Environmental safety
The Group implements technologies for the protection of the environment and for the rational use of resources and promotes a culture of environmental safety. The Group strives to reduce risks related to the environment and makes significant contributions to nature conservation programmes.
Main areas of work
- development and implementation of environmentally friendly technologies
- implementation of nature protection programmes
- management of a warning and accident localisation system
- environmental monitoring and supervision over the environmental friendliness of production
- risk management in the area of environmental safety
- introduction and development of a culture of environmental safety
In order to consistently reduce the environmental impact, the Group runs an environmentally friendly management system that meets the requirements of international standard ISO 14001:2015.
Our environmental protection objective is to reduce the shale oil production footprint and environmental impact through the effective valuation of oil shale as a resource and the implementation of the best possible technologies.
VKG’s guiding environmental principles:
Acting upon an environmental management system conforming to the international standard ISO 14001.
In our everyday activities, we follow the requirements prescribed in legal acts, conventions and agreements of Estonia and the European Union.
Identifying the ecological aspects and environmental impact of the enterprise’s production activities and assessing their conformity to the legislation in force and to other applicable requirements.
We consider it important to inform the region’s institutions and population about the enterprise’s activities and possible environmental impacts of those activities..
We pay much attention to promoting sustainable development in the enterprise, reusing as many materials and wastes generated from the production process as possible.
We consider it important to have good cooperation with research and development institutions, both for solving environmental issues and for developing new technologies.
We encourage our employees to improve their knowledge about the environment protection and we recognise and encourage practical use of that knowledge.
We work towards unlocking the full potential of oil shale, creating additional value with our oil shale products.
The main focus of VKG’s environmental activities will remain the same in the coming years. We shall continue investments into increasing the efficiency of production processes and look for new possibilities to optimise processes and thereby reduce the environmental impact.
PRECAUTIONARY PRINCIPLE
Viru Keemia Grupp regards the reduction of the impact exerted by relevant risks on the environment as well as enhancing occupational safety as one of its main goals with strategic priority. By managing the risks for people´s life and health as well as environmental risks, the Group proceeds from the precautionary principle. *
The implementation of this principle in the Group is exercised based on the following approaches:
- provision of safety requirements throughout the entire process of oil shale enrichment and sale of end products
- risk management
- bringing the environmental effect to a minimum
- meeting the requirements in the field of occupational safety as well as the requirements of employees and contracting organisations in the field of healthcare politics.
The company works persistently in order to raise the level of productivity and environmental safety, meet the requirements established in legal acts and related to environmental protection, and consistently and efficiently reduce the negative impact on environment.
Protection of labour and the safety of the employees are of primary importance for Viru Keemia Grupp. Within the term of existence of the Group, it has accumulated extensive experience in the field of responsible operation, and relevant procedures and practices have been implemented. We regard the financing of various programmes in the field of labour protection not so much as expenses, but rather as investments into health and well-being of our employees.
* This principle is laid down in international documents as follows: 'Where a serious or inevitable danger exists, insufficient scientific grounds cannot serve as an excuse for pushing away the implementation of efficient measures for the sake of prevention of environmental damage'. (RIO DECLARATION ON ENVIROMENT AND DEVELOPMENT, June 1992).
Strategic vision of reducing the impact of industry
The main focus of environmental activities is on reducing ambient air emissions, particularly with regard to sulphur compounds and emissions which cause unpleasant odours. A lot of attention is also paid to improving the quality of precipitation and waste water and the improvement of purification technologies. Measures are also being sought for increasing energy efficiency.
Our environmental objectives are as follows:
- applying circular economy principles, which ensures the most efficient use of resources
- reducing sources of pollution which cause unpleasant odours
- minimising the effects related to extraction and finding additional possibilities for the maximum recycling of oil shale waste rock
- developing the best available techniques (BAT) for oil shale processing and lengthening the existing production chain to the maximum extent possible
The following studies were conducted in 2019:
- Verification of CO2 emissions produced in the Group and improvement of the system;
- CO2 footprint study
- Monitoring groundwater and surface water at the Ojamaa Mine
- Muraka bog ecosystem monitoring
- Study of the possible locations of a new landfill
- Monitoring groundwater at the ash storage site at the Ahtme thermal power plant
No public discussions of environmental impact assessment were held. However, allowed emissions projects were ordered for most of the subsidiaries in accordance with amendments to legal acts.
