China - HFC-23 Emission Reduction Project : environmental assessment (Vol. 1 of 2) : HFC-23 Emissions reduction at Jiangsu Meilan Chemical Co. Ltd.

E1244 v. 1 Environmental Assessment Report HFC-23 Emissions Reduction at Jiangsu Meilan Chemical Company, Ltd. November 18, 2005 China Green Enterprise Limited Chinese Research Academy Of Environmental Sciences  Table of Contents 1 Introduction.......................................................................................................................1 2 Project Settings..................................................................................................................3 2.1 Information about the Company ..................................................................................3 2.2 Information about the Site and Its Surroundings .........................................................4 2.3 Environmental Characteristics .....................................................................................9 2.3.1 Geology and Topography..................................................................................9 2.3.2 Climate andAmbientAir Quality......................................................................9 2.3.3 Hydrogeology andAmbient Water Quality.....................................................10 2.3.4 Noise Levels....................................................................................................12 2.3.5 Other Environmental Characteristics..............................................................12 3 Descriptions of the HCFC-22 Production and HFC-23 Destruction Processes.........13 3.1 Description of the HCFC-22 Process.........................................................................14 3.1.1 HCFC-22 Process at PlantsAand B...............................................................14 3.1.2 Source, Treatment, and Discharge of Pollutants .............................................17 3.2 Description of the HFC-23 Process............................................................................19 3.2.1 Basic Information............................................................................................19 3.2.2 HFC-23 Emissions Reduction Process............................................................20 3.2.3 Operation and Maintenance Schedule.............................................................23 3.2.4 Investment Cost...............................................................................................23 4 Regulatory and Institutional Framework.....................................................................24 4.1 Regulatory Framework...............................................................................................24 4.1.1 Relevant Laws, Regulations, and Technical Guidelines of China ..................24 4.1.2 Relevant Legal Requirements and Regulations for the Jiangsu Province.......25 4.1.3 Relevant Technical Documents for Taizhou City............................................26 4.1.4 Relevant Provisions of the World Bank ..........................................................26 4.1.5Applicable Environmental Discharge and Ambient Quality Standards ..........27 4.1.6Applicable Standards Related to the Design and Operation of Hazardous Waste Facilities...............................................................................................31 4.2 Institutional Framework.............................................................................................33 i  4.2.1 Foreign Economic Cooperation Office, State Environmental Protection Administration (SEPA/FECO).......................................................................33 4.2.2 Jiangsu Environmental Protection Bureau......................................................33 4.2.3 Taizhou Environmental Protection Bureau .....................................................33 5 Environmental Discharges from the HFC-23 Reduction Process and Mitigation Measures.........................................................................................................................35 5.1 Environmental Discharges from the HFC-23 Reduction Process..............................35 5.1.1 Construction Phase..........................................................................................35 5.1.2 Operational Phase............................................................................................36 5.2 Mitigation Measures...................................................................................................39 5.2.1 Construction Phase..........................................................................................39 5.2.2 Operational Phase............................................................................................40 6 Impacts of Discharges on Receptors..............................................................................43 6.1 Construction Phase.....................................................................................................43 6.2 Operational