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The coalition-agreement of [[Jüri Ratas' second cabinet]] formed in 2019 between the [[Estonian Centre Party|Centre Party]], [[Conservative People's Party of Estonia|EKRE]] and [[Isamaa|Pro Patria]], expresses support to the development of the local oil industry.<ref>{{cite web |url=https://news.err.ee/930442/producers-oil-refinery-would-help-meet-stricter-sulfur-requirements |title=Producers: Oil refinery would help meet stricter sulfur requirements |publisher=[[Eesti Rahvusringhääling]] |access-date=18 December 2019}}</ref> Therefore, VKG and [[Eesti Energia]] decided to initiate a cost-benefit study aimed at establishing an oil pre-refining plant in [[Ida-Viru County]]. The plant would require a 650 million euro investment.<ref>{{cite news |url=https://majandus24.postimees.ee/6569313/sadu-miljoneid-maksev-tehas-paastaks-eesti-olitoostuse |title=Sadu miljoneid maksev tehas päästaks Eesti õlitööstuse |newspaper=[[Postimees]] |access-date=18 December 2019}}</ref>
The coalition-agreement of [[Jüri Ratas' second cabinet]] formed in 2019 between the [[Estonian Centre Party|Centre Party]], [[Conservative People's Party of Estonia|EKRE]] and [[Isamaa|Pro Patria]], expresses support to the development of the local oil industry.<ref>{{cite web |url=https://news.err.ee/930442/producers-oil-refinery-would-help-meet-stricter-sulfur-requirements |title=Producers: Oil refinery would help meet stricter sulfur requirements |publisher=[[Eesti Rahvusringhääling]] |access-date=18 December 2019}}</ref> Therefore, VKG and [[Eesti Energia]] decided to initiate a cost-benefit study aimed at establishing an oil pre-refining plant in [[Ida-Viru County]]. The plant would require a 650 million euro investment.<ref>{{cite news |url=https://majandus24.postimees.ee/6569313/sadu-miljoneid-maksev-tehas-paastaks-eesti-olitoostuse |title=Sadu miljoneid maksev tehas päästaks Eesti õlitööstuse |newspaper=[[Postimees]] |access-date=18 December 2019}}</ref>


==Subsidiaries==
==Development projects==
[[File:VKG panoraam.jpg|thumb|Viru Keemia Grupp]]
[[File:VKG panoraam.jpg|thumb|Viru Keemia Grupp]]
Main subsidiaries of VKG are:

*VKG Oil - shale oil producer
In 2021, the group announced its intention to start exploring possibilities of developing '''a bioproducts production complex''' in the rural municipality of Lüganuse in Ida-Viru County. The group plans to start valorising pulpwood or low-quality wood which is currently being exported to Scandinavia or used for energy production. The products of the bioproducts production complex include cellulose, dissolving pulp, tall oil, and green energy. The complex would produce 0.9 TWh of energy in a stable mode, which is nearly 7% of Estonia’s annual electricity consumption (based on data from 2023). Depending on the types of products and raw materials, the production complex would need 2.0 to 2.3 million m³ of wood a year, a third of which would be chips left over from sawmills and up to a fourth of which the developer plans to buy outside Estonia. Since August 2021, a local government designated spatial plan for the project is being prepared, to be completed by the end of 2024. The production complex would contribute to the employment level in the region by opening 250 new direct jobs and up to 1,000 indirect jobs. The expected time of completion of the complex is the end of 2027 or the beginning of 2028. The investment into the development project is nearly 1 billion euros.
*Viru RMT – company producing, assembling and repairing metal structures, pipelines and pressure equipment

*VKG Transport – transportation company
VKG is also planning to establish '''a plastic waste chemical recycling plant''' Kohtla-Järve. The plant would pre-sort and pre-process plastic waste and then produce high-quality pyrolysis oil which can be used for producing new plastic in petrochemical factories. This solution would ensure the recycling of various types of plastic. Today, Estonia is able to mechanically recycle only a small part of plastic waste and even so only with very clean plastics of specific type. The planned plant would be able to process slightly dirty plastic and composite plastic into raw material for new plastic. The planned capacity of the plant is up to 20,000 tonnes of plastic waste a year. For comparison: Estonia currently generates approximately 100,000 tonnes of plastic waste a year, most of which is burned at the Iru Power Plant. VKG’s plant would help Estonia increase the plastic waste recycling targets from the current 25% to 55% by 2030. The development project is expected to be completed in 2026 and the investment amounts to 110 million euros.
*VKG Energia - heat and power generation company
*VKG Soojus – heat distribution company
*[[VKG Elektrivõrgud]] – electricity distribution company
*VKG Elektriehitus – construction of power systems
*VKG Kaevandused – oil shale mining
*VKG Plokk – production of cinder blocks
*OOO Slantsehim (73.4%) – developer of Boltysh oil shale deposit in Ukraine


==See also==
==See also==

Latest revision as of 17:16, 3 September 2024

Viru Keemia Grupp
IndustryOil shale industry
Power generation
Founded1924
HeadquartersKohtla-Järve, Ida-Virumaa
Key people
Ahti Asmann (CEO)[1]
Products680,000 tons of shale oil, 900 GWh energy production (2023)
Number of employees
1500 (2024)
Websitewww.vkg.ee

Viru Keemia Grupp is a private Estonian large-scale industrial enterprise. It focuses on oil shale mining, shale oil, combined heat and power production and production and marketing of fine chemical products.

