Mon, 3rd Nov 2008 07:12
EESTI ENERGIA AND OUTOTEC TO ESTABLISH A JOINT VENTURE
Eesti Energia and Outotec have signed an agreement to form a joint company for the development and marketing of environmentally sustainable and economically viable oil shale processing methods.
Eesti Energia will have a majority 60% stake in the new company, while Outotec will have the remaining 40% stake. The new company aims to become a significant supplier of oil shale technology solutions, combining Eesti Energia's experience in oil shale mining and processing and Outotec's expertise in circulating fluid bed (CFB) technologies. This agreement supports Outotec's growth strategy as well as Eesti Energia's liquid fuels production strategy.
The joint company aims to improve Eesti Energia's operational shale oil technology, to exploit the improved technology in commercial production plants in Narva, Estonia, and to commercialize the technology for use on oil shale deposits worldwide. The decision for the construction of the first oil plant based on improved technology is aimed to be made in May 2009.
"Eesti Energia has accumulated unparalleled experience in the fields of oil shale mining, processing and oil shale based power generation. This joint venture will help us start a new era in upgrading the production process to meet future environmental challenges", comments Sandor Liive, CEO of Eesti Energia, while Harri Mikk, Member of the Management Board and Head of Eesti Energia's Oil & Minerals Business, explains: "We are confident that the new technology developed in cooperation with Outotec will be producing a very significant proportion of non-conventional oil produced in the coming years."
"Because of tightening energy supply the world is looking for alternative oil sources. A significant source of oil is oil shale. Developing sustainable technologies for the oil shale industry is an important mission. There are large oil shale deposits for example in the USA, Brazil, China, Jordan, Russia and Estonia. We see that the new joint company has a lot of business opportunities with our CFB technology in the oil shale industry. Furthermore, this business shows that the technologies originally developed for the mining and metallurgical industry can be applied in other process industries", explains Outotec's CEO Tapani Järvinen.
Several test programs involving the circulating fluid bed tests have been successfully carried out at Outotec's Research Center in Frankfurt during the summer of 2008. Besides oil shales and oil sands, the new technology can also be used in the recycling of hydrocarbon containing materials such as wastes plastics and old tires.
Eesti Energia is the leading energy utility in the Baltic States as well as the biggest oil shale utilizing company worldwide, engaged in the production oil and power, sale and delivery of electricity and heat to consumers. Besides the oil and power plants the company owns oil shale mines and quarries.
Outotec is a worldwide technology leader in minerals and metals processing, providing innovative and environmentally sound solutions for a wide variety of customers in minerals processing, iron and steel, aluminum and non-ferrous metals industries. Outotec Oyj is listed on the Nasdaq OMX Helsinki.
For further information please contact:
Harri Mikk, Head of Oil & Minerals Business
tel. +372 71 52 220