Construction of a 600 MW independent power plant and associated infrastructure. BACKGROUND INFORMATION DOCUMENT July 2011
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1 Construction of a 600 MW independent power plant and associated infrastructure for KiPower (Pty) Ltd near Delmas in Mpumalanga (DEA Ref No: 12/12/20/2333; NEAS Ref No: DEA/EIA/ /2011) BACKGROUND INFORMATION DOCUMENT July 2011 This Background Information Document provides Interested and Affected Parties (I&APs) with information on the environmental authorisations required for the proposed construction of an Independent Power Station and associated infrastructure for KiPower (Pty) Ltd near Delmas in Mpumalanga. This BID also provides I&APs with the opportunity to: Register as stakeholders in the public participation process; and Comment on the proposed project. You will be included on the stakeholder database and receive further documents for review and comment. To raise your concerns, complete the enclosed registration sheet, write a letter, call or the public participation office. Your comments are important The purpose of an Environmental Impact Assessment is to provide the decision-making authority with sufficient information on which to base their decision to grant or refuse an Environmental Authorisation and if granted, to define conditions for the development. The contributions made by stakeholders from all sectors of society will ensure informed decision-making. You are invited to participate freely and to submit any comments or information you feel may be useful to the EIA process. Registered interested and affected parties are entitled to comment, in writing, on all written submissions to the competent authority (Department of Environmental Affairs) and to bring to the attention of the competent authority, any issues which the party believes may be of significant to the consideration of the application. BACKGROUND TO INDEPENDENT POWER PLANTS In 2003 Government decided that future power generation capacity would be divided between Eskom (70%) and independent power producers (IPPs) (30%). In line with that decision, on 5 September 2007 Cabinet designated Eskom as the single buyer of power from IPPs in South Africa. Eskom currently supplies over 95% of the country's electricity and about 60% of the total electricity consumed in Africa. Eskom then launched the Multi Site Baseload IPP programme, inviting interested parties to submit Statements of Qualification for the provision of electricity, excluding nuclear power. Each IPP will benefit from a power purchase agreement with Eskom for a minimum of 200 megawatt (MW) with an envisaged term of 25 years from the date of project commercial operations. Interested parties were required to select sites inside South Africa as determined by KiPower (Pty) Ltd is a subsidiary of Kuyasa Mining, which also owns the Delmas and IkhweziCoal Mines 10km south-east of Delmas in Mpumalanga. KiPower wishes to establish a 600 MW power plant in close proximity to Delmas Coal, utilising coal from this mine as the fuel for the power plant. The power plant will consist of four 150 MW units. Associated with the power plant, would be an ash disposal facility that must also be located near the plant. Sufficient coal is available from Delmas Coal to supply the plant. The power plant and associated infrastructure will be designed for a life of 30 years. The associated infrastructure includes: Access road from the R50 road; Coal and ash haul route (road or conveyor); Laydown area; and PROJECT BACKGROUND access to fuel, transmission infrastructure and water sources. Connection to the Eskom transmission grid shall be made in compliance with the terms of the SA Grid Code. The National Energy Regulator of South Africa (NERSA) is the regulatory authority responsible for the electricity supply industry in South Africa. In Its National Integrated Resource Plan published in 2009, NERSA has determined that, while various alternative and renewable electricity generation options should be continually investigated, coal should still provide the main fuel source in South Africa. KiPower qualified as an IPP that can provide commercial electricity generation. In order to install and operate the proposed power plant, KiPower must obtain various environmental authorisations, for which this EIA process is required. Bulk water supply (separate EIA). The ash from the power plant would need to be disposed of on an ash disposal facility. For a 600 MW plant approximately tonnes per month of ash will be generated. This translates to almost 50 million tonnes of ash over an operating life of 30 years. Thus, the location of the power plant and the ash facility are key decision points in the project development. KiPower may also wish to expand the power plant capacity in future up to 2000 MW, depending on economic factors over time. Coal Coal can be supplied from either the North Shaft or South Shaft of the Delmas Coal Mine. North Shaft has a crusher plant and will be able to supply crushed coal to the power plant. A new crusher plant would be required at South Shaft if coal is supplied directly from this shaft. The power plant will require 2.8 million tonnes of coal per annum. It will run on low grade, high
