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Tulcea, Romania Combined Cycle Gas Turbine Non-Technical Summary Vimetco Power October 2011

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Page 1: Tulcea, Romania Combined Cycle Gas Turbine Non-Technical … · 2011. 12. 29. · WSP Environment & Energy Tulcea ESIA NTS 1 Figure 1: Site Location Plan 1 INTRODUCTION Vimetco NV

Tulcea, Romania Combined Cycle Gas Turbine Non-Technical Summary

Vimetco Power

October 2011

Page 2: Tulcea, Romania Combined Cycle Gas Turbine Non-Technical … · 2011. 12. 29. · WSP Environment & Energy Tulcea ESIA NTS 1 Figure 1: Site Location Plan 1 INTRODUCTION Vimetco NV

QUALITY MANAGEMENT

WSP Environment & Energy WSP House, 70 Chancery Lane, London WC2A 1AF Tel: +44 (0) 20 7314 5000 www.wspenvironmental.com 1152332

Issue/revision Issue 1 Revision 1 Revision 2 Revision 3

Remarks Issued Final

Date August 2011 October 2011

Prepared by Project Team Project Team

Signature

Checked by Ian Williams Ian Williams

Signature

Authorised by Neal Barker Neal Barker

Signature

Project number 00022002.00002 00022002.00002

File reference

Page 3: Tulcea, Romania Combined Cycle Gas Turbine Non-Technical … · 2011. 12. 29. · WSP Environment & Energy Tulcea ESIA NTS 1 Figure 1: Site Location Plan 1 INTRODUCTION Vimetco NV

WSP Environment & Energy Tulcea ESIA NTS 1

Figure 1: Site Location Plan

1 INTRODUCTION

Vimetco NV is proposing to construct a new Combined Cycle Gas Turbine (CCGT) power plant at the existing Alum

SA alumina refinery plant in Tulcea, Romania.

This Non-Technical Summary presents the key

information relating to the Project to allow all

stakeholders involved to understand the planned

investments and the potential impact on the site and

surrounding area. The information in this document is

based on the findings of an Environmental and Social

Impact Assessment (ESIA).

Vimetco is a globally integrated aluminium company,

with bauxite mines in Sierra Leone, coal mines,

aluminium production facilities and electricity plant in

China and with alumina refinery and aluminium

smelter in Romania.

Vimetco owns an alumina refinery in Tulcea. The

plant, which has recently been modernised, processes

bauxite from Sierra Leone, which then supplies the

alumina for Alro, the Company’s smelter in Slatina.

Alro provides primary and processed aluminium. The

quality of Vimetco’s processed products in Romania

has been recognised in a number of industries.

1.1 FUNDING FRAMEWORK

Vimetco has approached a number of international

financial institutions including the European Bank for

Reconstruction and Development (EBRD) for co-

financing of the proposed CCGT plant.

In line with International Finance Corporation (IFC)

policy, the Equator Principles and the EBRD’s

Environmental and Social Policy (2008) for Category A

projects, there is a requirement that an ESIA be undertaken to assess all environmental and social issues associated

with the construction and operational phases of the development.

Romanian legislation also requires that a local Environmental Impact Assessment (EIA) be produced in support of the

development to meet local permitting requirements. This is being prepared separately by Vimetco.

This Non-Technical Summary describes the findings of the ESIA, including the potential impacts on the environment

and local inhabitants, and measures that have been implemented to eliminate, reduce or mitigate those impacts.

These measures are detailed in an Environmental and Social Action Plan (ESAP), which will be implemented for the

Project.

A Stakeholder Engagement Plan (SEP) has been prepared which describes the key stakeholders and the information

and communication plans intended in respect of the proposed CCGT plant. The SEP takes into account best

international practice in relation to information disclosure and outlines the general engagement principles that Vimetco

will adopt. The SEP will be reviewed and updated on a regular basis.

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WSP Environment & Energy Tulcea ESIA NTS 2

Figure 2: Illustration of a typical CCGT Unit

2 WHAT IS INVOLVED IN THIS DEVELOPMENT?

2.1 OVERVIEW

The proposed development is for a 244MWe / 171.9MWt CCGT that will be constructed to current European Union

‘Best Available Techniques’. The site for the CCGT is located in the industrial zone of Tulcea city, Romania,

approximately 240km to the Southwest of Bucharest. The CCGT facility is to be situated within the Alum SA site,

approximately 1.5km to the northwest of the main town centre. The Alum SA refinery site is approximately 45ha in

size and the CCGT site area equates to approximately 6.4ha and is located in the north eastern section of the Alum

SA site.

