China - Shandong Power Plant Flue Gas Desulfurization Project : environmental assessment (Vol. 5 of 7) : Pit Mouth Power Plant : Xintai inferior coal comprehensive utilization

Page 1 SHANDONG POWER SECTOR FLUE GAS DESULFURIZATION (FGD) PROJECT Xintai Inferior Coal Comprehensive Utilization Pit Mouth Power Plan October, 2006 E1493 v 5 Page 2 1 Table of Content I. Introduction and Background................................... 2 II. Project Description.............................................. 5 III. Environmental Management Plan ............................ 8 IV. Monitoring Plan.................................................14 V. Organization.....................................................19 VI. Public Participation ...........................................21 Page 3 2 I. Introduction and Background According to the guidelines of Shandong Province Development and Reform Commission (SPDRC) and Shandong Province Environmental Protection Bureau (SDEPB), Xintai inferior coal comprehensive utilization pit mouth power plant applied World Bank loan for flue gas desulphurization (FGD) project in 2004, which consists of three parts: Xintai inferior coal comprehensive utilization pit mouth power plant, Liangda coal slime power plant and Taishan Yangguang power plant. 1.1 Xintai Inferior Coal Comprehensive Utilization Pit Mouth Power Plant The project of 2 sets of 480 t/h circulating fluidized bed (CFB) ultrahigh boilers with 2 units 150MW gas traps and 2 sets of electrostatic precipitators costs 136.23 million RMB totally, invested by Xinwen Mine Group Co., Ltd, Wennan Mine Group and Yantai HONGYUAN Power Industry Co. Ltd. The proposed project will be located in Wennan Town, Xintai City, Shandong Province and cover area of 168,300 M 3 . The location is near Beijing-Shanghai Expressway, 2.8 km away from Xintai City and 80 km away from Taian City. Wennan Town is situated in the middle of Shandong province. The topographic feature of this area is I terrace of low hills. Boiler construction has not yet started. An EIA was prepared which included the FGD unit. The EIA was approved by SEPA in April 2005. A public consultation for the EIA was conducted in January 2005 and the EIA report was disclosed in July 2005. The project will consist of a single lime/limestone wet scrubber that will treat the flue gases from both boilers. 1.2 Liangda Coal Slime Power Plant The project proposes to construct a single FGD unit for 3 existing 75 t/h circulating fluidized bed (CFB) boilers. Although the FGD unit will nominally treat the flue gases from all three boilers, in fact, only two boilers are operated at any given time. The third boiler is a standby unit. The boilers currently supply heat and power to local Page 4 3 residents. The investment of this sub-project is 77.51 million RMB, which is from payment for goods and self-finance of Xinwen Mine Group. This project is located in the west of Liangzhuang Coal Mine, 13 Km away from Xintai Government in the direction of northeast and 3 Km away from Xinwen Office in the direction of southeast. The special railway of Liangzhuang Coal Mine merges with Cilai Railway in Xinwen station 1.5 Km away from Liangzhuang Coal Mine, the transportation is quite convenient. The Liangzhuang Coal Mine covers an area of 14.5 Km 2 , till the end of 2000 the storage amount of raw coal reached 62.704 million tons, and the amount of coal available is 33.966 million tons which can be used for 28 years if the annual yield could reach to 1.2 million ton. There are also by-products of 144,000 t/a coal slime used as fuel for the power plant and 200,000t/a gangue sold to Liangzhuang brick factory belongs to Liangzhuang Mining Group to produce rock brick. An EIA was prepared for all three boilers and approved by SPEPB in November 2001, and a public consultation was conducted in August 2001. Construction start dates for the three boilers were January 2002 (Boilers #1 and 2) and February 2005 (Boiler #3). The EIA included the FGD as part of the overall project. The selected FGD technology is a semi-dry limestone system. 1.3 Taishan Yangguang Power Plant Yangguang Power Plant is reformed from HULIN Power Plant started in 1989. There is a 35t/h circulating fluidized bed boiler with 1 \0d 6 MW units. In 2003 the 2nd phase gangue generation project of 130t/h boiler with 24MW unit was built in the plant. The objective of this project is to utilize fuel of lower heating value, such as gangue to reuse the waste to decrease environmental pollution and increase the economic, environmental and social benefits. This project also plays important role in protecting ecological environment. The plant is located in Laiwu City and the transportation is convenient. Page 5 4 The proposed project will retrofit the 130 TPH boiler with a semi-dry limestone system. An EIA for the boiler was approved by SPEPB in August 2003 and construction started also in August 2003. The boiler was in operation by the end of December 2003. The EIA included the FGD as part of the overall project. Page 6 5 II. Project Description 2.1 Xintai Inferior Coal Comprehensive Utilization Pit Mouth Power Plant 2.1.1 Natural conditions The raw coal exploited from Wennan Coal Mine of Xinwen Mine Group is inferior coal of lower-calorific value and the annual production is more than 1 million tons, among which the ash and gang content is much higher in the coal at No 13 and No. 15 coal seam. As the high S content and lower-calorific value of the fuel, the company proposes to launch a comprehensive utilization project to reduce environmental pollution and increase economic benefits. 2.1.2 Environmental protection objects and measures The boiler project environmental protection objects near the project location are Shangtaiyu village and Leiwang village as well the rivers in this area, such as Song River and Chaiwen River. The project could have adverse impacts on superficial underground water from temporary ash disposal. However ash will be disposed in a concrete lined disposal area that will be covered to protect from rainfall that will minimize underground and surface water pollution from leaching and runoff respectively. According to the guidelines of