Phase.......................................................................................................44 6.2.1Air ImpactAssessment....................................................................................44 6.2.2 Wastewater ImpactAssessment.......................................................................57 6.2.3 Groundwater ImpactAssessment....................................................................58 6.2.4 Solid Waste ImpactAssessment......................................................................58 6.2.5 Noise ImpactAssessment................................................................................58 6.2.6 Social Impacts.................................................................................................60 7 Evaluation of Alternatives ..............................................................................................62 7.1 Evaluation ofAlternative Process Options for HFC-23 Emissions Reduction..........62 7.2 Evaluation ofAlternatives for Emission Controls ofAir Pollutants under Upset Process Conditions.....................................................................................................63 7.3 Evaluation ofAlternatives for the Wastewater and Sludge Discharges .....................66 8 Process Safety and Emergency Measures .....................................................................71 8.1 Process Safety ............................................................................................................71 8.2 Prevention and Control ofAir Emissions of Pollutants .............................................75 8.3 Spill Prevention, Containment, and Countermeasures...............................................76 8.4 Personnel Protection...................................................................................................76 8.5 Emergency Preparedness and Countermeasures........................................................76 9 Environmental Management Plan.................................................................................78 9.1 Environmental Management......................................................................................78 ii  9.2 Environmental Monitoring Plan.................................................................................80 10 Public Consultation.........................................................................................................84 10.1 Public Consultation for ToR of the EA....................................................................84 10.1.1 Information of Public Consultation for ToR of the EA.................................84 10.1.2 Results of the Public Consultation for ToR of the EA..................................86 10.2 Public Consultation for the Draft EA.......................................................................88 10.2.1 Information of Public Consultation for the Draft EA ...................................88 10.2.2 Results of the Public Consultation for the Draft EA.....................................90 Annex 1 ToR for Environmental Assessment of HFC-23 Emissions Reduction at Jiangsu Meilan Chemical Co., Ltd.....................................................................92 Annex 2 Distribution Map of Monitoring Points about Noise and Waste Gas at Boundary of the Plant.........................................................................................96 Annex 3 Descriptions of the Relevant Chinese Regulations............................................97 Annex 4 Distribution Map of Monitoring Sections of Surface Water............................98 Annex 5 Waste Catalyst Recovery Agreement..................................................................99 Annex 6 HFC-23 Generated from the HCFC-22 Process..............................................100 Annex 7 Material Balances for the HFC-23 Emissions Reduction Process.................101 Annex 8 Official Letter about the Conduct of Public Consultation on the ToR of the EA .......................................................................................................................107 Annex 9 Records of the Consultation Meeting on the ToR of the EA ..........................109 Annex 10 Official Letter about the Conduct of Public Consultation on the Draft EA112 Annex 11 Records of the Consultation Meeting on the Draft EA................................. 114 Annex 12 List of EA Preparers ........................................................................................ 