Toetuskiri

Sakala 1 / 15094 Tallinn / 717 0022 / [email protected] / www.kaitseministeerium.ee Registrikood 70004502

Estonian Business and Innovation Agency

Sepise 7, 11415 Tallinn, Estonia 04.08.2025 no 12-8/25/18

Letter of support on technology developed by Kerogen OÜ within the framework of RUP application The Ministry of Defence expresses its support in the technological advancements developed

within the Kerox IV: Pilot for Strategic Chemical Production from Kerogen project. This

initiative, led by Kerogen OÜ in collaboration with Tallinn University of Technology, focuses

on scaling and validating a controlled oxidation process for converting kerogen, the organic

component of oil shale, into high-value dicarboxylic acids (DCAs).

DCAs are essential feedstocks for plasticizer production, including in critical defence

applications such as C-4-type plastic explosives, which typically consist of 90% RDX-type

explosive and 10% plasticizer. They are also used to synthesize energetic plasticizers and

binders for propellant and explosive formulations, improving the stability, flexibility, and shelf-

life of energetic materials — key factors for the safety and reliability of ammunition, missiles,

and solid rocket fuels. The biodegradability and low toxicity of certain DCAs also make them

attractive for modern formulations that prioritize environmental safety and reduced hazardous

residue on the battlefield. Additionally, DCAs are key precursors in the manufacture of high-

performance polymers such as nylons, polyesters, and polyurethanes, which are widely used in

defence applications including ballistic fabrics, parachutes, armour, and military vehicle

components.

The Kerox initiative strengthens regional economic independence and supply security by

utilizing raw materials sourced entirely within the European Union to produce crucial chemical

intermediates for the defence sector. Local production of DCA-based plasticizers will

strengthen Estonia’s supply chain resilience, reduce reliance on external suppliers and align

with NATO’s objectives for increased regional defence preparedness. This initiative directly

supports Estonia’s national defence industry strategy and aligns with the government’s broader

efforts to establish a domestic explosives production capability. In June 2025, the sate-owned

company Hexest Materials AS was established to produce RDX-type explosive demonstrating

Estonia’s strategic focus on local production of a key component for munitions industry and

improving domestic supply chains.

We fully support the Kerox initiative and are committed to fostering collaboration within

Estonia’s defence sector to advance the development of technologies for military applications—

particularly in establishing domestic explosives and ammunition production capabilities. We

welcome the opportunity to engage in strategic cooperation and discussions on the industrial-

Sakala 1 / 15094 Tallinn / 717 0022 / [email protected] / www.kaitseministeerium.ee Registrikood 70004502

scale implementation of this technology and its integration into defence industry supply chains.

Yours sincerely, /signed digitally/ Siim Sukles Undersecretary for Defence Industry and Innovation