7Taking care of the environment
In shaping its environmental policy, VKG places great value on social responsibility and understands that environmental impact management is a prerequisite to sustainable development. We have created an integral and systemic approach to environmental issues, which is in accordance with European Union and Estonian legal acts as well as the environmental requirements arising from the Best Available Technology (BAT) framework documents.
All VKG’s production units are in conformity with environmental requirements, but we are still constantly looking for ways to optimise processes and reduce the production footprint. VKG aims to add maximum value to oil shale, i.e. to fully use up the potential of the resource with the smallest possible environmental impact per a unit of oil shale processed.
In 2020, the European Green Deal was in the focus of environmental activities and Estonia also presented its framework position on the matter. The Group had the opportunity to provide its shale oil sector input into the development of the position, which was partly taken into account in the final document. We also participated in various EU initiatives, including the preparation of the European Climate Law, the carbon border adjustment mechanism, the planned changes in the greenhouse gas trading system, etc.
In 2020, the Group’s main areas of activity in reducing the environmental impact were as follows:
Reduction of the emission of odoriferous substances
As the largest Estonian shale oil producer, our activities have an effect on the surrounding environment and the local community. We strive towards minimising the environmental impact of production. In 2020, we continued with the odoriferous substance reduction programme that we launched in 2018 and performed the last measurements of odoriferous substance levels in order to assess the efficiency of the measures taken so far, and carried out an inventory of the sources of emission of odoriferous substances.
Greenhouse gases
We continued developing the carbon footprint methodology in 2020, looking for possibilities of reducing the environmental impact of shale oil production.
We implemented the cooler project, installing three cooling devices on the semi-coke gas piping and two cooling devices on distillation equipment at VKG Oil. As a result, VKG Energia’s annual CO2 emissions decreased by nearly 12,000 tons. The European Commission approved VKG Oil’s Petroter installation application for the allocation of additional free quota. The application was based on technological changes made in the production process which increased the production efficiency by more than 15%.
Mineral resource extraction waste
The implementation of circular economy principles is a priority that ensures the most efficient use of resources. The waste rock generated in the Ojamaa Mine was fully reused, with none deposited. Nearly 1.75 million tons of waste rock was reused in 2020.
Elimination of residual pollution
in 2020, the elimination of the residual pollution in the territory of the former Kohtla-Nõmme tyre factory started and nearly 14,000 m3 of seriously contaminated soil and 100 m3 of oil waste was removed. VKG contributed to the project by depositing the hazardous waste in VKG’s deposit area in accordance with environmental requirements.
The roots of this pollution reach back to the 1930s when a British capital based oil factory operated in the territory. During Soviet times, a tyre factory operated here. Our aboveground conveyor connecting the Ojamaa Mine to the Kohtla-Järve production territory runs in the immediate vicinity of this area which we had to acquire for the construction of the conveyor. Every such project aimed at ensuring a cleaner nature and better living environment is a worth venture that benefits everyone. And we are happy to be able to again participate in it as a good partner to the Ministry of the Environment
Member of Management Board and Technical Director of VKG
The roots of this pollution reach back to the 1930s when a British capital based oil factory operated in the territory. During Soviet times, a tyre factory operated here. Our aboveground conveyor connecting the Ojamaa Mine to the Kohtla-Järve production territory runs in the immediate vicinity of this area which we had to acquire for the construction of the conveyor. Every such project aimed at ensuring a cleaner nature and better living environment is a worth venture that benefits everyone. And we are happy to be able to again participate in it as a good partner to the Ministry of the Environment
Member of Management Board and Technical Director of VKG
In 2020, we invested 4 million euros in environmental projects and increasing reliability and efficiency, of which direct investments in reducing environmental impact made up 0.9 million euros.
The main activities in 2021 include participation in developing Estonia’s positions in the framework of the Climate Agreement, the extension of the Ojamaa Mine, the assessment of environmental impact in the Uus-Kiviõli mining field, and participation in a workgroup studying the best available technologies of shale oil production. The renewal of the integrated environmental permits of the three largest production units is a priority in everyday environmental activities. In the coming years, VKG’s development and environmental activities will continue to be focused on efficiency, waste reuse, reduction of air emissions, and projects related to the climate neutrality policy.