119 iii  List of Tables Table 2-1 Chemical Products and Intermediates Produced by JMC...............................3 Table 2-2 Parameters of Multi-year Weather Condition of the Plant Site.......................9 Table 2-3 AmbientAir Quality Monitoring Results......................................................10 Table 2-4 Monitoring Results of Water Quality at New Tongyang Canal (Unit: mg/l, except pH)...........................................................................................11 Table 2-5 Monitoring Results of Ground Water Quality (Unit: mg/l , except pH)....11 Table 2-6 Monitoring Results ofAcoustical Quality (Unit: dB(A)) ..........................12 Table 3-1 Air Gas Emissions of PlantsAand B............................................................18 Table 3-2 Design Parameters of HFC-23 Incinerator....................................................22 Table 3-3 Consumption of Main Raw andAuxiliary Materials and Energy.................23 Table 4-1 Applicable Air Emissions Standards.............................................................27 Table 4-2 The Receptor forAir Emissions from the Project.........................................28 Table 4-3 Applicable Air Quality Standards .................................................................28 Table 4-4 Applicable Wastewater Discharge Standards................................................29 Table 4-5 The Receptors for Wastewater Discharge from the Project..........................29 Table 4-6 Applicable Water Quality Standards.............................................................30 Table 4-7 Applicable Quality Standard for Ground Water............................................30 Table 4-8 Applicable Noise Emission Standards..........................................................31 Table 4-9 Applicable Quality Standard for Noise.........................................................31 Table 4-10 Technical Specifications of Incinerators.....................................................32 Table 5-1 Noise Source Strength of the Construction Equipment ................................36 Table 5-2 Material Balances of HFC-23 Process (Unit: tpy).....................................37 Table 5-3 Environmental Discharges from HFC-23 Process........................................39 Table 5-4 Levels of Noise Emissions from Major Equipment......................................39 Table 5-5 Noise Pollution Mitigation Measures and Their Effectiveness.....................42 Table 6-1 Impacts of Discharges on Receptors during Construction Phase..................43 Table 6-2 Compliance Status of Construction Equipment Noise..................................43 Table 6-3 Characteristics of theAir Dispersion Models...............................................44 Table 6-4 Parameters of Waste Gas Pollution Source...................................................47 Table 6-5 Average Weather Parameters of Different Stability Conditions....................47 Table 6-6 Meteorologic Conditions on Representative Days........................................48 Table 6-7 Maximum Ground-Level Concentration (1-hr avg.) and Distance during iv  Windy Conditions.........................................................................................49 Table 6-8 Maximum Concentration (1-hr avg.) at the Receptor (JMC's Dormitory) during Windy Conditions.............................................................................50 Table 6-9 Maximum Ground-Level Concentration (1-hr avg.) and Distance during StagnantAtmospheric Conditions................................................................51 Table 6-10 Maximum Concentration (1-hr avg) at the Receptor (JMC's Dormitory) during StagnantAtmospheric Conditions.....................................................52 Table 6-11 Daily Average Concentration at the Receptor (JMC's Dormitory) on Representative Days.....................................................................................53 Table 6-12 Discharge rate and Fluoride Concentration of the Wastewater...................57 Table 6-13 Hydrographic Parameters and Water Quality of Dongdao Canal...............57 Table 6-14 Information of the Noise Sources ...............................................................59 Table 6-15 Noise Simulation Results at JMC's Boundary in Daytime (Unit: dB(A))..60 Table 6-16 Noise Simulation Results at JMC's Boundary at Night (Unit: dB(A)).......60 Table 7-1 Comparison of the Options for HFC-23 Emissions Reduction.....................62 Table 7-2 Comparison of the Options for Emission Controls ofAir Pollutants............65 Table 7-3 Cost Comparison of the Options for Emission Controls ofAir Pollutants...65 Table 7-4 Comparison of the Options for Wastewater and Sludge Discharges.............68 Table 7-5 Cost Comparison of the Options for Wastewater and Sludge Discharges....69 Table 8-1 Process HazardAnalysis...............................................................................73 Table 9-1 Staff Training Plan for HFC-23 Emissions Reduction Project .....................80 Table 9-2 Pollutants Discharge Monitoring Plan for the Operational Phase ................81 Table 9-3 Ambient Quality Monitoring Plan for the Pilot Testing and Operational Phase.............................................................................................................82 Table 9-4 Analytical Methods for Pollutant Parameters...............................................83 Table 10-1 Questionnaire for the ToR of the EA ..........................................................85 Table 10-2 Information of the Residents Involved in This Investigation......................86 Table 