2.2 BACKGROUND

CCGT plants simultaneously produce useful heat and electricity from the same source of fuel. This increases the

efficiency of fuel burning, thereby reducing damage to the environment and increasing economic output through more

efficient use of resources. The general principle is that the hot exhausts of a gas turbine are used as the heat source

for generating steam to drive another turbine, thus extracting more useful energy from the fuel source (i.e. the natural

gas), increasing the system's overall efficiency.

The electricity generated by the proposed CCGT plant will be utilised to meet current demands at Alum SA in Tulcea

and Alro Slatina with surplus electricity being sold to the Romanian electricity market. Alum SA in Tulcea will utilise

the majority of the heat output with the remainder being utilised for district heating within Tulcea town.

The proposed CCGT plant at the Alum SA site will be designed to be approximately 82% efficient.

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WSP Environment & Energy Tulcea ESIA NTS 3

Figure 3: Proposed site layout plan

2.3 THE PROPOSED CCGT PLANT

It is anticipated that the construction phase will take approximately three years to complete.

The CCGT plant will include:

A single shaft F class gas driven turbine;

A heat recovery steam generator;

A condensing steam turbine with associated steam extractors and cooling towers;

An electrical generator; and

A chimney stack, currently estimated to be 60m high, for the discharge of combustion products.

When operational the CCGT plant is expected to employ approximately 40 people. The CCGT plant is expected to

operate for approximately 8,000 hours per year and will provide heat and power for Alum production facilities as well

as district heating for Tulcea city. The unit will be designed to incorporate the Best Available Technologies (BAT).

A new administration building is to be constructed including parking spaces for up to 20 cars. The existing workshop

building will be renovated / refurbished and utilised as a workshop and storage building for the new CCGT plant. All

roads within the site will be 7m wide to ensure easy access to every new building and structure within the proposed

development.

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WSP Environment & Energy Tulcea ESIA NTS 4

Figure 6: Natural gas pipeline connection

Figure 5: Possible extension routes of hot water network

Figure 4: Proposed CCGT site location

3 WHY IS THIS DEVELOPMENT REQUIRED?

There is a recognised issue of potential energy shortages in Romania as a result of a lack of investment in the existing

soviet-era power stations and associated infrastructure. The CCGT plant is being proposed to provide security of

electrical supply at the Alum SA Alumina refinery site in Tulcea and the Alro SA aluminium smelting works in Slatina

located approximately 380km to the southwest of the Alum SA site.

Heat generated by the plant will be used by Alum SA as part of the alumina refinery process and excess heat will be

used for district heating within Tulcea City.

Any additional electricity produced by the CCGT plant will be sold the Romanian electricity market or utilised in

potential reserve situations (i.e. as back up for wind turbine projects).

4 WHY IS THIS A GOOD LOCATION?

The proposed location of the CCGT plant currently represents

a section of the bauxite storage area that is no longer used as

part of the existing Alum SA operations. Therefore

constructing the CCGT plant in this location would not result in

development occurring on previously undeveloped land (i.e.

greenfield land). Furthermore, it will be situated within a

predominantly industrial setting with numerous heavy

industrial processes being located within very close proximity.

As

mentioned above, the increased efficiency of this type of

energy generation facility comes about as a result of utilising

the heat output from the combustion process. Alum SA

requires large amounts of heat during the alumina refinery

process and by locating the CCGT plant within close

proximity the heat output would utilised close to the source

further maximising its efficiency and reducing the amount of

infrastructure required. Additional heat output not utilised

during the Alum SA refinery process would be utilised within

the existing Tulcea District Heating System.

Finally, the primary infrastructure for the CCGT plant is

already in place with sufficient gas supply being available

without the need to upgrade the external mains supply,

the existing Alum SA water abstraction and waste water

treatment facility have capacity to accommodate the

requirements of the CCGT plant. All additional

infrastructure requirements would only need to be

constructed within the Alum SA site.

All of the above factors make the proposed location

perfectly situated for the CCGT plant.

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WSP Environment & Energy Tulcea ESIA NTS 5

Figure 7: Residential dwelling adjacent to site

5 WHAT IS THE BENEFIT OF THE PROJECT TO THE LOCAL PEOPLE AND THE ECONOMY?

It is considered that development of the CCGT plant will bring multiple benefits to the Tulcea area.

During the construction phase skilled and unskilled labour will used, where possible, from Tulcea and the surrounding

local areas. Consideration will be given to a local construction firm being commissioned although this will be

dependent on the local companies having the appropriate level of expertise and Vimetco’s contractual issues.

Furthermore, it is likely that construction materials will be purchased from local businesses operating in within the

Tulcea area wherever possible.

