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CSIR Report No. ENV-S-C 2003-133

Confidential

ENVIRONMENTAL SCREENING STUDY FOR THE COEGA INTEGRATED POWER PROJECT,

SOUTH AFRICA

Final Report, February 2004

Prepared by: CSIR Environmentek

P O Box 320Stellenbosch 7599 South Africa

Prepared for: Eskom Holdings Limited P O Box 1091 Johannesburg 2000 South Africa

On behalf of:

Shell Gas & Power

Confidential

ENVIRONMENTAL SCREENING STUDY FOR THE COEGA INTEGRATED POWER PROJECT,

SOUTH AFRICA CSIR Report No. ENV-S-C 2003-133 Date:

February 2004 Prepared by:

CSIR Environmentek P O Box 320 Stellenbosch 7599 South Africa

Contact persons:

Paul Lochner Tel: +27 21 888-2486 ([email protected]) Frauke Münster Tel: +27 21 888-2538 ([email protected])

Prepared for:

Eskom Holdings Limited P O Box 1091 Johannesburg 2000 South Africa

Contact persons:

Deidre Herbst Tel: +27 11 800-3501 Nico Gewers

Tel: +27 11 800-2559 On behalf of: Eskom Holdings, Shell South Africa Energy and iGas

Shell Gas & Power

SUMMARY

SUMMARY

1. Background Under a Joint pre-Development Agreement (JPDA), Shell South Africa Energy (Shell) together with Eskom Holdings (Eskom) and the South African Gas Development Company (iGas, a national gas infrastructure company), have been investigating the feasibility of developing an integrated power project (Coega Integrated Power Project) within the Coega Industrial Development Zone (IDZ) near Port Elizabeth, Eastern Cape, South Africa. This project would involve the following components:

A liquified natural gas (LNG) terminal, consisting of a berth with off-loading arms within the Port of Ngqura, cryogenic pipelines, storage and handling facilities and re-gasification modules

A combined cycle gas turbine (CCGT) power plant Gas pipelines for the transmission, distribution and reticulation of natural gas within the Coega IDZ and Port of Ngqura Electricity transmission lines to transmit electricity into the national grid.

This proposed project is collectively referred to in this study as the Coega Integrated Power Project (CIPP).

2. Rationale for the proposed Coega Integrated Power Project

The following rationale has been provided by the JPDA partners for the development of the Coega Integrated Power Project:

South Africa requires new electricity generation capacity between 2007 and 2010. Due to the shorter construction lead-time, there is a potential opportunity for the CIPP to come on-stream in the window from 2008 to 2009 as a financially viable alternative to coal-fired power generation, whereafter the viability of the project diminishes.

Gas-fired power generation is potentially competitive with new coal-fired power stations and is cleaner than other fossil fuels.

Coega Integrated Power Project: Environmental Screening Study

Final Report, February 2004 - Confidential page 1

SUMMARY

South African Energy Policy requires that power generation is diversified away from a predominance of coal-fired power generation. Power generation in the Eastern Cape would increase security of power supply to this region and would contribute to balancing the national grid. The availability of natural gas within the Coega IDZ may attract industries that utilize natural gas in their industrial processes, thereby stimulating the IDZ’s development; and provide a link in the development of a national gas grid.

3. Objectives of the Environmental Screening Study The overall objectives of the Environmental Screening Study are to:

Provide early identification of potential environmental “fatal flaws” or “show stoppers” which may influence the decision to undertake more detailed feasibility studies and project engineering design.

Provide recommendations of practical measures which can be incorporated into the early design and planning of the CIPP that will result either in the avoidance of potentially significant negative environmental impacts or their mitigation to the extent that residual effects fall within acceptable limits; and the enhancement of positive aspects of the project. Enable the JPDA partners to proactively investigate and plan for the incorporation of these recommendations into the planning and design of the project prior to the commencement of the public EIA process.

4. Approach to the Environmental Screening Study The approach to the Environmental Screening Study reflects the following principles and conditions:

The study was undertaken in accordance with international best practice, and in close consultation with the JPDA partners.

The study provides a preliminary assessment, which is largely qualitative and based on available information, including expert opinion from the CSIR’s specialist team that has extensive knowledge of the Coega area. Although the specialist studies generally did not include modelling (with the exception of the marine discharges study), the specialists used existing modelling results from previous studies to enhance the depth and detail of their analyses. South African regulations and/or guidelines are used as reference standards. Where these are not appropriate, international standards are used (e.g. World Bank). The study takes cognizance of emerging or new national legislation.



SUMMARY

The study included the following phases:

Project inception, including provision of information from the client, scoping of issues and extent of stakeholder interviews with the client, and preparation of Terms of Reference for specialists.

Issue identification, including interviews with lead stakeholders to identify key issues. Specialist studies, to provide information in order to address the issues identified. Integration of findings into the Environmental Screening Study.

5. General description of the proposed project The proposed CIPP would involve importing 2 million tonnes per annum (mtpa) LNG to the Port of Ngqura, storage, regasification and the utilization of 1.5 mtpa in a 1600 MW CCGT power plant, with the remaining 0.5 mtpa being available, if required in the future, to be distributed to gas users in the Port and IDZ via a gas reticulation network. The LNG terminal and CCGT power plant are both predicted to operate for a minimum of 35 years. Construction of the LNG terminal and CCGT plant concurrently is estimated to take 3 years, with 2 years required prior to construction for design, approvals and financing. Direct investments associated with the CIPP are estimated in the region of US$ 1 billion. The potential exists to expand the facilities, by increasing the gas import up to 5 mtpa or more, for use in increasing power generation capacity up to 3200 MW and gas sales to other markets. The approximate area required for the project is 55 to 60 hectares, including options for expansion. The scope of this Environmental Screening Study is restricted to the 1600 MW option. The LNG terminal consists of the following key components:

LNG berth, with offloading arms

Cryogenic pipelines from the berth to the on-land storage tanks On-land terminal facilities, including storage tank(s) Regasification plant.

