August 2015

VKG shale oil plant Petroter III got an operating permit

In the end of July of the present year, the largest Estonian manufacturer of shale oil and oil shale chemicals Viru Keemia Grupp AS (VKG) got an operating permit from Kohtla-Järve town government for the third shale oil plant operating on the basis of Petroter technology. Petroter is the environmentally-friendly oil shale processing technology developed by our engineers and patented by VKG. 

Priit Rohumaa, Chairman of the Management Board of VKG: “The new plant is another project that has been implemented under the investment programme of VKG, the purpose of which has been adding extra value to local resources and utilizing their full potential. The total value of the project has been about 84 mln EUR, which has been one of the largest investments into production so far. The investment has been financed by the banking syndicate, which includes SEB, Nordea and Pohjola banks. In connection with the drop in prices for petroleum, we were forced to adjust the investment plans of the Group in accordance with the situation at the market, but we are trying to finish all of the projects that have already been initiated. Further development of this branch of industry requires large-scale investments, for the provision of which the companies operating in this sector need more support from the state and a more reliable and consistent taxation system”. 

Meelis Eldermann, Technical Director and Member of the Management Board at VKG: “Petroter III is similar to the new shale oil plants Petroter I and II, which have proved the energy efficiency of the implemented technology and the fact that it is extremely environmentally friendly. The plant that is to be launched has been enhanced with state of the art technologies, proceeding from the sustainable use of resources and the principles of environmental protection. In the result, it will be possible to produce more shale oil and its by-products, such as electricity and heat power for heating the nearby towns, from a smaller amount of oil shale, at the same time reducing the amount of damage done to environment significantly. Owing to extremely professional work of the team of our designers, the enhanced Petroter technology will enable us to transform the energy contained in oil shale into extremely useful products”. 

Nikolai Petrovitš, Member of the Management Board of VKG and VKG Oil: “We have managed to implement the Petroter III project within quite a short period of time. It has only taken us two years to take it from the designing stage to the completed plant. The construction works have reached their final stage, and at present, commissioning and start-up operations are going on in full swing. We are planning to start manufacturing the first shale oil at the plant in the end of August. If everything goes according to the plan, in September we will be able to switch over to the full operation mode, which is quite ambitious, but at the same time completely feasible and realistic. The Petroter II plant, which was opened last year, was commissioned within less than a month. As of today, the new plant has been manned up. Petroter III oil plant will bring to Ida-Virumaa about 100 direct and 400 indirect workplaces”. 

VKG is one of the largest oil shale processing plants in Estonia and the second largest shale oil manufacturer in the world. VKG provides employment to over 2,000 people in Virumaa. VKG is the owner of the mine, seven oil shale processing plants, including Petroter I and Petroter II plants operating at full capacity, industrial energy production facility, its own transport, repair, and electricity generation facilities. 

Additional information:
Irina Bojenko
VKG Public Relations Manager
Phone 334 2702
GSM 523 2700