Carbon dioxide emissions and the free quota have a significant effect on the Group’s economic activities. Activities related to the development of the framework of the trading system of the 4th greenhouse gas (GHG) trading period of the European Union started in 2019. The Group presented its input concerning the functioning of the system to the European Commission and submitted applications concerning its facilities.
Environmental Footprint
For the purpose of providing a better assessment of the environmental effect of the life cycle of products and production activities, a programme of assessment of the environmental footprint was launched in the Group in 2018. The implementation of the new method enables us to understand the environmental effect at different stages of the production and consumption of goods, compare the footprint with other similar products on the market, and reduce the environmental effect of the products by means of a life cycle analysis. In 2019, we completed the environmental footprint of VKG Kaevandused. The development of the new carbon footprint methodology continued in 2020. The Group continues to invest in development activities aimed at reducing carbon emissions, seeking possibilities to reduce the environmental footprint of shale oil production.
Investments into environmental protection, and environmental charges
VKG is an enterprise of significant impact and pays environmental charges for the use of the environment and for emissions in accordance with the principle of a polluter’s financial responsibility. Figure 1 shows the changes in the amount of the Group’s environmental charges. It grew significantly from 2010 and dropped from 2015 due to the economic standing of the enterprise, and has then gradually recovered since 2017. In recent years, the environmental charges have amounted to more than 14 million euros per year.
THE GROUP'S ENVIRONMENTAL CHARGES (EXCLUSIVE OF THE COSTS OF CAPTURE DEVICES, ENVIRONMENTAL MONITORING, ENVIRONMENTAL STUDIES AND OTHER SUCH)
Viru Keemia Grupp invests in the minimisation of the environmental impact and constantly works towards improved efficiency. The aim is to increase the value of oil shale to the maximum, i.e. to fully use up the potential of the resource. From the perspective of the environment, that means a smaller environmental impact per one unit of processed oil shale and greater social and economic benefit. In order to ensure the sustainability of shale oil production, we need to invest into environmental protection and the development of the best possible technologies, take part in the development of legal acts, perform production and environmental monitoring, optimise production, and implement energy-efficient solutions. The legal acts of the European Union and the Republic of Estonia as well as the increasing production needs establish ever greater requirements and new higher environmental goals for the Group enterprises.
VKG divides its investments into environmental protection into two parts:
1.
investments that reduce the effect on the environment directly;
2.
investments that reduce the effect on the environment indirectly.
Investments that directly reduce the environmental effect include investments that provide immediate reduction of environmental effect. They include, for instance, the so-called end-of-pipe investments (trapping equipment), the renovation of tank fleets, closing the existing sources of pollution, or investments aimed at reduction, waste disposal, etc.
Investments that indirectly reduce the environmental effect include activities which reduce the environmental effect in the course of long-term consistent activities. This includes, for instance, investments into BAT, and the development/application of new more efficient technologies that save natural resources.
In total, the Group made 2.3 million euros worth of direct investments and over 7 million euros worth of indirect investments into projects aimed at reducing the environmental effects.
INVESTMENTS THAT DIRECTLY AND INDIRECTLY REDUCE THE ENVIRONMENTAL IMPACT (IN MILLIONS OF EUROS)
- Direct
- Indirect
In recent years, VKG’s direct investments have mainly been aimed at the implementation of measures to reduce odoriferous substances. 2017 saw the publication of ‘The Assessment of Ambient Air Quality, Odour Nuisance and Pollutant Emissions in the Järve District of the City of Kohtla-Järve’, a study commissioned by the Estonian Environmental Inspectorate and carried out by the Estonian Environmental Research Centre, on the basis of which VKG Oil commissioned additional measurements and the modelling of odoriferous substances in its production territory. On the basis of the obtained results, the enterprise prepared a new action plan for reducing odoriferous substances, foreseeing activities in the extent of approximately 1.1 million euros in total. In 2018, three measures were taken under the action plan for reducing the occurrence of odoriferous substances: the heat hotspots at the semi-coke landfill were closed, and the absorber of the heavy oil and light-middle oil preparation equipment and the absorber of the oil warehouse absorber were connected to a joint breather system.
