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For a cleaner environment

The extraction and production of any mineral resource has a certain effect on the surrounding environment. We therefore always strive to do more than prescribed by laws and regulations.

European and national trends give us a clear signal that the production of shale oil does not fit within the framework of climate neutrality and the new green economic model. On the one hand, it is a great challenge and rearrangement, while on the other hand it inspires us to even more actively seek new development opportunities, while remaining a large industrial enterprise and a reliable partner to the state, the local communities and our people.

Viru Keemia Grupp’s environmental objective is to reduce the footprint and environmental impact of shale oil production by efficiently using the oil shale resources and the best available technology.

Our environmental activities are increasingly focused on the European Green Deal and the Fit for 55 package and the related reduction of greenhouse gas emissions. On the backdrop of the European Union and Estonian climate policy goals, VKG has started investments into the expansion of production activities in new areas which support the new climate-proof economic model. We also continue investing into the optimisation of production processes and increasing efficiency, thereby reducing the environmental impact.

Strategic vision of reducing the impact of industry

The main focus of environmental activities is on reducing ambient air emissions, particularly with regard to sulphur compounds and emissions which cause unpleasant odours. We pay a lot of attention to increasing the energy efficiency of the entire production chain and finding ways to reuse waste.

Our environmental goals are as follows:

  • it is important for the Group to apply the principle of a circular economy, which ensures the most efficient use of resources;
  • we reduce sources of pollution which cause unpleasant odours;
  • we minimise the effects related to extraction and find additional possibilities for the maximum recycling of oil shale waste rock;
  • we develop the best available techniques (BAT) for oil shale processing and lengthen the existing production chain to the maximum extent possible.

The Group has established the following guiding environmental principles

  • We operate in accordance with the ISO 14001 environmental management system. The Group’s subsidiaries have also implemented the ISO 9001 quality management system and the ISO 45001 occupational health and safety management system and VKG Oil AS and VKG Energia OÜ have implemented the ISO 50001 energy management system.
  • In our everyday activities, we adhere to the requirements arising from Estonian and European Union legal acts and contracts.
  • We identify the environmental aspects and the environmental impact related to the company’s production activities and assess their conformity with legal acts and other requirements.
  • We consider it important to inform the relevant authorities and the local residents of the company’s activities and the possible effects on the environment.
  • We pay great attention to the promotion of the principles of sustainable development and circular economy in the company. We process the waste generated in the production process on the basis of the waste treatment hierarchy.
  • We place importance on cooperation with science and research institutions in solving various environmental challenges, assessing environmental impacts and developing new technologies.
  • We inspire our employees to expand their environmental knowledge and welcome and encourage the application of such knowledge in practice.
  • We work towards adding value to oil shale with the aim of creating as long a product value chain and efficient production as possible.

The following environmental studies were conducted during the reporting period

  • verifying the CO2 emission quantities generated at the Group and upgrading the system;
  • monitoring groundwater and surface water at the Ojamaa Mine;
  • developing the hydrogeological model of the Ojamaa Mine and its expansion and assessing the environmental impact;
  • monitoring the groundwater of the ash field of the Ahtme Thermal Power Plant;
  • analysis of the test methodology and results of the landfill greenery;
  • strategic assessment of the environmental impact of a new industrial waste landfill;
  • wood grouse monitoring;
  • preliminary assessment of a solar power plant and the base structure;
  • monitoring groundwater and surface water in the region of the Uus-Kiviõli and Uus-Kiviõli II mines;
  • assessment of the environmental impacts of the Uus-Kiviõli and Uus-Kiviõli II mines;
  • strategic assessment of the environmental impact of the bioproducts production complex.
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Environmental footprint

The Group continues to invest in development activities aimed at reducing carbon emissions, in the course of which we seek opportunities to reduce the environmental footprint of shale oil production.

In the light of the renewed climate policy goals, VKG is also analysing investment opportunities in expanding production activities in new areas in order to support movement towards climate neutrality.

For the purpose of analysing the carbon footprint of the entire Group, VKG for the first time ordered the carbon footprint assessments of its scopes 1, 2 and 3 in accordance with the principles of the Corporate Sustainability Reporting Directive (CSRD) from external consultants UAB Vesta Consulting and Nomine Consult OÜ in 2023. According to the report concerning scopes 1 and 2 drawn up in the first stage, direct greenhouse gas emissions, i.e. emission arising from production processes make up the majority of the Group’s emissions. In order to reduce direct emissions, we conduct annual energy and fuel consumption audits and look for the newest innovative technologies. Indirect emissions from the use of energy (scope 2) are related to the use of non-renewable electricity. An in-depth analysis of emissions related to the use of external products and services and the use of the Group’s products by consumers (scope 3) will be completed in 2024.

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The amendments of the integrated environmental permits of the Kiviter and Petroter plants of VKG Oil that had lasted for more than three years were completed in 2022. The amendments of the permits included changes in the composition of emission sources of insignificant impact, bringing the data and the environmental protection conditions into conformity with the legal acts that had been amended over the years, and allowing semi-coke to be given to the Ministry of Climate for reconstructing the state’s landfill.