The CCGT power plant consists of the following key components:

Combined cycle gas turbine Heat recovery steam generators Gas turbines Closed cooling water system, abstracting approximately 100 000 m3 per hour of seawater.



SUMMARY


N

300 m

On breakwater Off breakwater

N

300 m

N

300 m

N

300 m

On breakwater Off breakwater


The CCGT power plant will transfer power into the national grid via the Grassridge substation and adjacent Dedisa substation, which are located just outside the IDZ boundary approximately 10 km north-west of the proposed CIPP site. Generation of 1600 MW of power from the CCGT plant will require three 400 kV transmission lines from the plant to the Grassridge substation.

6. Selection of the proposed site The selection of the proposed site at the Port of Ngqura within the Coega Industrial Development Zone follows investigations that progressively considered a range of sites at international, national and local levels. In 2002, Shell investigated the opportunity to develop the Kudu gas fields in Namibia. But following a disappointing appraisal campaign Shell took the decision to exit from the Kudu project. Shell then investigated various options for locating LNG receiving terminals along the South African coast, with sites being investigated at Saldanha Bay, Cape Town, Mossel Bay, Port Elizabeth and Coega. This investigation concluded that Coega was the most viable option for locating a LNG receiving terminal with associated regasification facilities, CCGT power plant and gas pipeline infrastructure. Initially six potential berth options for the LNG carriers at the Port of Ngqura were identified and assessed together with the Coega Development Corporation (CDC), National Port Authority (NPA) and the engineering consultants. Based on future port expansion and safety requirements, two potential berth sites in the eastern area of the port were selected and investigated more closely. These berths are referred to as the “on breakwater” and “off breakwater” options. At this stage of the feasibility analysis, both of these options are considered acceptable.

SUMMARY

During the course of the Environmental Screening Study, four combinations of site layout options have been developed. These are a “compact” site or a “stretched” layout (which determines the extent of the project along the coast); and for which either an “in surf zone“ (inland) or “outside surf zone” (seaward) option is possible. The “in surf zone” and “outside surf zone” options differ in the extent that the project is setback into the existing sand spoil site (i.e. eastern reclamation area) which is being created from excavated port material; or built out to sea by extending the existing dolos yard terrace seaward.

In surf zone

Outside surf zone

Compact case Stretched case

In surf zone

Outside surf zone

Compact case Stretched case



SUMMARY

7. Potential fatal flaws Chapters 5 to 12 identified potential impacts of the Coega Integrated Power Project (CIPP), both negative and positive. For the negative impacts, an assessment was provided of whether they are considered to constitute potential fatal flaws. The impacts that were identified as potentially constituting fatal flaws are summarized in the table below. No fatal flaws were identified for the construction or decommissioning phases of the project, except for macro-economic impacts where a potential fatal flaw was identified during the construction phase. Therefore, with the exception of this macro-economic impact, Table 1 focuses on impacts during the operations phase. For more detail on the assessment of each impact, refer to chapters 5 to 12.

Definition of a potential fatal flaw: For the purposes of this study, a potential fatal flaw is defined as an impactthat could have a "no-go" implication for the project. For the purposes of thisstudy, it is considered that a "no-go" situation could arise if the proposedproject were to lead to:

a) Exceedance of legislated standards or guidelines (eg. DWAF waterquality guidelines), resulting in the necessary licences/approvals notbeing issued by the authorities

b) Non-compliance with conditions of existing Records of Decision (eg.the ROD for the Port of Ngqura)

c) Impacts that may be evaluated in the future EIA to be of highsignificance and that are considered by stakeholders and decision-makers to be unacceptable (eg. visual impacts).

Important note: The evaluation of potential fatal flaws contained in this report is based on information available to the CSIR team at the time of the study (October to November 2003). It is anticipated that many of these potential fatal flaws could be resolved through more detailed environmental studies, further engineering design, effective environmental management, and negotiations with authorities and other key stakeholders. When evaluating whether an impact constituted a potential fatal flaw, the CSIR team adopted a precautionary approach. This implies that, unless documentation was provided by the proponent during the Environmental Screening Study indicating that a particular mitigation/design action would be implemented, it was assumed that such action may not occur and the impact was assessed based on this assumption. Given that the environmental design and management for the project is at an early stage, it can be expected that such design details are not yet available. The identification of potential fatal flaws therefore assists the project proponents in identifying priorities that need to be taken into account in the further environmental design and planning for the project. It is expected that the potential impacts identified in the following table would be re-evaluated during the EIA phase, drawing on updated and additional project information and more detailed environmental studies.



SUM

MA

RY

Ta

ble

.1 S

umm

ary

of im

pact

s tha

t con

stitu

te p

oten

tial f

atal

flaw

s

IMPA

CT

EX

PLA

NA

TIO

N O

F W

HY

THIS

IMPA

CT

IS C

ON

SID

ER

ED

A

POTE

NTI

AL

FA

TAL

FLA

W

(i)

Impa

ct o

f atm

osph

eric

em

issi

ons

No

impa

cts

wer

e id

entif

ied

that

wer

e co

nsid

ered

to p

rese

nt a

pot

entia

l fat

al fl

aw

(ii)

Impa

ct o

f wat

er c

onsu

mpt

ion,

was

tew

ater

gen

erat

ion

and

impl

icat

ions

for i

nteg

rate

d w

ater

man

agem

ent

Dep

endi

ng o

n th

e na

ture

of t

he c

onta

min

ants

, the

impa

ct o

f ac

cide

ntal

rele

ase

of u

ntre

ated

pro

cess

was

tew

ater

on

surfa

ce

wat

er a

nd g

roun

dwat

er. N

ote

that

this

impa

ct w

ould

onl

y oc

cur i

n th

e ca

se o

f an

acci

dent

(eg.

bre

akdo

wn

of tr

eatm

ent p

lant

) or i

f m

anag

emen

t sy

stem

s fa

il.

