SHANDONG POWER SECTOR

FLUE GAS DESULPHURIZATION (FGD) PROJECT

Environmental Management Plan

Shandong LICUN Thermal Power Plant

October 2006

Content

1. Project introduction 2

2. Project Description 3

3. Environmental Mitigation Plan 6

4. Environmental Monitoring Plan 8

5. Institutional Arrangements 9

6. Public Participation 10

1. Project introduction

Shandong Licun Thermal Power Plant, which was established in Jan. 2001 with CNY 70 million legal capital and CNY 180 million fixed assets, covering an area of 130 m2, is located in Gaoqing County, Zibo City. The power plant has been approved to construct 5×75 t/h CFB units and 3×12MW condensing turbines approved by Shandong DRC, till now four CFBs and three units of turbines have been installed. Licun Thermal Power Plant is the only co-generation power plant in Gaoqing County with the capacity of 70t/h average industrial heat load and 80t/h average heating load in winter. The current heating capacity is 300 giga-joule/a and power generation capacity is 260 million KWh/a, which comes into CNY130 million turnovers per year, CNY32 million taxes and CNY18 million benefits.

Licun Thermal Power Plant supplies heat energy for local industries and residents near around and replaced more than 20 small own boilers of 10 factories in this area, improving the local environment conditions. Licun Thermal Power Plant planned to install 5×75 t/h CFB units to match with desulphurization for environmental protection in Gaotang County.

Four boilers have already been constructed and are operating (Boilers #1, #2, #3, and #4), Boiler #5, is planned to be constructed in June 2007 and Boiler #6 has not yet been approved. Two Environmental Impact Assessment (EIA) documents have been prepared. The first EIA report (EIA1) addresses Boilers #1, #2, and #3 and the second (EIA2) addresses Boilers #4 and #5. A public consultation for EIA1 was conducted in August 2000 and the EIA was approved in September 2001. The public consultation for EIA2 was conducted in April 2003 and the EIA was approved in December 2003. Neither EIA included the FGD in the analysis.

The project will include three FGD units: one for Boilers #1 and 2, one for Boilers #3 and #4, and one for Boiler #5. According to the Shandong Provincial Environmental Protection Bureau (SPEPB), an EIA will be required for the FGD units. One EIA document will be prepared for all three FGD units.

2. Project Description

l  Project Investment

The total investment of this project is CNY26.4 million, including the loans from World Bank. The FGD facilities will be constructed in existing plant.

l  Social and natural conditions

The project location lies in Gaotang County, Zibo City, which in the middle of Shandong alluvial plain. Gaotang county covers an area of 831 km2, with 10 towns and the total population of Gaoqing County is 360,000.

The area is in warm temperature semi-humid climate zone. The average temperature is 13.5 oC during a year, the max value is in July and the minimum is in Jan. The southwester in spring and northeaster in autumn is the dominant wind tendency and always changes seasonably.

There’re plentiful sources in Gaotang County, especially 150 million tons proved petroleum storage, 1.5 cubic meters natural gas and 1 billion cubic meters CO2. The coal for this project is from XINWEN coal mine and ZIBO coal mine, vehicles are the main transport tools.

l  Social benefit analysis

Licun Thermal Power Plant has been laying emphasis on environmental protection for years. Through electrical dust collection project, sound absorption measures for equipment noise, water recycling and living water treatment, great improvement has been achieved on dust, noise and wastewater treatment, which is also encouraged by local EPB.

Based on the compare of some FGD technologies and the actual situation, MgO wet desulphurization technology, is selected for the proposed project.

This technology is of high efficiency to deal with 90% and more flue gas. The unit consists of absorbent manufacturing system, flue gas and SO2 absorbing system, MgSO4 recycling system, technical water system, slurry effluent and recycling system. The removal efficiency will be above 95% and the SO2 concentration can meet the State emission standards of 1200mg/Nm3 (GB13223-2003). Also, the total amount of SO2 shall not exceed 1260t/a, according to total emission control index established by Zibo government.

l  Environmental protection targets

According to the situation of project location, environment status, emission amount and kinds, the environmental protection targets are focused on the following aspects:

(1)  Ambient air: There’s no natural protection area and historical relics near the power plant.

(2)  Surface water: Gan’er Pai (a nearby canal)

(3)  Noise: the nearest residential area is 500m away from the power plant, of 150 households.

The report on coal quality testing shows that S content of ad is 1.6~3.0% (the average value is 2.5%). The SO2 discharging amount is 2.475t/h and the annual total amount sum to 14,850t (running hours 6000h/y) without FGD installation, the SO2 concentration at the chimney outlet is 4500 mg/Nm3. The heavy pollution on local environment is obvious.

