Estonia has announced the first three projects to receive funding under its largest-ever investment support measure, aimed at attracting large-scale industrial projects and strengthening energy security. The total value of the investments reaches almost €400 million, with the state contributing up to €44 million in support. Payments will be made only once investments are implemented.
“A Historic Moment”
Minister of Economic Affairs and Industry Erkki Keldo described the announcement as a turning point for Estonia.
“Never before have so many projects of such scale and with such a level of state support been unveiled at once. This is a historic moment for our economy and a very important boost to Estonia’s competitiveness. To keep pace with other countries, we too must have instruments that encourage large-scale investments and provide investors with confidence,” Keldo said.
He added that beyond the financial impact, the investment decisions signal that Estonia is an attractive place to do business. “It sends a clear message: Estonia welcomes investment, and companies are ready to commit here,” Keldo noted.
Three Projects Backed
The first round of the scheme approved three major projects:
- BHG-Estonia will develop the country’s first large-scale green hydrogen and ammonia complex in Sillamäe, featuring a 15 MW electrolyser, ammonia synthesis facilities, storage systems and a hydrogen refuelling station for heavy-duty transport. With a total investment of €153.5 million, the state will contribute up to €20 million, creating 32 high-value jobs in the north-east of the country.
- OÜ Derivaat NH3 Power will construct a gas-fired power plant in the Paldiski South Harbour industrial park, based on internal combustion technology. Designed to balance renewables and demand fluctuations, the €110.5 million project will receive up to €11 million in state support and create 30 new jobs, enhancing Estonia’s energy security.
- Horizon Cellulose and Paper AS will invest €129.5 million in a new kraft paper production unit in Kehra, producing high-quality speciality paper for export. The project will receive up to €13 million in state aid and will create 30 new jobs.
Driving Long-Term Competitiveness
According to Joonas Vänto, Head of the Estonian Investment Agency at Enterprise Estonia (EIS), the first call for projects attracted three exceptionally strong applications, all of which qualified for support.
“We are currently advising several other companies considering investments of this scale. The measure will continue in the future, and the message from the state is clear: investments are welcome here,” Vänto said.
The large-scale investment support scheme was launched in September 2024, with the first call for applications opening in March 2025. Its purpose is to encourage projects worth at least €100 million, with state support capped at €20 million per project. The government expects the scheme to generate over €1 billion of new investment in the coming years.
Looking Ahead
Under the 2026–2029 state budget strategy, the government has committed to extending the programme. From 2029 onwards, an additional €40 million per year will be allocated to support further projects.
The scheme is a central part of Estonia’s economic growth plan, reflecting the government’s determination to strengthen industrial capacity, diversify the energy mix, and improve the country’s position in the global investment race.
