Previously, the requirement had been contained in a draft permit for the plant, called Enefit280 and being built by Enefit Power, a subsidiary of the state-owned Eesti Energia.

Enefit Power sought analysis from legal firm Ellex Raidla, to determine if the Environmental Board's conditions on the environmental complex permit were justified.

Ellex Raidla's analysis found that the requirement placed on Enefit Power to implement carbon capture technology by 2030 is not warranted.

The environmental complex permit for the oil plant is issued for ten years.

Erik Kosenkranius, the board's deputy director general for the environment, conceded that the carbon capture technology requirement had been included in error, in the draft permit concerning the new Enefit 280 plant.

Kosenkranius said,: "Since this permit would be valid through to the end of 2034, yet the carbon capture technology requirement would apply beyond that, and not in 2030, it was a mistake to include it in the draft."

"We realized this during the process, and when we gave a public disclosure presentation, we argued that it was not reasonable to include a requirement in the permit which would come into effect after the permit expires," he went on.

"Our intention has been that during the 1o-year validity period, the company must take steps to make production more environmentally friendly by following the best available technology. The lawyers are correct that the optimal available technology today does not necessarily impose on oil plants to implement carbon capture technology," Kosenkranius added.

According to Kosenkranius, Eesti Energia must reduce emissions, but across the group. "One of the permit conditions requires them to shut down some pulverized combustion boilers," Kosenkranius said.

"With exhaust gases currently being burned, they need to find a solution to add value to these gases – such as using them for hydrogen production."

"On top of these requirements, demanding the implementation of carbon capture technology within 10 years is disproportionate, and we take that into account," Kosenkranius added.

Despite being informed of the draft permit amendment at a public meeting in April, Eesti Energia in any case sought legal assistance.

Eesti Energia told ERR in a written response to questions that it is awaiting the issuing of the plant's complex permit and its specific conditions, and is unable to comment on the permit details until that time.

In a letter to the Environmental Board, Eesti Energia stated that the Board's actions were not legitimate, as the requirement was based on political documents rather than legal regulations. The requirement was derived from materials that have not yet been legislated.

Kosenkranius noted that the Environmental Board is also awaiting the new climate law, now renamed the climate-resilient economy act.

On this, Kosenkranius said: "It is crucial that Estonia agrees on climate targets. Part of this confusion and dispute is caused by a lack of clear climate targets in Estonia. It would greatly help us in such matters – be it with regard to an oil plant, a waste incineration plant, or some other facility – if the state had set, established goals."

"We could then assess whether a new enterprise's emissions fit within Estonia's climate targets. The Ministry of Climate is working towards setting these targets for the various sectors, but that will all take some time," Kosenkranius added.

According to Kosenkranius, the environmental complex permit for Enefit Power is likely to be issued in May. ERR has learned that this could happen as early as this Friday.

Enefit Power plans to launch the new oil plant by the end of this year. When the cornerstone was laid in November 2021, the plant was expected to be completed for €320 million. The current estimate for the plant's cost is €368 million.

Situated in Auvere, the Enfit280 and Enefit280-2 plants will produce shale oil, from shale mined in Ida-Viru County. The plant was the subject of protests during its planning stage.

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