Viru Keemia Grupp is located in Kohtla-Järve and continues the Estonian oil shale valorisation tradition that started in 1924. The company is based on private capital since 1997 when AS Kiviter was privatised. [1]

History

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A VKG tanker showing the pre-1940 name

Estonia’s oil shale industry is a traditional Estonian industry, founded during the First Republic. Local oil shale industry provided heat and light to Estonian households starting from 1924, and supplied household gas to Leningrad and Tallinn as well as other Northern Estonian towns. The list of products made in Kohtla-Järve through decades is rich and varied – from shale oil to fine chemicals, epoxy resins to nitrogen fertilisers, hair dye components to bitumens.

Operations

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VKG's two main areas of operations are shale oil extraction, and electricity and heat production and distribution.

Shale oil production

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VKG Ojamaa mine

The subsidiary producing shale oil is VKG Oil. The company utilizes two different processes: Kiviter and Galoter.[2][3][4][5] The company also tested but rejected the Alberta Taciuk Process.[6] In total, VKG Oil processes 2 million tons of oil shale per year, producing 250,000 tons of shale oil.

The company operates several Kiviter retorts, the largest of them having a processing capacity of 40 tonnes per hour of oil shale feedstock.[7][8] As of 2016, these retorts were out of operation due to low oil prices.[9] It also operates three Galoter-type retorts called Petroter.[5] Engineering of the retort was done by Atomenergoproject of Saint Petersburg; engineering of the condensation and distillation plant was done by Rintekno of Finland.[10] The first Petroter plant has a processing capacity of 1.1 million tonnes of oil shale per year, and it produces 100,000 tonnes of shale oil, 30 million cubic metres (1.1 billion cubic feet) of oil shale gas, and 150 GWh of steam per year.[5]

Power generation and distribution

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VKG Energia

VKG's subsidiary VKG Energia, a power and heat generation company, was established in 2004 after VKG bought the Kohtla-Järve Power Plant and the Kohtla-Järve heat distribution system from Kohtla-Järve Soojus.[11] In 2005, it bought another power plant in Kohtla-Järve from Fortum Termest.[12] In 2006, VKG bought a 40.8% stake in Kohtla-Järve Soojus, an operator of the Ahtme Power Plant, and in 2010 it took a full control of the company, now VKG Soojus.[13][14] All generations capacities were transferred to VKG Energia while VKG Soojus is responsible for heat distribution.[14][15] All generations capacities were transferred to VKG Energia while VKG Soojus is responsible for heat distribution.[14] VKG Energia has installed electrical capacity of 80 MW and heat capacity of 700 MW.[16]

In July 2006, VKG acquired Narva Elektrivõrk, the second-largest power distribution company in Estonia,[17] and renamed it VKG Elektrivõrgud.[18][19][20]

Other activities

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In April 2011, VKG acquired assets of a bankrupt company Silbet Plokk that manufactured cinder blocks for construction from oil shale burning residue.[1][21][22] The company was renamed VKG Plokk.[22] The coalition-agreement of Jüri Ratas' second cabinet formed in 2019 between the Centre Party, EKRE and Pro Patria, expresses support to the development of the local oil industry.[23] Therefore, VKG and Eesti Energia decided to initiate a cost-benefit study aimed at establishing an oil pre-refining plant in Ida-Viru County. The plant would require a 650 million euro investment.[24]

Subsidiaries

[edit]
Viru Keemia Grupp

Main subsidiaries of VKG are:

  • VKG Oil - shale oil producer
  • Viru RMT – company producing, assembling and repairing metal structures, pipelines and pressure equipment
  • VKG Transport – transportation company
  • VKG Energia - heat and power generation company
  • VKG Soojus – heat distribution company
  • VKG Elektrivõrgud – electricity distribution company
  • VKG Elektriehitus – construction of power systems
  • VKG Kaevandused – oil shale mining
  • VKG Plokk – production of cinder blocks
  • OOO Slantsehim (73.4%) – developer of Boltysh oil shale deposit in Ukraine

See also

[edit]

