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					     Economic
        and
Cross Media aspects

            Bo Jansson
Swedish Environmental Protection Agency
    Bo.jansson@naturvardsverket.se
• The IPPC Directive
• The BREF document
• Some Swedish examples
              Definition of BAT
         Best 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 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 5
            GL 1                       Identify alternative options
Identify alternative options
                                                  GL6
                                           Gather and validate
           GL 2                                 cost data
Inventory of emissions and
       consumption
                                                  GL7
                                        Define cost components
          GL 3
    Calculate/assess                             GL 8
   cross-media effects                  Process cost information

           GL 4                                   GL 9
         Interpret                        Attributing costs to
   cross-media conflicts                environmental protection


                   Cost effectiveness analysis
            Balance of costs and environmental benefit
                   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)
                   SO2        NOx      CO2      VOC
                   SEK/KG     SEK/KG   SEK/KG   SEK/KG
  Taxes/           15         50       0,91
  charges
  SIKA             25+        75+      1,50     38+
  Recommendation
                   (35-200)   (5-36)            (6-40)
  (2008:3)
             Examples
     Preem refinery, Gothenburg
• Two parallel crude distillation units
 50 % fuel oil and 50 % refinery gas to each
  furnace
                  NOx             NOx



     50 %               50 %
               CDU1            CDU2
     50 %               50 %
                Examples
        Preem refinery, Gothenburg
• Two parallel crude distillation
  units
 50 % fuel oil and 50 % refinery    NOx                   NOx
  gas to each furnace

                 50 %                     50 %
                                CDU1                 CDU2
                 50 %                     50 %


 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    NOx                       NOx
  gas to each furnace

                 50 %                     50 %
                                CDU1                  CDU2
                 50 %                     50 %

 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      NOx                    NOx
  gas to each furnace
                                                            SCR
                                            100 % oil
                                   CDU1                   CDU2
              100 % gas

 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)
             Shoepress- PM5 (1)
          Mondi Pulp and Paper mill
 Annual cost, investment 100 MSEK (~10M
Euro) different interest rate and depreciation
 16
 14
                                   MSEK/year
 12
 10
 8                                               6%
                                                 4%
 6
 4
 2
 0
       10 år     15 år     20 år
          Skopress- PM5 (2)
      Balancing costs and benefits
16
14
12
10
8                                                 6%
                                                  4%
6                               Value of energy
                                saving
4
2
0
     10 år    15 år     20 år
             Skopress- PM5 (3)


16
14                               Value reduced NOx emission
12
10
8                                                        6%
                                   Värde av
                                   energibesparing
                                                         4%
6
4
2
0
     10 år      15 år    20 år
             Shopress- PM5 (4)


16                          Value reduced CO2 Emission

14
12                               Value reduced NOx emission
10
8                                                        6%
                                                         4%
6                                 Värde av
                                  energibesparing
4
2
0
     10 år      15 år    20 år
              Shoe press
• Other Environmental Protection benefits?
• SO2 Emission reduction
• Dust emission reduction
Example Skoghall Pulp and paper mill
            Sweden




 PROCESS
            Pre treatment   Bio treatment Sedimentation




              RECIPIENT
Pre treatment   In process   Biological   Chemical

				
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