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Within the framework of the reconstruction of the Petroter I oil production plant which started in 2021, the recovery boiler, electrical filter and other components that have a significant effect on the production process were replaced, as a result of which the plant’s CO2 emission was reduced by nearly ten times and dust emission by a half. This means a significant positive effect on the air quality of Kohtla-Järve.

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In 2022, VKG Oil considered the testing of the reuse of waste water sediment compost in planting greenery at the hazardous waste landfill successfully completed. By the end of the 2nd stage of the tests, viable vegetation grew on an area of almost 17,000 square metres, which demonstrates significantly better results compared to the former hydro-seeding method of planting. Before taking the new planting method into use, a respective amendment must be made to the integrated environmental permit and this is planned to be done in 2024.

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As an important change, VKG Oil’s METEO app was introduced in 2022, the aim of which is to increase the response speed of production units in preventing and reducing possible odoriferous disturbances by way of operatively sharing meteorological data.

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Making amendments to the environmental permits of the Ojamaa Mine and the Uus-Kiviõli II Mine on the basis of VKG Kaevandused’s earlier applications and environmental impact assessments continued. While the assessment of the joint environmental impact of the Uus-Kiviõli and Uus-Kiviõli II mines continues in 2024, the Ministry of Climate declared the report on the environmental impact of the expansion of the Ojamaa Mine to be in conformity with requirements in 2023 and continued with amending the respective environmental permit.

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On 9 December 2022, VKG Kaevandused submitted an application to the Environmental Board for adding special water and air parts to the environmental permit of the Uus-Kiviõli II Mine (redirecting mining water from a groundwater layer to a receiving body of water and releasing the contaminants entailed in underground blasting works to ambient air via a ventilation shaft) and for changing the main transport corridor on the existing permit (from the service area of the Uus-Kiviõli Mine to the industrial territory of the Ojamaa Mine). The Environmental Board amended the environmental permit of Uus-Kiviõli II and added the water part to the permit. The processing of the change in the transport corridor continues in 2024. VKG Kaevandused also submitted an application to the Environmental Board for amending the waste permit in connection with the erection of the base structure for a solar farm and that process was still underway at the end of 2023.

Management system

In order to consistently reduce the environmental impact, the Group runs an environmentally friendly management system that meets the requirements of international standard ISO 14001.

The majority of the subsidiaries of Viru Keemia Grupp AS comply with the international ISO standards

VKG Oil holds environmental and quality management system certificates ISO 14001 and ISO 9001 since 2006, and has also implemented occupational health and safety management system ISO 45001 and, since 2019, energy management system ISO 50001.
VKG Energia has implemented occupational health and safety management system ISO 45001 and, since 2013, environmental and quality management system ISO 14001 and ISO 9001, as well as energy management system ISO 50001.
VKG Kaevandused applies environmental and quality management system ISO 14001 and ISO 9001 and occupational health and safety management system ISO 45001.
VKG Elektrivõrgud has implemented quality management system ISO 9001 and occupational health and safety management system ISO 45001.
VKG Logistika has implemented environmental and quality management system ISO 14001 and ISO 9001 and occupational health and safety management system ISO 45001.

Investments into environmental protection, and environmental charges

VKG is an enterprise of significant environmental impact and pays environmental charges for the use of the environment and for emissions in line with the polluter pays principle.

The Group paid the state 35.8 million euros in environmental charges in 2022, and 25.1 million euros in 2023. The charges paid increased in 2022 and decreased in 2023 significantly on account of the resource charge paid for the extraction of oil shale.

Pursuant to regulation “The rates for state-owned mineral resource extraction charge” adopted by the Government of the Republic on 7 July 2016, the oil shale extraction charge is determined for every three-month period (reporting quarter) on the basis of the average world market price of 1% sulphur content heavy fuel oil applicable during that period. The world market price of the said fuel oil rose to record high levels in 2022 in connection with the Russian-Ukrainian war and the changed economic situation and had an equivalent effect on the resource charged payable for the extraction of oil shale. In 2023, the world market prices of heavy fuel oil were lower, which in turn reduced the oil shale extraction charge.

The Group’s environmental charges paid (Million euros)

(exclusive of the costs of capture devices, environmental monitoring, environmental studies, and other such)

0
10
20
30
2015
8,80
2016
7,70
2017
11,20
2018
14,80
2019
15,60
2020
8,20
2021
18,50
2022
35,80
2023
25,10

VKG in the minimisation of the environmental impact and constantly works towards improving the efficiency of processes. The aim is to increase the value of oil shale to the maximum, i.e. to fully use up the potential of the resource. From the perspective of the environment, that means a smaller environmental impact per one unit of processed oil shale and greater social and economic benefit. In order to ensure the sustainability of shale oil production, we need to invest into environmental protection and the development of the best possible technologies, take part in the development of legal acts, perform production and environmental monitoring, optimise production, and implement energy-efficient solutions. The legal acts of the European Union and the Republic of Estonia as well as the increasing production needs establish ever greater demands and new higher environmental goals for the Group enterprises.

