No diesel fuel from oil shale.
Postimees Digest, Tuesday, July 2
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Both the state-owned energy co Eesti Energia and the chemical concern VKG have announced that they cancel the construction of refinery plans for the production of diesel fuel from oil shale. Eesti Energia made the statement in late May, while VKG announced the suspension of the refinery construction on July 1, citing the high cost of financing. While VKG board member Jaanus Purga said that the project itself would have been profitable, Eesti Energia CEO Sandor Liive claimed that the refining process would have been too expensive. The government's decision to increase the natural resources fee and the likelihood that the EU climate policy would obstruct the sale of diesel fuel from oil shale also influenced the cancellations. The decision does not stop shale oil production in Estonia as Eesti Energia is presently launching its oil plant, while the VKG has one plant completed, another under construction and a third one scheduled to be built.