Estonia opens new €380M oil shale plant unit in Auvere
Enefit has launched a new oil shale processing unit in Auvere, calling it its most environmentally friendly plant yet, as global demand for shale oil remains strong.
Estonian energy company Enefit, a subsidiary of state-owned Eesti Energia, has commissioned a new oil shale processing plant, Enefit 280-2, in Auvere. It operates alongside the existing Enefit 280 unit and is described by the company as the most efficient and environmentally friendly facility in its production complex.
Enefit Industry CEO Lauri Karbi said the new plant can produce up to 268,000 tonnes of oil per year, more than any other unit at the site. It is equipped with an extensive array of sensors and monitoring technology aimed at reducing emissions, and it can extract slightly more oil per tonne of processed oil shale than older plants. Since starting operations, the facility has already produced more than 15,000 tonnes of oil.
Uses and market demand
According to Karbi, the oil produced is mainly used as a component in low-sulphur marine fuel, a market worth roughly $100 billion where demand remains strong. During periods of crisis, when natural gas supplies are disrupted or prices spike, the oil can also serve as a substitute fuel for boiler plants.
Both Enefit and private shale oil producer VKG report no decline in global market interest in their product. However, the industry could face challenges from the European Commission's planned changes to CO2 emissions tax rules, which risk putting EU-based producers at a disadvantage compared with competitors in regions with less stringent environmental regulations.
Anne Mere, chair of Eesti Energia's supervisory board, acknowledged that the industry is moving toward lower carbon impact and, in the longer term, carbon neutrality, but said this transition needs to happen gradually while accounting for global market conditions. She noted that demand for liquid fuels has actually risen slightly in recent times.
Construction of the new plant cost more than €380 million and has created around 150 jobs.