VKG divides investments into environmental protection into two:

  1. investments that directly reduce the impact on the environment,
  2. investments that indirectly reduce the impact on the environment.

Investments that directly reduce the environmental impact include investments that provide immediate reduction of the environmental impact. They include, for instance, the so-called end-of-pipe investments (trapping equipment), the renovation of tank fleets, investments related to closing or reducing the existing sources of pollution, investments related to the treatment of waste, etc.

Investments that indirectly reduce the environmental impact include activities which reduce the environmental impact in the course of long-term consistent activities. This includes, for instance, investments into technologies that save natural resources, including the improvement of the existing equipment and the development and application of new more efficient technologies.

Direct and indirect investments that reduce the environmental impact (Million euros)

2017
7,85
7,85
26,14
18,29
Direct
Indirect

In 2017–2020, VKG’s direct environmental investments were mainly aimed at reducing the emission of odoriferous substances. In 2017, a study of the Estonian Environmental Research Centre, ‘Assessment of the quality of ambient air, odoriferous disturbances and pollutant emission quantities in the Järve district of the city of Kohtla-Järve’ was published, on the basis of which VKG Oil AS commissioned additional measurements and the modelling of odoriferous substances in its production territory. On the basis of the obtained results, the enterprise prepared a new action plan for reducing odoriferous substances, foreseeing activities in the extent of approximately 1.1 million euros in total. In 2020, measurements of the levels of odoriferous substances were conducted in order to assess the effectiveness of the measures taken and an inventory of the sources of emission of odoriferous substances was carried out.

In 2023, a new study of the ambient air quality of the Järve district of the city of Kohtla-Järve was started, commissioned by the Ministry of Climate in order to assess the efficiency of the measures taken after the 2015–2016 odour study (the impact of the measures established in the odoriferous substance reduction plans applied by industrial enterprises causing odoriferous disturbances on the quality of ambient air in the region).

In 2020, we carried out a cooler project in the framework of which we installed three coolers on the piping of the semi-coke gas generated in the process of oil production and two coolers on the distillation equipment of VKG Oil AS. As a result of this, the Group’s annual CO2 emissions decreased by nearly 12,000 tonnes. Important investments were also made in the renovation of heating mainlines and the humidification system of the hazardous waste landfill as well as in increasing the work efficiency of the flue gas desulphurisation devices at the Põhja Thermal Power Plant.

The Group’s major completed and current environmental projects

In 2022, the Petroter I plant reconstruction project in a total volume of 23.5 million euros was the Group’s biggest investment. In 2023, investments into the construction of belt conveyors at the Uus-Kiviõli mines were the biggest.

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Reconstruction of the Petroter I plant

Viru Keemia Grupp’s first shale oil plant operating on the basis of the Petroter technology was launched in 2009. During its time of operation, the Petroter I plant has processed 10 million tonnes of oil shale and produced more than 1 million tonnes of shale oil. In 2021, active preparations started for a large-scale reconstruction of the Petroter I plant and production was shut down for construction works from 15 June 2022 to 10 November 2022.

In the course of the works, the following was replaced at Petroter I:

  • recovery boiler,
  • electrical filter,
  • five blocks of the ash heat exchanger,
  • dust chamber,
  • reactor lining,
  • air coolers of the wet cleaning equipment,
  • internal equipment of the distillation column,
  • automatic control system.

The reconstruction of the plant increased the oil shale processing capacity from 140 tonnes to 160 tonnes per hour and the modernisation of the reactor increased the yield of shale oil obtained from one tonne of oil shale. The most important and large-scale change was the replacement of the recovery boiler responsible for the purification of flue gases, as a result of which the environmental impact of flue gases was reduced and the residual heat of flue gases can now be used for producing steam and hot water. The volume of the investment was over 24 million euros.

CO2 specific emission per ton of oil

-20 %

CO2 emission

-10 x

Dust emission

-80 %

Among other things, the reconstruction included the installation of a new flue gas recovery boiler and an electrical filter, which contribute to significantly reducing the impact of VKG’s production activities on the ambient air of the city of Kohtla-Järve and its vicinity. The renovation of the recovery boiler at Petroter I reduced the specific emission of CO2 per a tonne of oil by approximately 20% and the emission of CO2 by more than ten times and the emission of dust by nearly 80%.