During the operational phase it is anticipated that up to 40 permanent jobs will be generated. It is envisaged that the

majority of the employment opportunities that will be provided will be taken up by local people.

It is considered that the single largest benefit to the Tulcea community is likely to be the use of the heat output from

the CCGT plant for the district heating system which could result in supplying heating at a lower cost for the

municipality as it is regulated by ANRE. It is not clear though how much of this decrease will be reflected in the

consumption price for the population, as the current price is subsidised by the City Hall and subsidies will be probably

be removed as a result of European Union requirements;

The operation of the CCGT plant will generate new taxes and revenues and that will help improve the Tulcea City Hall

finances and should ultimately benefit the local population.

6 POTENTIAL SOCIO-ECONOMIC IMPACTS OF THE PROJECT

Although, residential properties in close proximity to the site are already subject to significant levels of disturbance

from the existing industrial nature of the surrounding land uses, the construction works may cause additional

temporary disruptions to the local community. Temporary negative health and safety effects may arise from an

increase in traffic movements, an increase in dust levels, and an increase in noise and vibration. To reduce the impact

of this, local residents within close proximity to the

site (i.e. the Roma community) will be kept informed

regarding the progress and the possibility of

disruptions associated with specific elements of the

construction works through regular stakeholder

meetings. A Stakeholder Engagement Plan (SEP)

has also been prepared to support the project. This

includes a grievance reporting mechanism for local

residents to report any issues or submit complaints

about activities associated with the plant. The SEP

also sets out the procedure which Vimetco will use to

investigate and report back on any issues.

As mentioned above the main positive impact of the

Proposed Development will be the supply of hot water

to the district heating system. In addition, the

operational phase will generate long term

employment opportunities.

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WSP Environment & Energy Tulcea ESIA NTS 6

Figure 8: Annual NO2 Concentration plots for all Sources

During the operational phase all site activities will be conducted in line with the Vimetco health and safety policy and

implemented through an environmental management system to ensure that workers and local communities are

adequately protected.

The main health and safety risks to the closest local communities (i.e. the Roma community) include potential slight

increases in noise and air quality emissions from CCGT plant on the residential areas.

Consideration will be given to utilising noise mitigation measures associated with the existing site fencing and / or

fencing associated with the closest residential dwellings. Best Available Techniques (BAT) will be adopted within the

design of the CCGT ensuring that emissions are minimised to an insignificant level. Furthermore, the separation

distance between the bauxite storage area and the closest residential properties will be increased due to the location

of the CCGT plant.

Based on the above, it is considered that impacts to the closest residential dwellings, including the Roma community,

will be reduced to an insignificant level. In addition, it is considered that following the implementation of process

design and mitigation measures levels of noise and air quality may actually be improved as a result of the CCGT plant

when compared to the existing conditions at the closest residential properties.

7 WHAT WILL BE THE KEY ENVIRONMENTAL IMPACTS OF THE PROJECT AND HOW WILL THEY BE MITIGATED?

7.1 AIR QUALITY

The potential impact of the proposed CCGT plant on local air quality has been assessed during both the construction

and operation phases.

Due to the close proximity of some residential

receptors, potential impacts during construction

phase are considered to be moderate to major prior

to the implementation of mitigation measures.

Adopting dust suppression techniques and ensuring

the construction vehicles are well maintained to

minimise emissions will seek to ensure that

construction phase impacts are reduced to minor.

The operation of the CCGT plant could potentially

give rise to increased pollutant emissions, however,

the CCGT plant is being designed to include Best

Available Techniques (BAT) including dry, low NOx

burners for gas firing and the use of natural gas as

the exclusive fuel for the plant. In addition, all plant

on-site will be subject to a regular inspection and

maintenance programme.

These measures will ensure that plant emissions do

not exceed the relevant air quality standards. The

overall effects of the emissions from the CCGT plant

site are considered to be negligible.

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WSP Environment & Energy Tulcea ESIA NTS 7

Figure 9: Tulcea Archaeological Map

7.2 NOISE AND VIBRATION

The potential impact of noise and vibration from the CCGT plant has been assessed during both the construction and

the operational phases.

Background noise monitoring has been undertaken across the proposed development site and in the surrounding area

to confirm the existing noise levels in the area and help determine potential for noise related impacts. Background

noise levels reflect that of a heavily industrialised area during both the day time and night scenarios and therefore the

sensitivity to noise from newly introduced industrial noise sources of all residential receptors in this environment is

likely to be low.

The impact of noise from all stages of the construction of the CCGT plant is predicted to be negligible; the only

exception to this is at the very closest residential receptors where the impact will be minor. Best practice measure will

be implemented during construction to minimise noise levels, where possible.

