EU Fuel Directive Should Make Exception for Estonia, Says Industry
Shale oil producer Viru Keemia Grupp (VKG) said that the planned EU directive, which would ban CO2 footprint-rich liquid fuels, including Estonian-produced shale oil, should make an exception for Estonia's oil shale industry.
“The directive's impact could mean that only 10 percent, or a little more, of Estonian-made diesel could be sold in the domestic market and we would have to export the rest, importing the difference from neighboring countries,” VKG's Technical Director Meelis Eldermann told ERR radio on Thursday.
Eldermann said that transport of fuels to and from Estonia must also be considered when calculating environmental footprints.
“Of course, in addition, economic arguments are also considerable, foremost our energy security,” Eldermann said.
He said it is difficult to predict what will happen if the directive, which is currently being debated in the European Council, is passed, adding that further economic and legal studies must be conducted before VKG and Eesti Energia, the nation's other shale oil producer, decide on future investments.
The directive would compel fuel producers to measure the CO2 footprint of their products while also banning fuels with a high level of CO2, which would include shale oil and diesel fuel produced from oil shale.
Directive could cost the economy 3 percent of GDP
At a meeting with European Commission President Jose Manuel Barroso on Thursday, Estonian Prime Minister Andrus Ansip said that oil-shale diesel has a positive effect on the nation's economy.
He said that at a time when Europe's leaders are talking ever louder about creating jobs and energy independence, it is hard to disagree with Estonia's arguments.
“Our message was loud and clear. The European Commission president understood perfectly what it would mean to Estonian employment, research and development, and economic growth, if the default limits, as written in the project, are enforced,” said Ansip.
The CO2 footprint of oil-shale diesel is 40 percent higher than the new directive would allow.
According to calculations by the Ministry of Economic Affairs, a shale oil refining industry could boost the economy by 3 percent.