Con

side

red

a po

tent

ial f

atal

flaw

but

can

be

avoi

ded

prov

ided

that

: pro

per

cont

rol m

easu

res

are

in p

lace

to p

reve

nt d

isch

arge

of u

ntre

ated

was

tew

ater

to

the

envi

ronm

ent;

and

was

tew

ater

dis

char

ges

from

the

site

mee

t leg

isla

ted

requ

irem

ents

.

Dep

endi

ng o

n th

e na

ture

of t

he c

onta

min

ants

, the

impa

ct o

f the

re

leas

e of

trea

ted

proc

ess

was

tew

ater

that

doe

s no

t sat

isfy

le

gisl

ated

qua

lity

requ

irem

ents

on

surfa

ce w

ater

or g

roun

dwat

er. T

his

impa

ct is

of h

igh

sign

ifica

nce

if di

scha

rge

is to

the

Coe

ga R

iver

, as

pred

icte

d fin

al tr

eate

d w

aste

wat

er q

ualit

y do

es n

ot m

eet s

ever

al o

f th

e D

WA

F G

ener

al L

imits

for d

isch

arge

s. (N

ote:

It is

con

side

red

unlik

ely

that

pro

cess

was

tew

ater

will

be d

isch

arge

d to

the

Coe

ga

Riv

er.)

Con

side

red

a po

tent

ial f

atal

fla

w if

the

pro

pose

d ID

Z pr

oces

s w

ater

sys

tem

(fo

r tre

atm

ent a

nd re

-use

of w

aste

wat

er) i

s no

t in

plac

e by

the

time

of s

tart-

up

of th

e C

IPP

, and

dis

char

ge is

then

sen

t to

the

Coe

ga R

iver

. N

eed

to e

nsur

e th

at p

rope

r con

trol m

easu

res

are

in p

lace

so

that

wat

er q

ualit

y m

eets

the

requ

irem

ents

for r

e-tre

atm

ent v

ia th

e ID

Z pr

oces

s w

ater

sys

tem

. An

alte

rnat

ive

wou

ld b

e on

-site

terti

ary/

adva

nced

trea

tmen

t for

dire

ct w

aste

wat

er

re-u

se.

Impa

ct o

f acc

iden

tal r

elea

se o

f brin

e w

aste

s on

sur

face

wat

er a

nd

grou

ndw

ater

. Im

pact

is a

sses

sed

to b

e of

hig

h si

gnifi

canc

e if

brin

e w

aste

s ar

e ac

cide

ntal

ly d

isch

arge

d to

the

Coe

ga R

iver

. (N

ote:

The

no

rmal

ope

ratin

g sc

enar

io is

for b

rine

was

tes t

o be

trea

ted

on-s

ite a

nd

sent

to th

e ID

Z pr

oces

s wat

er sy

stem

).

This

pot

entia

l fat

al fl

aw c

an b

e av

oide

d by

des

igni

ng a

ltern

ativ

e br

ine

disp

osal

m

echa

nism

s an

d en

surin

g ne

cess

ary

man

agem

ent a

nd p

rote

ctio

n m

easu

res

are

in p

lace

to p

reve

nt a

ccid

enta

l dis

char

ges.

C

oega

Int

egra

ted

Pow

er P

roje

ct: E

nvir

onm

enta

l Scr

eeni

ng S

tudy

Fi

nal R

epor

t, F

ebru

ary

2004

- C

onfi

dent

ial

page

7

SUM

MA

RY

IM

PAC

T E

XPL

AN

ATI

ON

OF

WH

Y TH

IS IM

PAC

T IS

CO

NSI

DE

RE

D A

PO

TEN

TIA

L F

ATA

L F

LAW

(ii

i) Im

pact

of w

ater

dis

char

ges

to th

e m

arin

e en

viro

nmen

t (ii

i) (a

) F

or d

isch

arge

of h

eatin

g w

ater

s fro

m L

NG

term

inal

, with

inta

ke st

ruct

ures

loca

ted

in th

e se

a to

the

nort

h-ea

st o

f the

eas

tern

bre

akw

ater

: Im

pact

of s

hore

line

mov

emen

t, po

or w

ater

qua

lity

(turb

idity

) and

su

rge/

wav

e ac

tion

on in

take

stru

ctur

es.

A p

oten

tial f

atal

flaw

if th

e co

st o

f bui

ldin

g th

e in

take

to w

ithst

and

wav

e an

d su

rge

actio

n is

pro

hibi

tive.

(ii

i) (b

) F

or d

isch

arge

of c

oolin

g w

ater

for C

CG

T po

wer

pla

nt in

to th

e Po

rt:

Ther

mal

impa

ct o

f war

m w

ater

dis

char

ge o

n po

rt w

ater

qua

lity

and

loca

l eco

syst

ems.