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Bioproducts production complex

Together with the Lüganuse rural municipality and area-specific experts, we continued conducting the designated spatial plan that was initiated in 2021, exploring the possibilities of establishing a bioproducts production complex in Ida-Viru County. The complex would start adding value to paper wood left unused in Estonia – formerly either exported or burnt for energy – and to produce bioproducts. One of the outputs of the production complex would be green energy solutions: the complex would produce renewable electricity and provide green heat energy to supply the cities of Kohtla-Järve and Jõhvi. It would also help take a step further in diversifying the economy of Estonia and Ida-Viru County and achieving the environmental goals as well as meeting the constantly growing global demand for an increasing use of bioproducts. The environmental in-depth studies conducted since the initiation of the plan include, for instance, an inventory of the vegetation of the plan area, hydrogeological modelling, and a survey of marine impacts. A comprehensive water survey is currently underway for the selection of possible sources of raw water for the production complex. The designated spatial plan and strategic environmental impact assessment (SEIA) report will be completed in 2024.

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Plastic waste circular economy project

In 2022, VKG exited the joint project for the reuse of plastic waste based on shale oil production technology, initiated together with Kiviõli Keemiatööstus, and initiated a project for a novel plant for the chemical recycling of plastic waste. The chemical recycling of plastic waste means a thermal processing of plastic waste in order to produce the source chemicals for plastic production or raw materials for producing other products. Chemical reuse allows reprocessing unsorted and dirty plastic waste that contains additives first into pyrolysis oil and then into virgin plastic in the extent of at least 70%. An investment of 70 to 100 million euros would allow us to turn 20,000 to 30,000 tonnes of plastic waste into 15,000 to 22,000 tonnes of pyrolysis oil used in the production of plastic, while creating approximately 60 new jobs in Kohtla-Järve (plus additional indirect jobs in sectors servicing the plant).

Target number

55 %

plastic waste recycled

Factory capacity

30000

tons of plastic waste per year

VKG’s plant would help Estonia achieve an increase in the targets of plastic waste recycling from the current 25% to 55% by 2030. The planned capacity of the plant is up to 30,000 tonnes a year. For comparison: Estonia currently generates about 100,000 tonnes of plastic waste a year, most of which is burnt at the Iru Power Plant.

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Aidu solar farm

The planning process that we started in 2021 for establishing a 38 MW solar farm in the territory of the former Aidu quarry in order to produce green electricity. As at the end of 2023, the Environmental Board was still processing VKG Kaevandused’s environmental permit on the basis of which the base structure of the solar farm could be built from the byproducts of mining – limestone waste rock. In addition to increasing the efficiency of the solar farm, this would also allow fully reusing the waste rock generated in the company’s mining activities.

Capacity

38 MW
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Industrial waste landfill

In order to continue with VKG’s shale oil production, new production waste depositing areas need to be established in the coming years. In the course of preparing a designated spatial plan of the Lüganuse rural municipality, the Lüganuse Rural Municipality Council approved the most suitable location of establishing an industrial waste landfill in 2023. The aim of the preselection of the location for VKG’s industrial waste landfill was to find a location for the new landfill which would ensure the continuation of VKG’s production activities so that the adverse effect on the natural environment and human life would be as small as possible – these criteria were met by the Tuhavälja cadastral unit (cadastral registration number 43701:003:0127) where the soil had been prepared for establishing a landfill decades ago, and partly by the Kohtla metskond 3 cadastral unit (cadastral registration number 43701:003:0320). After the preselection of the location, the process moves on with a more detailed solution, the 2nd stage of the designated spatial plan and the strategic assessment of environmental impact. The planned landfill would hold 63 million cubic metres of industrial waste and its expected useful life would be 25 years with the current quantity of waste being deposited.

Considering the time-related uncertainty of the designated spatial plan of the new landfill, VKG also started analysing the possibilities of expanding the existing landfill in 2023, which would also allow us to create a new depositing area. Establishing a new depositing area by using the first or the second solution will allow VKG to continue its production activities and thereby the development of life in the region.

Volume

63 million

cubic meters of industrial waste

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Reduction of odour emissions

In order to further reduce the environmental impact of flue gases released from production activities in the reconstruction of the Petroter I plant, VKG Oil implemented the METEO app in 2022, the aim of which is to increase the response speed of the production unit in preventing and reducing possible odoriferous disturbances by operatively sharing meteorological data. In 2023, we continued analysing and adjusting the operating modes of production equipment in situations where odoriferous disturbances occur, in order to minimise the intensity and duration of odoriferous disturbances arising from VKG’s production activities and the combined effect of the activities of other companies. According to VKG’s constant monitoring station, the hourly average air quality limit of hydrogen sulphide (H2S) which characterises the intensity of a disturbance was in the case of wind blowing from the direction of VKG Oil’s production territory exceeded on 120 occasions, which was 41% less than in 2022.

In order to further reduce odoriferous disturbances, a cooperation agreement was concluded with Envirosuite Limited (hereinafter Envirosuite) at the end of 2023, thanks to which we are now connected to a software solution that also helps forecast pollution levels and minimise environmental impacts through decisions made on that basis. Envirosuite is introducing the environmental information platform Omnis in VKG, which will allow us to gain better situation-based information about pollution levels both in the production territory and outside. This in turn will allow us to optimise work processes and reduce environmental impacts. The platform is also supported by additional monitoring equipment which help us to faster detect the occurrence of higher pollution levels and promptly respond to prevent the spread of the effect outside VKG’s production territory.

