Developing future solutions
In developing the BPC project, the primary focus was on supporting the process of the designated spatial plan and the strategic environmental impact assessment initiated in the Lüganuse rural municipality. The report on the 1st stage of the designated spatial plan and the preliminary selection of location in the village of Aa were approved by the Council of the Lüganuse rural municipality on 29 June 2023. The process continues with the assessment of environmental impacts in the selection location, which should culminate in the approval of the designated spatial plan at the end of 2024. The majority of analyses and studies related to environmental impacts (a geodesic survey of the location, botanical inventories and determining the restrictions of the area, a study of traffic changes in the region, a resource availability and logistics study, surveys related to the effects of air and seawater) were conducted in 2023 and the completion of the assessment of the concept of water extraction was left in 2024.
The designated spatial plan process has moved along according to the time schedule. The preferred location is on 160 hectares of state land and 5 hectares of private land which the developer acquired in 2023. Preparations have also started to design the plant. For this purpose, preliminary inputs have been received from technology suppliers. The details of the technical solution have been developed in cooperation with the technology suppliers of this sector – Andritz and Valmet – and Sweco has prepared the preliminary placement of the plant on the selected immovable property.
That way, up to 75% of plastic waste can be recycled, i.e. made into new plastic. The plastic waste chemical recycling plant plans to thermochemically process plastic waste generated in Estonia and to produce pyrolysis oil which petrochemical companies could reuse for producing plastic. That way, up to 75% of plastic waste can be recycled, i.e. made into new plastic. In 2023, the most suitable technology for the plant was chosen, on the basis of which a conceptual design was prepared. The first agreements of joint intentions have been concluded to ensure the flow of raw material and the sales of products. A preliminary assessment of environmental impacts has been prepared for selecting a location for the plant. All the above activities were aimed at initiating the design phase of the plant.
In addition to the aforementioned two projects, VKG, with the assistance of McKinsey & Co, mapped all the possible development verticals in 2023, where VKG could mitigate its environmental footprint and shape a business strategy that is sustainable in the long-term. About 60 different business areas were analysed, from amongst which we chose 3 to 4 areas that have the strongest prospects and best match VKG’s profile, into which VKG will invest its development potential in the future (including the BPC and the plastic pyrolysis).
The development of the two large projects continues in 2024, to be carried out in VKG’s subsidiaries VKG Plastic and VKG Fiber in the future. The designated spatial plan for the BPC should be approved in the Lüganuse rural municipality and the designing should start. The plan is to also reach the design phase with the plastic waste circular economy project. VKG is also actively engaged in analysing additional business opportunities.