Eesti Energia seeks initiation of detailed plan for shale oil refinery

Eesti Energia Õlitööstus AS (Oil and Gas) has submitted a petition to Vaivara municipality for initiating preparation of a detailed plan with the purpose of establishing a liquid fuel post-processing plant in the vicinity of its current energy complex near Narva.

The planned post-processing plant will allow enhanced liquid fuels with a wider use to be obtained from the shale oil produced today. Its capacity of 20,000-35,000 barrels a day will allow 5,000-7,000 barrels of shale oil per day from other producers to be processed in addition to Eesti Energia's planned output.

Eesti Energia's goal is to produce 20,000-30,000 barrels of liquid fuel per day, which will completely meet Estonia's liquid fuels demands and will thereby increase the country's energy independence. Developing domestic liquid fuel production capacities is necessary in order to export shale oil production technology to other countries. It will also create demand for growth of research and development.

The proposal submitted to Vaivara municipality envisions the possibility of increasing production capacity by building additional Enefit-280 technology based systems. Along with the proposal to initiate preparation of a detailed plan, Eesti Energia Õlitööstus submitted an application to begin an environmental impact assessment of the project.

Development of liquid fuels production at Eesti Energia will result in the creation of up to 500 permanent jobs in the area, in addition to jobs in related sectors and during the construction period. To provide workforce for these positions, Eesti Energia plans to work with educational institutions in north-eastern Estonia – both the Tallinn University of Technology's Virumaa College and the Ida-Viru County Vocational Education Centre, which teach a number of fields vital to liquid fuels production.

Eesti Energia Oil and Gas has been producing shale oil since 1980. Last year the company produced close to 1.2 million barrels of shale oil using two systems using the proprietary Enefit-140 technology.

This year, construction of the first system using the Enefit-280 technology began. It will be completed in early 2012. The new Enefit-280 technology developed in cooperation between Eesti Energia and the international engineering firm Outotec is the most environmentally-friendly, reliable and efficient technology used for producing oil from oil shale.

Marina Bachmann
Press Officer
Eesti Energia AS
Tel: 71 51 218
GSM: 56 456 600