Direct investments doubled in 2019. The main investments were intended for making gas condensate containers airtight at VKG Energia, reducing emissions in loading truck tanks at VKG Oil and trsnferring the emissions of the joint breather system of the adsorbers of the oil warehouse to the Kiviter equipment, as well as checking the efficiency of measures the results of which showed a reduction in the occurrence of odoriferous substances. In conclusion, the measures have been worthwhile and the emission of odoriferous substances from those sources has stopped. We shall continue checking the efficiency of the measures in 2020.
In 2019, investments were also made into the nitrogen breather system of tank fleets and the Chiller cooler equipment project which reduced CO2 emissions at the Põhja Thermal Power Plant of VKG Energia.
Management of climate effects
VKG supports the implementation of the Paris Agreement which is aimed at combating climate change. The assessment of the level of greenhouse gas emissions is a measure of decisive importance in the climate impact risk management system.
The methodology of calculating the shale oil production footprint allows us to compare the environmental impact of shale oil products, find possibilities to reduce the footprint on the basis of analyses, and maintain or increase the competitiveness of products compared to other energy sources. The development of the calculation methodology started in 2019 and continues in 2020. The Group continues to invest into development activities aimed at the reduction of carbon emissions, in the framework of which the increase of production efficiency per product unit reduces emission levels as a whole.
Ambient air emissions
Carbon dioxide (CO2) emissions
An increase in specific emissions in 2019 was caused by increased production. From the 2nd quarter last year, a new regulation for the calculation of carbon dioxide applies. The change in methodology increased the amount of emissions.
The Group is constantly looking for technically feasible and economically justified solutions for reducing greenhouse gas emissions.
VKG OIL'S CO2 SPECIFIC EMISSIONS PER PRODUCTION
(TONNES CO2/ÕLI TONN)
Sulphur dioxide (SO2) emissions
When comparing 2015 and 2016, the emissions have dropped by nearly 40%, which was achieved thanks to establishing sulphur capture systems at the Põhja Thermal Power Plant of VKG Energia. Two new sulphur capture devices were taken into use in 2015–2016, reducing SO2 emissions into ambient air. The specific emissions increased a little in 2017–2019, but compared to 2015 the decrease is notable. VKG Oil’s specific emissions have stayed largely the same.
A major part of SO2 emissions (nearly 85% of the Group’s total emissions in 2015) was released upon burning generator gas generated in the thermal processing of oil shale at VKG Energia, semi-coke gas, and oil shale and filter cake (since 2017, solid fuels are no longer burned). At VKG Oil, emissions were generated mainly in the process of burning gases generated as by-products in the course of production of shale oil (generator gas, semi-coke gas, separator gas) in the shale oil distillation unit as well as in the electrode coke production unit and in the course of operation of the Petroter plants.
VKG OIL AND VKG ENERGIA SO2 SPECIFIC EMISSIONS PER PRODUCTION
(TONNI/TONNI)
- VKG Oil
- VKG Energia
Ambient air pollution charge
Until 2015, there was an upward trend in ambient air pollution charges, caused mainly by an increase in pollution charge rates as well as in production volumes. In 2016, the air pollution charge amounted to 0.64 million euros, which is 3.2 times lower than the amount paid in 2015. This was thanks to the reduction of SO2 emissions achieved by the launch of a new sulphur capture system at the Põhja Thermal Power Plant of VKG Energia. Also, the Lõuna Thermal Power Plant, a considerable source of SO2, was closed. An amendment to the Environmental Charges Act also had an effect. Since 2016, the ambient air pollution charges have been largely on the same level, being linked to the production levels.
Ambient air pollution charges (EUR)
Water usage and waste water
Priorities in the area of water usage include the expedient use of water resources, the efficient purification of waste water and the prevention of the entry of shale oil into natural water bodies. Viru Keemia Grupp performs supervision over water conservation areas, surface water, groundwater and waste water and evaluates the deposition of surface water objects in its area of activity.
