Estonia’s largest-ever budget for major investments has approved its first grants, the Ministry of Economic Affairs and Communications announced. These grants go to hydrogen technology, a gas-fired power plant, and also to investments in the paper industry. The total investment volume is nearly 400 million euros, of which the state gives 44 million euros. The selected companies will receive payments after completing the investments.
Hydrogen production and gas plant
In this investment program, Estonian biogas company, BHG-Estonia, will build Estonia’s first large-scale green hydrogen and ammonia production and infrastructure complex in Sillamäe. It includes a hydrogen fuelling station for heavy machinery, storage, 15 megawatt electrolysis capacity, and ammonia synthesis. The total investment costs 153.5 million euros, with maximum state support of 20 million euros.
Green chemistry company Derivaat NH3 will build an internal combustion engine-based gas-fired power plant in Paldiski South Harbour Industrial Park. This will strengthen Estonia’s energy security by diversifying power sources. The plant is flexible and can respond quickly to fluctuations in consumption and renewable output. The investment costs 110.5 million euros, with maximum state support of 11 million euros. The third project is not directly energy-related; it is a paper factory in Kehra.
Encouraging investments of at least 100 million euros
The large-scale investment support scheme aims to encourage investments of at least 100 million euros in Estonia’s economy. Over four years, the total budget is 160 million euros. Support for each investment is 10 per cent of the total project cost in Harju County and 15 per cent in other counties, up to 20 million euros per project.
“We have advised about ten companies considering similar-scale investments in Estonia, but not all are ready to apply yet,” said Joonas Vänto, Head of the Foreign Investment Centre at Enterprise Estonia. “It’s key to continue the scheme, as several potential projects are in consultation now. The process goes on, and the state’s message is clear: investments are welcome here.”