Im

pact

is h

igh

in th

at th

e S

A w

ater

qua

lity

guid

elin

es w

ill be

exc

eede

d in

the

port

and

poss

ibly

at J

ahle

el Is

land

. The

act

ual e

colo

gica

l im

pact

s m

ay,

how

ever

, not

be

“hig

h”.

Impa

ct o

f bio

cide

s on

por

t wat

er q

ualit

y an

d lo

cal e

cosy

stem

s.

Impa

ct is

ass

esse

d to

be

high

bec

ause

por

t wat

er q

ualit

y ap

proa

ches

A

NZE

CC

lim

it of

0.0

2 pp

m c

hlor

ine

for m

arin

e en

viro

nmen

ts.

Impa

ct o

f ind

uced

flow

s on

sco

ur, s

hip

man

oeuv

rabi

lity

and

turb

idity

in

the

port.

P

ossi

ble

fata

l fla

w b

ut c

ould

be

miti

gate

d by

app

ropr

iate

des

ign.

Impa

ct o

f sho

relin

e m

ovem

ent,

poor

wat

er q

ualit

y (tu

rbid

ity) a

nd

surg

e/w

ave

actio

n on

inta

ke s

truct

ures

in m

arin

e en

viro

nmen

t. A

pot

entia

l fat

al fl

aw if

the

cost

of b

uild

ing

the

inta

ke to

with

stan

d w

ave

and

surg

e ac

tion

is p

rohi

bitiv

e.

(iii)

(c)

For

dis

char

ge o

f coo

ling

wat

er fo

r CC

GT

pow

er p

lant

into

the

mar

ine

envi

ronm

ent t

o th

e no

rth-

east

of t

he e

aste

rn b

reak

wat

er:

Ther

mal

impa

ct o

f war

m w

ater

dis

char

ge o

n lo

cal e

cosy

stem

s (e

g.

Jahl

eel I

slan

d) a

nd th

e ab

alon

e fa

rm.

Impa

ct a

sses

sed

to b

e hi

gh, i

n th

at S

A w

ater

qua

lity

guid

elin

e of

max

imum

∆T

=1ºC

like

ly to

be

exce

eded

at J

ahle

el Is

land

. Act

ual i

mpa

ct m

ight

not

be

“hig

h”.

Impa

ct o

f bio

cide

s on

loca

l eco

syst

ems

and

the

abal

one

farm

. Im

pact

ass

esse

d to

be

of h

igh

sign

ifica

nce.

How

ever

, mor

e de

taile

d m

odel

ling

and

asse

ssm

ent i

s re

quire

d to

con

firm

the

sign

ifica

nce

of th

is im

pact

. Im

pact

of i

nduc

ed fl

ows

on s

cour

(at b

reak

wat

er),

mod

ifica

tion

of

sedi

men

t tra

nspo

rt re

gim

e, c

hang

es in

effi

cacy

of s

and

bypa

ss

syst

em, a

nd in

crea

sed

turb

idity

.

Pot

entia

l fat

al fl

aw b

ut c

ould

be

miti

gate

d by

loca

ting

the

disc

harg

e no

rth-e

ast

of e

aste

rn b

reak

wat

er.

C

oega

Int

egra

ted

Pow

er P

roje

ct: E

nvir

onm

enta

l Scr

eeni

ng S

tudy

Fi

nal R

epor

t, F

ebru

ary

2004

- C

onfi

dent

ial

page

8

SUM

MA

RY

IMPA

CT

EX

PLA

NA

TIO

N O

F W

HY

THIS

IMPA

CT

IS C

ON

SID

ER

ED

A

POTE

NTI

AL

FA

TAL

FLA

W

(iv)

Impa

ct o

f mat

eria

ls h

andl

ing

and

chem

ical

and

sol

id w

aste

man

agem

ent

No

pote

ntia

l fat

al fl

aws

wer

e id

entif

ied.

(v

) Im

pact

of n

oise

N

o po

tent

ial f

atal

flaw

s w

ere

iden

tifie

d.

(vi)

Impa

ct o

f phy

sica

l inf

rast

ruct

ure

Dec

imat

ion

of b

irds

on J

ahle

el Is

land

, if p

reda

tors

suc

h as

rats

and

ca

ts w

ere

to g

ain

acce

ss to

Jah

leel

Isla

nd v

ia th

e ea

ster

n br

eakw

ater

as

a re

sult

of C

IPP

act

iviti

es.

If th

e “o

n br

eakw

ater

” ber

th o

ptio

n is

iden

tifie

d as

the

only

feas

ible

opt

ion

by

the

proj

ect p

ropo

nent

s; a

nd th

e P

ort R

OD

can

not b

e re

vise

d to

allo

w

infra

stru

ctur

e de

velo

pmen

t on

the

east

ern

brea

kwat

er (e

ven

with

des

ign

actio

ns to

pre

vent

pre

dato

rs g

aini

ng a

cces

s to

the

brea

kwat

er a

s a

resu

lt of

th

e C

IPP

); th

en th

e “o

n br

eakw

ater

” ber

th o

ptio

n w

ould

con

stitu

te a

co

ntra

vent

ion

of th

e cu

rrent

Por

t of N

gqur

a R

OD

and

is th

eref

ore

cons

ider

ed

a fa

tal f

law

.

Enc

roac

hmen

t of p

hysi

cal i

nfra

stru

ctur

e in

to s

ensi

tive

habi

tats

pr

otec

ted

by th

e O

pen

Spa

ce S

yste

m fo

r the

Coe

ga ID

Z an

d P

ort.

