Estonia’s Prime Minister, Kristen Michal, stated today that the country does not plan to abandon the use of oil shale. However, from 2040, oil shale can only be used to produce high-added-value products. These targets will be incorporated into the Climate Fragile Economy Act. Estonia’s soil is rich in oil shale, currently used as fuel for thermal power plants, to drive steam turbines, and to provide heating for homes and businesses.
In the recovery plan approved in 2021, the Estonian government committed to the European Commission to cease producing electricity from oil shale by 2035 and terminate its energy production use by 2040. Ahti Asmann, the head of Viru Keemia Grupp (VKG), has previously stated that, despite this commitment, there are currently no deadlines outlined in existing laws or any draft legislation pending before the Riigikogu regarding the cessation of electricity and oil production from oil shale. The management of oil shale usage is addressed in the Energy Development Plan until 2035 and in the Climate Act, according to Rein Vaks, Head of the Energy Department at the Ministry of Climate.
Vaks specified that Estonia has no valid documents, and no current obligation exists to stop producing shale oil in energy by 2040.
“The first such valid and obligated document is the Climate Secure Economy Act, the draft we are circulating today and still under discussion. This discussion will reach the Riigikogu, where the legislator himself can decide what we do and do not do with oil shale energy from the point of view of oil production,” he added.
Moreover, the Prime Minister explained that oil shale electricity would disappear without deadlines.
“Oil shale electricity, in the simplest terms, is costly; it just can’t get to the market. There, the state doesn’t even have to regulate anything big; oil shale electricity production goes out one way or the other because cheaper and cheaper electricity comes on,” Michal said.
However, Michal emphasised that no one has banned the use of oil shale and no one intends to do so.
“In the future, oil shale can be used primarily with lower emissions, i.e., fine chemistry. The same companies must propose furnishing fine chemistry and what it should look like – Eesti Energia, VKG, whoever wants to deal with it. The Climate-Proof Economy Act states that oil shale may be used for a cleaner product with higher added value in the future, i.e. fine chemistry,” the Prime Minister added.
And what about the commitments made to the European Commission in the recovery plan?
PM Michal said, “Estonia has certainly said in various documents and development positions that the share of oil shale electricity is decreasing, and this is a correct statement in the facts because it is decreasing.”
