Economic and Cross Media aspects Bo Jansson Swedish Environmental Protection Agency

The IPPC Directive The BREF document Some Swedish examples

Definition of BAT Best Available Techniques Techniqueincludes both technology used and the way the installation is designed, built, operated and decommissioned Available techniques are those developed on a scale which allows implementation in the relevant industrial sector under economically and technically viable conditions BestMeans most effective in achieving a high level of protection of environment as a whole

Annex 4 1.Use of low-waste technology 2.Use of less hazardous substances 3.Furthering of recovery and recycling of substances generated and used in the process and of waste 4.Comparable processes, facilities or methods of operation which have been tried out with success on an industrial scale 5.Technological advances and changes in scientific knowledge 6.The nature; effects and volume of emissions concerned

Annex 4 cont. 7.Commissioning dates for new or existing installations 8.Length of time to introduce BAT 9.Consumption and nature of raw material used in process and energy efficiency 10.Need to prevent or minimise the over all impact of emissions 11.Need to prevent accidents and to minimise consequences 12.Information published by Commission (art 16(2))

Art 10 BAT and Environmental Quality Standards Where an environmental quality standard requires stricter conditions than those achievable by the use of BAT additional measures shall be required which might be taken in order to comply with the EQS

BREF Document on Economics and Cross-Media Effects May 2005 Methodologies for assessing which of alternative techniques is “the best” 9 guidelines for applying these methodologies Assessment on Economic Viability in a sector

Flow sheet GL 1 Identify alternative options GL 2 Inventory of emissions and consumption GL 3 Calculate/assess cross-media effects GL 4 Interpret cross-media conflicts GL 5 Identify alternative options GL6 Gather and validate cost data GL 8 Process cost information GL 9 Attributing costs to environmental protection Cost effectiveness analysis Balance of costs and environmental benefit GL7 Define cost components

Guideline 1 Necessary information to scope and identify alternative techniques Selection of raw material Process design Process control End of pipe technology

Guideline 2 Inventory of emission and consumptions Pollutants released (air and water) Used energy Produced waste Monitoring data from existing installations BREF documents Research reports Data from Pilot plants Information from equipment manufacturers DATA QUALITY

Guideline 3 Estimate environmental effects Human toxicity Global warming Aquatic toxicity Acidification Eutrofication Ozone depletion Photochemical Ozone creation potential Etc????

Guideline 4 How to interpret the cross-media conflicts Simplistic approach- just compare Compare with European totals Compare using EPER Compare to benchmark Environmental Quality Local considerations Long term irreversible effects contra Short term reversible effects Priority to persistent, bioaccumulative, toxic and carcinogenic substances

Costs for Environmental Protection Calculate cost efficiency Balancing costs and Environmental benefits

Guideline 5 Scope and identify alternative techniques Selection of raw material Process design Process control End of pipe technology

Guideline 6 How to gather and validate cost data Sources of cost data Industry Technology suppliers Authorities Consultants Published information (BREF) Comparable projects from other industries Data Quality Transparency

Guideline 7 Define the cost components Investment costs Installation costs Operating costs Energy Material Labour cost Maintenance

Guideline 8 Process the cost information Establishing prices in the base year (Inflation) Discounting Interest rate Calculating annual costs Cost per unit of product Cost per unit of reduced emission

Swedish practice Interest rate, 4-6 % Depreciation, Economical life time, –10-20 years

Guideline 9 Attributing costs to environmental protection Balancing Costs and Environment Benefits Some Swedish examples: 1SEK=~10 Euro SIKA - Swedish Institute for Transport and Communication Analysis A working group (incl. all authorities with responsibilities for traffic issues and Sw. EPA) SO 2 SEK/KG NO x SEK/KG CO 2 SEK/KG VOC SEK/KG Taxes/ charges 15500,91 SIKA Recommendation (2008:3) 25+ (35-200) 75+ (5-36) 1,5038+ (6-40)

Examples Preem refinery, Gothenburg Two parallel crude distillation units 50 % fuel oil and 50 % refinery gas to each furnace CDU2CDU1 50 % NO x

Examples Preem refinery, Gothenburg Two parallel crude distillation units 50 % fuel oil and 50 % refinery gas to each furnace CDU2CDU1 50 % NO x Options Low NOx burners (both gas fired and oil fired) in both furnaces SCR installations on both furnaces

Examples Preem refinery, Gothenburg Two parallel crude distillation units 50 % fuel oil and 50 % refinery gas to each furnace CDU2CDU1 50 % NO x Options Low NOx burners (both gas fired and oil fired) in both furnaces Relatively low NOx reduction for Low NOx burners for oil as fuel, Relatively expensive with low NOx burners both for oil and gas SCR installations on both furnaces Expensive Technique not so cost effective for relative small gas fired installations

Examples Preem refinery, Gothenburg Two parallel crude distillation units 50 % fuel oil and 50 % refinery gas to each furnace CDU2CDU1 100 % gas 100 % oil NO x Option 3 Solution (BAT) Allocation of gas to one furnace and oil to the other. Installation of Low NOx burners in the gas fired unit, installation of SCR at the oil fired unit A Total NOx reduction from CDU of ~70 % to a reasonable cost (less than 50 SEK/kg reduced NOx) SCR

Shoepress- PM5 (1) Mondi Pulp and Paper mill Annual cost, investment 100 MSEK (~10M Euro) different interest rate and depreciation MSEK/year

Skopress- PM5 (2) Balancing costs and benefits Value of energy saving

Skopress- PM5 (3) Värde av energibesparing Value reduced NOx emission

Shopress- PM5 (4) Värde av energibesparing Value reduced CO 2 Emission Value reduced NOx emission

Shoe press Other Environmental Protection benefits? SO 2 Emission reduction Dust emission reduction

Example Skoghall Pulp and paper mill Sweden PROCESS Pre treatmentBio treatmentSedimentation RECIPIENT

Pre treatment In process Biological Chemical