The use of old tires in oil production has been tested in Auvere for more than eight years. It has been consistently claimed that they are a highly valuable raw material, containing more oil than oil shale.

Last summer, Enefit Power announced that tire chips were already being processed permanently and that all old tires generated in Estonia could be utilized in the oil plant.

However, last fall, the company underwent a management change, and the new chairman of the board, Lauri Karp, has different views.

The process requires Enefit to update its environmental permit and obtain certification for the new raw material. While the company has pledged to continue working on this, the new management is still uncertain whether converting old tires in the oil plant is truly worthwhile.

"The new board is taking a conservative approach, and we certainly have our own ideas about what we will do with alternative raw materials, including wood, biomass, plastic, and tires. So for now, we are still in more of an experimental phase," Karp said.

"We will see what the real issue is, whether it is an economic issue, a technological issue, or a quality issue. And of course, we are also considering air emissions. These are all new factors that the previous board members likely did not examine in detail."

Karp said the amount of shredded tires added to oil shale makes up only a small percent of the total fuel volume. It remains unclear whether such a small proportion is worth the effort.

Ragn-Sells, which opened a special processing facility in Kunda last summer for Enefit Power, says the current situation is regrettable and challenging. The company invested more than €3.5 million, signed a supply contract with Enefit, and must now unexpectedly seek alternative markets for shredded tires.

"We are in a difficult position because we still have a valid contract with Enefit Power, meaning we have to continue producing tire chips. If we do not, Enefit could claim that we are the ones failing to fulfill the contract. But I can confirm that, undoubtedly, in the search for alternatives, Ragn-Sells will likely suffer losses for years with this production line. We built this line primarily for cooperation with Enefit Power, and our entire business plan was based on the premise that Estonia's tires would be turned into oil in Estonia. Enefit Power has not taken any responsibility for the situation," said Kai Realo, CEO of Ragn-Sells Estonia.

Realo believes Enefit is unlikely to ever produce oil from old tires. However, Enefit Power's chairman, Lauri Karp, stressed the company has not completely ruled out the use of old tires, it is just waiting for test results.

"If we start in the summer, once all the permits have been obtained, it will still take some time. I cannot promise you whether it will be six months, a year, or a year and a half. We will see. We have competent chemists who will determine when we have an answer," Karp said.

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