1. VNPIVNPI 1 IPPC Practice Netherlands Refineries Commission Workshop on IPPC Brussels, July 4, 2008 VNPI Mr. Pieter Thomassen and Mr. Frans Driessen

2. VNPIVNPI 2 Key Players Refineries in The Netherlands (Capacity 65 Mton/a): BP, ExxonMobil, Kuwait Petroleum, Shell, Total Permit Authorities: Provinces Zuid-Holland (DCMR) & Zeeland Environmental pressure groups Raad van State, State Council

3. VNPIVNPI 3 Goal based approach Common line of thinking, authorities & oil industry: –Meet Environmental Quality (NEC ) & Air Quality standards in a cost effective way –Use IPPC/Refinery BREF as a catalogue of tools to achieve these goals Goal based approach is the basis for the agreements on SO 2 & VOC (Refinery sector) and NOx Emission Trading (Industry sector) 1 NEC = National Emission Ceiling 1

4. VNPIVNPI 4 Legal Practice by applying goal based approach Several problems: Gap in national legislation: no link to NEC requirements Environmental law focus on BAT only Overlapping legislation: –IPPC/ BREF/ NER (Netherlands emission manual) –BEES (Netherlands combustion plant directive): SO 2, NOx, TSP –NOx ET: NOx Emission limit values based on integrated view versus BoBAT per pollutant Cost effectiveness criteria (€/kg reduction) 1 BoBAT = Best of Best Available Techniques 1

5. VNPIVNPI 5 Environmental Need for Emission Reduction & BAT (I) SO 2 NEC 2010: Legal requirement Netherlands: 50 kt/a (2010) versus 100 kt/a (actual 2000) Agreement Refinery Sector Ceiling: 16 kt/a (2010) versus 36 kt/a (agreement 2000) –Ceiling per refinery permit –Reduction options specified –Bubble but always < 500 mg/Nm3 (now 1000 mg/Nm3) SO 2 BAT Bubble: Refinery range industry view: 1000 - 1400 mg/Nm3 Energy system split view: 50 - 850 - 1700 mg/Nm3

6. VNPIVNPI 6 Environmental Need for Emission Reduction & BAT (II) Several views: SO 2 -Sector agreement based on NEC Refinery bubbles (< 500 mg/Nm3) well in BAT range Bubble limit value per refinery to be reasoned Alternative bubble limit value to be based on BAT/BoBAT (Best of BAT) per source: – Fuel oil/gas ratio – SRU recovery – Cat Cracker emission – Flare Individual emission source always in BAT range resp. being BoBAT

7. VNPIVNPI 7 Environmental Need for Emission Reduction & BAT (III) NOx NEC 2010: Legal requirement Netherlands: 260 kt/a Agreement Industry Sector target: 65 kt/a Emission Trading (ET) PSR 40 g/GJ in 2010 (versus 68 g/GJ in 2005) NOx BAT: Industry average of 40 g/GJ (about 140 mg/Nm3) best in EU! But NO exemption in IPPC as originally assumed makes ET an extra requirement Several views: Individual combustion units to be in upper BAT range BREF to make ET work Bubble (+ ET) per refinery to enable cost effectiveness Individual combustion units to meet BEES / LCPD only Individual combustion units to meet BoBAT or beyond BAT PSR = Performance Standard Rate = emission requirement 1 1

8. VNPIVNPI 8 Environmental Need for Emission Reduction & Integrated approach Example PM10 AQ standard in Rotterdam Harbour area not always met Integrated approach for R’dam refineries: –Shift from fuel oil to gas results in reduction of SO 2, NOx, and PM10 100% gas firing at the latest in 2010 In general very effective compared to reduction measures per pollutant Dominoes impact in forcing BAT / BoBAT: –Fuel oil transfer to fuel gas –Once shifted to 100% gas BAT bubble for SO 2 should apply: 50 mg/Nm3 –At 100% gas BoBAT for gas means ultra low ELV’s Integrated approach should prevail above individual BAT-BoBAT source

9. VNPIVNPI 9 IPPC Check and revision of operating permits Refinery BREF implemented in the NER (= NL emission manual for permit requirements), including a specific user interpretation (oplegnotitie) taking into account refinery sector agreements based on NEC- approach Detailed IPPC- standard checklist: –issued by the permit authorities –reviewed & discussed by the competent authorities –local factors taken into account (e.g. PM10) –economic considerations: cost effectiveness criteria for SO 2, NOx, VOC –IPPC-check handled prior to October 2007

10. VNPIVNPI 10 Appeal by environmental pressure groups against decisions by Permit Authority Appeal main issues: Relation NEC Directive & permit requirements Status and interpretation of BREF’s: –at least BoBAT (max. protection of environment) Timing implementation: –Oct. 2007 in the permit or in operation? –NEC from 2010 –Maintenance stops not taken into account Status NOx ET & voluntary agreements for SO 2, VOC, Energy Efficiency Ban on fuel oil regardless AQ Yield sulphur recovery unit Emissions individual units & processes like catalytic cracking Reduction cost criteria

11. VNPIVNPI 11 Summary IPPC Practice Legislation: Environment law focus on BAT only NEC requirement gap in national legislation Overlapping legislation emission requirements IPPC-check: Refinery BREF integrated in NER Integrated approach Local factors taken into account Economic considerations included IPPC-check completed in time But appeal: By environmental pressure groups against all refineries Awaiting judgement Raad van State, State Council

12. VNPIVNPI 12 Key Priorities for future IPPC-Refinery BREF Regulation Bubble concept for SO 2 and NOx –highly integrated processes –flexibility & cost effectiveness Recognition of self produced fuels and their emission specific properties Distinction between new build and retrofit Understanding for,,start of run” &,,end of run” performance Flexibility for maintenance and process failures Cost effectiveness