Eesti Energia said that it will have a majority 60% stake in the new company, while Outotec will hold the remaining 40% stake.
The new company aims to become a supplier of oil shale technology services, combining Eesti Energia’s experience in oil shale mining and processing and Outotec’s expertise in circulating fluid bed (CFB) technologies. This agreement supports Outotec’s growth strategy as well as Eesti Energia’s liquid fuels production strategy.
The joint company aims to improve Eesti Energia’s operational shale oil technology, to improve the technology in commercial production plants in Narva, Estonia, and to commercialize the technology for use on oil shale deposits worldwide. The decision for the construction of the first oil plant based on technology is aimed to be made in May 2009.
Sandor Liive, CEO of Eesti Energia, said: “This joint venture will help in upgrading the production process to meet future environmental challenges.”
Eesti Energia is an energy utility in the Baltic States as well as an oil shale utilizing company, engaged in the production oil and power, sale and delivery of electricity and heat to consumers. Besides the oil and power plants the company owns oil shale mines and quarries. Outotec is engaged in minerals and metals processing, providing services in minerals processing, iron and steel, aluminum and non-ferrous metals industries.
