Eesti Energia
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Eesti Energia AS is a public limited energy company in Estonia with its headquarters in
Tallinn Tallinn () is the most populous and capital city of Estonia. Situated on a bay in north Estonia, on the shore of the Gulf of Finland of the Baltic Sea, Tallinn has a population of 437,811 (as of 2022) and administratively lies in the Harju ' ...
. It is the world's biggest
oil shale Oil shale is an organic-rich fine-grained sedimentary rock containing kerogen (a solid mixture of organic chemical compounds) from which liquid hydrocarbons can be produced. In addition to kerogen, general composition of oil shales constitute ...
to energy company. The company was founded in 1939. As of 2014, it operates in
Estonia Estonia, formally the Republic of Estonia, is a country by the Baltic Sea in Northern Europe. It is bordered to the north by the Gulf of Finland across from Finland, to the west by the sea across from Sweden, to the south by Latvia, a ...
,
Latvia Latvia ( or ; lv, Latvija ; ltg, Latveja; liv, Leţmō), officially the Republic of Latvia ( lv, Latvijas Republika, links=no, ltg, Latvejas Republika, links=no, liv, Leţmō Vabāmō, links=no), is a country in the Baltic region of ...
,
Lithuania Lithuania (; lt, Lietuva ), officially the Republic of Lithuania ( lt, Lietuvos Respublika, links=no ), is a country in the Baltic region of Europe. It is one of three Baltic states and lies on the eastern shore of the Baltic Sea. Lithuania ...
,
Finland Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of B ...
,
Jordan Jordan ( ar, الأردن; tr. ' ), officially the Hashemite Kingdom of Jordan,; tr. ' is a country in Western Asia. It is situated at the crossroads of Asia, Africa, and Europe, within the Levant region, on the East Bank of the Jordan Rive ...
and
Utah Utah ( , ) is a state in the Mountain West subregion of the Western United States. Utah is a landlocked U.S. state bordered to its east by Colorado, to its northeast by Wyoming, to its north by Idaho, to its south by Arizona, and to it ...
, United States. In Estonia, the company operates under the name Eesti Energia, while using the brand name Enefit for international operations. The main raw material for energy production – oil shale – is extracted from mines located in Eastern-Estonia and owned by the company. The group of Eesti Energia has three main operation areas: electricity generation, shale oil production, and sale and distribution of electricity. Its shares are owned by the
Government of Estonia The Government of the Republic of Estonia (''Estonian language, Estonian: Vabariigi Valitsus'') is the cabinet (government), cabinet of Estonia. Under the Constitution of Estonia, Constitution, it exercises executive power pursuant to the Constit ...
.