Changes in total ambient noise as a result of the new CCGT plant is expected to be negligible during the daytime and

minor at night. To mitigation this minor impact consideration will be given to adopting noise reduction measures

associated with the existing site fencing and / or fencing associated with the closest residential dwellings. In addition,

annual monitoring of the boundary noise level is recommended in accordance with the guidance in the IFC

Environmental, Health, and Safety Guidelines Thermal Power Plants.

7.3 ARCHAEOLOGY

During the preparation of the ESIA, is was identified

that the proposed development lies in close proximity

(within 300m) to the site of Aegyssus, an Iron Age

habitation, a fortified Roman settlement and later

Medieval suburb.

The construction of the existing workshop building and

the former bauxite storage basin are likely to have had

a negative effect upon possible buried archaeological

assets.

Site investigation data indicates the presence of

disturbed ground to a depth of approximately 1.9m

below ground level within the former bauxite storage

area meaning that possible archaeological remains to

this depth are likely to have been disturbed. However,

it is possible that archaeological features may be

preserved beneath the bauxite storage area.

To mitigate the potential impact on archaeological

assets an archaeological watching brief has been recommended during constructions works (i.e. foundation

excavations) beneath the disturbed material zone within former bauxite storage.

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WSP Environment & Energy Tulcea ESIA NTS 8

Figure 10: Existing Drainage Network Plan

7.4 SOILS AND CONTAMINATION

The proposed development site is located within the former bauxite storage area within the site boundary of Alum SA

Alumina refinery plant. Existing slightly elevated concentrations of contamination have been identified on site although

all contaminant concentrations were below the relevant Romanian alert levels for an industrial land use for heavy

metals and hydrocarbons.

Best practice mitigation measures in line with EU guidelines will be implemented ensure that any potential impacts

relating to the storage and use of hazardous materials on the site are reduced and / or eliminated during both the

construction and operational phases.

These will include removal existing waste materials within the bauxite storage waste and assessment of the potential

for asbestos containing materials within building fabric of the workshop building; identifying designated construction

traffic routes and site accesses to minimise the risk of accidents; having appropriate storage areas with concrete

surface for hazardous materials, fuels and chemicals; all site drainage to be directed to the existing Alum Water

Treatment Facility; ensuring site staff have environmental awareness training; and, having emergency plans in place

to ensure that accidents they are dealt with as quickly and as effectively as possible

7.5 WATER QUALITY AND DRAINAGE

The proposed development has the potential to impact on surface and ground waters from the disturbance of existing

waste materials storage within the bauxite storage area; due to the possible release of uncontrolled discharges and

accidental spillages, the storage and use of hazardous substances and materials and general construction activities

during the construction and operational phases of the development.

Mitigation measures to protect water

quality include the removal of all existing

on-site waste materials, taking soil

samples and analysing and assessing

them against the relevant Romanian

standards to demonstrate that

potentially contaminative materials have

been removed from site and no longer

pose a potential risk to surface and

groundwater.

Mitigation will also include obtaining

groundwater samples and analysing and

assessing the results in line with

Romanian standards to ensure that

groundwater quality does not represent

a potential source of contamination and

is appropriately managed. Where

necessary, a remediation strategy

should be developed and implemented

across the site to minimise and / or eliminate the potential risk to groundwater quality.

All chemicals and hazardous substances will be stored on site in appropriate areas (such as within designated areas

for hazardous substance storage) as well ensuring that adequate management plans are in place to minimise the r isk

to surface and ground waters.

Assuming that appropriate measures are implemented it is considered that potential impacts associated with water

quality can be adequately mitigated to reduce and / or eliminate potential effects.

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WSP Environment & Energy Tulcea ESIA NTS 9

8 WILL THE PLANT BE DESIGNED TO THE BEST INTERNATIONAL STANDARDS FOR THE MANAGEMENT OF THESE IMPACTS?

The proposed CCGT will be designed according to Best Available Technologies (BAT) and Vimetco are committed to

adopting this approach.

Some of the key features of the CCGT plant that meet the main BAT for the design of combustion plants are outlined

below:

Low NOx burners will be installed within the CCGT plant resulting in reduced levels of nitrogen oxide (NOx). NOx

emissions are committed to be <50mg/Nm3;

CO emissions are committed to be <100mg/Nm3. The DCS system will ensure good combustion control;

The use of natural gas as the exclusive fuel for the plant will ensure SO2 and PM10 emissions are minimised as far

as practicable;

The electrical efficiency of the plant is forecast to be 46.66%. Although this is lower than BAT (54-58%) this is due

to the fact that heat will be the key provision of the proposed CCGT plant and is therefore accepted that the overall

efficiency (heat and electric) is very high. Net thermal efficiencies will be in the region of over 80% to a maximum of

up to 83%. The use of efficient gas turbines and an efficient steam cycle is considered BAT; and

Continuous emissions monitoring systems will be in place for particulates and combustions gases (NOx, Carbon

Monoxide and SOx) along with flow rate, temperature, oxygen and water vapour.