This

cou

ld le

ad to

impa

cts

such

as:

loss

and

frag

men

tatio

n of

se

nsiti

ve h

abita

ts (e

.g. d

une

habi

tats

& B

ontv

eld)

; los

s of

bio

dive

rsity

; an

d lo

ss o

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page

9

SUMMARY

The above potential fatal flaws may not be absolute, and there may be potential for them to be resolved through conceptual engineering design, more detailed environmental studies to further refine the engineering design, negotiations with authorities and other key stakeholders, and effective environmental management (i.e. good house-keeping).

8. Recommendations for project planning and design Recommendations are provided to minimize the predicted negative impacts, in particular those that have been assessed to constitute potential fatal flaws; and to enhance the positive benefits of the proposed project. These recommendations focus on actions that should be undertaken in the project planning and design phase. This section provides a summary of the key recommendations, with more detailed recommendations contained in chapters 5 to 12. Recommendations are not provided for implementation during the construction and operations phases of the project, as it is envisaged that such recommendations would be contained in a detailed Environmental Impact Assessment and/or Environmental Management Programme. 8.1 Recommendations related to impacts of atmospheric emissions Dispersion modelling and a human health risk assessment should be undertaken as part of the EIA, in order to quantify the potential impact of NOx emissions from the CCGT power plant and assess potential impacts on human health and other biotic components in the environment. 8.2 Recommendations related to impacts of water consumption and

wastewater In order to reduce water consumption, appropriate water conservation measures must be designed and implemented. This should include: use of domestic water saving devices, use of stormwater for irrigation; minimizing use of cleaning water; proper management of fire fighting water; elimination of leakages; metering and measurement; and education and awareness. For management of domestic wastewater, adequate sanitation facilities (e.g. portable toilets) must be provided during construction. Domestic wastewater must be discharged to the municipal sewer network during operations. Disposing treated process wastewater from the CCGT power plant to the Coega IDZ process water supply system for advanced treatment and re-use seems to be the alternative with the lowest environmental impact and would contribute to water conservation and re-use efforts in the area. However, as the proposed IDZ process water system may not yet be in place at the start of operation of the CIPP, this discharge option may not be feasible in the short-term. Considering the above and the fact that South Africa is a water scarce country, it is recommended that an integrated water



SUMMARY

management initiative be investigated for the project. This would aim to re-use treated process wastewater and stormwater as input process water within the CIPP, through tertiary/advanced treatment. The future availability of the CDC process water supply system and the expected water quality standards for accepting treated process wastewater and/or stormwater from future tenants should be clarified. The option and quality requirements for discharging treated process wastewater and/or stormwater to the Port of Ngqura should be clarified with NPA and DEAT: Marine and Coastal Management (MCM). Alternative options for disposal of brine waste from the CCGT power plant should be investigated, if the IDZ process water supply system is not available timeously to receive treated brine waste. Construction of stormwater and other run-off infrastructure from the containment facilities must commence at the start of the construction phase, in order to minimise erosion and sedimentation. Design a stormwater management system that meets the discharge quality and quantity requirements specified by the institution responsible for receiving the stormwater (eg. NPA or CDC). This should include the principles of sediment capture and collection of the “first flush” of stormwater (i.e. the most heavily contaminated stormwater from the paved, roofed and sealed areas of the site). Implement strict operational housekeeping controls to minimize spills and thus prevent additional loads of contaminants being entrained in the stormwater. 8.3 Recommendations related to impacts of discharges to the marine

environment The concept engineering design for the discharge and intake structures for the selected discharge options should be prepared, with the aim of mitigating impacts identified in this study. Once the results of the 3-dimensional hydrodynamic modelling and assessment (proposed below) are available, this concept engineering design should be refined, as well as the engineering design for the sand bypass system, if necessary. The siting of the heating/cooling discharge point should be located as far north-east of the eastern breakwater as possible. This will minimise any potential impacts of scour near the breakwater and impacts on the sand bypass system; as well as minimise potential thermal and biocide impacts on the Marine Protected Area around Jahleel Island. However, it should be noted that this recommendation could increase the risk of thermal impacts on the abalone farm and places the thermal discharge further within the



SUMMARY

boundaries of the proposed Marine Protected Area associated with the Greater Addo Elephant National Park. A comprehensive 3-dimensional hydrodynamic modelling and assessment (that includes air-sea heat fluxes and incorporates a near field model that is able to simulate accurately the various engineering design options for the thermal discharge), should be undertaken using the above design specifications, as well as the specifications for the sand bypass system, as inputs. The modelling should also consider the effect of shock treatments using biocides. If the modelling confirms that the SA Water Quality Guidelines for marine environments may be exceeded, then it is suggested that there may be scope to negotiate the manner in which these guidelines are applied with the lead authorities. 8.4 Recommendations related to impacts of materials handling and solid

waste A Materials Handing and Waste Management System should be conceptualized and established as part of the project planning and design phase. The project planning and design stage should also consider the application of cleaner production principles and the use of environmentally acceptable materials (e.g. less energy intensive materials, materials that can be recycled) for construction and operations. 8.5 Recommendations related to noise impacts It is anticipated that the gas turbine generator packages will be installed with enclosures. In the unlikely event of this not being the case, it is recommended that the units be equipped with purpose designed enclosures, as well as intake and exhaust silencers. 8.6 Recommendations related to impacts of physical structure In order to minimize ecological disturbance:

Non-compliance with the Record of Decision for the Port of Ngqura will need to be discussed with the relevant authorities if structures are proposed on the eastern breakwater. A request for an amendment to the Record of Decision should only be made if mitigation measures are identified by the NPA and JPDA to minimise the risk of predator species (i.e. rats and cats) reaching the eastern breakwater as a result of the infrastructure and activities of the CIPP.