10-3 Statistic Results ofAll Questionnaires........................................................87 Table 10-4 Questionnaire for the Draft EA...................................................................89 Table 10-5 Information of the Residents Involved in This Investigation......................90 Table 10-6 Statistic Results ofAll Questionnaires........................................................91 v  List of Figures Figure 2-1 The Geographical Position Map of Jiangsu Meilan Chemical Co., Ltd. in China .............................................................................................................5 Figure 2-2 Geographical Position Map of Jiangsu Meilan Chemical Co., Ltd. in Taizhou City.................................................................................................6 Figure 2-3 The Surroundings of JMC andAmbient River System.................................7 Figure 2-4 The Site Plan for JMC's Production Facilities..............................................8 Figure 3-1 The Plain Layout of JMC............................................................................14 Figure 3-2 HCFC-22 Process Flow and Discharge Points Diagram.............................16 Figure 3-3 Treatment Process of the WWTP in JMC ...................................................17 Figure 3-4 Flow Diagram of HFC-23 Emissions Reduction Process ...........................20 Figure 6-1 Contour Map of 1-dayAverage Concentration of Fluoride on Representative Days...................................................................................55 Figure 6-2 Contour Map of 2-dayAverage Concentration of Fluoride on Representative Days...................................................................................55 Figure 6-3 Contour Map of 1-dayAverage Concentration of HCl on Representative Days............................................................................................................56 Figure 6-4 Contour Map of 2-dayAverage Concentration of HCl on Representative Days............................................................................................................56 Figure 7-1 Process Flow Diagram of a Parallel Gas Cleanup System..........................64 Figure 7-2 Process Flow Diagram for the HFC-23 Project with Gas Storage Tanks....65 Figure 7-3 Process Diagram of Flow of the Newly-Built Special WWTP...................67 Figure 9-1 Organization of Environmental Management for the Proposed Project......78 vi  List of Abbreviations AHF Anhydrous Hydrogen Fluoride CDM Cleaning Development Mechanism CFC-11 Trichlorofluoromethane (or Freon-11, CCl3F) CFC-12 Dichlorodifluoromethaneor (or Freon-12, CCl2F2) CFCs Chloroflurocarbons EA EnvironmentalAssessment EIA Environmental ImpactAssessment EMP Environmental Management Plan EPB Environmental Protection Bureau FKM Fluoroelastomer GHG Green House Gas GWP Global Warming Potential HCFC-21 Fluorodichloromethane(or CHCl2F) HCFC-22 Chlorodifluoromethane (or CHClF2) HCFCs Hydrochlorofluorocarbons HFC-23 Trifluromethane (or CHF3) HFCs Hydrofluorocarbons IPCC Intergovernmental Panel on Climate Change JMC Jiangsu Meilan Chemical Co., Ltd. LNG Liquefied Natural Gas MSL Main Sea Level OP/BP/GP Operational Policy / Bank Procedure / Good Practices PDD Project Design Documents PTFE Polytetrafluoroethylene RMB Official Currency of People's Republic of China SEPA State Environmental ProtectionAdministration SEPA/FECO Foreign Economic Cooperation Office, State Environmental ProtectionAdministration ToR Terms of Reference UNEP United Nations Environment Programme WWTP Wastewater Treatment Plant vii  HFC-23 Emissions Reduction Project at Jiangsu Meilan Chemical Co., Ltd. 1 Introduction Jangsu Meilan Chemical Company, Ltd. (the former Taizhou Electric Chemical Plant, hereinafter called `JMC') is a state-owned majority share enterprise with a large-scale chemical producer built in 1958, which produces three types of products: fluororesin, fluoro-refrigerant and chlor-alkali. Hydrochlorofluorocarbons (HCFCs) are controlled substances under the Montreal Protocol, and should be completely phased out before 2040 in the developing countries. However, domestic demand in China for chlorodifluoromethane (HCFC-22) will be expanded in a certain period with accelerated phase-out of chloroflurocarbons (CFCs). Meanwhile, the organic fluorine products in China are expected to increase at an annual rate of 12%. This will also promote the development of HCFC-22 production. Therefore, it can be foreseen that the trifluromethane (HFC-23 or CHF3) emission will also be continuously increased. HFC-23 has a low toxicity but with a large Global Warming Potential (GWP=11,700 in the IPCC 2nd Assessment Report). Emissions of hydrofluorocarbons (HFCs) are controlled under the Kyoto Protocol. So far, there is no regulation at the national or local level to restrict the emissions of HFC-23 in China. It is unlikely that China would impose any limits on its HFC-23 emissions in the near future. Therefore, almost all the HFC-23 in China is directly released to