1. Pagina 1 de 3 CEPSA Química QUIMICA Palos de la Frontera Jul 12 th, 2012 CEPSA QUIMICA PALOS DE LA FRONTERA IPPC DEVELOPMENT

2. Pagina 1 de 3 CEPSA Química IPPC DEVELOPMENT: KEY DATES YEARPUBLICATION/ACTION 1996/09 Council Directive 96/61/EC of 24th September 1996 concerning integrated pollution prevention and control ("IPPC Directive") 2002/07Transposition to Spanish legislation: Law 16/2002 (IPPC) 2003/02 Publication of Reference Document on Best Available Techniques in the Large Volume Organic Chemical Industry (LVOC BREF) 2004/01Presented documentation to Andalusia Environment Government 2005/04 Obtained “Integrated Environmental Authorization (AAI)” 2007/102007/10/30 Final date for “Integrated Environmental Authorization (AAI) ”

3. Pagina 1 de 3 CEPSA Química Quality, Safety and Environment Certifications ISO 9001 ISO 14001 OHSAS 18001 RESPONSIBLE CARE QUALITY ENVIRONMENT RISKS PREVENTION EMASENVIRONMENT DOÑANA 21SUSTAINABILITY 2010 1999 1992 2004 2007 1993 At start of IPPC legislation CEPSA Química had established operational procedures to control and minimize pollution

4. Pagina 1 de 3 CEPSA Química QUIMICA IPPC DEVELOPMENT What’s needed to obtain IPPC permit?: BREF Documents relevant to petrochemical industry : “Large Volume Organic Chemical Industry”, 2003/02. “Cooling Systems”, 2001/12. “Common Waste Water and Waste Gas Treatment and Management Systems in the Chemical Sector”, 2003/02. “Emission from storage of bulk or dangerous materials”, 2003/07. “Monitoring Systems”, 2003/07. “Large Combustion Plants”, 2003/03 Did not exist specific BREF of phenol production (today: first draft in study). Methylamine: BREF LVOC summary of system established in CEPSA Química: BAT. PHENOL/ACETONE: Process via cumene oxidation formed by alkylation: BAT

5. Pagina 1 de 3 CEPSA Química Control of Air Pollution Emissions QUIMICA IPPC DEVELOPMENT: requirements Fuel: Priority utilization of natural gas. Minimization of Fuel-oil (Voluntary objective) High reduction in SOx and Nox emissios 2004: Only one furnace used FO and NG simultaneously: B-401. New plant that started at 2007: furnace designed only for natural gas. 2008: stopped use of FO. 2009: New furnace B-401N to substitute old B-401. New furnaces: Low NOx burners. B-401 NOx emissions below limits.

6. Pagina 1 de 3 CEPSA Química IPPC DEVELOPMENT: requirements

7. Pagina 1 de 3 CEPSA Química QUIMICA IPPC DEVELOPMENT: requirements Control of Air Pollution Emissions Continuous emissions Monitoring system for furnaces > 50 Mw: (B-401/ B-401N) and cogeneration plant. Adaptation of platform and ladder in furnace B-401’s stack for air emission measurements. Design of stacks to optimize dispersion of pollutant.

8. Pagina 1 de 3 CEPSA Química QUIMICA IPPC DEVELOPMENT: requirements Control of Air Pollution Emissions Minimization of Volatile Organic Compound emissions (VOC’s) (Voluntary objective) Optimization of activated charcoal chambers system to reduce VOC in air from oxidation reactors. New vents absorber of Methylamine plant. Reduction of atmospheric vents from trucks and drums loading. Change of open samplings systems to closed-loops. Pump Seals: Substitution of water systems to gas closed circuits. Establishment of a Leak Detection and repair (LDAR) program.

9. Pagina 1 de 3 CEPSA Química QUIMICA CEPSA Química has a Cogeneration plant that has an independent IPPC Permit. Reduction of limit to NOx: 500 to 75 mg/Nm3. Change to a gas generator with Dry Low Emissions technology. 8 MM €. Investment 8 MM €. IPPC DEVELOPMENT: requirements Control of Air Pollution Emissions

10. Pagina 1 de 3 CEPSA Química Control of Waste Water Emissions QUIMICA IPPC DEVELOPMENT: requirements Process water waste is sent to a primary treatment and then goes to the treatment plant where the contaminants are eliminated through a biological cleaning process: Emission point #1 IPPC permit established authorized waste water limits and how they must be controlled. CQ have made Investments to optimize effluent plant in order to improve the quality of the waste water even better than limits: Design and implementation of new system of waste water treatment from new plant that started operation at 2007. Optimization of control elements to lower contamination of waste water. New filter system for sludge excess

11. Pagina 1 de 3 CEPSA Química Control of Waste Water Emissions QUIMICA IPPC DEVELOPMENT: requirements The rainfall water has an independent circuit: Emission point #2 IPPC permit established that water could only be sent at this emission point when it's raining and must be free of contaminants. CEPSA Química had made Investments to take residual water out of rainfall circuit. Implementation of Continuous Flow equipment that allows us to control that rainfall circuit only operates when it’s raining.

12. Pagina 1 de 3 CEPSA Química Control of Wastes QUIMICA IPPC DEVELOPMENT: requirements IPPC permit established authorized Hazardous waste and regulations about its management. CQ has established techniques and operational controls to minimize wastes. New temporary warehouses has been built to gather the residues. Selective gathering of residues has been improved.

13. Pagina 1 de 3 CEPSA Química Control of soil and groundwater QUIMICA IPPC DEVELOPMENT: requirements CQ has established techniques and operational controls to avoid this contamination. Special attention to storage: leak proofing of storage tanks, built over pedestal with leaks detectors, bunds,….. Protection of land of Operational areas by use of waterproof concrete.

14. Pagina 1 de 3 CEPSA Química Other requirements stipulated in the permit QUIMICA IPPC DEVELOPMENT: requirements Internal and external measurements, control and report of air emissions, waste water, wastes…(many of these are indicated on environmental legislation). Audits of compliance of requirements from IPPC permit by administration (each 2 years, measurements including). Establish obligation of Communication: environmental incidents/accidents, changes in process, productive stops…. Realization of annual report of “European Regulation on Pollutant Release and Transfer Registers (E-PRTR)”.

15. Pagina 1 de 3 CEPSA Química Environment-related operational costs and investments (MM €) YEAR 2005200620072008200920102011 INVESTMENTS 0,1840,7760,5010,5445,2811,43810,024 OPERATIONAL COSTS 4,9636,3507,8678,6404,9425,5726,274 Not including technical changes operational and security that have relation with environment. Not including Cogeneration Plant.

16. Pagina 1 de 3 CEPSA Química Consumption of water, calorific energy, electricity

17. Pagina 1 de 3 CEPSA Química And now? QUIMICA IPPC DEVELOPMENT: requirements Validity period of permit is 8 years (will expire in 2013): The documentation for renewal was presented in May, 2012 Requirements of new BREF and new legislation will be included (for example Industrial Emissions Directive) Will establish new BAT and emission levels associated (BAT-AELs): new investments. Will include references to raw materials and energy consumption.

18. Pagina 1 de 3 CEPSA Química THANKS QUIMICA