Routing of transmission lines, future potential gas pipelines and access roads should be designed to avoid impacts on the Open Space System (in particular, the primary network) and other sensitive habitats.



SUMMARY

In order to minimise impacts on shoreline stability:

From an environmental perspective, it is recommended that the “outside surf zone” site layout option be selected (i.e. the dolos yard terrace be widened by cutting back into the sand spoil site), rather than expanding the terrace into the surfzone. The reason for this recommendation is that the sand spoil site is an already disturbed area; and this would also minimize the loss of natural shoreline and encroachment into the proposed Marine Protected Area.

In order to minimise visual disturbance:

Incorporate existing architectural and visual guidelines prepared for the Coega IDZ into the planning and design of the CIPP. This should include aspects such as minimising impacts of the size of facilities, treatment of the built form and facades, parking and service areas, signage on site, outdoor lighting, shaping of cut and fill slopes to support indigenous vegetation, visual screening, and control measures for litter and dust during construction.

Eskom should investigate alternative transmission line routes in order to minimize visual impacts on the Greater Addo Elephant National Park and other ecotourism initiatives between East London and the Coega IDZ.

In order to promote sound land-use planning:

Investigate the implications of the project extending onto neighbouring properties and mineral rights. For example: (i) clarify the status and ownership of land within the maximum footprint of the CIPP (i.e. land north-east of the NPA property boundary and below the high-water mark); and (ii) clarify status of PPC mineral rights in the area of the CIPP.

8.7 Recommendations related to socio-economic impacts Recommendations are provided to guide recruitment, use of local labour, and promotion of SMMEs and previously disadvantaged individuals. For example:

Maximise the use of local labour as far as possible through the use of the CDC’s Labour Management Services. Ensure recruitment measures are aimed particularly at construction workers classified as designated employees in terms of the Employment Equity Act (black people, as defined in the Act, women and disabled people). Consider employment opportunities and the needs of disabled people during the planning of construction and operational activities.



SUMMARY

Ensure that contractors stipulate percentages of local labour to be employed, use of SMMEs and training provision in their contract. Facilitate opportunities for SMMEs. Establish linkages with the CDC’s SMME Development Management, as well as with local institutions involved in the development and promotion of SMMEs. Make multi-skilling of construction workers an important priority as employment opportunities during construction are only temporary. Actively downplay inflated expectations of employment opportunities; as well as communicate that recruitment will only take place through the CDC’s Labour Management System, at designated recruitment centres and not on-site.

Establish an HIV/AIDS awareness programme for construction workers in conjunction with the CDC and NPA. 8.8 Recommendations related to macro-economic impacts Eskom should compile a readily understandable summary of the strategic planning undertaken to meet increased energy demands in the Eastern Cape and Nelson Mandela Metropolitan Municipal (NMMM) area for the next 15 years. This should present the potential alternatives to meeting future NMMM power demand and should be available as background information to inform the EIA process.

The macro-economic impact of a feasible alternative(s) for the supply of an equivalent amount of power to the NMMM area (within the timeframes and project lead times envisaged) should be estimated using a consistent macro-economic model. The objective of this exercise is to enable decision-makers to understand the opportunity costs and comparative impacts of alternative investments. Given that there may be more than one alternative involving different combinations of power supply options (e.g. strengthening transmission line capacity on a number of different routes) for different demand curves and power supply timelines, it is therefore recognized that the alternative may need to be a simplified scenario, with potential variability. Given the scale of the project and its identified macro-economic impacts, the Treasury and Reserve Bank are important stakeholders. For this reason, a sensible double-check might be to engage the Treasury and/or Reserve Bank to validate the macro-economic impacts of the project (and feasible alternatives). This should include a review of the various assumptions, such as interest rates, exchange rates and inflation rates as well as imported gas prices.



SUMMARY

9. Recommendations for baseline monitoring This section provides a summary of the key recommendations for baseline monitoring and more detailed studies, where required. For more detailed recommendations, refer to chapters 5 to 12. 9.1 Recommendations related to impacts of atmospheric emissions The CDC have established an air pollution monitoring network within the Coega IDZ along the axis of prevailing synoptic winds. It is recommended that the network is expanded to include NOx monitoring equipment. In addition, it is recommended that a new monitoring station is located within the Coega IDZ to measure ambient NOx concentrations resulting from the CCGT power station under the light NNW winds (i.e. poor dispersion conditions). 9.2 Recommendations related to impacts of water consumption and

wastewater It is recommended that a groundwater survey of the site be conducted. This could include drilling a limited number of shallow test boreholes that will determine groundwater quality and whether groundwater is connected to aquifers or potentially vulnerable receiving environments. 9.3 Recommendations related to impacts of discharges to the marine

environment Ongoing monitoring of seawater temperatures in the region could be undertaken to determine existing conditions and variations. This would provide a benchmark against which to monitor and compare the extent of the thermal footprint during the operation of the CIPP. 9.4 Recommendations related to impacts of materials handling and solid

waste In order to assess impacts associated with different waste streams during the EIA process, a characterization of the typical solid and chemical wastes associated with similar existing LNG terminals and CCGT power plants should be prepared. This information should be used to promote the separation of waste streams at the source in order to ensure that wastes are correctly disposed of, or alternatively recycled or re-used.



SUMMARY

The potential of generating carbon credits through the Kyoto Protocol Clean Development Mechanisms initiative should be evaluated. 9.5 Recommendations related to noise impacts It is recommended that a baseline noise survey be undertaken before the start of construction and after completion of construction. 9.6 Recommendations related to impacts of physical structure A computer simulation and photographic montage of the project could be prepared in order to convey the visual nature and scale of the project to stakeholders (in particular during the EIA process). This could inform a visual impact assessment that may be required as part of the future EIA. 9.7 Recommendations related to socio-economic impacts No specific recommendations were identified. 9.8 Recommendations related to macro-economic impacts No specific recommendations were identified.

