Enefit opens 380 million euro oil shale plant in Auvere

Enefit has opened a new oil shale oil plant in Auvere, Estonia, which the company says is the most efficient and climate-friendly of its kind in the country, ERR reported.

Enefit Industry board chairman Lauri Karp said the Enefit 280-2 plant could produce 268,000 tonnes of oil a year, making it the most productive facility in Enefit’s oil production fleet.

“It also has another advantage: it performs best in terms of environmental emissions. This is the most modern plant, with a huge number of sensors and technologies,” Karp said.

The plant has produced more than 15,000 tonnes of oil so far. Karp said it could extract slightly more oil from each tonne of oil shale than the company’s previous plants.

The oil is used as a component in marine fuels, where it is added to low-sulfur marine fuel. Karp said the market was worth about 100 billion dollars and demand remained strong. During crises, the oil has also been used as a substitute fuel in heating plants when natural gas supplies have been disrupted or prices have been very high.

Representatives of Enefit Industry and oil shale producer VKG said interest in oil shale oil had not declined on global markets. They identified as a potential threat the European Commission’s plans to change tax rules related to greenhouse gas emissions.

Eesti Energia supervisory board chair Anne Mere said the changes could put oil producers operating in the European market at a disadvantage compared with companies in other regions.

“We are certainly taking into account that we are moving towards an industry with a lower carbon footprint. The more distant future is carbon neutrality, but we need to move in considered steps and also understand what is happening in the world around us,” Mere said. She added that demand for liquid fuels had increased slightly recently.

The Enefit 280-2 plant employs 150 people and cost more than 380 million euros to build.