
using also AUU mechanism) to support
biomethane production only (without
The biogas sector umbrella NGO (e.g.
EBA) could prepare the amendment
give reasons and examples from other
countries as an example.
To establish the clear procedures and
support mechanisms for biomethane
production, cleaning and sale into
natural gas grid until the national
targets will be achieved.
Estonian Competition Authority
determines Biomethane price.
Biomethane Nm 3 has a fixed support
tariff and the obligation to enable inject
biomethane into natural gas grid.
2012
2012-2020
2013
Introducing corresponding change in
2015-2020
the Income Tax Act.
Introducing corresponding change in
different tax laws. 2015-2020
To establish the biomethane blending
obligation with the legislative act.
2015-2020
Introducing corresponding supports
with various legal regulations. 2012-2015
To give support to the methane fuel
filling stations construction
particularly in those locations that
match the agreed methane fuel filling
station location plan(vision)
Introducing corresponding proposal in
the Traffic Act.
Introducing corresponding proposal in
the Traffic Act.
Establish a new EIC measure to
support the production of biomethane.
Establish for methane fuel
(CNG/CBM) vehicles the similar
investment scheme like it has been
created for electrical vehicles, called
""Green Investment Scheme "Support
37
2012-2020
2013
2014
2012-2013
2015

option to use biogas in CHP).
Electric Car" The conditions and
procedure "".
(https://www.riigiteataja.ee/akt/115072
011006)
6. Final consumption – the strategic objective in promotion of final consumption of biogas
I
II
III
IV
V
VI
I
is to maximise the production and consumption of biogas and biomethane
To adopt the obligation for public
institutions to include methane fuel
vehicles into public procurement
procedure;
To introduce the tax for fossil fuel vehicles
(either on purchase or annually), which is
differentiated according to the level of
emissions; the methane fuel vehicles should
be excempted from vehicle tax.
To introduce the investment support to
public passanger transport fleets for
conversion the fleets to methane fuels and
to establishment of corporate methane fuel
filling stations.
To introduce the pre-condition to use
methane fuel buses in passanger transport
public procurement, when applying public
subsidies and to work out additional
measures to promote alternative fuels on
public transport; to introduce measures
(incentives, taxes) to have impact to the
structure of public transport.
To work out the proposal for methane fuel
testing, production, refining, supply,
storage, refueling, and safety techniques to
the Development Fund, Environmental
Fund, Agricultural Register and
Information Board via setting up partial
financing of the biomethane pilot plant; the
economic indicators, risks and risk
management measures of this pilot plant
should be publicly available to encourage
other companies to invest in the market of
To establish by Estonian Government
decision for all state agencies the
obligation via public procurement on
vehicle lease and/or purchase the
vehicles to ensure, that 10% are
methane fuel vehicles since year 2013
(10%), and 20% in 2015 from total
number of company vehicles.
Prepare a draft law on vehicle
acquisition/purchase tax. Purpose of
this Act is to promote sustainable and
renewable fuel based vehicles.
Establish a regulatory framework
Establish a regulatory framework
Pilot plant is constructed and financed
by the public sector, the experiences on
the basis of pilot plant and free
trainings will be shared to potential
biogas plant developers and investors
interested in biomethane production
(e.g 5-day long trainings).
2013-2015
2013
2012-2013
2013-2014
2012-2020
methane fuels.
To support the creation and activities of the First 10 biogas co-operatives are being
bioenergy cooperatives which produce and financially supported and their
sell biogas and biomethane to the local establishing experiences are described
2012-2020
community to reduce dependence from in the Estonian biomethane handbook,
centralized energy supply.
which is distributed to all interested
parties.
7. Public Awareness - The strategic objective in public awarenss building on biogas is to
achieve the common knowledge that biogas is as well know as logs or pellet in Estonia.
To inform public on public benefits and Support web-based Estonian Biogas 2012-2020
positive impact to society of biogas and Portal, create a database of biogas
38

II
III
IV
V
biomethane.
To collect and merge the results, outcomes
and information of all biogas related
projects into Estonian Biogas Portal and to
support Estonian Biogas Association to
manage this portal.
To investigate and to inform public on
positive impact of digastate as organic
fertilizer.
To ensure the availability of biogas related
easy understandable knowledge to large
public.