the atmosphere uncontrolled. JMC voluntarily implements this Cleaning Development Mechanism (CDM) project to install a HFC-23 destruction system at its currently operating HCFC-22 production facilities. The system can collect and destroy HFC-23 and other by-products generated during HCFC 22 production. Therefore, the implementation of this project can reduce HFC-23 emissions from JMC, which would contribute to the mitigation of global warming. Meanwhile, the project will also contribute to create direct and indirect employment at the local level. Pursuant to the related provisions in the Environmental Protection Law of the People's Republic of China, the Law of the People's Republic of China on the Environmental Impact Assessment, the Regulations on Environmental Management of Construction Project (Decree No.253 of the State Council) as well as Operational Directives of World Bank [4.01], JMC entrusted China Green Enterprise Limited to conduct an Environmental Assessment (EA) for `HFC-23 Emissions Reduction at Jiangsu Meilan Chemical Co., Ltd.. EA for this project should not only conform to China's EA requirements, but also meet with World Bank's (WB) EA requirements. This EA follows the consultant Terms of Reference (ToR, see Annex 1) prepared by the World Bank, and agreed among JMC, the EA consultants and State Environmental ProtectionAdministration (SEPA). This project is classified by the World Bank as a Category A project for EA purposes. 1 China Green Enterprise Limited  HFC-23 Emissions Reduction Project at Jiangsu Meilan Chemical Co., Ltd. Therefore, this EA has been prepared to meet the World Bank's and China's EA requirements. The objectives of the EAare to: Identify current status of the environmental quality and socio-economic characteristics of the project's surrounding areas; Identify pollutant types, sources and discharge points to the environment; and through engineering analysis, analyze the feasibility of measures to prevent or control pollution; Predict and analyze the extent of the impacts of the pollutants discharges from the project to the surrounding areas; During preparation of this EA, we have received valuable guidance from WB, Jiangsu Environmental Protection Bureau and Taizhou Environmental Protection Bureau, as well as strong support and concerted cooperation from JMC. We would like to thank them for their contributions. 2 China Green Enterprise Limited  HFC-23 Emissions Reduction Project at Jiangsu Meilan Chemical Co., Ltd. 2 Project Settings 2.1 Information about the Company JMC was established in 1958 to engage in the chlor-alkali business, producing sodium hydroxide (as a chemical intermediate) and chlorine (for pesticide manufacturing). At that time, approximately 70 percent of methylene chloride and chloroform used to be imported to China. With chlorine already produced, the company got interested in the production of chloroform (CHCl3) and dichloromethane (methylene chloride or CH2Cl2) as chloromethane products. First, in 1997, a 300 tpy pilot Chloromethanes Plant was built. Then, in 1998, a larger (3,000 tpy) Chloromethanes Plant was constructed, which was expanded to 30,000 tpy in 2001. These followed with the commissioning of 50,000 tpy (in 2002) and 80,000 tpy (in 2003) Chloromethanes Plants. With its 160,000 tpy capacity, today JMC is the third largest chloromethanes manufacturer in the world after Dow Chemical and Vulcan. Methylene chloride is entirely sold in the market whereas most of the chloroform is used by Jiangsu Meilan to produce other products. Besides production of chlor-alkali and chloromethanes, JMC is also involved in the production of other chemicals. In 1976, JMC started production of trichlorofluoromethane (CFC-11 or Freon-11)( CCl3F) and dichlorodifluoromethane (CFC-12 or Freon-12)(CCl2F2), and then expanded to more diverse lines. JMC has been producing HCFC-22 since 1996. The chemical products and intermediates currently produced by JMC are shown in Table 2-1. Table 2-1 Chemical Products and Intermediates Produced by JMC Chemical Products Chemical Intermediates Caustic soda (NaOH) Chlorine gas (Cl2) Dichlorodifluoromethane (CFC-12)(CCl2F2) Hydrochloric acid (HCl) Trichlorofluoromethane (CFC-11)(CCl3F) Hydrofluoric acid (HF) Organic silicon Anhydrous hydrogen fluoride (AHF) Chloromethane (CH3Cl) Dichloromethane (or methylene chloride)(CH2Cl2) Trichloromethane (or chloroform)(CHCl3) Monochlorodifluoromethane (or HCFC-22)(CHClF2) JMC is a progressive enterprise in Jiangsu Province. In JMC, 160 of 644 present employees are technicians. Its main products have received golden award and silver award at the national level, and high quality award at the ministerial level. JMC has become one of the key enterprises in organic the fluorine industry in China, and the main enterprise in chlor-alkali and chloromethanes in the province. JMC is a fast growing company. JMC's sales were RMB 100 million (US$ 12.5 million) in 3 China Green Enterprise Limited  HFC-23 Emissions Reduction Project at Jiangsu Meilan Chemical Co., Ltd. 1993, RMB 200 million (US$ 25 million) in 1998, RMB 1,000 million (US$ 125 million) in 2003, 1,600 million RMB (US$ 200 million) in 2004; and is expected to increase to RMB 2,500 million (US$ 312.5 million) in 2005 and RMB 4,000 million (US$ 500 million) in 2006. 