Feasibility Study

1. Feasibility Study Site Selection - Plant Layout and environmental issue - Site Location

2. Site Design Issues: Layout andEnvironmental Impact

3. Site Selection & Layout • Where will the project or plant be built? • How much land and how many buildings will be needed? • How will the process equipment be laid out? • How will the plant be connected to offsites and storage areas?

4. Site Selection Factors Exercise: What factors do companies consider when deciding where to build a new plant?

5. Site Selection Factors Resource availability (Water, land, fuel, power) Tax regime Raw materials availability Availability of skilled labor Cost of labor (and other fixed costs) Political and strategic factors Nearness to markets Transport facilities (Roads, ports, rail, pipelines) Environmental impact Not all trade-offs will be captured by economic analysis!

6. Site and Plant Layout • Site layout goals: • Easy access to plants for workers, emergency responders • Lots of access roads, space between units • Buildings located away from hazardous areas • Allow space between process units • At least 30m, more if processes are hazardous • Storage areas have access to transportation infrastructure • Locate near main road entrance so tanker drivers don’t have to drive through the plant • Stores also need shipping and receiving area • Smooth flow of materials between plants, storage, utility plant • Reduce length of pipe runs, utility system heat losses • Make allowance for future plant expansion

7. Example Site Layout Available area Major road

8. Example Site Layout Rail siding Prevailing wind Gatehouse Tank farm • Locate tank farm with access to road and rail • Preferably also so that prevailing wind carries vapors away from plant Major road

9. Example Site Layout Rail siding Gatehouse Tank farm Access road Fire House S&R Stores High-occupancy buildings need road access & parking, should be upwind of plant Maintenance Workshops Offices Canteen Labs Major road

10. Example Site Layout Rail siding • Grid of roads for all-round access to plants • Access to plants restricted except in emergency Gatehouse Tank farm Fire House S&R Stores Maintenance Workshops Offices Canteen Labs Major road Emergency access gates, normally closed

11. Example Site Layout Rail siding Utility Plant Gatehouse Plant 1 Tank farm Fire House Plant 3 S&R Stores Plant 2 Area 1 Maintenance Workshops Plant 4 Offices Canteen Plant 2 Area 2 Labs Major road

12. Example Site Layout Rail siding Utility Plant Gatehouse Plant 1 Tank farm Fire House Plant 3 S&R Stores Plant 2 Area 1 Maintenance Workshops Plant 4 Offices Canteen Plant 2 Area 2 Labs Major road Areas to allow for future expansion

13. Example Site Layout Rail siding Utility Plant Gatehouse Plant 1 Tank farm Pipe bridge Fire House Plant 3 S&R Stores Plant 2 Area 1 Maintenance Workshops Plant 4 Offices Canteen Plant 2 Area 2 Labs Major road

14. Plant Layout • Usually carried out using CAD tools • Locate major equipment items to minimize pipe runs, allow ease of access for maintenance • Locate at grade: • Large items with special foundation requirements or frequent maintenance needs • Equipment subject to vibration (pumps, compressors, solids handling) • Make use of open 3-D steel structure so not all items are at grade (when practical to do so) • Locate control room away from noise, hazards

15. Environmental Impact Processes must meet acceptable environmental standards because: • It is required by law • The costs (human, social, economic) of non-compliance can be catastrophic • Lax attitudes are reflected in insurance premiums, stock prices • Moral and ethical obligations

16. Environmental Regulations • Emissions from chemical plants are regulated by national government (e.g. US EPA) and local government agencies (e.g. SCAQMD) • Chemical plant management must • Monitor and document waste streams discharged to the environment • Maintain the necessary permits from the relevant government agencies • Pay fines or other penalties to address any violations • Government agencies are able to order a facility to cease operating & send management to jail in extreme cases

17. Environmental Impact • Air pollution • Water Pollution • Hazardous Waste • Waste Minimization

18. Environmental Impact • Air pollution • Water Pollution • Hazardous Waste • Waste Minimization

19. From fired heaters, boilers, flares Air Pollution Common air pollutants from chemical plants include: • SOx • NOx • CO2 • Particulates (PM10, PM2.5) • Volatile Organic Compounds (VOC) • Chlorine compounds (less common)

