Enefit Power aims to launch new shale oil plant in early 2025
Enefit Power, a subsidiary of the Eesti Energia Group, plans to begin operations at a new shale oil plant at the beginning of 2025. The plant's construction has faced delays due to legal disputes and the complex permitting process.
The construction of Enefit Power's oil plant is still underway, with the installation of primary equipment and piping in the turbine building nearing completion, Enefit Power's CEO Lauri Karp told ERR.
"Cold start tests are ongoing. Additionally, there is active work on installing piping and electrical systems in the condensation unit, with the main components and equipment already in place. The installation of the retort building's chimney is nearly finished and work on its insulation is in the final stages," Karp said.
Karp added that suppliers have now begun training Enefit Power employees on the equipment. This training cycle will continue until early next year when the plant is expected to commence operations.
"The plant's start-up is scheduled for early 2025. After launch, a multi-stage adjustment process will begin, which, once successfully completed, will enable us to reach full capacity," Karp stated.
Plastics chemistry plant in the design process
Enefit Power plans to market the output from its new oil plant similarly to that of its existing oil plants, CEO Lauri Karp said.
"The liquid fuels produced by Enefit's plants can be used by heat producers, energy companies, fuel manufacturers and sellers for ships and vehicles, road construction companies and agricultural producers," he explained.
Karp noted that the long-term goal is to gradually transform the over-century-old oil shale industry into a sustainable chemical industry. To that end, the preliminary design of a value-added processing plant aimed at the plastic chemicals market is currently underway.
"Once completed, this proposed plant could start producing raw materials from shale oil, which European industries have mostly imported from other parts of the world and is primarily derived from oil or natural gas. In this way, we will shift from producing liquid fuels to manufacturing plastics and compounds essential for industry. These materials will no longer be combusted but instead will embed carbon within the product itself," Karp added.
Disputes over the plant not put to bed
Eesti Energia laid the cornerstone for the new Enefit oil plant, named Enefit 280-2, in November 2021. The plant's construction sparked heated debates in 2023, ultimately leading the government at the time to amend the law to allow for the issuance of time-limited complex permits. This change enabled Enefit Power to submit a new construction permit application for the oil plant.
Kristen Michal, who was then serving as minister of climate, stated that under the current climate goals, the oil plant would be permitted to operate until 2035.
A key stipulation was that the environmental complex permit would be temporary. The Environmental Board granted Enefit Power a ten-year permit, conditional upon the company making gradual steps to reduce its environmental impact.
However, the environmental NGO MTÜ Loodusvõlu challenged this permit in court, and the court initially granted them provisional legal protection. In July of last year, the Tallinn Administrative Court lifted this provisional protection, allowing the oil plant to continue operating during the ongoing legal proceedings.
Karp stated that they would not comment on the pending court case.
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Editor: Marcus Turovski