Outotec and Eesti Energia to establish a Joint Venture for development of oil shale processing
OUTOTEC OYJ STOCK EXCHANGE RELEASE, NOVEMBER 3, 2008 AT 9.00 AM
Outotec and Eesti Energia to establish a Joint Venture for development of oil shale processing
Outotec and Eesti Energia have agreed to form a joint company for the development and marketing of sustainable, energy-efficient and economically viable oil shale processing methods. Eesti Energia will have a majority 60% stake and Outotec the remaining 40% stake in the new company, which aims to become a significant supplier of oil shale technology solutions, 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 the existing technologies for producing raw shale oil, to exploit the improved 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 production plant in Narva based on improved technology is aimed to be made in May 2009.
Outotec has tested the CFB technology with oil shale in its Research Center in Frankfurt during the summer of 2008. Besides oil shales and oil sands, the technology can also be used in the recycling of hydrocarbon containing materials such as waste plastics and old tires.
"Eesti Energia has accumulated unparalleled experience in the fields of oil shale mining, processing and oil shale based power generation. This joint venture will help us to start a new era in upgrading the production process and to meet today's environmental requirements", comments Sandor Liive, CEO of Eesti Energia and continues: "According to the BP Statistical Review of World Energy 2007, estimates of recoverable oil shale reserves are several times as much as the current proved conventional oil reserves on the earth. We are confident that the new technology developed in cooperation with Outotec will be producing a very significant proportion of non-conventional oil produced in the coming years."
"Because of tightening energy supply the world is looking for alternative oil sources. A significant source of oil is oil shale. Developing sustainable technologies for the oil shale industry is an important mission. There are large oil shale deposits for example in the USA, Brazil, China, Jordan, Russia and Estonia. We see that the new joint company has a lot of business opportunities with our CFB technology in the oil shale industry. Furthermore, this business shows that the technologies originally developed for the mining and metallurgical industry can be applied in other process industries", explains Outotec's CEO Tapani Järvinen.
"Because of tightening energy supply the world is looking for alternative oil sources. A significant source of oil is oil shale. Developing sustainable technologies for the oil shale industry is an important mission. There are large oil shale deposits for example in the USA, Brazil, China, Jordan, Russia and Estonia. We see that the new joint company has a lot of business opportunities with our CFB technology in the oil shale industry. Furthermore, this business shows that the technologies originally developed for the mining and metallurgical industry can be applied in other process industries", explains Outotec's CEO Tapani Järvinen.
Eesti Energia is the leading energy utility in the Baltic States as well as the biggest oil shale utilizing company worldwide, engaged in the production of oil and power, as well as in sale and delivery of electricity and heat to consumers. Besides the oil and power plants the company owns oil shale mines and quarries. www.energia.ee
Outotec is a worldwide technology leader in minerals and metals processing, providing innovative and environmentally sound solutions for a wide variety of customers in minerals processing, iron and steel, aluminum and non-ferrous metals industries. Outotec Oyj is listed on the Nasdaq OMX Helsinki. www.outotec.com
For further information please contact:
OUTOTEC OYJ
Peter Weber, President - Metals Processing division
tel. +49 6171 9693 165
e-mail peter.weber(at)outotec.com
tel. +49 6171 9693 165
e-mail peter.weber(at)outotec.com
Eila Paatela, Vice President - Corporate Communications
tel. +358 20 529 2004, +358 400 817 198
e-mail eila.paatela(at)outotec.com
tel. +358 20 529 2004, +358 400 817 198
e-mail eila.paatela(at)outotec.com