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Eesti Energia CEO Sandor Liive said the new oil factory is currently at a standstill due to excessive vibration in an assembly.
Eesti Energia oil factory fighting vibration problems
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30th May 2013, 16:32
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Mr Liive said in Radio Kuku programme Break with Postimees that the earlier issues, with ash removal and the screw conveyor used to push off half burned oil shale, have by now been solved. However, a new problem has arisen with cyclones i.e. specific devices used to extract gas from oil shale.
«Right now, we are dealing with a vibration problem. The world’s best vibration experts have come to measure it,» said Mr Liive.
Mr Liive said the factory’s technology developer Outotec had made propositions on how to improve the technology and, in June, Eesti Energia hopes to have another attempt at engaging the plant full power.
«I am absolutely convinced the plant will work well. I cannot predict the exact time, as new problems may arise at restart. The technology works, for there are no problems with the retort – the plant’s heart,» said Mr Liive.
Earlier, the company promised to launch the plant last September. According to Mr Liive, the maximum running time of the plant has been five consecutive hours.
Eesti Energia announced on Monday that it was giving up the plan of building a diesel factory.
The delay with the new oil factory, in its turn, means that Eesti Energia will not succeed in producing oil in the planned tempo. According to Mr Liive, this was caused by the scope of the investment.
«We assessed it to cost over €600m. However, studies revealed it would be €1.2bn, possibly fluctuating by 30 per cent either way,» said Mr Liive.
Mr Liive explained that the value of oil shale increases most at oil production. Oil being further refined into diesel would, indeed, yield added value, but that would not be as significant. «Added value being low and investments substantial… The investment is not worth it,» said Mr Liive.
According to Mr Liive, Eesti Energia will be aiming at building three modern oil plants; the side product – pyrolysis gas – usable for large volume electricity production.