10. Requirement for an Environmental Impact Assessment

In terms of the Environment Conservation Act (Act 73 of 1989) an EIA is required for those activities that have the potential to have a detrimental impact on the environment. Activities requiring an EIA have been specified by regulations issued by the Department of Environmental Affairs and Tourism (Government Notice R. 1182, 5 September 1997) and, in so far as these relate to the proposed CIPP, include:

• Facilities for commercial electricity generation and supply; • All structures below the high-water mark of the sea; and • The change of land use (eg. if the project extends into the 8CR Trust land).

Furthermore, the current legislation governing air quality in South Africa is the Atmospheric Pollution Prevention Act (No 45 of 1965). This legislation lists Power Generation processes (Activity 29) as a scheduled activity. All scheduled activities require a registration certificate prior to commissioning; as well as an EIA in terms of the EIA Regulations.



SUMMARY

Based on available information and discussions with authorities and other key stakeholders during the Environmental Screening Study (refer to Appendix A), it is recommended that the scope of the EIA include:

LNG terminal and associated facilities

CCGT power plant and associated facilities transmission lines to Grassridge and/or Dedisa substations (within the context of implications for wider transmission line planning) servitudes for gas pipelines and access roads (in particular, to assess potential impacts on the Open Space System).



CONTENTS

CONTENTS

Summary Contents Definitions, Acronyms and Units

Chapter 1: Introduction

Chapter 2: Description of the Environmental Screening Study Process

Chapter 3: General Description of the Proposed Coega Integrated Power Project

Chapter 4: Contextualising the Proposed Project within the National and Local Environment

Chapter 5: Impact Assessment of Atmospheric Emissions

Chapter 6: Impact of Water Consumption and Review of Integrated Water Management

Chapter 7: Impact Assessment of Water Discharges to the Marine Environment

Chapter 8: Impact Assessment of Materials Handling and Chemical and Solid Waste Management

Chapter 9: Impact Assessment of Noise

Chapter 10: Impact Assessment of Physical Infrastructure

Chapter 11: Impact on the Socio-Economic Environment

Chapter 12: Review of Macro-Economic Issues

Chapter 13: Conclusions and Recommendations

Chapter 14: References

Appendix A Meeting Notes

Appendix B Statutory Framework for Management of Marine Water Quality



DEFINITIONS, ACRONYMS AND UNITS

DEFINITIONS, ACRONYMS AND UNITS DEFINITIONS

Acute effect value The concentration at and above which statistically significant acute adverse effects are expected to occur.

Aquifer A geological formation that has structures or textures that hold water or permit appreciable water movement through them.

Aquitard A formation or group of geological formations with low permeability that retards the flow of groundwater.

A-weighting The human ear is not equally sensitive to sound of all frequencies, i.e. it is less sensitive to low pitched (or ‘bass’) than high pitched (or ‘treble’) sound. In order to compensate when making sound measurements, the measured value is passed through a filter that simulates the human hearing characteristic. Internationally this is an accepted procedure when working with measurements that relate to human responses to sound/noise.

Blowdown To prevent the formation of precipitates, a portion of the concentrated water is bled off and replaced with low salt make-up water to maintain a suitable salt balance. The highly saline water that is bled off from the water system is called blowdown.

Chronic effect value The concentration limit that is safe for all or most populations even during continuous exposure.

Cleaner production Cleaner Production, as defined by the United National Industrial Development Organisation (UNIDO), is a preventive, integrated strategy that is applied to the entire production cycle to increase productivity by ensuring a more efficient use of raw materials, energy and water; promote better environmental performance through reduction at source of waste and emissions; and reduce the environmental impact of products throughout their life cycle by the design of environmentally friendly but cost-effective products.

Coega Integrated Power Project

This project comprises an liquefied natural gas terminal and re-gasification plant, a combined cycle gas turbine power plant, gas pipelines within the Coega Industrial Development Zone and electricity transmission lines linking the power plant to the national grid. Also referred to as “the project”.

Combined cycle gas turbines

Combined-cycle units burn fuel in a combustion chamber, and the exhaust gases are used to drive the turbine. Waste heat boilers recover energy from the turbine exhaust gases for the production of steam, which is then used to drive another turbine.

Complex industrial wastewater

Wastewater arising from industrial activities and premises that contains a complex mixture of substances that are difficult or impractical to chemically characterise and quantify, or one or more substances, for which limit values have not been specified, and which may be harmful or potentially harmful to human health, or to the water resource.




Domestic wastewater/sewage

Wastewater produced because of domestic activities and includes both liquid and solid waste.

Domestic water Water used for basic human needs (e.g. drinking and food preparation), for personal hygiene (washing clothes, bathing and sewage removal) and for gardening.

Eco-efficiency The approach of producing more goods and services with less use of resources and less generation of waste and pollution.

Fallout Deposition of materials because of gaseous emissions. “First flush” The rainfall (stormwater) runoff from the site which is most

contaminated, usually measured as the first time period of rainfall (e.g. first hour) or the first volume of rain (e.g. first 20mm).

General or domestic waste General waste is a generic term for waste that, because of its composition and characteristics, does not pose a significant threat to public health or the environment if properly managed. Examples include domestic, commercial, certain industrial wastes and builders' rubble.