2 sulphur, high ash content coal, which has a very low market value. Water supply Delmas Coal plans to bring in additional potable water either by tapping into a Rand Water line that runs between Springs and Devon or by tapping into the proposed bulk water line to Delmas. Other potential sources of water are also being investigated by the mine. The power plant, although a dry cooling system, will have a significant water requirement, of approximately cubic meters per month. It is proposed that water for the mine and power plant come from the same source and therefore a separate project is running in parallel to this one, to find potential sources of water and then develop the supply pipeline to the mine and the power plant. A Water Use License Application will also be submitted to the Department of Water Affairs for the plant and ash facility. Access The provincial R50 road runs to the north of Delmas Coal and North shaft is accessed directly off this road. It is likely HOW DOES A COAL-FIRED POWER PLANT WORK? Electricity generation from a coal-fired power station requires that coal be burned to heat water which is then converted into superheated steam. This steam turns a large turbine connected to a rotating magnet that converts this mechanical energy into electrical energy (electricity), which is then further increased via transformers into high voltage electric power. A 200 MW Circulating Fluidized Bed boiler in China Source: LaboratoryofCirculatingFluidizedBed/ High voltage transmission lines transport the electricity from the power station into a transmission network. Electricity must that both the power plant and the ash disposal facility would require access onto this road for construction and operations. There is a rail link that runs to the west of the mine, and some raw materials, such as the dolomite or lime stone to be used for air emissions control (sorbent), can be brought in via this route as well. This rail link is used to export coal from Delmas Coal. Landownership Whilst Delmas and Ikwezi mines are owned by Kuyasa Mining, the surrounding land is mainly owned by various farming enterprises and BHP Billiton. KiPower will need to purchase land and ensure it is correctly re-zoned before any industrial development may take place. Labour Between and skilled and unskilled labour will be required for the project during construction and around 200 during operations. Unemployment is high in Delmas and the surrounding small towns and thus this project will offer some relief in the form of employment opportunities. Nevertheless, labour is likely to be imported during construction to meet the high numbers of people required during this period and to meet the skills level required. Plant area required A 600 MW power plant requires some 40 hectares for just the plant, whilst a 2000 MW plant requires about 160 hectares. Ash disposal area required The ash disposal facility will require somewhere between 150 and 250 hectares to accommodate 600 MW ash generation over 30 years. If the power plant is expanded over time, this area requirement will grow as well. Thus land that allows for expansion of the ash facility would be favourable. Construction lay-down A lay-down is the area used during construction to store materials, equipment, vehicles and to house offices and ablutions for construction personnel. Power plants take 3 to 4 years to construct, and are highly labour intensive in the construction phase. As a result, up to 100 hectares may be required for the lay-down area. then be transformed in substations to voltages more suitable for industrial and residential uses. The technology proposed for this power plant is a Circulating Fluidised Bed (CFB) which is proven technology that has become a very efficient method of generating electricity with low emissions and environmental impacts. In a CFB combustion process, crushed coal is mixed with a sorbent such as limestone or dolomite and fired in a process resembling a boiling fluid. The sorbent removes the sulphur and converts it into an environmentally-benign powder that is removed with the ash. Fluidised beds suspend solid fuels on upward-blowing jets of air during the combustion process. The result is a turbulent mixing of gas and solids. The tumbling action, much like a bubbling fluid, provides more effective chemical reactions and heat transfer. Fluidised bed combustion evolved from efforts to find a combustion process able to control pollutant emissions without external emission controls (such as scrubbers). The technology burns fuel at temperatures of around 900 degrees Celsius, which is well below the threshold temperature where thermal Nitrogen Oxides can form (at approximately 1300 degrees Celsius, nitrogen and oxygen atoms in the combustion air combine to form nitrogen oxide pollutants). The mixing action of the fluidised bed brings the flue gases into contact with a sulphur-absorbing chemical, such as limestone or dolomite. Approximately 90% of the sulphur pollutants in coal can be captured inside the boiler by the sorbent.