References

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  1. ^ a b Hõbemägi, Toomas (2011-04-12). "Viru Keemia Group buys bankrupt maker of cinder blocks". BNN. Retrieved 2011-07-09.
  2. ^ Siirde, A.; Roos, I.; Martins, A. (2011). "Estimation of emission factors for the Estonian shale oil industry" (PDF). Oil Shale. A Scientific-Technical Journal. 28 (1S). Estonian Academy Publishers: 127–139. doi:10.3176/oil.2011.1S.05. ISSN 0208-189X. Retrieved 2011-07-09.
  3. ^ Jaber, Jamel O.; Sladek, Thomas A.; Mernitz, Scott; Tarawneh, T. M. (2008). "Future Policies and Strategies for Oil Shale Development in Jordan" (PDF). Jordan Journal of Mechanical and Industrial Engineering. 2 (1): 31–44. ISSN 1995-6665. Retrieved 2008-11-22.
  4. ^ "Strategic significance of America's oil shale resource. Volume II: Oil shale resources, technology and economics" (PDF). Office of Deputy Assistant Secretary for Petroleum Reserves; Office of Naval Petroleum and Oil Shale Reserves; United States Department of Energy. 2004. Retrieved 2008-11-23. {{cite journal}}: Cite journal requires |journal= (help)
  5. ^ a b c Aleksandrov, Julia; Purga, Jaanus (2010). "Viru Keemia Grupp opened a new oil shale processing plant in Estonia" (PDF). Oil Shale. A Scientific-Technical Journal. 27 (1). Estonian Academy Publishers: 84–85. ISSN 0208-189X. Retrieved 2011-03-20.
  6. ^ "Estonian oilshale group tests new technology in Canada". BNN. 2002-09-09. Retrieved 2011-07-09.
  7. ^ Koel, Mihkel (1999). "Estonian oil shale". Oil Shale. A Scientific-Technical Journal (Extra). Estonian Academy Publishers. ISSN 0208-189X. Retrieved 2008-11-23.
  8. ^ "An Assessment of Oil Shale Technologies" (PDF). June 1980. NTIS order #PB80-210115. Retrieved 2008-11-23. {{cite journal}}: Cite journal requires |journal= (help)
  9. ^ "VKG to lay off 500 workers". ERR. BNS. 2016-01-15. Archived from the original on 2016-01-17. Retrieved 2016-01-17.
  10. ^ "New shale oil line for VKG Oil AS" (PDF). Rintekno Newsletter. 20. Rintekno Oy. 2006. Archived from the original (PDF) on 2007-09-20. Retrieved 2008-12-13.
  11. ^ Gamzejev, Erik (2004-06-01). "Järve linnaosa kütjaks võib saada Viru Keemia Grupp" [Viru Keemia Grupp may become a heat supplier of the Järve district]. Põhjarannik (in Estonian). Retrieved 2012-10-27.
  12. ^ "Viru Keemia Grupp ostis Fortumilt soojuselektrijaama" [Viru Keemia Grupp acquired a thermal power plant from Fortum]. Äripäev (in Estonian). 2005-10-25. Retrieved 2012-10-27.
  13. ^ Jaagant, Urmas (2010-10-20). "Viru Keemia Grupp soovib osta osalust Kohtla-Järve Soojuses" [Viru Keemia Grupp wants buy a stake in Kohtla-Järve Soojus]. Eesti Päevaleht (in Estonian). Retrieved 2012-10-27.
  14. ^ a b c Tooman, Artur (2011-06-21). "Kohtla-Järve Soojus переименовали" [Kohtla-Järve Soojus was renamed]. Eesti Päevaleht (in Russian). Retrieved 2012-10-27.
  15. ^ Räim, Veiko (2010-12-22). "Eesti Energia to sell 59.2% of Kohtla-Järve Soojus" (Press release). Eesti Energia. Retrieved 2012-10-28.
  16. ^ "VKG Energia OÜ". Viru Keemia Grupp. Retrieved 2012-10-27.
  17. ^ "Estonian Electricity and Gas Market Report" (PDF). Tallinn: Energy Market Inspectorate. 2007. Retrieved 2011-07-07.
  18. ^ Reinap, Aivar (2006-07-01). "Viru Keemia Grupp ostis Narva Elektrivõrgud" [Viru Keemia Grupp bought Narva Elektrivõrgud]. Postimees (in Estonian). Archived from the original on 2012-03-26. Retrieved 2011-07-09.
  19. ^ Kuimet, Peeter (2006-07-14). "VKG ja Narva Elektrivõrgu koondumisele anti roheline tuli" [Green light for the concentration of VKG and Narva Elektrivõrgud]. Postimees (in Estonian). Archived from the original on 2013-01-06. Retrieved 2011-07-09.
  20. ^ "VKG ostis kaks Narva elektrifirmat" [VKG bought two electric companies in Narva]. Äripäev (in Estonian). 2006-07-03. Retrieved 2011-07-09.
  21. ^ Roman, Steve (2011-04-12). "VKG Acquires Cinder Block Production Facility". ERR. Retrieved 2011-07-09.
  22. ^ a b Teesalu, Ingrid (2011-10-17). "Factory in Ahtme Revives Production of Cinder Blocks". ERR. Retrieved 2011-10-19.
  23. ^ "Producers: Oil refinery would help meet stricter sulfur requirements". Eesti Rahvusringhääling. Retrieved 18 December 2019.
  24. ^ "Sadu miljoneid maksev tehas päästaks Eesti õlitööstuse". Postimees. Retrieved 18 December 2019.

Bibliography

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