Economic and

Cross Media aspects

Bo JanssonSwedish Environmental Protection Agency

Bo.jansson@naturvardsverket.se

• The IPPC Directive

• The BREF document

• Some Swedish examples

Definition of BATBest Available Techniques

• Technique includes 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

• Best Means 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 10BAT 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 onEconomics 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 sheetGL 1

Identify alternative options

GL 2Inventory of emissions and

consumption

GL 3Calculate/assess

cross-media effects

GL 4Interpret

cross-media conflicts

GL 5Identify alternative options

GL6Gather and validate

cost data

GL 8Process cost information

GL 9Attributing costs to

environmental protection

Cost effectiveness analysisBalance of costs and environmental benefit

GL7Define cost components

Guideline 1Necessary information to scope and identify

alternative techniques

• Selection of raw material

• Process design

• Process control

• End of pipe technology

Guideline 2Inventory 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 3Estimate environmental effects

• Human toxicity• Global warming• Aquatic toxicity• Acidification• Eutrofication• Ozone depletion• Photochemical Ozone creation potential• Etc????

Guideline 4How 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 5Scope and identify alternative techniques

• Selection of raw material

• Process design

• Process control

• End of pipe technology

Guideline 6How 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 7Define the cost components

Investment costs• Installation costs

Operating costs• Energy• Material• Labour cost• Maintenance

Guideline 8Process the cost information

• Establishing prices in the base year (Inflation)

• Discounting• Interest rate• Calculating annual costs

Cost per unit of productCost per unit of reduced emission

Swedish practice

• Interest rate, 4-6 %

• Depreciation, Economical life time, – 10-20 years

Guideline 9Attributing costs to environmental protectionBalancing 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)

SO2 SEK/KG

NOx

SEK/KGCO2

SEK/KGVOC SEK/KG

Taxes/

charges

15 50 0,91

SIKA Recommendation

(2008:3)

25+

(35-200)

75+

(5-36)

1,50 38+

(6-40)

ExamplesPreem refinery, Gothenburg

• Two parallel crude distillation units

50 % fuel oil and 50 % refinery gas to each furnace

CDU2CDU1

50 %

50 %

50 %

50 %

NOxNOx

ExamplesPreem refinery, Gothenburg

• Two parallel crude distillation units

50 % fuel oil and 50 % refinery gas to each furnace

CDU2CDU1

50 %

50 %

50 %

50 %

NOxNOx

Options

Low NOx burners (both gas fired and oil fired) in both furnaces

SCR installations on both furnaces

ExamplesPreem refinery, Gothenburg

• Two parallel crude distillation units

50 % fuel oil and 50 % refinery gas to each furnace

CDU2CDU1

50 %

50 %

50 %

50 %

NOxNOx

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

ExamplesPreem refinery, Gothenburg

Two parallel crude distillation units

50 % fuel oil and 50 % refinery gas to each furnace

CDU2CDU1100 % gas

100 % oil

NOxNOx

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

0

2

4

6

8

10

12

14

16

10 år 15 år 20 år

6%

4%

MSEK/year

Skopress- PM5 (2)Balancing costs and benefits

0

2

4

6

8

10

12

14

16

10 år 15 år 20 år

6%

4%Value of energy saving

Skopress- PM5 (3)

0

2

4

6

8

10

12

14

16

10 år 15 år 20 år

6%

4%Värde av energibesparing

Value reduced NOx emission

Shopress- PM5 (4)

0

2

4

6

8

10

12

14

16

10 år 15 år 20 år

6%

4%Värde av energibesparing

Value reduced CO2 Emission

Value reduced NOx emission

Shoe press

• Other Environmental Protection benefits?

• SO2 Emission reduction

• Dust emission reduction

Example Skoghall Pulp and paper mill Sweden

PROCESSPre treatment Bio treatment Sedimentation

RECIPIENT

Pre treatment In process Biological Chemical