SHANDONG POWER SECTOR FLUE GAS DESULFURIZATION (FGD) PROJECT OF WORLD BANK

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized SHANDONG POWER SECTOR FLUE GAS DESULFURIZATION (FGD) PROJECT OF WORLD BANK Environment Management Plan Zhenghe Group CO., LTD. October 2006 E1493 v 7

2 Table of Contents 1. Project description 2 2. Environmental management (mitigation) plan..5 3 Monitoring plan Institutional arrangement 9 5. Consultation with local NGOs and project affected 10

3 1. Project description 1.1 Introduction of the project Zhenghe Group has two thermal power plants, Zhenghe thermal power plant and Shandong Zhenghe thermal power Company. There are three parts in this FGD project, as the following: Zhenghe thermal power plant is located in about 7km north of Guangrao County, which has 3 35t/h chain-grate boilers and provides heat and power for the whole company. The existing 3 35t/h boilers adopt water film precipitator, and no FGD facility, so it has low efficiency and large amount of wastewater. The emissions of dust and SO 2 are more than 300 mg/nm 3 and mg/nm 3 compared with the standards of 250 mg/nm 3 and 1200 mg/nm 3 for dust and SO 2 respectively. The company will modify water film precipitator to electrostatic precipitator and install FGD facility (two FGD units) on the existing 3 35t/h boilers Shandong Zhenghe thermal power Company is 1 km away from Cuangrao County which has 2 75t/h boilers and will construct 2 130t/h boilers and two FGD units. The new constructed units will supply heat for residents in downtown. The existing 2 75t/h circulating fluidized bed (CFB) boilers adopt triangle electrostatic precipitator and add limestone into boiler for desulphurization. The desulphurization rate is 50%, which cannot meet the demand of Guangrao EPB and the emission standard of air pollutants for fossil power plants GB So the company decided to install dust removal systems and FGD systems (one FGD unit) on the existing 2 75t/h boilers The total need for heating in 2007 will be 360t/h, the existing capability of the boilers can not meet the demand. Therefore, Shandong Zhenghe thermal power Company decided to construct 2 new 130t/h CFB boilers on which electrostatic precipitator and FGD facilities will be installed After all the 3 projects have been completed, Nm 3 /h flue gas will be treated, 1,528 t/a smoke and 14,400t/a SO 2 3x35t/h+2x75t/h+ 2x130t/h boilers will be reduced. After the 2x130t/h boilers have been completed, they will replace 113 small boilers and 97 stacks in the old city, save 35,000 t/a coal, and reduce 2,000 t/a SO 2 and 21,000 t/a

4 dust. This project not only improves the atmosphere quality of local area but also benefits a lot in society and environment. All the projects will be modified in the old plant site, so there is no new land needed. 1.2 Local social and natural condition Guangrao County belongs to Dongying City, its total area is 1,485km 2, and it has 10 towns and 553 villages. Total population is 474,000 and farmland area is 76,000 mu. Zhenghe Group is located in Shicun Village, which is about 7.5 km north to Guangrao County; total area of the village is 87.1 km 2. Most land of Shicun Village is unproductive land with very low agricultural production. 1.3 Environmental Protection Targets Atmosphere Environmental Protection Target Thermal plant of Zhenghe Group Co., Ltd.: living area of Xianhe mining headquarters 1500m, Sanli Village 300m, Yueliu Village (3000m), Cao Bridge (2000m). Shandong Zhenghe thermal plant Co., Ltd.: the city Zone of Guangrao County (1000m), Sijia Village (500m), Jixu Village (1000m) Water Environmental Protection Target Thermal plant of Zhenghe Group Co., Ltd.: Xiaoqing River Shandong Zhenghe thermal plant Co., Ltd.: sewage water flowing into Development area sewage treatment plant Noise Environmental Protection Target Thermal plant of Zhenghe Group Co., Ltd. (3 x 35 TPH): the only residential area within 1 km around the plant is Sanli Village (population of about 300 people). Shandong Zhenghe thermal plant Co., Ltd(2 x 75 TPH): Sijia Village is about 500 meters from the plant.