In 2023

41 %

fewer air quality limit exceedances

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Uus-Kiviõli II Mine

Although preparations for establishing the Uus-Kiviõli oil shale mines started nearly 20 years ago, the main construction works started in 2022–2023. In these years, the roads, the sites and a sediment pool necessary for erecting other facilities were built on the Uus-Kiviõli cadastral unit in the village of Rääsa, as well as connecting roads to the Ojamaa Mine to the industrial territory of which the material extracted from the Uus-Kiviõli Mine will be transported in order to reduce the environmental footprint of the new mine. The construction of a causeway for a closed (dust-free) belt conveyor between the Uus-Kiviõli and Ojamaa mines started in 2023. Using the belt conveyor will allow us to avoid air emissions which would be generated upon using tipper trucks for transporting the extracted material.

Use of resources

Extraction of mineral resources

The resource necessary for the production of shale oil and other products in the Group is provided by VKG Kaevandused whose active mining activities take place under three mineral resource extraction permits: Ojamaa, Sompa and Viru II. In connection with the exhaustion of the oil shale resource in the mining claims of the said extraction permits in the coming years, we have started the process of opening the Uus-Kiviõli II Mine.

VKG Kaevandused extracted 3.42 million tonnes of oil shale in 2022 and 3.51 million tonnes in 2023. In calculating the resource charges for extracting mineral resources, extraction losses are added to the extracted geological resource (in the case of underground mining, the pillars left to support the ground9 which together make up the extracted mineral reserve that has been rendered unusable. VKG Kaevandused extracted and rendered unusable a total of 4.42 million tonnes of oil shale in 2022 and 4.6 million tonnes in 2023.

Extracted oil shale quantities (in tonnes)

0
1
2
3
4
5
2017
4,34
2018
4,73
2019
4,56
2020
4,36
2021
4,55
2022
4,42
2023
4,60

Air emissions

Carbon dioxide (CO2) emissions

The carbon dioxide emission quantities of the Group consistently decreased in 2020–2022 in connection with a decrease in production volumes and measures restricting greenhouse gas emissions. In 2023, the Group’s production volumes grew considerably and CO2 emission quantities increased. VKG’s direct specific CO2 emission, or the quantity of CO2 in tonnes per a tonne of oil products was 2.05 t/t in 2023, remaining at the same level as in 2022. VKG continues investing into the reduction of the direct CO2 emission per produced tonne caused by the production of oil products.

The Group’s CO2 emissions across companies (in tonnes)

0
500 000
1 000 000
1 500 000
2017
600 303
600 303
45 851
45 851
593 584
593 584
1 239 899
161
2018
588 839
588 839
39 999
39 999
666 794
666 794
1 295 636
4
2019
676 192
676 192
53 576
53 576
708 827
708 827
1 438 826
231
2020
629 112
629 112
46 490
46 490
715 406
715 406
1 391 081
73
2021
593 857
593 857
46 438
46 438
697 209
697 209
1 338 332
828
2022
560 198
560 198
39 253
39 253
597 144
597 144
1 196 737
142
2023
619 975
619 975
32 604
32 604
1 373 656
721 077
VKG Energia
Oil Kiviter
Oil Petroter
VKG Soojus

Sulphur dioxide (SO2) emissions

The specific emission of sulphur dioxide (emission quantity per unit of production) is on a downward trend in the entire Group, demonstrating the increased efficiency of the sulphur removal system (including the application of automatic equipment and timely maintenance). The increase in specific emissions at VKG Energia in 2023 was caused by the composition of gas and equipment downtime. The decrease of specific emissions at VKG Oil was achieved thanks to suspending the operation of the electrode coke equipment.

Specific emissions of VKG Oil and VKG Energia SO2 per production

0
0,001
0,002
0,003
0,004
2017
0,0023
0,0029
2018
0,0019
0,0032
2019
0,0022
0,0035
2020
0,0019
0,0024
2021
0,0022
0,0025
2022
0,002
0,0019
2023
0,0016
0,0022
VKG Oil
Oil Energia

Ambient air pollution charge

Although the Group’s production volumes grew in 2023, the air pollution charges remained similar to the previous year, as the flue gas pollution levels of the Petroter I plant decreased after its reconstruction. In addition, the electrode coke equipment – which was one of the biggest sources of ambient air pollution in VKG’s production territory – was conserved in 2023.

Air pollution charges in the Group (EUR)

0
250 000
500 000
750 000
1 000 000
2017
824 145
2018
700 060
2019
902 299
2020
693 136
2021
820 738
2022
750 000
2023
741 994

Water usage and water emissions

Water usage

The main objectives in the area of water usage include the expedient use of water resources, the efficient purification of waste water and the prevention of the entry of contaminants into water bodies. In cooperation with accredited chemistry laboratories and area-specific experts, VKG performs constant supervision over water protection areas, surface water, groundwater and waste water, and the soil.