3 SITE SELECTION CRITERIA 2x135 MW CFB Shendong Baode Power Plant in Shanxi, China (Source: Selecting the best site for a proposed development is important to prevent or minimise long term operational and environmental management issues, and is dependent on many factors. Nine sites were initially identified in a site selection process, and unsuitable sites as well as less suitable sites were eliminated. Four of the most suitable sites will be investigated during the Environmental Impact Assessment (EIA) process. Land owner notification has been carried out for these preferred sites. The site selection process done prior to the EIA will be carried into the Scoping Phase of the EIA as a supporting report. Site selection legal requirements The National Environmental Management Act, No 107 of 1998 (NEMA) as amended does not indicate specific requirements for site selection or consideration of alternatives. Nevertheless, it does require that alternatives be considered and assessed in order to identify the best practicable environmental option. The National Environmental Management: Waste Act, No 59 of 2008 (NEMWA) also requires that consideration of alternatives in terms of site and technology be considered. The latest Department of Water Affairs Minimum Requirements is used as a best practice guideline in assessing new applications. These outline a step-wise approach for the selection of sites, starting with a broad-area based assessment of potential sites and eliminating sites as more detail is gathered on sites that show potential for the intended use. The process outlined in this report follows this best practice guideline approach. Methodology A step-wise site selection process has been followed to ensure the best available location is found for the power plant and the ash disposal facility. Site identification criteria Both the ash disposal facility and the power plant require the following key criteria with respect to their location: The area must preferably not be undermined due to long term ground stability risks associated with undermined areas. The area must not hold viable reserves of coal, which would be sterilised if the plant or ash were placed on it. The area should preferably have a low agricultural potential. Surface water resources must be protected due to the highly stressed nature of the local water sources. Known biodiversity sensitivities must be avoided, especially wetlands. The power plant and ash disposal facility must be within close proximity of the coal source and preferably each other. Identification of potential sites Based on the information listed under site identification criteria, potential areas were identified for location of the power plant and/or ash disposal facility. Screening of potential sites The nine sites were screened in terms of two sets of criteria: Technical screening for a power plant, which looked at distance to coal supply; topography; site constructability; transmission connection; water supply; distance to ash facility; expansion potential; underground workings; coal reserves; land ownership and accessibility. Technical screening of ash disposal sites also looked at capacity of sites; storage efficiency; topography; drainage direction; slope; expansion potential; conveyor/truck access; land ownership.; potential to fit plant and ash on site and geotechnical. Environmental screening investigated disciplines such as ground water; surface water; economic; ecology and aesthetics. The technical and environmental criteria were considered and the four best possible sites for the proposed development will be investigated further during scoping.
4 LEGAL REQUIREMENTS The proposed power plant requires a number of environmental processes and approvals. The processes will be conducted simultaneously as integrated processes complemented by a combined public participation process. These processes are discussed below. NATIONAL ENVIRONMENTAL MANAGEMENT ACT The proposed project and associated infrastructure requires an Environmental Impact Assessment (EIA) in terms of the National Environmental Management Act (NEMA), No 107 of 1998 and the new EIA regulations (Government Notice Regulation R.543 to 546, published in June 2010). As per Government Notice R.543 of June 2010, Chapter 2 the competent authority must consult with every government organ that administers a law relating to a matter affecting the environment relevant to that application for an environmental authorisation when considering an application. Therefore, the Department of Water Affairs, the Mpumalanga Department of Economic Development Environment and Transport, other Directorates of the Department of Environmental Affairs, Nkangala District Municipality and Victor Khanye Local Municipality (Delmas) are commenting authorities in this process. This process includes Scoping and Environmental Impact Report (S&EIR) Phases, which are applicable to all projects likely to have significant environmental impacts due to their nature or extent, activities associated with potentially high levels of environmental degradation, or activities for which the impacts cannot be easily predicted. In terms of Government Notice R.544 of 2010, the following listed activities require that a Basic Assessment be undertaken for the proposed project (these activities having a lesser impact than those of the activities requiring an S&EIR and will result in one EIA being undertaken for the proposed project): Activity 2: Coal will be conveyed to the power plant from the Delmas Mine. A holding facility for coal will be required at the plant as buffer storage. Activity 11: Bridge crossings may be required for the transfer of