Water usage
In 2019, the Group used a total of 6.06 million m3 of water, and the 11.7% increase from the earlier level was due to an increase in the use of lake water. In VKG Oil AS, the amount of groundwater and lake water increased by 48% and 22%, respectively. In VKG Energia, the amount of cooling water increased by 17% compared to 2018. The increased water consumption is caused by an increase in production volumes. In 2019, the amount of groundwater and water at the enrichment plant was smaller compared to 2018.
WATER USAGE IN THE GROUP (m3)
- Lakewater
- Groundwater
- Mine water in enrichment factories
Waste water
In 2019, the Group produced a total of 25.9 million m3 of waste water, which was 12.6% more than in the previous year. The amounts of waste water, precipitation water and extraction water grew due to the amount of precipitation which in 2019 was higher than in 2018. The amounts of extraction water are connected to an increase in the area of the area being mined.
WASTE WATER IN THE GROUP (m3)
- Waste water
- Freshet
- Waste water from mines
Water pollution charges
In 2016, the Group’s environmental charges for water decreased compared t o2015, mainly due to a decrease in the volume of water pumped out of the Ojamaa Mine. In 2017–2019, the environmental charges for water increased (by 29%, 12.4% and 12.1%, respectively) due to the need to pump out more water from the Ojamaa Mine as underground works progressed and the area being mined grew.
CHARGE FOR THE EXCLUSIVE RIGHT OF USE OF WATER, AND WASTE WATER CHARGE (EUR)
- VKG Energia
- VKG Oil
- VKG Kaevandused
- VKG Soojus
Industrial waste
Constantly checking the reliability of equipment and introducing new technologies allow us to minimise the risk of soil contamination. The Group also actively reuses production waste.
Hazardous and non-hazardous waste and reuse
In 2017, a new type of waste was added to VKG’s waste list – gas purification waste that contains hazardous substances (waste code 10 01 18*). The code covers waste generated as a result of the desulphurisation process. Thus, the main type of waste at VKG’s Põhja Thermal Power Plant is the gas purification waste which is generated as a result of the desulphurisation process and contains hazardous substances. VKG Oil’s production processes generate semi-coke and oil shale ash. In 2019, the Department of Energy Technology of TalTech and the Geology Department of the University of Tartu conducted a study of the harmfulness of oil shale ashes and determined that oil shale ash is not hazardous waste. Pursuant to a decision passed in 2019, oil shale ash is no longer included in the list of hazardous waste.
THE AMOUNTS OF THE MAIN TYPES OF HAZARDOUS WASTE IN THE GROUP
| 2015 | 2016 | 2017 | 2018 | 2019 | ||
|---|---|---|---|---|---|---|
| Semi-coke | 0,62 | 0,23 | 0,63 | 0,73 | 0,79 | |
| Gas purification waste | 0 | 0 | 0,05 | 0,06 | 0,06 | |
| Total hazardous waste(million tonnes) | 0,62 | 0,23 | 0,68 | 0,79 | 0,85 |
The ratio of the amount of hazardous waste generated per one tonne of products has decreased compared to 2015, while staying on the same level as in 2018. This was due to an increase in the proportion of the Petroter technology (the reprocessing of fine oil shale with a lower fuel value and a higher content of mineral substances) and the transfer to Ojamaa Mine oil shale the content of mineral substances of which is also higher. As the Petroter production process uses fine shale oil with a lower fuel value, the oil output from the process is also smaller. At the same time, the Petroter technology means that production is much more energy-efficient. That allows for a more efficient use of the potential of fine oil shale.
GENERATION OF HAZARDOUS WASTE PER PRODUCT UNIT AT VKG OIL
(TONNES/TONNES)
The Group’s waste generation is presented in the table below. Of the non-hazardous waste generated, the following types of waste are mainly reused:
- waste rock, which is sold as filler material and reused,
- scrap metal, which is recycled.
VKG Kaevandused sends the generated waste rock largely for reuse as a certified product. Most of it is sold to companies outside the Group for use as rubble filler, in road construction and in building wind turbine foundations. This contributes to achieving the target level of limestone rubble established in ‘The State Development Plan Pertaining to the Use of Oil Shale for 2016-2030’ as well as to fulfilling the objective of maximum use instead of depositing. In 2019, the Group generated 2,274,000 tonnes of waste rock, 92% of which was reused.
