Ansip: oil shale fuel production should be given green light

Photo: Mihkel Maripuu

Prime Minister Ansip met with the President of the European Commission José Manuel Barroso in Brussels today to discuss energy-related problems in the European Union and how they relate to Estonia.

Ansip gave credit to the European Commission for its in-depth analysis of energy-related problems, which served as the basis for discussion at the last meeting of the European Council; he also expressed satisfaction with the decision made at the meeting, partly on the back of Estonia’s proposal, to continue the diversification of Europe’s energy supply and to develop local energy sources.

“The Council agreed with us that wider utilisation of local energy sources will help reduce the European Union’s dependency on energy imports, guaranteeing energy independence and supply security for Europe,” said Ansip.

Ansip, however, also expressed his concern about possible developments that might decrease Estonia’s competitiveness on the energy market. Of concern to Ansip was the draft for the implementing provision of the Fuel Quality Directive, which threatens the sale of motor fuel produced from oil shale. According to Ansip, the draft in its present form would have a negative economic impact, which would clearly go against the EU’s primary goal of boosting competitiveness, increasing employment and stimulating economic growth.

“If the implementing directive entered into force in its present form, it would be practically impossible to sell as car fuel on the EU market diesel produced from oil shale and businesses would be forced either to abandon their investment plans or redirect their products to third countries,” said Ansip pointing at the flaws in the draft.

According to Ansip, Estonia fully agrees with the climate policy goals of the fuel directive to reduce the greenhouse gas emissions from fuels used in motor vehicles. The Prime Minister said that Estonia would comply with the agreed climate goals, adding, however, that due to lower carbon dioxide emissions, producing oil and car fuel from oil shale is a significantly more environmentally friendly way of using it than burning it in the production of electricity.

Ansip requested that the European Commission treat the matters related to the fuel directive as more than simply an environmental issue.

“Estonia expects a solution from the European Commission which does not harm the use and development of local resources,” said Ansip. “We hope that in the realisation of the fuel quality directive its impact on the EU’s industry, economy, employment, innovation and foreign trade will be considered.”

President Barroso agreed that in drawing up the implementing provision of the Fuel Quality Directive other aspects besides those related purely to the climate goals have to be taken into account. In the second half of 2013, the European Commission will complete an impact assessment of the implementing provision, considering Estonia’s arguments at a high political level.

Prime Minister Ansip and President of the European Commission Barroso also discussed the location of the regional liquid gas terminal. The Estonian and Finnish foreign ministers recently turned to the Commission requesting an independent assessment of the specific locations proposed in Estonia and Finland. President Barroso agreed to assume the role of impartial assessor, as both governments have promised to accept the results of the assessment.

The European Commission has requested that the necessary information, e.g. cost-benefit analysis and business plans, be submitted promptly in order for it to come to a quick decision.