coal, ash, waste and or water depending on the final site selection scenario. Activity 12: Water and storm water storage facilities on site will be required as part of the water management infrastructure for the plant. These may exceed m 3 depending on the site specific drainage conditions. Activity 13: Dangerous goods may be stored on site such as diesel and chemical reagents. It is unlikely that the storage capacity would exceed 500 m 3. Activity 18: Conveyors may cross watercourses resulting in the disturbance of embankments. Activity 20: The power plant will fall within the mining rights area of Kuyasa Mine and an amendment of the mining rights will required for the project. Activity 22: An access road to the power plant will be required. This will tie into the existing provincial road that runs to the north of the mine. Activity 47: Widening of existing access roads may be required. In terms of Government Notice R.545 of 2010, the following listed activities require that a S&EIR be undertaken and are applicable to this proposed project: Activity 1: A proposed power plant of 600MW. Activity5: Air Emissions Licence and Water Use Licence will be required for the power plant. Activity 6: Conveyors for ash and coal transport will be required. Activity15: The power plant will require in excess of 20 hectares, and possibly up to 40 hectares. In terms of Government Notice R.546 of 2010, the following listed activity requires that a S&EIR be undertaken and are applicable to this proposed project: Activity 14: Clearing of area bigger than 5 hectares outside urban area. Therefore, for the proposed power plant, a Scoping and Environmental Impact Report (S&EIR) has to be undertaken. NATIONAL ENVIRONMENTAL MANAGEMENT WASTE ACT With the proclamation of the National Environmental Management Waste Act (NEM:WA), No 59 of 2008, all waste related activities previously listed under the National Environmental Management Act (NEMA), No 107 of 1998 have been repealed and are now listed under the NEM:WA. Government Notice R.718 of the NEM:WA highlights the waste management activities that require environmental licensing. In terms of this notice the following activities require authorisation: Category A 3(1): It is expected that more than 100 m 3 of general waste will be stored on site, especially during the construction phase of the power station. Category A 3(2): It is expected that more than 35 m 3 of hazardous waste will be stored on site, especially during the construction phase. Category A 3(5): At the waste recycling plant/salvage yard more than 1 ton of general waste will be sorted for recycling purposes per day. Category A 3(9): Should a garden waste composting plant be constructed it will have the capacity to treat more than 10m 3 of garden waste per day. Category A 3(11): More than 2000m 3, but less than 15000m 3 of sewage water will be treated at the onsite sewage works per annum. Category A 3(12): During the construction and operational phase, it is likely that diesel and oil spills will be treated in situ. Category A 3(18): The construction of facilities for any of the above listed activities (Category A 3(1, 11 & 12)). Category B 4(9): This activity is triggered by the disposal of the boiler ash onto a waste disposal facility.
5 Category B 4(10): This activity is triggered by the disposal of the boiler ash onto a waste disposal facility, if the ash classifies as being hazardous. As described in the Regulations a person who wishes to commence, undertake or conduct an activity listed under this Category, must conduct an Environmental Impact Assessment (EIA) process, as stipulated in the EIA regulations made under Section 24(5) of the NEMA as part of a Waste Management License Application. Therefore the proposed development requires the submission of a Waste Management License Application as well as a Scoping and Environmental Impact Report (S&EIR) to the Department of Environmental Affairs. NATIONAL WATER ACT An Integrated Water and Waste Management Plan(IWWMP) will be required as well as an Integrated Water Use License in terms of Section 21 of the National Water Act (No 36 of 1998). Various other water uses during construction and operation will require licensing. A full list of water uses to be licensed will be identified during the early stages of this EIA process. NATIONAL ENVIRONMENTAL MANAGEMENT: AIR QUALITY ACT All power stations require an Emissions Licence in terms of the National Environmental Management: Air Quality Act (No 39 of 2004) (NEM: AQA). A comprehensive legislative review on all air quality requirements applicable to power plants and coal mines will be undertaken before this study will commence. Reference will be made to the NEM:WA as well as the National Ambient Air Quality Standards and the Minimum Emission Limits for Listed Activities. VICTOR KHANYE LOCAL MUNICIPALITY All properties to be used for this proposed project must also be properly rezoned according to the requirements of the Victor Khanye Local Municipality or the Development Facilitation Act. ENVIRONMENTAL IMPACT ASSESSMENT An Environmental Impact Assessment (EIA) is a planning and decision-making tool undertaken in terms of the National Environmental Management Act (NEMA), No 107 of For this project, all the other environmental processes will feed into the EIA. An EIA has two parallel and integrated processes namely, a technical and a public participation process. The technical process investigates "hard" information: facts based on scientific and technical studies, statistics or technical data. It identifies the potential negative and positive consequences of a proposed project or development at an early stage and