1. Biomethane in transport – public perspetcive Siim Meeliste Department of Energy 25 November 2015

2. Why develop biomethane in Estonia? High potential using sustainable resources Mitigating CO2 emissions in transport sector (EU legislation – FQD) More indigenous renewables in transport sector (EU legislation – RED) Better urban air quality Diversified (rural) economy Higher predictability of costs for local governments …

3. Biomethane technology roadmap Holistic long term approach – need to address the consumption and production side Subsidies alone do not create long term sustainability Resulting need to address taxation, supporting measures Different focus groups: public authorities, general public, enterprises

4. Biomethane support scheme published on Wednesday: Stage 1 Addressed to refuelling infrastructure and public transport procurement 9 MEUR in total with 3 MEUR allocated to refuelling and 6 MEUR to public authorities Production is foreseen to start based on a fixed market, i.e. public transport procurement contracts that include biomethane consumption obligation at a fixed price level

5. Public procurement support Support of up to 30% is distributed from the begging of actual biomethane use during first 12 months based on actual costs to run the bus lines Once implemented, obligation stays up to the end of the contract (minimum 7 years) Biomethane consumption obligation exerted if price <[0,96]€/kg, threshold to be set by the local government

6. Refuelling infrastructure support 1 For compeletely new stations or for existing normal petrol stations to add biomethane refuelling capacity Up to 35% of eligible cost Eligible is almost everything needed to enable biomethane refilling: compressors, tanks, pumps, containers Operating profit is deducted from eligible costs STATE AID!!!

7. Refuelling infrastructure support 2 Evaluation based on: Geographical location: regional centres (parish where county government is located) Up to 500 metres from the main roads (põhimaantee, tugimaantee – based on Estonian road classification) Amount of support requested

8. What next? Calls for proposals planned to be opened in 2015 For buses: 6 MEUR until depletion of the budget For refuelling stations: First call 1,5 MEUR End of 2015 or beginning of 2016 – announcing next steps (budget ~42 MEUR)

9. Aitäh! | Thank you! Siim Meeliste siim.meeliste@mkm.ee