9 WHAT IS FEATURED IN THE ENVIRONMENT AND SOCIAL ACTION PLAN?

An Environmental and Social Action Plan (ESAP) has been developed which is relevant to both the development of

the proposed CCGT plant by Vimetco and the upgrade of the existing Alum facility.

The key considerations relevant to the development of the CCGT plant include the following:

The appointment of an Environmental Manager at corporate level for Vimetco Power

The development of environmental, health and safety, and quality management system documentation based on

the requirements of the CCGT plant.

Ensuring that all legal documentation and permits are in place for the CCGT plant prior to construction and as

required throughout the construction phase.

Investigation of mitigation options for potential noise and vibration on local housing.

Developing a procurement policy for both construction and operation phases of the proposed CCGT plant to

ensure that suppliers and contractors are assessed according to their quality, health and safety, and environmental

management systems.

With regard to the upgrade of existing plant, the ESAP includes the following items:

Undertaking a review of all fuel and chemical storage tanks with regard to their integrity and capacity.

Review of the existing Alum site HSE induction process to ensure that PPE is worn as required and HSE concerns

are appropriately managed.

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WSP Environment & Energy Tulcea ESIA NTS 10

Undertaking asbestos surveys of the existing site to ensure that appropriate management and mitigation is in

place.

Ensuring that air dispersion modelling is undertaken for existing Alum plant.

Undertaking flooring, safety barrier, and machine guard surveys of the existing buildings to ensure that site safety

is improved.

The key consultees identified in the Stakeholder Engagement Plan (SEP) include the following:

Mayor’s Office of Tulcea

Environment Protection Agency (Tulcea, Dobrogea Region, Galati Region)

Tulcea Social Work Department

Tractebel

Informal Leader of the Roma Community

Counsellor of the Mayor for Roma Community

Local Residents

10 WHERE CAN I FIND OUT MORE INFORMATION ABOUT THE DEVELOPMENT?

Further information, including copies of the Environmental and Social Impact Assessment (ESIA) Report and other

documents, can be accessed via the following website:

Vimetco website: http://www.vimetco.com/article/ccgt-announcement

Alum website: http://www.alum.ro/en/article/ccgt-announcement

A hard copy of the ESIA and other proposed development documents will be available for the public to view at the

Vimetco Power/Alum SA office in Tulcea, Tulcea City Hall and Energoterm office. Vimetco also intends to implement

a Grievance Mechanism to respond to any comments, concerns or complaints from affected communities and

stakeholders. Further details of this will also be available at the Alum SA, Tulcea office.

Also at the following: Vimetco Vimetco Power Rivergate Center No. 64, Splaiul Unirii 040036 Bucharest District 4 Romania Tel: +40 (0)21 408 35 00 Fax: +40 (0)21 408 35 82 Alum SC Alum SA Str. Isaccei, nr. 82, Tulcea, jud. Tulcea, 820228 Romania

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WSP Environment & Energy Tulcea ESIA NTS 11

PRIMARIA MUNICIPIULUI TULCEA Strada Pacii nr. 20, Tulcea, Jud Tulcea 820033 ENERGOTERM Administrative office SC Energoterm SA Str. Isaccei nr 73, Tulcea, jud Tulcea 820207 EBRD (Bucharest Office) Metropolis Center 56-60, Iancu de Hunedoara Bd., 3rd floor, West Wing Sector 1, Bucharest Romania Tel: +40 21 202 7100 Fax: +40 21 202 7110

In the event of any concerns or comments please contact:

Vimetco Power/Alum SA Str. Isaccei, 82

Tulcea, jud. Tulcea

820228

Romania

Persoana de Contact:

Marian Cilianu

Tel. +40-240-535022

Fax: +40-240-535495

Email: [email protected]

Web: http://www.alum.ro

Vimetco Management Centrul Rivergate

Splaiul Unirii Nr. 64, Bucuresti, Sector 4

040036

Romania

Persoana de Contact:

Alina Rusanu

Tel. +40 (0)21 408 35 00 Fax: +40 (0)21 408 35 82

Email: [email protected]

Web: http://www.vimetco.com