GENERATION AND REUSE OF NON-HAZARDOUS WASTE IN THE GROUP(TONNES)
| 2015 | 2016 | 2017 | 2018 | 2019 | ||
|---|---|---|---|---|---|---|
| Construction and demolition waste | 560 | 351 | 459 | 513 | 630 | |
| Common waste | 228,5 | 263,5 | 284 | 283 | 286 | |
| Scrap metal | 6 283 | 1 486 | 763 | 3 136 | 1 518 | |
| Mining scrap | 1 644 949 | 1 047 581 | 2 053 864 | 2 298 701 | 2 274 156 | |
| Oil shale ash | 1 231 395 | 1 575 593 | 1 651 832 | 1 768 186 | 1 883 510 | |
| Total generation of non-hazardous waste, tonnes | 1 652 020 | 2 625 274 | 3 707 202 | 4 070 819 | 4 160 100 | |
| Reuse of waste rock, tonnes | 1 369 999 | 1 322 531 | 2 053 864 | 2 203 129 | 2 093 845 |
JDeposition of waste
VKG Oil (ash and oil shale) and VKG Energia (gas purification waste) deposit the generated industrial waste in a production waste landfill. An increase in the amount of deposited waste over recent years has been caused by the fact that the closure of the national hazardous waste landfill has been completed and there is currently no demand for the reuse of ash.
In 2018, the Group deposited a total of 2,560,000 tonnes of waste – an increase of 9% in the amount of waste deposited. The latter was caused by the fact that the 1,000-tonne gas generator worked throughout the year and the capacity of the Petroter plants was increased. In 2019, the Group deposited 2,735,000 tonnes of waste, which was 6% more than in 2018. All the equipment produced at full capacity in 2019.
QUANTITIES OF DEPOSITED WASTE (TONNES)
- Semi-coke
- Oil shale ash (Petroter)
- Gas refinement waste which includes hazardous waste (Energia)
Upon depositing solid waste in a landfill, companies pay a disposal charge. In 2015, the disposal charges amount to approximately 2,902,000 euros, but the amount of the charges has grown: by nearly 47% in 2016, by 27% in 2017, by 9% in 2018 due to increased quantities deposited, and by 6% in 2019. This demonstrates a direct link between the production volume and the quantity of waste.
WASTE DISPOSAL CHARGES (EUR)
- Semi-coke
- Oil shale ash (Petroter)
- Gas refinement waste which includes hazardous waste (Energia)
Use of resources
Extraction of mineral resources
The resource necessary for the production of shale oil in mainly obtained from VKG Kaevandused which extracts oil shale at the Ojamaa Mine. The quantity of the extracted oil shale is directly linked to the production of shale oil, as can be seen from the figure below.
QUANTITIES OF EXTRACTED OIL SHALE
(MILLION TONNES)
Energy efficiency
The efficient use of energy resources allows us to achieve greater productivity levels, optimise industrial processes and reduce the negative impact on the environment.
In saving energy, we focus on the following:
- promoting energy management and certification pursuant to the requirements of international standard ISO 50001;
- training the personnel in the area of energy management and energy efficiency;
- new programmes and technologies aimed at saving energy;
- implementation of digital projects;
- exchange of experience with other enterprises in our sector of the economy.
Production and consumption of electricity
In 2018, VKG Energia’s own electricity consumption grew and the volume of electricity production increased by 12%. The increase was related to the fact that the new capacities at the Põhja Thermal Power Plant were for the first time in full operation for the whole year. 2019 was similar to 2018, VKG Energia produced 2% more electricity than in 2018, used 21% less heat and steam for own consumption than in the previous year thanks to the warm winter, and supplied 9% more heat and steam to external consumers than in 2018.