5 1.4 Environmental protection institutional arrangement Environmental protection section of the company will take charge of the environment management. This section includes 2 managers (which are chemical industry engineer and have good working experience) and 4 environmental monitoring staffs to maintain the daily work. Dongying Municipal Environmental Monitoring Station will take the responsibility of supervision. 1.5 Status of EIA Documentation One EIA report for all three of the 35 TPH boilers was prepared and approved by the Dongying EPB in November 1996 and construction started in December This EIA did not include any discussion of FGD One EIA report for both of the 75 TPH boilers was prepared and approved by SPEPB in March 2000 and construction started in January This EIA did not include any discussion of FGD One EIA report for both of the 130 TPH boilers was prepared and approved by SPEPB in December This EIA did not include any discussion of FGD Three EIA documents were prepared for the FGD units: one each for the 35 TPH, 75 TPH and 130 TPH boilers respectively. All three EIAs were approved by SPEPB in January A consultation was held for all three EIAs in May 2005 and the documents disclosed to the village committees in December 2005.

6 2. Environmental management (mitigation) plan for all FGD Units Phase Item Issue Mitigating measures Cost of mitigation Responsibility Start Date End Date Air The impacts on air are from dust emission caused by earth digging, piling up and carrying; and the waste gas generated from diesel or gasoline burring of equipments and vehicles. Arranging a fixed place for piling up earth, and take preventive measures, such as spraying water, setting shields to minimize the adverse impact.; Use the cleaner fuel (unleaded fuel) to reduce the waste gas discharging; The pollution caused by vehicles has little impact on air quality. Contractor Starts Constructio n ends Water Living water is a big waste source, the main pollutant are COD and BOD The living water will be led to the treatment plant instead of discharging directly. The treated water can be used for spraying to avoid dust emission. The treatment plant is belonged to Zhenghe Group. The treatment type of is secondary type. Contractor Starts Constructio n ends Waste solid Thermal plant of Zhenghe Group Co., Ltd. will produce solid waste by dismantling the water film dust precipitator Shandong Zhenghe thermal plant Co., Ltd. has very little solid waste during construction According to the condition to use the solid waste for filling the solid waste to low-lying lands and cover good soil over it, then restore to green. Contractor Starts Constructio n ends Noise The noises from grab, bulldozer, road-roller, blender and crane etc. the noise level is 75~93 db (A). For both Sanli village and Sijia village, the distance between the actual construction area and the nearest residential dwelling is over 1 km. Work will be conducted between 7:00 AM-7:00 PM. Contractor Starts Constructio n ends

7 Phase Item Issue Mitigating measures Cost of mitigation Responsibility Start Date End Date Air Limestone powders when crushing Limestone powder: less than 50mg/Nm 3 by bag dust filter and airproof measures during storage, transport and preparation. Zhenghe Group, Production and Planning Department Operation starts Water Wastewater from gypsum dewatering process, 5~10t/h. The pollutant: ph (ph=5 6), salt (fluoride, sulphite and sulphate etc.) Wastewater flows into FGD wastewater treatment system, after disposal it is leaded into reuse pond, at last spray on the coal site for reducing dust, there is no discharge wastewater to the outside. Zhenghe Group, Production and Planning Department Operation starts Operation Solid waste The SO 2 and CaCO 3 in flue gas will combined to CaSO 4 2H 2 O through chemical changes. The purity of the gypsum (CaSO 4 2H 2 O) >90%. The amount is T/a (depends on the coal in the design) All the desulphurization gypsum will be sold to Dongxing cement plant (the contract have been signed) to produce cement. In order to avoid secondary pollution, seal air holder car is necessary. Zhenghe Group, Production and Planning Department Operation starts Noise Noise from the operation of blender, circulating pump and blower etc. The noise will have effect on environment and staffs during operation Choosing the equipments with low noise and carrying out preventive measures: 1.Adopting absorber on the groundwork of equipment; 2.Adopting sound insulation on system control room; 3.Installing mufflers and guide facilities on the inlet of fans; 4.Installing muffler on the exhaust outlet of boiler. Zhenghe Group, Production and Planning Department Operation starts