With FGD facilities installation, the SO2 discharging amount could be reduced to 0.12t/h, and the total amount would be 742.5t/a (running hours 6000h/y), the reduction amount is 14107.5t. The SO2 concentration at the stack outlet could be reduced to 225mg/Nm3, which is much lower than the state standards.

Item / SO2 (T/a) / Dust(T/a)
Current Discharging Amount / 14880 / 4500
With FGD Installed / 744 / 225
Zibo City EPB Standard / 1260 / 400

l  Pollution and preventive measures

(1) Wastewater

The amount of wastewater is from dewatering component of MgSO4 desulphurization is 3.4t/h. A wastewater treatment plant will neutralize the effluent (pH adjustment) and remove suspended solids with an organic flocculating agent; the sludge separated from wastewater treatment will be filtered and pressed into fuel for the boiler. After the treatment, the effluent can be used for washing and spraying.

(2) Noise

The noise caused by construction equipments, such as blowers, circling water pumps, oxygenation blowers, air compressor, slurry pumps and other pumps, has adverse impacts on environment and the workers.

Among the machines mentioned above, Roots oxygenation blower and circling water pump are placed open beside the desulphurization towers separately; the air compressor is placed in rooms and the booster fan is open placed.

The preventive measures are focusing on noise source control as follows:

1.  Equipping sound-insulation covers of silencers for some heavy-noise equipments, such as oxygen blower,

2.  Managing noise levels of main rotating equipments, especially from the equipments selection;

3.  Covering sound-absorption material on blowers to keep the noise level below 85dB(A) at 1m area;

4.  Straight flow design of the flue pipe and sound insulated support structure to reduce noise

The noise level in this FGD project is shown as the following:

1 / FGD air compressor (3m away from the FGD inlet) / dB(A) / ≤85
2 / Oxygenation blower (3m away from the FGD inlet) / dB(A) / ≤85
3 / Other devices(1m away from the noise source) / dB(A) / ≤85

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3. Environmental Mitigation Plan

Phase / Item / Issue / Mitigating measures / Cost of mitigation
(If substantial) / Responsibility / Start Date / End Date
Construction / Air / The impacts on air are from dust emission caused by earth digging, piling up and transporting as well as the sand and cement. Dust emission will be spread around by wind. / Piling up earth in the spare space in the east north in the power plant, and take preventive measures, such as spraying water, setting shields to minimize the adverse impact. / CNY 40,000 / Licun Thermo-Electric Co.
(Civil Works Department) / 2007/09 / 2008/03
Water / Domestic water from workers living in the company housing complex is a minor waste source, the effluent CODcr is among 100~200mg/L / The domestic water will be led to the Gaoqing County wastewater treatment plant. / CNY 60,000 / Licun Thermo-Electric Co.
(Civil Works Department) / 2007/09 / 2008/03
Waste solid / Construction waste from demolishing current building in project location, about 200m3. / The solid waste is mainly used for filling the bottomland and other useless solid waste will be transported Gaoqing County disposal site / CNY 200,000 / Licun Thermo-Electric Co.
(Civil Works Department) / 2007/09 / 2008/03
Noise / The noises from grab, bulldozer, road-roller, blender and crane etc. the noise level is 75~93 dB (A) at 1 m. The range of influence is 20m during daytime. / There’s no sensitive site and village within 500m around, so the noise would not disturb the residents on some extent as the construction work is arranged in the daytime (7:00 AM to 6:00PM). / CNY 200,000 / Licun Thermo-Electric Co.
(Civil Works Department) / 2007/09 / 2008/03
Operation / Air / MgO powers when crushing / MgO powder: less than 50mg/Nm3 after bag dust filter. / 10/a / Licun Thermo-Electric Co.
(Production & Technology Department) / 3/2008 / Ongoing
Water / Wastewater from MgSO4 dewatering process is1~2t/h. The pollutant: pH (pH=7~9), Cl-, COD, salt (fluoride, sulphite and sulphate etc.)
Wastewater of washing FGD equipment during maintenance. / The wastewater is treated by neutralizing, flocculating and sedimentation, and finally discharged after concentrating and pH adjustment.
The system consists of three parts, wastewater treatment, reagent reaction and sludge treatment.
The wastewater after washing will be collected and recycled to the absorption tower during operation / 5/a / Licun Thermo-Electric Co.
(Production & Technology Department) / 3/2008 / Ongoing
Solid waste / The MgO and SO2 in flue gas will combined to MgSO4·7H2O through chemical changes. The purity of the gypsum (MgSO4·7H2O) >95%, fineness: 30~60um; Water content <10%. / All the by-product MgSO4·7H2O will be sold to a fertilizer plant (transportion is by closed truck). A letter of intention has been signed / Minor / Licun Thermo-Electric Co.
(Production & Technology Department) / 3/2008 / Ongoing
Noise / Noise from the operation of blender, circulating pump and blower etc. level: ≤85 dB (A). The noise lever of ball mill is 90~105 dB (A) all at 1 meter / Choosing the equipments with low noise and carrying out preventive measures:
The flue pipe will be designed as straight as possible with no sharp turns to reduce noise;
Planting shrubbery and arbor around the plant for sound absorption.
The measures above should eliminate the noise level by 15~20dB (A) These measures will assure that the noise levels at one meter from the equipment is less than 85 dB[A] which is the Chinese standard (GB 3096/1993) for noisy equipment” / CNY2, 000 / Licun Thermo-Electric Co.
(Production & Technology Department) / 3/2008 / Ongoing