The Group’s total water usage has remained more or less the same in recent years. Due to the nature of work processes, the enrichment plant of the Ojamaa Mine has started to increasingly reuse mine water, while the use of lake water decreased in 2022 and 2023 compared to 2021 due to a decrease in the clients’ water needs.

Water usage in the Group (m3)

0
2 500 000
5 000 000
7 500 000
2017
4 882 273
4 882 273
42 187
42 187
4 956 776
32 316
2018
5 253 571
5 253 571
16 999
16 999
5 352 035
81 465
2019
6 016 382
6 016 382
15 420
15 420
6 063 949
32 147
2020
5 569 067
5 569 067
28 059
28 059
5 635 911
38 785
2021
5 853 252
5 853 252
22 006
22 006
6 220 158
344 900
2022
5 387 804
5 387 804
30 312
30 312
6 092 092
673 976
2023
5 387 804
5 387 804
23 089
23 089
6 201 653
790 760
Lake water
Groundwater
Mine water at the enrichment plant

Water emissions

Since 2020, the amount of waste water generated in the Group has been decreasing as a result of improved work processes, with the exception of 2022 when the quantities of discharged mine water increased due to an abundance of precipitation. In 2023, there was less precipitation.

Water emissions in the Group (th m3)

0
10 000
20 000
30 000
2017
727
727
1 773
1 773
20 192
17 692
2018
571
571
1 117
1 117
22 626
20 938
2019
957
957
1 499
1 499
25 900
23 444
2020
1 026
1 026
1 341
1 341
25 782
23 415
2021
1 097
1 097
1 383
1 383
25 028
22 548
2022
917
917
1 495
1 495
26 170
23 758
2023
1 001
1 001
720
720
23 641
21 920
Waste water
Precipitation water
Waste water from the mine (sediment pool) to nature

Environmental charges for water

The environmental charges for water (water abstraction charge + pollution charge) increased in 2022 due to an increase in the quantity of water pumped out of the mine and discharged to the natural water circulation caused by an abundance of precipitation. There was less precipitation in 2023 and therefore the environmental charges decreased.

Water abstraction charge and waste water pollution charge (in euros)

0
500 000
1 000 000
1 500 000
2 000 000
2017
118 810
118 810
19 925
19 925
1 083 865
1 083 865
1 226 538
3 938
2018
115 988
115 988
12 735
12 735
1 296 943
1 296 943
1 427 814
2 148
2019
130 101
130 101
17 668
17 668
1 443 368
1 443 368
1 593 997
2 860
2020
116 792
116 792
11 467
11 467
1 421 874
1 421 874
1 552 993
2 860
2021
129 316
129 316
15 259
15 259
1 444 951
1 444 951
1 592 386
2 860
2022
120 022
120 022
15 885
15 885
1 756 405
1 756 405
1 894 288
1 976
2023
155 939
155 939
13 827
13 827
1 544 280
1 544 280
1 714 554
508
VKG Energia
VKG Oil
VKG Kaevandused
VKG Soojus

Industrial waste

VKG works on the principle of circular economy with the strategic objective of adding maximum value to oil shale as a resource and using as much of the production waste as possible in new production processes. Nevertheless, the Group’s activities generate waste for which no outputs currently exist that would meet the criteria of recycling and such waste remains in waste depositories to await suitable valorisation technologies.

Industrial waste and its processing

VKG’s activities generate mining waste, hazardous waste and ordinary waste. The enrichment of extracted material generates waste rock as a byproduct which is included among mining waste and of which we reused 1,253,808 tonnes or 54% in 2022. While in preceding years waste rock was in accordance with project terms and conditions mainly used in tidying up the Aidu quarry, in 2022 the sales of limestone filler material (gravel) made from waste rock made up approximately as large a part (~600 000 tonnes). The remaining waste rock was temporarily placed into interim storage. In 2023, we reused 771,554 tonnes of waste rock (33%), which was less than before as we were waiting for an amendment to be made to the waste permit which would allow us to use waste rock for establishing a base structure for a solar farm. In 2023 we sold 713,293 tonnes of gravel.

In addition to the waste rock, we successfully recycle nearly all the scrap metal generated in the Group. With the help of our cooperation partners, we recycled 1,043 tonnes of scrap metal in 2023.