8 3 Monitoring plan Phase Parameter Site Method and equipment type Frequency Cost Responsibility Start Date End Date Wastewater No monitoring required since effluent will be connected to the wastewater treatment plant Dust site Visual Weekly (dust) or more frequently for dry and windy weather Production and planning Department starts ends Vehicle exhaust inspection certificate Entrance to construction site Visual Once, when vehicle arrives at construction site Noise Equivalent continuous A - acoustical level 150m around Working location; 50m around storage location Noise statistic analyzer If someone complains Guangrao County EPB starts ends waste The project site and disposal site Visual Weekly Production and planning Department starts ends Operation Production Wastewater ph (ph=5 6), salt (fluoride, sulphite and sulphate etc.) Water outlet after treatment, gypsum dewatering site PH meter, spectrometer Daily Production and planning department Operation starts Limestone dust Limestone crusher Visual Daily Production and planning department Operation starts

9 Noise Equivalent continuous A acoustical level 1m outside the plant Noise census analyzer Annually, or if there is a complaint Guangrao County EPB Operation starts Solid waste Gypsum No measurement necessary the material is sold for commercial use

10 4 Institutional arrangement Data Collection For both construction and operation will be the responsibility of the Production and Planning Department of the Company or the Guangrao County EPB as indicated in the Monitoring Plan. Data Analysis For both construction and operation will be the responsibility of the Production and Planning Department of the Company or the Guangrao County EPB Reporting and recommendations For both construction and operation is the responsibility of the Production and Planning Department Decision Making For both construction and operation is the responsibility of the General Manager

11 5. Consultation with local NGOs and project affected 5.1 Consultation Method Consultation meeting and questionnaire Time and date 9:00 am at May 19, 2005(the public notified about the consultation by posters which was pasted on the gate of Dongying Municipal EPB) Place First floor of Zhenghe Group Co., Ltd. Training building Who were invited? Dongying Municipal EPB: Liu Yunhua, Wang Xianghe, Wang Xiufeng, Wang Zhaowen Guangrao EPB: Guo Xinming, Xi Lihua, Liu Zhongyi Participator Group leader: Jiang wenxiang, Han Qili, Zhang Yingjun, Song Lumin, Wang Xianshan, Ren deping 85 delegates come from Shicun County, Guangrao County and County development Zone. And all of them finished their questionnaires and gave it to the project staffs Conclusion This project is a pure environmental protection project; it will reduce a large amount of atmosphere pollution and have a good social benefit. And the FGD project has a great support by local people.the key problem raised by local people is the impact during the construction and operation of this project. The project manager Ren Deping explained environmental mitigation plan and monitoring plan to the participants. At the end of the meeting, all the participants agree the construction of the project 5.2 Public questionnaire Name: The company or village you lived Sex: A. Male B. female Age: A. Under 20 B C D. under 60 Education Degree: A. High school B. junior college C. undergraduate Occupation: A. Worker B. farmer C. soldier D. student E. teacher F. cadre G. others

12 The distance between your home and the plant address: A. Less than 1 km B. 1 2 km C. 3 km away What do you think about environment quality around Zhenghe Group? A. Good B. Common C. Bad D. No comment What do you think about atmosphere environment quality around Zhenghe Group? A. Serious pollution B. light pollution C. good D. no comment What do you think the water quality of Xiaoqing River? A. Good B. Common C. Bad D. No comment What do you think the water quality of shallow ground water? A. Good B. Common C. Bad D. No comment What do you think about noise environment quality around Zhenghe Group? A. Good B. Common C. Bad D. No comment Do you agree Zhenghe Group will have good effort on the development of Guangrao County? A. Important B. Common C. No comment Did Zhenghe Group takes good care of pollution control A. Good B. Common C. Bad D. Not too bad What do you think the main pollution appearance on environment? A. Atmosphere B. Ground water C. Surface water D. Noise Do you think this construction of FGD project will aggravate the pollution degree? A. Yes B. No C. No comment Do you think this FGD project will promote the economic development of Guangrao County? A. Yes B. No C. Not so sure Do you have any suggestions on environmental management of this FGD project?

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