Biomethane

The administrator of the Estonian Guarantees of Origin system is the joint system operator, who issues guarantees of origin in Estonia and manages the electronic database of guarantees of origin (hereinafter, the “Register”). Operations related to the issuance, transfer, and cancellation of biomethane guarantees of origin are carried out in the biomethane register.

The standard terms and conditions for the use of biomethane and hydrogen guarantees of origin establish the rules and conditions for using the Register, under which a market participant may perform operations with guarantees of origin. The standard terms and conditions are issued pursuant to § 32¹⁰ (12) of the Energy Industry Act.

A biomethane guarantee of origin is issued to a biomethane producer to certify the origin of the energy produced and its associated carbon emissions. The biomethane guarantee of origin is used to verify the origin and carbon emissions of gas delivered to and consumed by the end-user at the metering point. It is also used to document the consumption of liquefied biomethane delivered to and consumed by the end-user at the metering point.

The quantity of biomethane for which a guarantee of origin is issued is calculated based on its higher heating value.

A biomethane guarantee of origin is issued if the biomethane meets the gas quality requirements established pursuant to § 17³ (2) of the Natural Gas Act, if the quantity and quality compliance of the biomethane have been measured in accordance with the requirements set out in § 5 (1) of the Measurement Act, and if the measured production data of the biomethane have been submitted to joint system operator´s gas data warehouse. The production data of the gas are submitted to the joint system operator’s gas data warehouse in accordance with § 16 of the Network Code on the Operation of the Gas Market. This paragraph also applies to biomethane produced at a production facility disconnected from the gas network.

The origin of consumed gas can be verified with biomethane guarantees of origin against actual gas consumption at the metering point. Verification is only possible for gas consumed in the previous calendar month. The quantity of biomethane used for verification with a guarantee of origin must be measured in accordance with § 5 (1) of the Measurement Act. Consumption data of the gas are submitted to the joint system operator’s gas data warehouse pursuant to § 16 of the Network Code on the Operation of the Gas Market.

The quantity of biomethane for which a guarantee of origin is issued, as well as the quantity of gas for which the biomethane guarantee of origin is used to verify origin, is determined by a remotely readable meter.

A guarantee of origin can only be transferred electronically between different accounts within the Register. Requests for cross-border transfer of biomethane guarantees of origin are handled on a case-by-case basis, taking into account the applicable rules and practices of the foreign country.

To demonstrate the origin and carbon emissions of gas at a metering point, a market participant in the role of trader performs the cancellation operation of the guarantee of origin in the Register. A biomethane guarantee of origin can only be cancelled to verify the origin of gas consumed in Estonia at the metering point. For the purpose of verifying the origin of gas, the trader submits the consumer whose metering point is used for origin verification in the Register.

Starting from production in 2025, the joint system operator, acting as the representative of the Estonian domain, will issue biomethane guarantees of origin in accordance with the standardized European rules for guarantees of origin (European Energy Certificate System, EECS) as a member of the Association of Issuing Bodies (AIB) gas scheme.

For questions or proposals regarding biomethane guarantees of origin, please contact biometaan@elextra.ee