OFFICIAL USE
SAGAT ENERGY GAS ENGINE POWER PLANT KAZAKHSTAN
NON TECHNICAL SUMMARY
November 2015
OFFICIAL USE
OFFICIAL USE Sagat Energy LLC
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Sagat Energy Non-Technical Summary
PROJECT DESCRIPTION
The European Bank for Reconstruction and Development (“EBRD” or the “Bank”) is considering providing financing to Sagat Energy LCC (the Company) for the construction and operation of a 11MWe combined heat and power gas fired plant (CHPP) at the eastern suburbs of Atyrau, West Kazakhstan (the Project). The Project aims to produce and provide electrical energy to the industrial consumers, who are connected to the KEGOC network and located in Atyrau region. EBRD has assigned a Category B to the project.. An initial national EIA (OVOS) has been prepared for this Project. This Non-Technical Summary (NTS) presents the key elements of the Project in order to allow all the stakeholders to understand the planned investments and their impacts both on the CHPP operations and the surrounding area. The 0.67 ha CHPP site is located next to the AtyrauNefteMash (ANM) area of 37.6 ha. In addition to two existing power blocks, Nine power blocks located on the site will be connected to the KEGOC substation 1 km away from the CHPP via switchgear, set of transformers and cables. The engines will use domestic gas from the city gas network. The 16 cylinders Waukesha AGP 1000 gas engine rotates the rotor of the Leroy Somer LSA 50.2 power generator, which produces the electrical energy. The unit is controlled by the IntelSys operation box, which is connected to the engine (Figure 1). The new power blocks construction is carried out in two phases. Phase 1 includes an installation of nine 1 MW gas engine units next to the existing two 1 MW units by the end of 2015. Nine units have already been erected and electric works to prepare for the substation connection have started. These works will require drilling through the Atyrau-Oral road body to run the cables through but neither the traffic nor the road integrity will be affected. It is considered, that the Phase 1 will be finished by June 2016. It involves 25 workers that work in two 12 hour shifts. The operation of this phase is Figure 1 Waukesha APG 1000 chassis with 16 expected to be carried by 5 electricians and 5 cylinders gas powered engine, unit control box mechanics: two for each 12 hour shift with a chief (in front) and electric power generator (in the electrician and mechanic working normal hours 5 day background). week. The workers will be trained by the engine supplier, KEGOC and the St. Petersburg Institute of Energy and Electronics. Feasibility of the Phase 2 is under review by the Company and is not part of this Project. The produced electrical energy will be sold mainly to the external industrial consumers. The rest of the power will be provided to ANM through the KEGOC network. After expansion, ANM plans to consume no more than 4 MW. Currently cogenerated heat is only used to keep water in above-ground storage tanks from freezing but the rest of the heat is vented at two horizontal fan coolers that blow air through a pipework mesh connected to the engines. The Company plans to find ways to utilise all the heat. The power plant is fully automatic and is operated from the operation room. Only at the engine start up, an operator is to be next to the engine to observe it and the gages. The transformers and stabilizators oil is free of harmful for ecology PCBs and arrangements are made to contain oil in case of fire. Each transformer will have oil temperature gage that automatically switches off the power generator. A 1
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Sagat Energy Non-Technical Summary
concrete troughs around the two power export stabilizators will drain into a 5 m3 underground sink made of reinforced concrete capable to hold 75% of the stabilizators oil.