History

Eesti Energia was founded in 1939. In 1998, it was reorganized from the state enterprise to a private limited company. In 1998–1999, two distribution companies (''Läänemaa Eletrivõrk'' and ''Narva Elektrivõrk'') were separated from Eesti Energia and privatized. In 1995, the Government of Estonia started negotiations with
NRG Energy NRG Energy, Inc. is an American energy company, headquartered in Houston, Texas. It was formerly the wholesale arm of Northern States Power Company (NSP), which became Xcel Energy, but became independent in 2000. NRG Energy is involved in energ ...
, a subsidiary of
Northern States Power Company Northern States Power Company () was a publicly traded S&P 500 electric and natural gas utility holding company based in Minneapolis, Minnesota, that is now a subsidiary of Xcel Energy (). History The company's founder, Henry Marison Byllesby, ha ...
, to create a joint venture on the basis of
Narva Power Plants The Narva Power Plants ( et, Narva Elektrijaamad) are a power generation complex in and near Narva in Estonia, near the border with Leningrad Oblast, Russia. The complex consists of the world's two largest oil shale-fired thermal power plants, ...
, a subsidiary of Eesti Energia. According to the basic terms of sale, agreed in 2000, NRG Energy was to acquire 49% stake in Narva Power Plants. In addition, at that time Narva Power Plants owned also 51% stake in the oil-shale mining company Eesti Põlevkivi. The proposed deal got a strong public and political opposition. The deal was cancelled by the Government on 8 January 2002 after NRG Energy failed to secure financing for the deal by the agreed-upon deadline. On 21 August 2002 NRG Energy filed to the London court claiming £100 million compensation for damages from the cancelled deal; however this claim was rejected. In 1999, Government handed 51% of shares of Eesti Põlevkivi to Narva Elektrijaamad. In 2003, Government transferred remained 49% stake in Eesti Põlevkivi to Eesti Energia. Also Narva Elektrijaamad-owned 51% stake was transferred to Eesti Energia and Eesti Põlevkivi became a fully owned subsidiary of Eesti Energia. In 2000, Eesti Energia and
Latvenergo Latvenergo is a state-owned electric utility company in Latvia. Latvenergo Group provides energy supply services in the Baltics. The Group comprises the parent company Latvenergo AS, with decisive influence, and five subsidiaries. Latvenergo ...
announced a plan to merge companies to create a new Baltic Power Group. However, this deal was halted due to Latvian legislation forbidding privatization of Latvenergo and uncertainties around the NRG deal. In 2003, Eesti Energia tried to privatize Lithuanian distribution company RST. Although Eesti Energia fulfilled the privatization criteria and was the only bidder at the final stage of privatization, the privatization was halted by the Lithuanian Government. On 1 December 2005, during his visit to Estonia, Lithuanian Prime Minister
Algirdas Brazauskas Algirdas Mykolas Brazauskas (, 1932 – 2010) was the first President (fourth overall) of a newly re-independent post-Soviet Lithuania from 1993 to 1998 and Prime Minister from 2001 to 2006. He also served as head of the Communist Party of Li ...
met with the CEO of Eesti Energia Sandor Liive to discuss Eesti Energia's participation in the proposed
Visaginas Nuclear Power Plant Visaginas Nuclear Power Plant was a planned nuclear power plant project in Lithuania. It was proposed to be built at the site of the closed Ignalina Nuclear Power Plant, which was shut down on 31 December 2009 in accordance with Lithuania' ...
project. On 8 March 2006, the heads of
Lietuvos Energija Ignitis Group (Ignitis grupė AB; former name: Lietuvos Energija UAB) is a state-controlled energy holding company located in Vilnius, Lithuania. Its subsidiaries are involved in power and heat generation and distribution, natural gas trade and di ...
, Eesti Energia and Latvenergo during their meeting in Ignalina signed a memorandum of understanding on the preparation for construction of a new nuclear reactor in Lithuania. Eesti Energia negotiated for six years; however, the project was put on hold after government change in Lithuania at the end of 2012. In 2006, Eesti Energia started to trade at
Nord Pool Spot Nord Pool AS is a pan-European power exchange. Nord Pool has a main office in Oslo and further offices in Stockholm, Helsinki, Tallinn, Berlin and London. The company is owned by the European exchange operator Euronext as well as TSO Holding, ...
power exchange by acquiring Finnish trading company Solidus Oy. At the same year it started to sell electricity in Latvia and one year later in Lithuania. The company started its international oil shale activities in 2006. That year its subsidiary Oil Shale Energy of Jordan was created for the
shale oil Shale oil is an unconventional oil produced from oil shale rock fragments by pyrolysis, hydrogenation, or thermal dissolution. These processes convert the organic matter within the rock (kerogen) into synthetic oil and gas. The resulting oil ca ...
development project in Jordan. The memorandum of understanding between Eesti Energia and
Government of Jordan The politics of Jordan takes place in a framework of a parliamentary monarchy, whereby the Prime Minister of Jordan is head of government, and of a multi-party system. Jordan is a constitutional monarchy based on the constitution promulgated on ...
was signed on 5 November 2006. The concession agreement was signed on 11 May 2010 in the presence of Jordanian and Estonian prime ministers Samir Zaid al-Rifai and
Andrus Ansip Andrus Ansip (; born 1 October 1956) is an Estonian politician, a member of the European Parliament, the former European Commissioner for Digital Single Market and Vice President of the European Commission, in office from 2014 until 2019. Previo ...
. In March 2011, it acquired 100% shares of the
Utah Utah ( , ) is a state in the Mountain West subregion of the Western United States. Utah is a landlocked U.S. state bordered to its east by Colorado, to its northeast by Wyoming, to its north by Idaho, to its south by Arizona, and to it ...
-based Oil Shale Exploration Company. To implement the
EU 3rd energy package The European Union's Third Energy Package is a legislative package for an internal gas and electricity market in the European Union. Its purpose is to further open up the gas and electricity markets in the European Union. The package was proposed ...
, on 28 August 2009 Government decided to separate and buy-out the
transmission system operator File:Electricity grid simple- North America.svg, 380px, Simplified diagram of AC electricity grid from generation stations to consumers rect 2 243 235 438 Power station rect 276 317 412 556 Transformer rect 412 121 781 400 Electric power transmis ...
Elering Elering AS (former name: OÜ Põhivõrk) is a national transmission system operator for electricity and natural gas with headquarters in Tallinn, Estonia. The managing director of Elering is Taavi Veskimägi. History Elering was established on ...
from Eesti Energia. The transaction was concluded on 28 January 2010. In 2010, the government considered the
initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
of shares at the
London Stock Exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...
; however, this plan was postponed. On 29 May 2018 it was announced that
Enefit Green Enefit Green AS is a publicly traded renewable energy company located in Tallinn, Estonia. It went public on Nasdaq Tallinn in October 2021 with 23 % of shares, the rest being owned by the state-owned energy company Eesti Energia. CEO of the comp ...
, a renewable energy subsidiary of Eesti Energia, will acquire 100% of shares in the renewable energy company Nelja Energia for €289 million. In addition, it will take over €204 million of Nelja Energia loans. The deal was approved and completed in November 2018.


