Latvia’s Cabinet of Ministers approved a proposal to attract additional financing for the nation’s biomethane sector, following an overwhelming wave of applications from local businesses, according to the Ministry of Climate and Energy.
The requested funding for production equipment reached 45 million euros, more than triple the amount initially allocated when the programme opened in December 2025. To meet this demand, the state-owned development finance institution, ALTUM, has been authorised to seek up to 22 million euros from international financial markets to provide loans for a larger number of projects.
Under the current framework, the support is provided as a combined financial instrument, offering loans or guarantees with capital rebates of up to 4.2 million euros per project. While 14 applications were submitted for production facilities, a separate category for transport infrastructure remains open with 1.77 million euros in available funds. The surge in interest follows the successful launch of the Džukste biogas point last year, which has already injected over 685,000 cubic metres into the national grid.
“Latvia’s biomethane sector has great development potential to reduce our dependence on fossil energy imports,” said Climate and Energy Minister Kaspars Melnis. “The current geopolitical situation caused by hostilities in the Middle East clearly shows how vital it is to develop local energy production, strengthening energy independence. By expanding funding opportunities, we will increase the capacity to develop more local energy production projects.”