1.1
ALTERNATIVES REVIEWED
The do-nothing option would not make much difference as sufficient amount of energy is planned to be produced locally. However, without the project the ANM and external industrial consumers would not be able to reduce cost of power and by this retain funds for expansion and creation of new work places. Reliability of the power supply may also miss a chance to improve. The location is constrained by the ANM territory and the need to be close to the shops that will consume the power. Placing the plant elsewhere in the available part of the ANM territory will reduce impact on the work zone air quality but this impact from the selected position is predicted to be within the permitted limits. The plant positioning at a different part of ANM territory will make no difference to the air quality of the remote residential area or the neighboring enterprises. The scale is dictated by the power consumption that the Company can ensure. There are plans to further increase the power plant capacity with the increase in ensured consumption. Without a single high stack, work place air quality may be degraded below the given NOx limit of 5mg/m3. The currently selected scale of 11 blocks does not envisage breakage of this limit for work places. The layout is constrained by the construction standards that specify the minimal safe distances between the plant components and the cost of cables and pipes that connect the plant components. Therefore, a different layout would likely increase the risk (probability and consequence) of components damage from fire or explosion. A different mode of operation from the round the clock would require daily startup of the engines which would put the engines at higher risk of breakage and generate more pollutants per kW power generated. The gas used for the plant is the best available. The reviewed engines had the same pollution emission values for the main pollutant NOx so the selection was based on the efficiency vs. cost criteria. Out of three engines the MTU 4000 had the highest power generation efficiency of 44.3% but the price was significantly higher than the selected Waukesha engines with 41.6% efficiency. The TEDOM Cento T200 units with TG series gas engines had lower electrical efficiency of 39.2%.
2 PROJECT COMPLIANCE WITH REQUIREMENTS The company was asked to design the Project in line with the requirements of the EBRD Environmental and Social Policy 2014 and the associated Policy Performance Requirements 1-4, and 10 for Category B projects. The mitigation measures proposed below in this document will bring the Company into full accordance with these requirements. Medium combustion power plants (up to 50 MW) are not regulated in EU but a proposed on 18.12.2013 EC Directive 2013/0442 (COD) 1 allows such plants to emit NOx to up to 190mg/Nm3. These requirements are satisfied by the plant as the NOx measurements showed only 9-15% of this limit. Overall, Sagat Energy LLC is in compliance with the Kazakhstan requirements. The existing units have the Emission Permit based on the approved Maximum Permitted Emissions Project (PDV) and the 1
Proposal for a Directive of the European Parliament and of the Council on the Limitation of Emissions of Certain Pollutants Into the Air from Medium Combustion Plants, 2013/0442 2
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Sagat Energy Non-Technical Summary
environmental operational control program which implementation is reflected in two quarterly air monitoring reports. The EIA for installation of all 11 units has been approved by the Natural Resource Management Office (NRMO) of the Atyrau Regional Council who controls the environmental performance of the Project that has been given the hazard category 2 2. For the existing blocks the Company will develop an environmental protection plan to achieve full compliance. Before the start of the new units operation, the Company will prepare and approve PDV and obtain the Emission Permit from the NRMO. To comply with SanPIN, after the startup the Company will also conduct work places assessment and update it on the change of work place conditions, appearance of new work places or every 5 years. The Company conducted a public consultation meeting on June 10, 2014 in accordance with the applicable laws. It was attended by 14 stakeholders including the NRMO, the Regional Environmental Department of the Ministry of Energy, the Consumer Rights Protection Committee; Environmental Protection Analytical Laboratory LLP; Lave-Atyrau LLP; Lisma-BB LLP (the Contractor) as well as 3 general public representatives. The information about the project was disclosed on the Regional Council website in time and content required by the legislation. The Company has not been inspected by the regulatory bodies. This is mainly because of the moratorium on inspection of all businesses but also due to the lack of complaints from the neighbours that would invariably instigate a comprehensive inspection. There have been no accidents that lead to injuries and time off work.
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PROJECT IMPACTS
3.1
CONSTRUCTION
Air pollutants (dust) generated during construction is likely to disperse to concentrations well below the maximum permitted before reaching the residential area 0.5km northwest even in the worst climatic condition. The desert plants are well adapted to dust and are unlikely to be affected even on sublethal level. Typical noise generated by the construction equipment will not propagate beyond the power plant territory at the levels above the ambient noise generated by the surrounding industries and transport. Workplace noise will also be within the permitted limit of 85dB(A). Hiring of 25 workers from Atyrau for the construction will have no effect on the city labour market. Illegal, forced or child labour is not used by the project.
3.2 3.2.1
Table 1 Annual pollution emissions from the two existing CHPP units and total 21 units (extrapolated).