Operations

Eesti Energia produces and sells electricity, heat and fuel (
oil shale Oil shale is an organic-rich fine-grained sedimentary rock containing kerogen (a solid mixture of organic chemical compounds) from which liquid hydrocarbons can be produced. In addition to kerogen, general composition of oil shales constitute ...
and
shale oil Shale oil is an unconventional oil produced from oil shale rock fragments by pyrolysis, hydrogenation, or thermal dissolution. These processes convert the organic matter within the rock (kerogen) into synthetic oil and gas. The resulting oil ca ...
) and provides customer and consulting services. The company is engaged in the oil shale mining through its subsidiary Enefit Kaevandused, which extracts oil shale by opencast mining in the Narva quarry and by underground mining in the Estonia mine. Eesti Energia produces electrical power and heat in
Narva Power Plants The Narva Power Plants ( et, Narva Elektrijaamad) are a power generation complex in and near Narva in Estonia, near the border with Leningrad Oblast, Russia. The complex consists of the world's two largest oil shale-fired thermal power plants, ...
, which provides around 95% of the electrical energy consumed in Estonia and supplies the whole town of Narva with heat. For shale oil production, Eesti Energia operates the Narva Oil Plant, which uses a Galoter-type solid heat carrier technology process. The plant operates two Enefit-140 shale oil units. The plant produces about 1.4 million tonnes of shale oil per year. As of 2013, the new-generation Enefit280 plant is in hot-commissioning process.


International activities

In Jordan, its subsidiary Jordan Oil Shale Energy Company is preparing construction of a shale oil plant with capacity of . The shale oil plant will use the Enefit processing technology; construction is slated to begin by 2015. Its another subsidiary in Jordan, Attarat Power Company, is planning to build a 460 MW oil-shale-fired power plant at Attarat Umm Ghudran. The power station is expected to be operational by 2016, however construction started in 2017 with an expected completion for 2021. In Utah, United States, its subsidiary Enefit American Oil owns or leases more than of oil shale property in the
Green River Basin Green is the color between cyan and yellow on the visible spectrum. It is evoked by light which has a dominant wavelength of roughly 495570 nm. In subtractive color systems, used in painting and color printing, it is created by a combina ...
. Enefit American Oil plans to build a shale oil plant.


Subsidiaries

Eesti Energia has following subsidiaries: * Elektrilevi OÜ (100%) – a distribution network operator. * Enefit Power – an oil shale power and mining subsidiary created by merger of Enefit Kaevandused and Enefit Energiatootmine. :*
Orica Orica Limited () is an Australian-based multinational corporation that is one of the world's largest providers of commercial explosives and blasting systems to the mining, quarrying, oil and gas, and construction markets, a supplier of sod ...
Eesti OÜ (35%) * Enefit US LLC (100%) :* Enefit American Oil (former name: Oil Shale Exploration Company, 100%, United States), developer of the Utah oil shale project. * Attarat Holding OÜ (100%) :* Attarat Power Company (10%, Jordan) * Enefit SIA (100%, Latvia) – a subsidiary supplying energy in Latvia. * Enefit UAB (100%, Lithuania) – a subsidiary supplying energy in Lithuania. * Enefit Sp. z o.o. (100%, Poland) – a subsidiary supplying energy in Poland. * Enefit AB (100%, Sweden) – a subsidiary supplying energy in Sweden. * Enefit Oy (100%, Finland) – a subsidiary supplying energy in Finland. *
Enefit Green Enefit Green AS is a publicly traded renewable energy company located in Tallinn, Estonia. It went public on Nasdaq Tallinn in October 2021 with 23 % of shares, the rest being owned by the state-owned energy company Eesti Energia. CEO of the comp ...
AS (100%) – renewable energy subsidiary :*SIA Enefit Power and Heat Valka (100%) :* Nelja Energia AS (100%) * Enefit Solutions AS (100%) – manufacturer of energy and industrial equipment, maintenance and supply services. * Enefit Outotec Technology (60%) – a joint venture with
Outotec Outotec Oyj (Outokumpu Technology prior to 24 April 2007) was a Finnish company, headquartered in Espoo, aimed at providing technologies and services for the metal and mineral processing industries. In 2020 Outotec merged with Metso Minerals and ...
for developing
shale oil extraction Shale oil extraction is an industrial process for unconventional oil production. This process converts kerogen in oil shale into shale oil by pyrolysis, hydrogenation, or thermal dissolution. The resultant shale oil is used as fuel oil or up ...
technology * Enefit Jordan BV (76%, Jordan) :* Jordan Oil Shale Energy Company


See also

* Eesti Energia Tehnoloogiatööstus *
Iru Power Plant Iru Power Plant is a co-generation power plant in Iru village, Maardu, Estonia. It is owned by Enefit Green, a subsidiary of Eesti Energia. The plant has a heating capacity of . History The first unit of power plant was commissioned in 1978. In ...
*
Elering Elering AS (former name: OÜ Põhivõrk) is a national transmission system operator for electricity and natural gas with headquarters in Tallinn, Estonia. The managing director of Elering is Taavi Veskimägi. History Elering was established on ...


References


External links


Eesti Energia homepage
{{Authority control Electric power companies of Estonia Oil shale companies of Estonia 1939 establishments in Estonia Energy companies established in 1939 Companies based in Tallinn