Baltic Energy Market Interconnection Plan GRIP 2017

3.2.6 OFFGRID MARKET DEVELOPMENT IN THE AREA OF LNG AND BIOGAS

3.2.6.1 Biomethane

According to the Renewable Energy Directive 2009/28/EU, by the year 2020 the share of renewable energy used in the transportation sector must be 10% from the total amount of liquid fuels used in the transportation sector. The amount of trans- portation fuels consumed today in Estonia is approximately 8.5TWh/year of which 67% is diesel fuel and 33% is gasoline fuel. The share of electricity, LPG, CNG, and biofuels in the transportation sector has been marginal so far. Estonia has set a goal to develop biomethane production, which uses local resources, and to start widely using biomethane in the transportation sector. The total biomethane potential in Estonia is estimated to be 4.7 TWh/year (483 mcm/year). The main resources for the production of biomethane would be biomass from grasslands (83%) and agricultural production residues (9.8%). In order to realise biomethane’s potential, a number of measures have been introduced. The government has introduced a measure that provides financial support to filling station projects that include biomethane and natural gas filling possibilities. In addition, gas quality requirements have been defined that allow the injection of biomethane into the transmission grid. Elering is also developing a green gas certificate system. The certificates can be issued for biomethane that is produced and injected into the gas network, but also for biomethane that is produced offgrid. Presently there is no biomethane production or injection into the grid, but several projects are under development. Offgrid LNG market is slowly developing in Estonia. In recent years a small number of companies with high energy demand have switched to small-scale LNG solutions. The companies switching to LNG are usually located in remote places to where the natural gas grid does not reach. The reason for switching to LNG is that other fossil fuel prices (e. g. diesel) are more expensive and environmentally more damaging. In addition, some companies require heat energy with specific properties that are not possible or feasible to produce from biomass. Offgrid LNG is imported from Russian or Poland’s natural gas liquefaction facilities and from larger nearby LNG terminals (located in Sweden, Finland and Lithuania). Starting in January 2017, a LNG-fuelled fast ferry is operating on Tallinn–Helsinki route. The ferry is owned and operated by Estonian ship company Tallink. The ferry – Megastar – is first of its kind in the region and can take 2,800 passengers onboard. The total volume of LNG tanks is 600 cubic meters.

3.2.6.2 LNG

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BEMIP Gas Regional Investment Plan 2017