Government may decide to invest €125 million in new oil shale plant
The government will decide next week whether or not to increase the share capital of Eesti Energia by €125 million, which will allow the state-owned energy company to start building a shale oil plant. The decision was postponed on Thursday.
The penultimate item on the cabinet meeting's agenda was the authorization to increase Eesti Energia's share capital, the portion of equity of a company that comes from the issue of shares. This increase in share capital is specifically for the construction of an oil shale plant.
The total investment for the construction of a second Enefit 280 oil plant would be in the range of €200-300 million.
Eesti Energia already owns one Enefit 280 oil shale plant. It has the potential to process 2.3 million tonnes of oil shale per year, generating 290,000 tonnes of oil shale and 75 million cubic meters of lignite gas from which electricity is generated.
Urmas Seaver, director of the government's communications office, told ERR only five of the nine items on the agenda had been dealt with on Thursday.
Only the merger of the Environmental Board and the Environmental Inspectorate was agreed.
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Editor: Helen Wright