Generation quantities of the main ordinary waste and its reuse in the Group (tonnes/year)

2017 2018 2019 2020 2021 2022 2023
Construction and demolition debris 459 513 630 320 222 339 395
Everyday waste 284 283 286 166 160 241 230
Scrap metal 763 3 136 1 518 2 757 1 324 2 071 1043
Waste rock 2 053 864 2 298 701 2 274 156 2 292 205 2 423 944 2 330 142 2 334 338
Oil shale ash 1 651 832 1 768 186 1 883 510 1 858 566 1 784 232 1 632 760 1 913 561
Total ordinary waste, in tonnes 3 707 202 4 070 819 4 160 100 4 154 014 4 209 392 3 965 553 4 249 567

The generation quantities of the main hazardous waste in the Group (million tonnes/year)

2017 2018 2019 2020 2021 2022 2023
Semicoke 0,63 0,73 0,79 0,66 0,65 0,65 0,66
Gas purification waste 0,05 0,06 0,06 0,06 0,06 0,06 0,06
Phenol water 0,33 0,32 0,34 0,3 0,03 0,29 0,26
Total hazardous waste (million tonnes) 1,01 1,11 1,17 1,02 1,01 1 0,98

Semicoke (waste code 05 06 97*) and oil shale ash (waste code 10 01 97) are the main types of waste generated in the process of producing shale oil. The former is generated in equipment using the Kiviter technology and the latter in equipment using the Petroter technology. The production of shale oil using the Kiviter technology also generated large quantities of phenol water from which we separate – as the only one doing so in Estonia – valuable chemicals of up to 99.8% purity. Similarly to semicoke and phenol water (waste code 05 06 96*, the residue from the purification of the flue gases generated upon burning the residual gases from the production of shale oil is also considered hazardous waste (waste code 10 01 18*) and they are therefore subject to stricter usage restrictions and the currently most environmentally friendly method of handling them is depositing them in a production waste landfill. Oil shale ash, the quantities of which have decreased in recent year in connection with production capacities, is also deposited in an industrial waste landfill designed by specialised engineers.

The generation quantities of the main hazardous waste in the Group (million tonnes/year)

0
1
2
3
4
2017
3,59
2018
3,70
2019
3,65
2020
3,68
2021
3,62
2022
3,60
2023
3,58

Reuse of waste in the past 5 years (t/a)

2019 2020 2021 2022 2023
Reuse of waste (t) 2 435 247 2 058 266 2 621 778 1 550 565 1 036 191
incl. waste rock 2 093 845 1 753 048 2 324 390 1 253 808 771 554
incl. scrap metal 1518 2757 1324 2071 1043
incl. phenol water 339 884 302 461 296 064 294 686 263 594

Deposition of waste

The industrial waste of VKG Oil (ash and semicoke) and VKG Energia (gas purification waste) is deposited in an industrial waste landfill. Pursuant to the integrated environmental permit of VKG Oil, waste (mainly contaminated soil) from environmental projects carried out by external companies can also be deposited. Upon depositing waste from other environmental projects, the methodology suitable for properties of the specific waste is used. In 2023, we deposited 48,655 tonnes of contaminated soil from environmental projects.

The quantities of the main types of waste deposited in the industrial waste landfill

0
1 000 000
2 000 000
3 000 000
2017
635 492
635 492
1 651 832
1 651 832
2 342 060
54 736
2018
731 841
731 841
1 768 186
1 768 186
2 560 777
60 750
2019
790 135
790 135
1 883 511
1 883 511
2 735 040
61 394
2020
657 520
657 520
1 858 566
1 858 566
2 577 480
61 394
2021
646 588
646 588
1 784 323
1 784 323
2 492 305
61 394
2022
651 356
651 356
1 632 760
1 632 760
2 338 852
54 736
2023
655 647
655 647
1 913 561
1 913 561
2 623 944
54 736
Semicoke
Oil shale ash (Petroter)
Gas cleaning waste containing hazardous substances (Energy)

Waste disposal charges

The disposal charge paid by VKG decreased since 2019 and increased in 2023 in connection with changes in production volumes. The difference became apparent in 2020 when the state temporarily applied a smaller charge for depositing oil shale ash. The disposal charge paid in 2023 amounted to approximately 9.3 million euros, of which 1.5 million euros was made up by charges for depositing waste from other environmental projects, i.e. waste not generated by the Group.

Disposal charges for the main types of industrial waste (in euros)

0
2 500 000
5 000 000
7 500 000
10 000 000
2017
1 893 769
1 893 769
4 922 462
4 922 462
6 979 345
163 114
2018
2 180 888
2 180 888
5 269 195
5 269 195
7 631 119
181 036
2019
2 354 602
2 354 602
5 612 861
5 612 861
8 150 416
182 953
2020
1 959 411
1 959 411
2 434 721
2 434 721
4 472 496
78 364
2021
1 926 833
1 926 833
5 317 282
5 317 282
7 421 172
177 057
2022
1 941 041
1 941 041
4 865 625
4 865 625
6 974 651
167 985
2023
1 953 829
1 953 829
5 702 413
5 702 413
7 835 918
179 676
Semicoke
Oil shale ash (Petroter)
Gas cleaning waste containing hazardous substances (Energy)

Energy efficiency

The efficient use of energy resources allows us to improve productivity, optimise production resources and reduce the environmental footprint.

