The European Bank for Reconstruction and Development Provided Financing for Development Activities at VKGNews
24. September 2014
On 24 September, the EBRD and VKG entered into a loan contract with the value of 35 mln EUR. The aim of the loan is to develop the energy production facility of VKG, to improve its environmental protection parameters and to boost the efficiency of energy co-generation.
After launching the Petroter I, II and III oil shale processing plants, the production volume of oil shale gas with high calorific value is going to increase significantly. So that it would be possible to direct the entire amount of gas to the processes of co-generation of heat and power in the most efficient way, VKG needs additional investments. The loan provided by the EBRD will be used for financing the construction of two sulphur capture devices and the turbine as well as the project for the construction of a limestone plant. In the result of these investments, the reliability and efficiency of the production facility will be improved, and the amount of emissions of CO2 and SO2 will be decreased significantly.
Ricardo Puliti, the Executive Director at the EBRD in the field of power engineering and natural resources: "By granting this loan, we are aiming to ensure the energy security in Estonia by supporting the initiative of local companies to use national resources in the most responsible way. The EBRD is proud to support VKG in such pioneering activities".
Ahti Puur, the Vice Chairman of the management board of VKG: "The support provided by the European Bank for Reconstruction and Development to VKG projects is like a quality mark, which means that, from the perspective of Europe, the development measures taken by VKG are appropriate and well-timed".
VKG is the largest oil shale processing company in Estonia and the second largest shale oil manufacturer in the world. In 2013, the group´s contribution into the state budget amounted to 45 mln EUR. VKG provides employment to 2,250 people in Virumaa, and it has its own mines, six oil shale processing plants, the facility that produces energy for industrial purposes, its own transportation, repair, and power generation facilities. The Estonian oil shale industry as a whole provides 3-5% of GDP and contributes more than 250 mln EUR into the state budget.
After the execution of the new contract, the total amount of contribution of the EBRD into the economy of Estonia has reached 500 mln EUR. More than 75% of the volume of the financing is intended for financial, infrastructure, and power sectors.
Head of the Public Relations Department at VKG
Phone: 334 2702
GSM: 523 2700