3 companies qualify for total €44 million in major investment support
The state will support the first projects under its major investment aid scheme, selecting three companies. The projects total €400 million, with the state contributing €44 million.
Three companies will receive state support under Estonia's large investment aid scheme: BHG-Estonia, which plans to build a green hydrogen and ammonia production facility in Sillamäe; Derivaat NH3 Power, which is planning a gas-fired power plant in Paldiski South Harbor; and Horizon Tselluloosi ja Paberi AS, which is preparing to launch new kraft paper production.
The scheme supports investments of at least €100 million. The state may cover up to 10 percent of the project cost in Harju County and up to 15 percent elsewhere, capped at €20 million per project.
Each subsidized investment must create at least 30 new jobs, with salaries above the sector average. Funds are disbursed only after the investment has been made.
Minister of Economic Affairs and Industry Erkki Keldo (Reform) said such a large volume of state support is historic and necessary to remain competitive with other countries, adding that financial incentives provide investors with added certainty.
The application round received three eligible projects, all of which were approved.
According to Joonas Vänto, head of the Estonian Business and Innovation Agency's (EIS) foreign investment center, the agency has advised about 10 companies considering investments in Estonia, though not all are at the stage of applying for support.
"It is important that we continue the measure in the future. Several potential projects are currently in consultation and our message as a state is clear: investments are welcome here," he said.
BHG-Estonia will receive up to €20 million in support for its €153.5 million investment in a large-scale hydrogen and ammonia production complex in Sillamäe. The facility will include a hydrogen filling station for heavy machinery, a storage unit, 15 megawatts of electrolysis capacity and ammonia synthesis. At least 32 high-paying jobs will be created in Ida-Viru County.
OÜ Derivaat NH3 Power will receive up to €11 million in state support for its €110.5 million investment in a gas-fired power plant at Paldiski South Harbor industrial park. The plant, based on internal combustion engines, is expected to strengthen Estonia's energy security by responding quickly to fluctuations in consumption and renewable energy production. The company said at least 30 new jobs will be created.
Horizon Pulp and Paper Ltd. will invest €129.5 million in a new kraft paper production unit in Kehra. The facility will produce higher-quality kraft paper with more specific properties, largely for export. The state will provide just under €13 million in support. Thirty new jobs will be created on-site.
Under the 2026–2029 state budget strategy, the government has decided to continue the large investment support program and, starting in 2029, allocate €40 million annually.
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Editor: Barbara Oja, Marcus Turovski
