Estonian energy company Alexela introduced the first locally produced liquefied biomethane to the Estonian market. 

Alexela delivered its first batch of liquefied biomethane from Sweden in 2022. However, in August the first consignment of bio-LNG produced by Alexela itself arrived in Estonia, marking a new milestone in the development of Estonia’s circular economy. It will be sold at Alexela’s Saku and Jüri stations as fuel for heavy vehicles.

The demand for liquefied biomethane continues to grow as the Baltic heavy transport sector increasingly focuses on reducing greenhouse gas emissions to zero.

Artur Dianov, Alexela’s Head of Sustainable Fuels, emphasised that liquefied biomethane is a key factor in the green transition for heavy transport. “There are currently only three LNG terminals in the world that can liquefy biomethane in a way that suits our needs. The Hamina LNG terminal we have built in Finland is one of them. Creating a Bio-LNG supply chain between Estonia and Finland is undoubtedly an important step towards a more environmentally sustainable future,” Dianov said.

Biomethane is a suitable green fuel for heavy transport, particularly due to its reliability and capability. Nearly half of the vehicles operated by Alexela Motors, which manages and carries out transport services for Alexela, already run on gaseous fuels, with the ability to use biomethane, LNG, and CNG. To date, these vehicles have accumulated 4.2 million kilometres of use, and the goal is to increase the number of similar biogas-powered vehicles, given the expected significant price increase for diesel trucks in the coming years.

Harnessing waste for energy: Bio-LNG production ensures vital energy security

Marti Hääl, Chairman of the Board of Alexela, highlights that energy security in Estonia is primarily ensured through the production of energy based on local raw materials, i.e., a circular economy, and strong cooperation with neighbouring countries. “Producing biogas from waste provides us with the necessary energy security, as biogas can be used in heat production, electricity generation, and sustainable land and maritime transport,” he said.

Hääl also praised Finland’s investment environment. “This is one of the largest direct investments by Estonia in Finnish territory in history, made possible by the efforts of the local public sector to ensure investment security. Inevitably, large-scale investments move to where predictability is ensured, rather than where there is a risk of a political turnaround that pulls the rug out from under your feet a few years later.”

Alexela’s plan is to make Bio-LNG the primary energy carrier at its LNG stations. “Our aim is to find solutions that help preserve Estonia’s valuable living environment, reduce the carbon footprint, and at the same time, help maintain and develop the competitiveness of the local economy. Today, we have joined forces with Estonian farmers, biomethane producers, and many other partners, and we hope to make a significant contribution to Estonia’s future,” said Hääl.

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