OPERATION
Pollutant
Air Quality
CO NO2 Saturated hydrocarbon s C12-C19 NO Soot SO2 Environmental code of the Republic of Kazakhstan, art.40, 1-1 and art.47, 3 Total
It is expected that even 21 power blocks that will emit 300m3/sec and 777 tons of pollutants per year will not push the Impact on the ambient air quality from the low significance category (Table 1). Calculation by using the EBRD Greenhouse Gas 2
2 existing units g/sec t/y 2.36 29.56 1.87 23.51
21 units g/sec t/y 24.78 310.38 19.635 246.855
1.33
16.79
13.965
176.295
0.30 0.01 -7 6*10
3.82 0.17 0.01 73.91
3.15 0.105 -6 6.3*10
40.11 1.785 0.105 776.06 3
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Sagat Energy Non-Technical Summary
Assessment Methodology, v.7, 06.07.2010, shows the CO2 emissions from 21 units as 89 616 tons/year or 213 kg per MWth under the 24/7 operation. Although the engine developer NOx emission for the worst case is shown as 500 mg/Nm3, under standard full load operation of the two existing power blocks the measured in stack values have not exceeded 14 mg/Nm3, which is well below the national and the recently proposed EU Directive limits. Calculations also showed that addition of the blocks is unlikely to break the concentration limits prescribed for the residential areas at the plant SPZ even in the worst for pollutants dispersion weather conditions. To comply with the Kazakhstan legislation air monitoring is conducted by the accredited laboratory every quarter. The monitoring reports are available on request.
3.2.2
Noise
Noise impact is considered to be low. The noise inside the gas engine-based unit container will reach the 120 dB(A), but decreases down to 80 dB(A) outside the container. Operators that enter the blocks on rare occasions at the startup and in case of a malfunction will wear protective headphones. The rest of the time they will be at the insulated control room.
3.2.3
Resource Use
Small portion of the cogenerated by the power units heat is used in winter to prevent two ANM pressure test/firewater above ground storage tanks from freezing. The rest of the heat is lost as no other potential users of heat exist around the plant. The ANM hot air blowers and infrared heaters have proved to be more effective and cheaper than a water pipe heating system. The neighbours are connected to the city district heating. The grain elevator, which is located 0.5km south west from the CHPP that could have used all the generated heat is closed as with the roads and transport development, storing grain in large quantities is no longer needed.
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IMPACT MITIGATION AND BENEFIT ENHANCEMENT MEASURES
As a result of the EBRD environmental and social analysis and discussions, Sagat Energy LLC accepted an Environmental and Social Action Plan (ESAP) to address the identified gaps. The ESAP included the following commitments with statement of a responsible person, deadline for completion and implementation success criteria: Corporate Responsibility Policy as well as Environmental Protection Plan for existing blocks will be developed and disclosed to workers and other stakeholders; Environmental and HS Managers will report to the Company Director in order to eliminate EHS/production goals conflict; Workers exposure to hard and hazardous condition will be systematically reduced; Procedures for site and process specific risks assessment as well as emergency response plan will be developed. The Company will monitor emission to comply with the EU Directive 2013/0442 NOx limit 190 mg/m3, apply mitigation measures if exceeded and disclose the monitoring results annually; Resource use reduction along with heat utilization plan will be developed, implemented and updated annually; A rain sheltered concrete bunded pad to hold maximum possible volume of waste oil storage will be built and waste contractors information on hazardous waste fate will be obtained;
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Sagat Energy Non-Technical Summary
Human Resource Policy will be developed and disclosed to employees. A statement that workers are not restricted from forming organisations or electing representatives will be included in the policy or collective agreement; A grievance mechanism will be developed with ability to complain anonymously, records of satisfaction in the given answer and explanation to unsatisfied worker where to take her grievance further. Results of grievance handling will be reported to the public annually; The Company will include EBRD EHS requirements into tender documentation and contracts. The contractors in turn will be selected based on their willingness to demonstrate adequate EHS performance; Contractors environmental and health and safety performance will be managed and monitored using policy and procedures that the Company will establish; Instruction to guards on handling trespassers and conflicts will be prepared to minimise possible impact on vulnerable groups of the general population; The stakeholder engagement plan will be implemented by the appointed by the company Community Liaison Officer;
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CONTACT US
For more information please contact the Company Community Liaison Officer (CLO): Mr. Peter Caplicky, Tel.: +7 (775) 243-42-25, E-mail:
[email protected]
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