Oil-shale producer

  • 2005-02-23
  • By TBT staff
TALLINN - Estonian Oil Shale announced plans to boost output by 50 percent at one of its mines, thanks to technological innovations.
The firm recently completed boring a 600-meter tunnel leading to its underground mines, which will utilize motor vehicles instead of railroad wagons, a company representative said.
The total cost of the new equipment, which includes boring and blasting machines introduced at the "Estonia" mine, amounts to 12.8 million euros. Advances are in line with the country's EU-oriented pledge to increase its share of energy from renewable sources.

Currently much of Estonia's power system is based on oil shale, though the nation is diversifying its energy resources. According to EU regulations, 5 percent share of total electricity produced in Estonia must be based on renewable sources by 2010. Experts from the Ministry of Economic Affairs and Communications have said that the country could surpass its schedule and have a 10 percent share of electric power from renewable sources by 2008.

In 2003 the wind- and water-generated energy amounted to 25.4 gigawatt-hours, or 0.32 percent of the total 7,674 gigawatt-hours produced. In 2004, Eesti Energia opened its first biogas power station, launched two wind-powered generators and six hydropower stations.

As of January there were 29 hydropower stations and nine wind-powered generators in Estonia.

Mart Opmann, chairman of the economic affairs commission in Parliament, said that the country's legislative basis was actually conducive to reaching EU targets before the deadline. He added that investors had shown active interest regarding renewable energy projects.

"At the same time, the potential restriction that may be imposed on Eesti Energia's purchase of electricity generated from renewable energy sources needs legislative solution," said Opmann.

An amendment to the Electricity Market Act, approved last December, left open the question of renewable energy limits. The share of electricity from renewable sources was set at 5 percent in order to prevent excessive price growth.

Opmann said the amount of restrictions could be reconsidered in Parliament in March or April.

In 2004 Estonian Oil-Shale produced 13.1 million tons of oil-shale, which was 1.5 million tons less than 2003. The company's turnover has also fallen from 1.33 billion kroons to 1.24 billion kroons in the same period.