The Ministry of National Infrastructures believes that Israel oil shale-exploiting technologies give this energy resource an economic potential of $100 billion.
According to the Ministry's R&D division, "These technologies represent an nation-wide insurance policy against extraordinary fluctuations in fuel prices, or against difficulties in supply.
Oil shale is used primarily in electric power production. Most oil shale deposits are found in the Rotem basin in the Negev. Oil shale is sedimentary rock containing organic material from which liquid fuel may be extracted. The fuel possesses the same qualities as crude oil. Before offshore natural gas reserves were discovered, oil shale was Israel's most important energy resource.
Government company PAMA (Energy Resources Development) was founded to develop technologies. PAMA's partners include Israel Electric Corporation (IEC), Oil Refineries, and Israel Chemicals. The company has invested $100 million in R&D activity.
PAMA is now in the process of being shut down, but the Ministry of National Infrastructures wishes to preserve the company's accumulated know-how. A pilot plant for the production of electricity and steam by direct combustion of oil shale was built by PAMA in the Negev south of the town of Arad.
Published by Globes [online] - www.globes.co.il - on 23 June 2002