To support the biogas related, research,
development and training on management
and technology of biogas production and
consumption.
projects and enhance it constantly,
keep the Estonian Biogas Network
active, present biogas news in the
media and give views on renewable
energy policy issues by EBA.
Homepage created by the EBA should
have an administrator who will receive
the results from representatives of
different ongoing biogas projects in
Estonia and then publishes the results
on the homepage. The common
collective database of biogas projects
will be created.
Implementation by the different
researches and unversities (TTÜ,
EMÜ) to involve to the identification
of research needs and funding
opportunities the Ministry of
Agriculture, Ministry of Envornment,
Ministry of Communication and
Economy. The results of R&D will be
transferred to the EBA’s homepage
administrator who keeps records and
updates constantly Estonian Biogas
Portal with thematic blocks and the
fresh results of the analyses on biogas
research.
Methane fuels conferences are
expected to continue at an average
frequency of twice a year, plus every
week biogas news are broadcasted in
the radio, having a permanent biogas
rubric in chosen newspaper, publish a
handbook about biomethane
(analogous to the handbook of biogas
utilization and production) but using
only experiences and practices from
Estonia.
Start trainings and introduce
curriculums in accordance with the
biogas plant operator, to set up
professional standards (there has been
made suggestions in Järvamaa
Kutsehariduskeskus in order to achieve
such effect)
2012
2012 - 2020
2012 - 2020
2012-2020
39

7. Summary
Development of the biogas sector depends on the behaviour of all the associated actors. The
biogas network (Figure 5) demonstrates the role of each individual actor. All measures, training
courses, subsidies and disseminations of information should involve all of the respective
participants.
Figure 5. Different actors of biogas value chain concerning producing biomethane as motor fuel (Jonas Erikson,
presentation at Methane Fuel in Transport seminar 48 of SPIN and GasHighWay projects in Tallinn in 6. 12.2011).
The development of the biogas sector in Estonia is still at its infancy with regard to relevant
know-how, implementation of workable solutions as well as political support. Based on data
from 2007, Estonia’s annual production of biogas derived from waste, waste water sludge and
slurry amounts to around 11 000 000 Nm 3 and 13 million on 2010. However, taking into account
the resources suitable for biogas production, the total energy output derived from biogas cold
reach as much as 10% of Estonia’s total final primary energy consumption. By way of
comparison, in 2007 the energy produced from biogas amounted to no more than 0.16% of
Estonia’s total consumed heat energy and 0.14% of electrical energy.
The greatest barrier to making use of this untapped energy source lies in the fact that in Estonia’s
present market situation the economic profitability of utilizing biogas for combined heat and
power production is low. Although the production of biogas is just like any other entrepreneurial
activity on energy production, it creates numerous socioeconomic public benefits above
48
http://www.lote.ut.ee/874010
40

enewable energy production, namely regional development, rural employment, small
entrepreneurs and start-ups, environmental protection and waste management - all of which are
issues that are more or less dependant on outside structural support.
Purifying biogas to produce biomethane is a promising perspective as it allows the use of
biomethane in all applications, which currently utilize natural gas.
Estonia’s biogas sector is in need of a comprehensive political strategy together with an
executive action-plan for guiding the development path in a manner so as to lessen the
insecurity of perspective actors. The present strategy aims to serve as an input in helping to guide
the setting of such national goals.
The technological and business solutions implemented by other Baltic Sea countries can serve as
a useful blueprint for Estonia to follow. In terms of technology, the greatest requirements
stem from a need to enhance the reliability and output of extant biogas plants via transfer of
default solutions and concomitant know-how. Based on prior research and Estonia’s own biogas
experience it must be kept in mind however, that mere copying of Central-European innovation
and default solutions, is a matter that should be approached with some caution as well as a
mindset that is open to experimentation in a way that takes into account Estonia’s unique set of
conditions.
The experience of foreign nations may also prove useful with regard to garnering political
support. This includes lessons such as implementing zero excise duties for renewable fuels (and
holding this status for an extended period of time), setting up investment support in conjunction
with national procurement priorities, including converting public transport fleets to use
renewable fuels, encouraging the use of biomethane, etc. As to what are the optimal mechanisms
for fostering the production, transfer, use and utilization of renewable fuels (inc. biogas) with
respect to source, location and size of each project – this matter still needs further clarification
taking into account the impact such measures will have from the economic, social, regional and
environmental points of view (i.e. localized solutions). The Estonian Government intends to
reduce to price premium to renewable electricity in February 2012 and this is not very
encouraging to invest to biogas production.