2.2 Information about the Site and Its Surroundings JCM's headquarters1 and production facilities2 are located at separate sites within the periurban areas of the Taizhou City (with a population of approximately 5 million) in the Jiangsu Province3 (Figures 2-1 and 2-2). JMC's production facilities are on a 667,000 km2 of land (1,000 mu) of land in the Northwest Chemical Industrial Park, 6 km northwest of Taizhou City's downtown area. Besides JMC,the industrial park houses nine other companies, including a large petrochemical company (Lingguang Group-Petroleum Fine Chemical Company) and small chemical companies. The industrial park, which is managed by the Taizhou Government, provides land, infrastructure and associated services (including roads, water, and electricity). The surroundings of JMC's production site are shown in Figure 2-3. The land uses around the site are as follows: North: Dongdao Canal for barge transportation in the immediate northern boundary, followed by a 2-km vacant land, and then a large petrochemical company (Lingguang Group-Petroleum Fine Chemical Company); West: Yinjiang River after a 1.5-km vacant land; South: Residences for company employees is 500 meters away, then a vacant land bordered by the Yangzhou Road is approximately 1 km away, and an air conditioning company at the other side of this road; East: Taizhou Fluoro Material Company, which also belongs to the Jiangsu Meilan Group and involved in the production of polytetrafluoroethylene (PTFE) and fluoroelastomer(FKM). There is a vacant land that spans approximately 1 km between the eastern border of the Taizhou Fluoro Material Company and the western boundaries of small chemical companies. 1The company's headquarters are located at No.2 Jiangzhou South road, Taizhou, Jiangsu, China. 2The production facilities are located at 460 Yangzhou Road, Taizhou, Jiangsu, Chian.s 3Taizhou City is approximately 260 km northwest of Shanghai. 4 China Green Enterprise Limited  HFC-23 Emissions Reduction Project at Jiangsu Meilan Chemical Co., Ltd. Figure 2-1 The Geographical Position Map of Jiangsu Meilan Chemical Co., Ltd. in China 5 China Green Enterprise Limited  HFC-23 Emissions Reduction Project at Jiangsu Meilan Chemical Co., Ltd. Figure 2-2 Geographical Position Map of Jiangsu Meilan Chemical Co., Ltd. in Taizhou City 6 China Green Enterprise Limited  HFC-23 Emissions Reduction Project at Jiangsu Meilan Chemical Co., Ltd. Figure 2-3 The Surroundings of JMC and Ambient River System The site plan for JMC is shown in Figure 2-4. The Chlor-Alkali Plant is in the north-northwest, the wastewater treatment plant (WWTP) and the Hydrofluoric acid (HF) Plant are in the northeast, the HCFC-22 Plants are in the east, the Chloromethanes Plant is 7 China Green Enterprise Limited  HFC-23 Emissions Reduction Project at Jiangsu Meilan Chemical Co., Ltd. in the southeast, the office buildings are in the south, and the clinic and transformer station are in the southwest of the JMC site. N Jiangsu Lingguang Group Yinjiang m 3000 Power Plant WWTP HF Plant Fluoro Chlor-Alkali 10000-ton Material F22 Plant HCFC-22 Equipment Control Company Room Plants Old F22 The Proposed Equipment HFC-23 Project 1500 m Way 1 Canal Office Transformer Chloromethanes Buildings Station Plant Clinic Storehouse m 500 JMC's Dormitory Yangzhou Road Figure 2-4 The Site Plan for JMC's Production Facilities The total number of employees at JMC is 644. In 1958, JMC established a residential area for its employees 500 meters south of the plant site. Currently, this residential area houses 300 people for JMC's employees and their families. The nearest hospital and school are 8 China Green Enterprise Limited  HFC-23 Emissions Reduction Project at Jiangsu Meilan Chemical Co., Ltd. located 3.0 km and 3.5 km, respectively, both in the southeastern direction from the production facility. There are no minorities or historical relics reported around the production site. 2.3 Environmental Characteristics 2.3.1 Geology and Topography Geology: The plant site is covered by quaternary sediment. The sediment is marine deposit and sediment of modern lakes, with 200-250 m thickness and more obvious lithofacies change. The soil is mainly clay, mild clay, and light loam, with a soil pressure of 1.2 kg/cm2; Topography: JMC is located in Subei Plain, featured by a flat topography. It is 3-3.5 m above the main sea level (MSL). 2.3.2 Climate and Ambient Air Quality 2.3.2.1 Climate and Weather JMC site falls into middle-latitude zone. According to the statistics of multi-year weather information, the main parameters of weather condition are identified in Table 2-2 below. Table 2-2 Parameters of Multi-year Weather Condition of the Plant Site No. Items Value Annual average temperature 14.9oC 1 Temperature Extreme maximum temperature 40.7oC Extreme lowest temperature