4. Environmental Monitoring Plan

Phase / Parameter / Site / Method and equipment type / Frequency / Monitoring cost/
equipment cost / Responsibility / Start Date / End Date /
Construction / Air / Blender
dust emission construction site / Construction site dust will be observed visually / Weekly, more frequently during dry windy weather
Once when vehicle first enters property / CNY 5,000/once / Licun Thermo-Electric Co.
(Civil Works Department) / 2007/09 / 2008/03
Wastewater
(pH, SS, BOD, COD) / No monitoring is needed since the effluent is sent to the Gaoqing County wastewater treatment plant
Solid waste / Disposal Site / Observation / Weekly / CNY 2,000 RMB /time / Licun Thermo-Electric Co.
(Civil Works Department) / 2007/09 / 2008/03
Noise
(Equivalent continuous class-A) / sensitive site within 150m of construction and buildings within 50m of piling place / Noise analyzer / Monthly or when there is a complaint / CNY 5,000 RMB /time / Licun Thermo-Electric Co.
(Civil Works Department) / 2007/09 / 2008/03
Operation / Dust / MgO Crusher / Visual / Weekly / Negligible / Licun Thermo-Electric Co. (Production and Technology Department) / 2008/03 / Ongoing
Wastewater
(PH、SS、Cl-、SO42-、SO32-, fluoride) / Wastewater treatment plant discharging outlet / pH meter, atomic absorption, spectrophotometer / Monthly / CNY 1,000 /PH meter / Licun Thermo-Electric Co. (Production and Technology Department) / 2008/03 / Ongoing
Noise (equivalent continuous class-A) / 1m away from the boundary / Noise analyzer / Quarterly, or when there is a complaint / CNY5, 000 /once / Zibo Monitoring Station / 2007/08 / Ongoing

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5. Institutional Arrangements

·  Data Collection

During Construction, the Licun Thermal Power Plant Civil Works Division will be responsible for collecting environmental data.

During Operation, the Zibo EPB or the Licun Thermal Power Plant Production and Technology Department will be responsible for data collection as indicated in the Monitoring Plan presented above.

·  Data Analysis

During Construction, the Licun Thermal Power Plant Civil Works Division will be responsible for analyzing the environmental data.

During Operation, the Licun Thermal Power Plant Production and Technology Department will be responsible for analyzing the environmental data.

·  Reporting on Environmental Monitoring

During Construction, the Licun Thermal Power Plant Civil Works Division will be responsible for preparing monthly environmental monitoring reports including any recommended actions.

During Operation, the Licun Thermal Power Plant Production and Technology Department will be responsible for preparing monthly environmental monitoring reports including any recommended actions.

·  Management Action

Both during construction and operation, the General Manager of the Licun Thermal Power Plant will receive the reports and has the authority to act upon any of the re4commended actions

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6. Public Participation

1. Method: Media, date

In order to propagandize the FGD project, find out the public’s advice on environmental protection and make the decisions more scientifically, Licun Power Plant invited some representatives from Gaotang government, local enterprises and schools etc. to sit together to discuss some social issues on Nov.24, 2005.

Vice-Manger Mr. Wang Xiangyuan gave a brief introduction of the project at the beginning and then replied some questions; each attendant resident fills a questionnaire at the meeting.

2. The following table shows the detailed information of attended residents

Item / Number / Proportion of total (%)
Age / 19~35 / 25 / 62.5
36~55 / 15 / 37.5
Education / Junior school / 12 / 30
Secondary school and above / 28 / 70
Occupation / Peasant / 5 / 12.5
Worker / 15 / 37.5
Teacher / 20 / 50
Address / In-plant/downtown / 30 / 75
Country / 10 / 25

3.Survey results