In 2022, Ragn-Sells and Enefit Power signed a five-year cooperation agreement for the use of scrap tires in oil production. As part of the arrangement, Ragn-Sells invested €3.5 million in a tire shredding line and signed a supply contract with a recycling organization, which in turn secured clients from among importers and distributors, promoting the project as an innovative and environmentally friendly recycling method.

For years, Enefit Power also believed that using tire shreds in oil production had a promising future. However, from the company's current perspective, that future now seems less certain. Enefit Power is hesitant to use tire shreds on an industrial scale until all necessary tests are completed and the environmental and economic viability of the process is confirmed. Moreover, the company has yet to obtain approval from the European Chemicals Agency for pyrolyzing tire shreds. That approval is expected to be granted only this coming summer.

A week ago, Ragn-Sells CEO Kai Realo stated that the uncertainty surrounding the future of oil production from scrap tires has caused financial harm to the waste management company. Last year, Enefit Power stopped accepting tire shreds from Ragn-Sells for several months and the energy company's communications have been inconsistent, leaving Ragn-Sells unclear on whether its investment was even necessary.

In response, Enefit Power CEO Lauri Karp asserted that the company remains interested in continuing the contract and argued that Enefit Power has actually suffered damage due to Ragn-Sells' actions.

"We have complaints regarding the fact that tire shreds have not been supplied to us as per the contract. Additionally, we reject the claim that Ragn-Sells has suffered damage due to our actions. Let me emphasize once again: Enefit Power is ready to accept the contracted deliveries of tire shreds. Ragn-Sells has heard this from us in multiple face-to-face meetings and has also received this information in writing. And if any technical issues arise for either party, the contract fully regulates such situations," Karp stated.

Kai Realo declined to comment on relations with Enefit Power over the phone, stating that the matter is complex and cannot be adequately summarized or simplified in a news report.

However, Ragn-Sells issued a written statement expressing dissatisfaction with Enefit Power's focus solely on the fulfillment of the tire shred supply contract.

Ragn-Sells wants full assurance that oil production from tire shreds will actually take place and that production will continue throughout the contract period. The damages the company referred to stem primarily from Enefit Power's inaction in oil production and its public statements, which have caused the recycling organization to lose clients. Tire suppliers are now uncertain whether scrap tires will ever be recycled at Enefit Power.

As a result, Ragn-Sells is preparing legal action to protect its interests.

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