diff --git a/crates/ef-testing/src/evm_sequencer/evm_state/mod.rs b/crates/ef-testing/src/evm_sequencer/evm_state/mod.rs
index e00c836c..f637d19e 100644
--- a/crates/ef-testing/src/evm_sequencer/evm_state/mod.rs
+++ b/crates/ef-testing/src/evm_sequencer/evm_state/mod.rs
@@ -17,7 +17,7 @@ use super::account::KakarotAccount;
 pub trait Evm {
     // TODO enforce using a marker type that you can only proceed
     // with execution if the state is initialized.
-    fn setup_state(&mut self) -> StateResult<()> {
+    fn setup_state(&mut self, _base_fee: U256) -> StateResult<()> {
         panic!("Not implemented, use features flag \"v0\" or \"v1\"")
     }
 
diff --git a/crates/ef-testing/src/evm_sequencer/evm_state/v0.rs b/crates/ef-testing/src/evm_sequencer/evm_state/v0.rs
index 69f90c12..aeaa8f50 100644
--- a/crates/ef-testing/src/evm_sequencer/evm_state/v0.rs
+++ b/crates/ef-testing/src/evm_sequencer/evm_state/v0.rs
@@ -15,12 +15,38 @@ use super::Evm;
 use crate::evm_sequencer::account::{AccountType, KakarotAccount};
 use crate::evm_sequencer::constants::ETH_FEE_TOKEN_ADDRESS;
 use crate::evm_sequencer::sequencer::KakarotSequencer;
+use crate::evm_sequencer::types::felt::FeltSequencer;
 use crate::evm_sequencer::utils::{felt_to_bytes, split_u256, to_broadcasted_starknet_transaction};
 use crate::starknet_storage;
 
 impl Evm for KakarotSequencer {
     /// Sets up the evm state (coinbase, block number, etc.)
-    fn setup_state(&mut self) -> StateResult<()> {
+    fn setup_state(&mut self, base_fee: U256) -> StateResult<()> {
+        let kakarot_address = self.environment.kakarot_address;
+        let coinbase_address: FeltSequencer = (*self.address()).try_into().unwrap(); // infallible
+
+        // Set the coinbase address.
+        self.state_mut().set_storage_at(
+            kakarot_address,
+            get_storage_var_address("coinbase", &[]),
+            coinbase_address.into(),
+        );
+
+        // Set the base fee.
+        let low_fee = base_fee & U256::from(u128::MAX);
+        let low_fee: u128 = low_fee.try_into().unwrap(); // safe unwrap <= U128::MAX.
+        let high_fee = base_fee >> U256::from(128);
+        let high_fee: u128 = high_fee.try_into().unwrap(); // safe unwrap <= U128::MAX.
+
+        let base_address = get_storage_var_address("base_fee", &[]);
+        self.state_mut()
+            .set_storage_at(kakarot_address, base_address, StarkFelt::from(low_fee));
+        self.state_mut().set_storage_at(
+            kakarot_address,
+            next_storage_key(&base_address)?,
+            StarkFelt::from(high_fee),
+        );
+
         Ok(())
     }
 
diff --git a/crates/ef-testing/src/evm_sequencer/evm_state/v1.rs b/crates/ef-testing/src/evm_sequencer/evm_state/v1.rs
index 661e4503..5bbfe0b8 100644
--- a/crates/ef-testing/src/evm_sequencer/evm_state/v1.rs
+++ b/crates/ef-testing/src/evm_sequencer/evm_state/v1.rs
@@ -38,7 +38,7 @@ use crate::{
 
 impl Evm for KakarotSequencer {
     /// Sets up the evm state (coinbase, block number, etc.)
-    fn setup_state(&mut self) -> StateResult<()> {
+    fn setup_state(&mut self, _base_fee: U256) -> StateResult<()> {
         let coinbase_address = *self.address();
         let coinbase = KakarotAccount::new(&coinbase_address, &Bytes::default(), U256::ZERO, &[])?;
         self.setup_account(coinbase)?;
@@ -429,7 +429,7 @@ mod tests {
         transaction.signature = signature;
 
         // When
-        sequencer.setup_state().unwrap();
+        sequencer.setup_state(U256::ZERO).unwrap();
         let bytecode = Bytes::from(vec![
             0x60, 0x01, 0x60, 0x00, 0x55, 0x60, 0x02, 0x60, 0x00, 0x53, 0x60, 0x01, 0x60, 0x00,
             0xf3,
diff --git a/crates/ef-testing/src/models/case.rs b/crates/ef-testing/src/models/case.rs
index 49efc805..30731433 100644
--- a/crates/ef-testing/src/models/case.rs
+++ b/crates/ef-testing/src/models/case.rs
@@ -220,6 +220,11 @@ impl Case for BlockchainTestCase {
 
         let coinbase_address = maybe_block_header.map(|b| b.coinbase).unwrap_or_default();
 
+        let base_fee = maybe_block_header
+            .and_then(|block_header| block_header.base_fee_per_gas)
+            .map(|base_fee| base_fee.0)
+            .unwrap_or_default();
+
         let block_number = maybe_block_header.map(|b| b.number.0).unwrap_or_default();
         let block_number = TryInto::<u64>::try_into(block_number).unwrap_or_default();
 
@@ -243,7 +248,7 @@ impl Case for BlockchainTestCase {
             block_timestamp,
         );
 
-        sequencer.setup_state()?;
+        sequencer.setup_state(base_fee)?;
 
         self.handle_pre_state(&mut sequencer)?;