VKG ENERGIA'S ELECTRICITY AND HEAT PRODUCTION (MWh)
- VKG oma tarbeks soojus ja aur
- Välistarbijatele soojus ja aur
- Elektrienergia toodang
The Group’s own consumption in 2018 (211,536 MWh) remained at the same level, despite the launch of a 1,000-tonne gas generator. In comparison with the previous years, the share of VKG Energia’s electricity output of the total amount of consumption of electricity increased considerably. In 2019, the Group consumed a total of 225,208 MWh – an increase caused by increased production volumes.
SALES AND CONSUMPTION OF ELECTRICITY IN THE GROUP (MWh)
- Müük VKG Elektrivõrgud
- Müük BES ja Eesti Energia OÜ-le
- Kaod
- Elektrienergia müük kontsernivälistele ettevõtetele
- VKG kontserni tarbimine
- VKG Energia omatarve MWh
The largest environmental projects of 2019
Action plan for reducing odour
In 2019, we continued the implementation of the action plan for reducing odoriferous substances and invested into the reduction of air emissions of the shale oil tank truck loading device. In 2020, we will continue with the planned activities and conduct a review of odoriferous substances. The measures and investments will reduce the odour emission from VKG’s production territory by 12% compared to the initial background.
Tank farm
VKG’s tank farm together with the capture equipment installed in the shale oil warehouse and distillation equipment was completed in 2008. The said works significantly reduced hydrocarbon and phenol emissions. In 2018 and 2019, oil warehouse absorbers 40 and 500 were connected to the joint breather system, reducing the emission of substances causing odour nuisance in the area.
Reduction of ambient air emissions at the Thermal Power Plant
In 2017, VKG Energia built a new gas fuel steam boiler which is intended for burning gases. It has a more efficient combustion function, thanks to which the exhaust gas released from the boiler contains fewer pollutants. In 2019, the gas flues were reconstructed and the gas condensate container was made airtight, reducing the emission of odoriferous substances into ambient air.
Increasing the efficiency of the Petroter oil plants
Changes have been introduced at Petroter II and III plants, which ensure a more efficient operation of the process and allow us to produce more product from a smaller quantity of raw material. The changes also make it possible to put the thermal energy generated in the process to the maximum possible use and reduce the number of scheduled maintenance sessions and downtime. The changes ensure the stability of the process, while also making it more efficient and environmentally friendly. In 2019, we carried out reconstruction works at the Petroter plants, which were also aimed at supporting the achievement of maximum efficiency.
In 2019, we also completed a cooler project aimed at cooling semi-coke gas primarily in the summer period and to condensate additional petrol fraction, thereby increasing the production of petrol fraction and reducing CO2 emissions.
Landfills
In 2016, we introduced a disposal method under which oil shale ash is deposited dampened. This generates a monolithic cemented cover in the disposal area, which prevents the migration of pollution from the landfill to the surrounding environment. That makes the surface of the landfill watertight, reducing the generation of leachate. It also excludes the emergence of heat spots in the landfill body. Since the beginning of 2018, VKG Oil started transporting the semi-coke generated in the Kiviter production process in a closed system – directly to the disposal area with a pipe conveyor. The system allows us to reduce the amount of truck transport as well as dust and exhaust gas emissions. In 2016, a project for the technical solution for dampening heat spots at the landfill was completed. The project was implemented at the end of 2018 and the heat spots were sealed, thereby reducing odour nuisance at the landfill. In 2019, we held negotiations and in 2020 we concluded an agreement with the Ministry of the Environment for the disposal of waste from the recovery of residual contamination – contaminated soil and sediments – at a landfill. Preparations and studies for the new landfill started in 2019.
Heating main between Kohtla-Järve and Ahtme
Heat pipelines that meet the best possible technologies was completed at the beginning of 2013 and allows also heating the Ahtme District of Kohtla-Järve and the city of Jõhvi in addition to the Järve District of Kohtla-Järve. Thanks to the heat pipelines, the efficiency of VKG Energia’s combined heat and electricity production was increased and all the residual heat generated in the course of oil shale processing is efficiently used up. The completion of the new pipelines allowed us to close the old Ahtme Thermal Power Plant that did not meet the environmental requirements. In 2019, we invested an additional 3.2 million euros into the renovation of heat pipelines, as a result of which heat losses in the renovated district heating system of Jõhvi–Ahtme region were reduced.
