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Eesti Energia merges mines, electricity generation into one company

Eesti Energia.
Eesti Energia. Source: Sergei Stepanov/ERR

Eesti Energia's production in Ida-Viru County will merge into a new company called Enefit Power from 2021. The Estonia underground mine, Narva quarry and the company's electricity and liquid fuel production will be joined under one roof.

Enefit Kaevandused and Enefit Energiatootmine will merge to become Enefit Power. The new company will focus on making energy production cleaner and more efficient and become the center of the circular economy.

Member of the Management Board of Eesti Energia Raine Pajo said: "We have a clear goal to reduce the CO 2 intensity of energy production. In addition to the development of renewable energy, we will focus on increasing the volume of cogeneration of liquid fuels and electricity which creates more added value in our production, and on the use of alternative fuels, including wood waste. By reducing the use of oil shale, our carbon emissions have decreased almost three times in the last two years."

The new company's goal is to become a driving force in the Estonian circular economy and to use alternative fuels in the production of liquid fuels: old tires and potentially waste plastics, helping to solve environmental problems.

Mine-waste or limestone generated in mines has a good potential to be used more as a filling material for the groundwork of large infrastructure objects, oil shale ash is proving to be a valuable raw material in other industries.

Enefit Power will employ 1,500 people and the recruitment process of the head of the new company is in progress. Eesti Energia hopes that merging companies will increase savings and reduce bureaucracy. There will be no redundancies among workers.

"We have had major redundancies already in 2019-2020, so we are already very close to the optimum today. Yes, changes in the management structure are coming and it is probably inevitable," Pajo told ETV's "Aktuaalne kaamera" on Tuesday.

Chairman of the Energy Union Andrei Zaitsev said redundancies may be made from management.


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Editor: Helen Wright

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