recommends ways to enhance positive impacts and to avoid, reduce or mitigate negative impacts. The EIA regulations require that an Environmental Management Programme (EMProg) be developed. The EMProg provides recommendations on how to operate and implement the project. The provisions of the EMProg are legally binding on the developer and its contractors Public participation ensures that the EIA process is fair, open and transparent. It also provides stakeholders with sufficient information and gives them opportunity to contribute by reviewing and commenting on the information TECHNICAL AND PUBLIC PARTICIPATION PROCESSES Arrangement with regards to negotiations with landowners, if necessary, for land and servitudes and compensation will be shared with the stakeholders during the public participation process of the EIA. However these negotiations will take place in a separate process. The findings of the EIA will assist landowners and KiPower to determine the extent of local impacts in support of any negotiations that might be necessary. The public participation process is designed to provide sufficient and accessible information to Interested and Affected Parties (I&APs) in an objective manner to assist them to: Raise issues of concern and make suggestions for alternatives and enhanced benefits. Contribute local knowledge. Verify that their issues have been captured and considered by the technical investigations. Comment on the findings of the EIA. PHASES IN AN EIA SCOPING PHASE The first phase of an EIA is the Scoping Phase, which is conducted to gain an understanding of the potential environmental issues that are relevant to the project and to determine where further information is required, in the form of specialist studies/investigations. The Scoping Report and Plan of Study for the EIA are submitted to the competent authority for review and to approve the proposed approach to the detailed investigation required in the next phase.
6 Activities involved in the Scoping Phase include: Meetings with authorities to agree on process and study requirements; Initial public and landowner notification, which includes placing of site notices, the distribution of letters, this Background Information Document and an invitation to contribute to the EIA process to I&APs in the project area and beyond; Advertisements in local and regional newspapers to announce opportunities to participate; Progress feedback letter to be issued and announcements to be made of the availability of the Draft Scoping Report (DSR) and Issues and Responses Report (IRR); Distribution of a DSR, including IRR, for comment; Convening a stakeholder meeting in the project area to obtain comment on the DSR; Submission of a Final Scoping Report (FSR), capturing all issues raised for the impact assessment, to the DEA; Submit the Plan of Study for the EIA to the DEA; Distribution of the FSR for comments; and Distribution of a progress feedback letter to stakeholders. The second phase is the Environmental Impact Report (EIR) Phase, which entails undertaking various specialist studies and compiling a Draft EIR. As part of the assessment, an Environmental Management Programme (EMProg) as well as an Operational Plan will also be submitted to the Department of Environmental Affairs for its approval. By following the EMProg, KiPower and its contractors will ensure compliance to environmental regulations during the planning, construction, operation and decommissioning (if applicable) phases. The list of identified specialist studies required for this EIR (to date) is listed below (all seasonal dependent studies will be undertaken in the wet season): Traffic; Air quality; Soils; Socio-economic; Heritage; Groundwater; Biodiversity; Surface water; Cost assessment for haulage alternatives; Geotechnical; Noise; and GIS for mapping purposes. ENVIRONMENTAL IMPACT REPORT PHASE DECISION-MAKING PHASE The names of the specialists who will undertake these studies are available from the public participation office. Specific activities in this phase will include: Specialist studies focused on outcomes of the Scoping Phase and issues raised by stakeholders; Progress feedback to stakeholders; Compilation of a Draft EIR and EMProg indicating the potential positive and negative impacts and measures to enhance positive impacts and to reducee or avoid negative impacts; Environmental Impact Statement, highlighting the preferred alternative and reasons thereof; Advertise the availability of the Draft EIR and EMProg in local and regional newspapers; Distribution of the Draft EIR and EMProg, including Issues and Responses Report, for comment; A stakeholder meeting in the project area to present the findings of the EIR for stakeholder comment; and Distribution of the Final EIR and EMProg for comment. The EIR and EMProg will then be finalised and submitted to the Department of Environmental Affairs for authorisation. Technical reports from all the environmental studies undertaken during this project will be available for public review during this phase. The third phase involves notifying the registered I&APs about the decision from the Competent Authority, the Department of Environmental Affairs in this case. The Department of Environmental Affairs must accept or reject this report within 105 days. Stakeholders will be advised of the Department s decision if Environmental Authorisation has been granted or not and of the appeal procedure should they wish to appeal the decision. Contact Us Public Participation Office: Andre Joubert Zitholele Consulting P O Box 6002, Halfway House, 1685 Tel: Fax: andrej@zitholele.co.za
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