Hazardous waste Waste that may, by circumstances of use, quantity, concentration or inherent physical, chemical or infectious characteristics, cause ill-health or increase mortality in humans, fauna and flora, or adversely affect the environment when improperly treated, stored, transported or disposed of.

Industrial Development Zone

An Industrial Development Zone is an area identified for industrial development. The aim is to attract domestic and foreign investment into industrial and commercial parks by providing serviced industrial sites with purpose-built infrastructure.

Industrial waste The solid, liquid, gaseous waste or any combination thereof generated by industrial processes and manufacturing

Noise Noise is generally defined as unwanted sound. Process wastewater Wastewater produced because of industrial activities.

Process water/industrial water

That water which can be used in a number of processes in the manufacture of a product, but is not part of the product.

Project This refers to the Coega Integrated Power Project Sound Sound is small fluctuations in air pressure (measured in N/m2, or

Pascal) that are transmitted as vibrational energy via the medium (air) from the source to the receiver. The human ear is in essence a pressure transducer, which converts these small fluctuations in air pressure into electrical signals, which the brain then interprets as sound.

Sound or noise level A sound or noise level is a sound measurement that is expressed in terms of dB or dBA.

Stormwater Runoff resulting from rainfall and snowmelt. Stormwater pond Pond to allow containment of the “first flush” of stormwater.

Target water quality range For each quality constituent of concern a range of water quality can be defined over which there would be no impairment of a particular water use or of the natural aquatic environment.




ACRONYMS

APPA Atmospheric Pollution Prevention Act BAT Best available technology BEE Black economic empowerment

BPEO Best Practicable Environmental Option BTX Benzene, toluene & xylene

CCGT Combined Cycle Gas Turbine CDC Coega Development Corporation CIPP Coega Integrated Power Project CO2 Carbon Dioxide

DEAE&T Department of Economic Affairs, Environment and Tourism DEAT Department of Environmental Affairs and Tourism

DEAT:MCM Department of Environmental Affairs and Tourism: Marine and Coastal Management

DWAF Department of Water Affairs and Forestry EIA Environmental Impact Assessment ESS Environmental Screening Study FAC Freely available chlorine

GAENP Greater Addo Elephant National Park GDP Gross Domestic Product GHG Greenhouse Gas

HHRA Human Health Risk Assessment HRSG Heat recovery steam generator IBA Important Bird Area IDZ Industrial Development Zone ISO International Organisation for Standardisation

JPDA Joint pre-Development Agreement LBMS Labour and Business Management Service LNG Liquefied Natural Gas

LNGC Liquefied Natural Gas Carriers MEA Monoethonolamine

MTPA Million tonnes per annum N2 National Road No. 2

NMMM Nelson Mandela Metropolitan Municipality NOx Oxides of Nitrogen NPA National Ports Authority OSS Open Space System PLA Project Labour Agreement PM Particulate Matter

PM10 Particulate Matter with a mean aerodynamic diameter of 10 micrometers or less

ROD Record of Decision




SABS South African Bureau of Standards SANParks South African National Parks

SANS South African National Standards SEA Strategic Environmental Assessment

SMME Small, medium and micro-enterprises SO2 Sulphur Dioxide

STEP Subtropical Thicket Ecosystem Planning Project TSP Total Suspended Particulates

WHO World Health Organisation ZLA Zone Labour Agreement

UNITS

µg/m3 Micrograms per cubic meter

DB or dBA The Decibel, or tenth of a Bel. Contrary to popular belief, the dB (or dBA) is not the unit of sound. The human ear is a phenomenally sensitive instrument that can detect fluctuations in air pressure over an extremely wide range of amplitudes. This makes the handling of sound quantities in absolute terms, i.e. Pascal (Pa), very cumbersome. For this reason a sound measurement is expressed as ten times the logarithm of the ratio of the sound measurement to a reference value, 20 micro (millionth) Pa. This process converts a scale of constant increases to a scale of constant ratios and considerably simplifies the handling of sound measurement quantities. The attached ‘A’ indicates that the sound measurement has been A-weighted.

g/s Grams per second

kg/s Kilograms per second

LAeq The equivalent A-weighted sound pressure level. This is internationally the most often used parameter to measure noise in relation to human responses.

Leq The equivalent sound pressure level. This is in essence a time-averaged sound measurement. Sound continuously fluctuates as a function of time. In order to effectively assess the effect of sound or noise on human beings it is very often necessary to obtain a measure of the average exposure to the sound or noise. The time over which the fluctuating sound or noise level has been averaged is then specified in brackets, e.g. Leq (1 hr) or LAeq (1 hr).

LRe,d, LRe,n and LR,dn These are LAeq defined over different periods of 24 hours. LRe,d is defined over the day-time, i.e. from 06:00 to 22:00, and LRe,n the night-time noise level from 22:00 to 06:00. LR,dn is then the Day-Night-Level defined over 24 hours, but where LRe,n is weighted with an additional 10 dBA in order to account for the additional annoyance caused by noise during the night.






LW The sound power level of a noise source. The sound power of a source is the noise energy radiated per unit time and only dependent of the efficiency in which the source converts input energy via vibrations to noise energy. It is an extremely useful quantity for predicting sound pressure levels, which are a function of a host of environmental factors. The reference sound power is 10-12 Watt, or 1 pW.

m/s Metres per second

m3/hr Cubic metres per hour

mg/L Milligrams per litre

mg/m2/day Milligrams per square meter per day

mg/Nm3 Milligrams per normalised cubic meter

ML/day Mega litres per day

mS/m Millisiemens per meter

Mt/year Million tonnes per year

MW Mega Watt

ppm Part per million

t/year Tonnes per year W/m2 Watts per square meter

∆T Change in temperature

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