OREANDA-NEWS. July 15, 2009. Eesti Energia and the international mining and metals technology company Outotec signed contracts in the value of 110 million euros, agreeing the engineering, supply and construction of key plant sections for a new oil plant as well as establishing a joint venture  for the marketing and sales of the new generation shale oil production technology, reported the press-centre of Eesti Energia.

Eesti Energia’s CEO Mr Sandor Liive commented on the occasion by saying: “Today’s agreements provide the basis for a unique leap in the development of Estonia’s energy production. The world’s best oil shale industry also needs the world’s best technology, and we are now ready to commence with its construction.  The new oil plant is becoming a reality.”
 
According to Outotec’s CEO Mr Tapani Jarvinen, “We know that the world shale oil reserves exceed multifold that of conventional oil. Outotec has so far been active in providing sustainable technologies for the mining and metals industry. We are very happy to be part of doing the same for the oil shale industry. The benefits of the new technology developed jointly by Outotec and Eesti Energia are many. Optimized use of energy, lower emissions as well as the fact that electrical energy will be produced from spent oil shale ensure compliance with all EU environmental legislation.”

The agreements concern the engineering, procurement, supply, construction and commissioning of the thermal treatment section of the oil plant, which is where the process of oil production takes place and which are designed and supplied by Outotec. “What is significant, however, is that 50% of the components for the new plant are being manufactured by Eesti Energia Technology Industries, allowing us to utilize local expertise and workforce for the completion of the project,” says Mr Liive.

“Cooperation with Outotec is a great acknowledgement for Technology Industries.” In addition, Eesti Energia and Outotec have established a joint venture for holding of intellectual property rights and commercialization of the jointly developed Enefit technology. Eesti Energia holds a 60% stake in the joint venture and Outotec a 40% stake. The agreement for technology development and establishing the joint venture was first made in October 2008. The joint venture provides a license for the construction and operation of the plant.

The new oil plant will use a more environmentally friendly and scaled-up Enefit technology, which is the most efficient commercially utilized oil shale fuels production technology and an advancement of the currently used solid heat carrier process. The new plant will use 2.26 million tons of oil shale per year, producing 290 000 tons of shale oil and 75 million m? of retorting gas which is used in electricity generation. There is also a 35 MW steam turbine integrated with the oil plant, which utilizes the waste heat from the oil production process. The construction of the plant will commence this year and the start-up of the oil plant will take place in early 2012.

Eesti Energia is the leading energy utility in the Baltic States as well as the biggest oil shale utilizing company worldwide, engaged in the production oil and power, sale and delivery of electricity and heat to consumers. Besides the oil and power plants the company owns oil shale mines and quarries.

Outotec is a worldwide technology leader in minerals and metals processing, providing innovative and environmentally sound solutions for a wide variety of customers in minerals processing, iron and steel, aluminum and non-ferrous metals industries. Outotec Oyj is listed on the Nasdaq OMX Helsinki.