In achieving the energy efficiency goals, we comply with the following principles:

  • the development of energy management and certification under international standard ISO 50001;
  • training the personnel in the area of energy management and efficiency;
  • innovation in measures and technologies aimed at energy economy;
  • implementation of automation and digitisation projects;
  • exchanging information with other companies in the same sector, and with research institutions.

Energy efficiency at VKG

VKG energy efficiency image

Year 2022

In 2022, we extracted oil shale in a quantity corresponding to 13,287,750 MWh of energy, from which we produced:

of oil products

6275805

MWh

of coke and fine chemistry products

77383

MWh

steam and district heat

77383

MWh

of electricity

376373

MWh

The Group’s companies produced from the extracted oil shale

7285193

MWh of products

In 2022 VKG’s energy efficiency in using the oil shale resource was

54.8 %
VKG energy efficiency image 2

Year 2023

In 2023, we extracted oil shale in a quantity corresponding to 13 903 471 MWh of energy, from which we produced:

of oil products

7425943

MWh

of coke and fine chemistry products

53505

MWh

of steam and district heat

520112

MWh

of electricity

448794

MWh

The Group’s companies produced from the extracted oil shale

8448354

MWh of products

In 2022 VKG’s energy efficiency in using the oil shale resource was

60.8 %

Production and consumption of energy

VKG produces steam, heat and electricity from the byproducts generated in the course of processing oil shale. The ewe gas generated in the thermal processing of oil shale is used at VKG Energia in controllable equipment for producing electricity to the Estonian power network as well as district heat for the cities of Jõhvi and Kohtla-Järve. The enterprises of the region are supplied with steam necessary for their production activities. The proportion of heat and electricity production is above all influenced by the needs of the heat consumers and the volume of oil shale processing.

Compared to previous years, the amount of energy produced by VKG Energia decreased in 2022 in connection with the extensive reconstruction of the Petroter I plant carried out by VKG Oil, due to which the plant did not operate for nearly half a year and no ewe gases were supplied to VKG Energia. However, largely thanks to the successful reconstruction of the Petroter I plant, the production of energy grew to over 1 million MWh in 2023. Compared to 2022, we managed to supply as much as 50% more heat and steam to external consumers.

Energy produced by VKG Energia (MWh)

0
500 000
1 000 000
2017
73 830
73 830
263 678
263 678
753 333
415 825
2018
131 544
131 544
211 114
211 114
808 464
465 806
2019
109 019
109 019
231 054
231 054
813 950
473 877
2020
92 413
92 413
291 022
291 022
829 789
446 354
2021
72 748
72 748
352 521
352 521
834 149
408 880
2022
66 639
66 639
288 943
288 943
719 107
363 525
2023
79 180
79 180
529 464
529 464
1 057 438
448 794
Heat and steam, VKG’s own consumption MWh
Heat and steam, external consumers MWh
Electricity production MWh

VKG Energia’s heat sales volume mainly depends on the weather with regard to district heating and on the clients’ consumption pattern with regard to steam. The own need for heat mainly depends on the volume of oil shale processing and cannot be significantly influenced in a cost-effective way. The main energy efficiency measures are therefore aimed at reducing electricity consumption.

VKG’s electricity consumption has been relatively stable in recent years, below 500 thousand MWh a year. In 2022, the need for electricity decreased due to the production downtime caused by the reconstruction of the Petroter I plant.

VKG’s electricity consumption and sales to the open market (MWh)

0
200 000
400 000
600 000
2017
4 003
4 003
199 572
199 572
198
198
76 768
76 768
166 146
166 146
488 334
41 647
2018
3 728
3 728
211 536
211 536
2 424
2 424
78 870
78 870
94 685
94 685
494 333
103 090
2019
6 653
6 653
225 208
225 208
4 403
4 403
77 443
77 443
97 112
97 112
503 057
92 238
2020
15 215
15 215
220 113
220 113
3 291
3 291
76 592
76 592
100 465
100 465
497 759
82 083
2021
14 235
14 235
211 637
211 637
3 975
3 975
72 748
72 748
112 419
112 419
485 399
70 385
2022
27 938
27 938
196 000
196 000
3 328
3 328
67 123
67 123
114 000
114 000
443 496
35 107
2023
45 346
45 346
204 324
204 324
5 265
5 265
73 605
73 605
103 352
103 352
491 975
60 083
Sales of electricity to external companies MWh
VKG Group’s consumption
Losses MWh
VKG Energia’s own consumption MWh
Sales, VKG Elektrivõrgud
Sales, Nord Pool

We apply Group-wide energy consumption monitoring in accordance with the principles of ISO 50001. A system of energy consumption indicators has been developed per individual consumers and consumption optimisation solutions have been prepared for high-consumption production sections and equipment. By using energy in a more optimal manner, we increase the level of adding value to oil shale and improve the management of the production process, thereby reducing the risks of production stoppages. Production equipment is additionally fitted with modern measurement and control instruments, such as the Coriolis flow metres and additional frequency converters on rotating equipment.