The biogas sector needs to be leaded by a credible and professional agency – an umbrella
organization of common interests that would speak on its behalf in media and by participating in
drafting process of biogas-related legislation, as well as in informing the broader public about the
importance of the topic. Concrete steps that can be taken to that end could include solidifying the
position of the non-profit organization “MTÜ Estonian Biogas Association”. The success of the
biogas sector should be ensured by the long-term commitment of both the National and local
governments to the biogas development as well publicising the fact of its commitment towards
biogas sector development to the general public. In the early stages of development, it is crucial
for a country such as Estonia to set well defined and achievable objectives – something, which
have been formulated under the present strategy.
The current strategy for the development of the biogas industry can serve as an input to processes
where relevant stakeholders make decisions outlining a comprehensive vision for biogas
development. Based on assumptions that are entirely realistic, the output of renewable nominal
electricity production capacity based on biogas could reach a level as high as 110MW. This
makes up around half of theoretical biogas potential, taking into account the following
conditionalities: 20% of all hay mown for the purposes of nature conservation; 20% of all
ensilage derived from unused farmland; 2 mowings (yielding 7.3 tonnes per hectare); 5% of all
energy cultures derived from arable land (830 000 hectares), several mowings yielding 20 tonnes
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per hectare); 80% of landfill gases are utilized for electricity and heat production; 50% of waste
water sludge utilized for the production of biogas; 60% of all manure and slurry can be
transformed into biogas with the respective figure for biowaste (food industry, leftovers from
kitchens, etc) standing at 10%. Using the above-stated figures the annual output of biogas would
amount to approximately 502 000 000 Nm³/a (containing 60% methane) or 301 000 000 Nm 3
biomethane (containing 98% methane [CH 4 ]).
This figure is almost more of one third of the annual natural gas consumption of Estonia, which
was around 700 000 000 Nm³ in 2010.
Biomethane, as a far cleaner engine fuel, does not exist in Estonia’s legal regulations at all, but it
is worth mentioning that the above stated amount would suffice to replace half of all gasoline
consumed annually in half of Estonia’s counties. Thus the strategic plan includes proposals to
support the production and consumption of biomethane until the set targets (92 ktoe by 2020)
have been met.
The majority of the owners of the biogas inputs, which could be used for biogas production,
remain uncertain on the matter. Based on prices and price premium in 2011 (i.e. – subsidies in
the e form of price premium for renewable electricity production standing at € 5,3 per kWh to be
added to the market prices at Nordpool at the level of € 3,5-6 per kWh) the inputs for the biogas
projects should be virtually free of charge to achieve the pay-back time at some 6-10 years, as
well as inputs should be readily available in large quantities on the spot. The most reliable way
to utilize Estonia’s potential of unused biogas resources would be to differentiate the
subsidies for renewable energy production based on the type of energy produced, its
capacity, location and production inputs. It is suggested that the core subsidy for supporting
renewable energy production (which are adequate for large-scale wind farms and co-production
facilities) should be (for the market price for produced energy along with subsidies to reach 6,39
€c/kWh) supplemented with the following supplementary subsidies in case of biogas
production: small-scale production subsidies - €2/kWh (applicable for biogas stations with
capacities below MW el ); subsidies for dispersed production (in order to reinforce the regional
development and energy security aspects) 2 €c/kWh; subsidies for recycling agricultural byproducts
and waste (e.g. manure) 2 €c/kWh; subsidies for the management of unused lands (the
ensilage is claimed from lands which are either unused or covered with brushwood) – 2 € / kWh;
subsidies for use of heating energy 2€c/kWh; or as an alternative to the above stated subsidies - a
subsidy for the production of renewable vehicle fuel (biomethane), equal to 6 €c/kWh. By
summarizing the above-mentioned cumulative part-subsidies, the upper limit for subsidising
production of biogas should be equal to 14 €c/kWh, which in turn should be added to the average
Nordpool market price (which has been fluctuated between 3-5 € per kWh in the past years).
