The state-owned Estonian energy company Eesti Energia has announced a public auction of a combined heat and power (CHP) plant situated near the now bankrupt Werol oil refinery at Painkula in Jõgeva county, central Estonia.
Eesti Energia puts Werol CHP plant up for sale
4th June 2013, 16:49
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Eesti Energia held negotiations for a long time with the refinery's new owner, Baltic Agro AS, as a result of which it was established that the new owner does not need cold and heat thermal energy in the process of oil refining in the planned amount. For that reason Eesti Energia decided to exit the project and divest the assets, the company said.
Bids are accepted for the whole plant as well as for building rights and equipment separately. Ilmar Kaasik, manager for renewable energy and small-scale CHP at Eesti Energia, said the CHP plant and its equipment were new and of high quality and that interest for their acquisition had been expressed also from outside Estonia.
Eesti Energia spent approximately five million euros to build the CHP plant at Painkula.
The plant having an electrical output capacity of 4.3 megawatts, a heat output capacity of 1.7 megawatts and a cold output capacity of 2.5 megawatts was established in 2012. Under plans the Werol rapeseed oil refinery was to use up all the heat and cold while the electricity produced would have been directed to the Eesti Energia network.
The rapeseed oil plant's new owner is a subsidiary of Baltic Agro, a holding of the DLA Group of Denmark that also owns rapeseed processing facilities in Latvia and Denmark. Together with the Painkula plant the refining assets of DLA process 500,000 tons annually.