Empowering Saaremaa’s energy transition: the Tahula biogas plant 

A new biogas plant is set to open in spring 2026 in Tahula, on Estonia’s largest island, Saaremaa. The facility will convert agricultural by-products into biomethane, electricity and heat, supporting the island’s energy self-sufficiency while reducing reliance on imported fossil fuels. The Estonian Islands Energy Agency (EISEA) has been closely involved throughout, guiding investment, technical planning, and community engagement to ensure the project delivers maximum local benefits. 

Turning local resources into renewable energy 

The plant will produce around 58 GWh of biomethane annually, equivalent to roughly 5 300 tons of diesel, alongside 23,2 GWh of electricity and 23,2 GWh of heat. This will cover nearly 15% of Saaremaa’s electricity needs and a quarter of its heating demand. Biomethane can be used across transport, industry, and district heating, demonstrating the potential of locally produced renewable fuel to meet multiple energy needs. 

The total cost of the project is approximately 14.5 million EUR. EISEA supported the developers in identifying funding sources, resulting in the Environmental Investment Centre allocating 5 million EUR to the project. 

The process also generates digestate, a nutrient-rich by-product that can replace synthetic fertilisers, supporting sustainable agriculture. Excess heat and CO₂ captured during biomethane purification can be redirected to local industrial processes or used as a feedstock for carbon-based products, illustrating the plant’s potential to contribute to a circular economy. EISEA worked with the project developers to identify these cross-utilisation opportunities and explore investor interest in scaling them. 

Engaging the community 

As with many infrastructure projects, the Tahula plant initially raised questions among residents about odours, groundwater safety, and technological risks. EISEA supported public information and engagement efforts, ensuring that local concerns were addressed with fact-based explanations and clear descriptions of mitigation measures. This helped foster trust, constructive dialogue, and informed decision-making within the community. 

Creating a replicable model 

The Tahula biogas plant demonstrates how integrated renewable energy solutions can deliver multiple benefits: clean fuel, electricity, heat, fertiliser, and CO₂ reuse, all while engaging stakeholders and supporting sustainable local development. By combining technical expertise, investment advisory and stakeholder facilitation, EISEA has helped transform the project from concept to a well-prepared, finance-ready initiative. 

The plant stands as a best-practice example of energy transition on islands, showing how careful planning, local engagement, and circular approaches can maximise the impact of renewable energy projects. With the support of EISEA, Saaremaa is moving towards energy independence, cleaner energy use, and a more resilient, circular economy. 

This best practice is extracted from our publication ‘Sustainable Regions in Action‘. Discover more best practices here!