As the majority of agricultural farms are small-scale enterprises, the most beneficial solution for
such biogas plant operators would be to engage them into the PPP (public-private partnership)
schemes through the biogas cooperative, bioenergy village or some wider regional
bioenergy union. Prior experiences with regard to bioenergy cooperatives or regions are lacking
in Estonia, even some initiatives have been undertaken (e.g. in Vinni and in Ääsmäe). The only
functioning biogas station in Estonia which operates based on agricultural substrates – the Saare
Economics biogas station located at Jööri on island Saaremaa – works on the principle of a
affiliated group, where the slurry is collected from across the island from farms and the digestate
is dispersed back on the fields by the same vehicles.
Sweden encompasses a number of functioning biogas cooperatives, which operate in
conjunction, with the slurry, waste and ensilage collected from a radius of around 30 km and
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transported to a central location where the end-user of heat energy locates nearby (i.e. – a timber
drier, swimming pool, greenhouse, spa, etc): the fermentation residue is then transported back to
the owners of agricultural lands. It is important to note that depending on the type of substrate,
the fermentation residue can have either equal or better fertilizing qualities compared to raw
slurry or manure. The fermentation residue does not damage the soil, but instead improves its
structure. It carries no odour, which is great social public benefit – nor does it excrete any
damaging substances.
At the moment potential sellers of biomethane lack opportunities for offering their product for
sale on the natural gas networks as the law does not oblige the operators of gas networks to buy
biomethane. In addition to this, biomethane has no tariffs for its purchase at discount prices
unlike renewable energy sources in general. Biomethane can be injected and supplied via natural
gas networks, with pre-condition, that it has end-users willing to buy. In principle it is possible to
replace a significant part of imported natural gas consumed in Estonia with biogas purified to
biomethane level (i.e. having a methane content around 95-98%).
Estonia is in need of know-how related to biogas plants and associated technologies. At the
same time it is necessary to follow the principle that direct copying of imported technological
solutions tailored for the needs of other countries are not directly usable in Estonia due to its
specific climatic and input related conditions. This means that imported blueprint solutions and
best practices should be modified by taking into account Estonian peculiarities.
As of today, Estonia has focussed on copying German experience in its biogas development
model. This means production of biogas from agricultural inputs, which is then used in combined
heat and power facilities. In addition to production of heat and electrical energy, other objectives,
which are economically feasible, should encompass the purification of biogas towards
biomethane to be used as vehicle fuel – this development path might be tentatively called the
“Swedish model”.
Existing support for production of renewable electricity should not be diminished. Rather it
should be differentiated based on the type, location and usage of energy. In subsidized market
conditions, the production of biomethane should be the most lucrative undertaking, as the
national (and EU) targets for electricity and heat production are almost met already and the
biggest shortcut is in production of renewable vehicle fuels. The biomethane is ideal option to
achieve also to the target of renewable transport fuel for Estonia.
The strategic objectives for Estonia’s national biogas production are as follows:
Ι. The strategic goal with regard to inputs is to utilize biological waste and biomass
resources that are available for economically profitable biogas production by 2030.
ΙΙ.
The strategic goal with regard to production is to harness the unused potential in
biogas production by 2030 – 900 GW Hel/a, with the electrical equivalent of 110
MW or alternatively – the complete use of some 300 mln. m 3 of bio methane for the
purposes of transforming internal renewable energy into usable energy – either
electrical or heat energy or as a form of transport fuel. The goal is to achieve 50% of
the targets set for 2030 by 2020 – i.e. 55MW or 117 000 000 Nm 2 of bio methane.
ΙΙΙ. The strategic goal with regard to purifying biogas is to purify biogas pending usage
needs and to guarantee its quality and compliance with set standards.
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Ις. The strategic goal with regard to storage and transport is to create a legal
framework outlining the requirements for storage and transport of biogas and bio
methane together with taking measures to facilitate the development of respective
infrastructure.
ς. The strategic goal with regard to sale and marketing of biogas is to foster conditions
which would make biogas and bio methane more competitive on the energy market
as a whole.
ςΙ. The strategic goal with regard to the end-use of biogas is to maximise the usage of
biogas and bio methane for the purposes of fulfilling the set objectives in the given
timeframe.
ςΙΙ. The strategic goal with regard to informing the broader public about biogas is to
make biogas as well known and appreciated as an alternative local energy source as
firewood or sawdust pellets.
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