9Taking care of the environment

The objective of the Group enterprises is to add value to the natural resources used in the most efficient and best possible way. An integral and systematic approach to the environmental issues has been developed, which is coordinated both with national requirements and the requirements of the European Union. Using the best possible technologies in production, sticking to environmental permits, professional teamwork, and targeted investments allows ensuring sustainable development.

Since we are the largest Estonian shale oil producer, our activities have an impact on the surrounding environment and the local community. We work hard to reduce the environmental impact of production. In 2019, we continued with the measures of the action plan aimed at reducing odoriferous substances, which was approved by the Environmental Board in 2018. We invested more than 1.1 million euros in the implementation of the action plan. In 2020, we will carry out an inventory of odoriferous substances and the odoriferous emissions from VKG’s production territory are estimated to decrease by 12%. The main 2019 project aimed at reducing odoriferous substances was the direction of air emissions from the shale oil truck cistern loading equipment and the oil warehouse to a single breathing system.

The method for calculating the shale oil production footprint allows us to compare the environmental impact of shale oil products, to use the analysis to find possibilities to reduce the footprint, and to maintain or increase the competitiveness of the products compared to other energy sources. The development of the calculating method started in 2019 and will continue in 2020. The Group continues to contribute to development activities aimed at reducing carbon emissions, in the course of which the increased production efficiency per product unit reduces the emission levels as a whole.

In total, VKG invested 2.3 million euros directly and over 7 million euros indirectly into environmental projects which entailed a reduction in the environmental impact of the Group in 2019.

In 2019, activities related to developing the framework for the 4th trading period trading period of the European Union greenhouse gas (GHG) Emissions Trading System. The Group provided its input related to the functioning of the system to the European Commission and forwarded as application concerning the plants in July.

The main directions of activity in 2020 are the development of the methods for the carbon footprint, the continuation of preparations for the 4th period of the GHG Emissions Trading System, and the initiation of the assessment of the environmental impact of the Ojamaa extension and the Uus-Kiviõli mining field in cooperation with Eesti Energia.

Environmentally sustainable climate policy is not just the shale oil sector’s challenge

The title of the VKG Environmental Day, held in October 2019, was ‘The Oil Shale Sector and Climate Policy in the Midst of Changes’. The aim of the Environmental Day was to hold a broad-based discussion with the objective of understanding the effect of the increasingly strict climate policy on the society as a whole as well as the oil shale chemistry and oil producers.

Finding the ideal climate neutral way of operation in the shale oil sector is challenging, but the solutions which work for the benefit of both the sector and the environment and are responsible from the viewpoint of the society are there. On the VKG Environmental Day, we discussed the topic from different points of view and presentations were made by leading EU specialists and opinion leaders, representatives of the green worldview, scientists, and representatives of the public sector and the industry.

Many have talked about the connections between the climate and the oil shale sector, whereas the representatives of the area have expressed their opinion rather modestly. It is important to understand in the context of the increasingly strict climate policy what it means for the society as a whole and for the oil shale chemistry and oil producers. Instead of vague statements, we need to clearly determine what our options and interim objectives are and whether and how the shale oil sector can contribute to achieving the established objectives.


Meelis Eldermann

Technical Director, Vice-Chairman of the Board

Many have talked about the connections between the climate and the oil shale sector, whereas the representatives of the area have expressed their opinion rather modestly. It is important to understand in the context of the increasingly strict climate policy what it means for the society as a whole and for the oil shale chemistry and oil producers. Instead of vague statements, we need to clearly determine what our options and interim objectives are and whether and how the shale oil sector can contribute to achieving the established objectives.


Meelis Eldermann

Technical Director, Vice-Chairman of the Board

The presentations of the Environmental Day are available here.