20. Air Pollution Common air pollutants from chemical plants include: • SOx • NOx • CO2 • Particulates (PM10, PM2.5) • Volatile Organic Compounds (VOC) • Chlorine compounds (less common) From solids handling operations

21. Air Pollution Common air pollutants from chemical plants include: • SOx • NOx • CO2 • Particulates (PM10, PM2.5) • Volatile Organic Compounds (VOC) • Chlorine compounds (less common) From vents, tanks, fugitive emissions

22. Air Pollution Impacts of these air pollutants include: • SOx • NOx • CO2 • Particulates (PM10, PM2.5) • Volatile Organic Compounds (VOC) • Chlorine compounds (less common) Acid rain Acid rain, ozone, greenhouse gas Acid rain, greenhouse gas Smog Smog, ozone, GHG Ozone, GHG

23. Industry Trees, Shrubs, Swamps Natural Sources Industry Off-Road Cars & Trucks Off-Road Cars & Trucks How Ozone is Formed Sources: Houston Regional Monitoring and Business Coalition for Clean Air • FAVORABLE CONDITIONS • High temperature • Low wind speed • Low cloud cover Solar Energy OXYGEN Ground Level Ozone (O3) Formation 50 % NOx VOC’s 2 % Note: large amount of NOx produced by industry 18 % 30 %

24. Global Warming • The basic principles of the “Greenhouse Effect” are well understood • Radiation from the earth is absorbed by gases • Acts like insulation and maintains habitable surface temperatures on earth • Water vapor causes 80-90% of this effect • The “Enhanced” Greenhouse Effect is the concern (i.e., increased CO2 from human activities creates “forcing” large enough to cause global warming) • The remaining uncertainties are • How much warmer will it get? • What will be the consequences?

25. Global Warming • Six main Greenhouse Gases (GHG) and their Global Warming Potentials (GWP) - “ability to trap the sun’s heat” • CO2 - 1.0 (highest volume, most concern!) • CH4 -21 • N2O - 310 • Others: HFC’s, PFC’s SF6 - range 140 - 23,900 • 1997 Kyoto Protocol - reduce GHGs 5.2% worldwide from 1990 levels by 2008-2012. • U.S. did not sign, India and China did not have targets • Most of those that did sign will not meet targets • Many countries are imposing CO2 taxes though • Governments are creating greater incentives for energy efficiency & renewable energy sources

26. U.S. Clean Air Act Amendments of 1990The Clean Air Act (CAA); 42 U.S.C. s/s 7401 et seq. (1970) TITLE SUBJECT I Provisions for Attainment and Maintenance of National Ambient Air Quality Standards II Provisions Relating to Mobile Sources III Hazardous Air Pollutants IV Acid Deposition Control V Permits VI Stratospheric Ozone Protection VII-XI Enforcement, Research, Miscellaneous

27. Air Pollution Regulatory Approaches • Goal Oriented • U.S. National Ambient Air Quality Standards (NAAQS) • EPA sets allowable ambient levels for seven contaminants • Ozone, CO, lead, nitrogen dioxide, sulfur dioxide, PM10 PM2.5 • Set two levels based on receptor • Primary Standard (for public health, baseline levels) • Secondary Standard (for public welfare, more strict) • “Attainment” or “Non-attainment” Areas • Technology Based • U.S. National Emission Standards for Hazardous Air Pollutants (NESHAP) • Standards based on best 12% controlled facilities in each industry • 189 Hazardous Air Pollutants (HAPs) • Maximum Available Control Technology Rule (MACT) of CAAA • Refinery MACT1995 – organics from vents, leaks, tanks, drains • Refinery MACT II 2002 – vents of non-organics

28. Impact of Clean Air Act Amendments Stoddard, J.L., Kahl, J.S., Deviney, F.A., DeWalle, D.R., Driscoll, C.T., Herlihy, A.T., Kellogg, J.H., Murdoch, P.S., Webb, J.R., & Webster, K.E. Response of Surface Water Chemistry to the Clean Air Act Amendments of 1990. U.S. EPA., Research Triangle Park, N.C., 2003.

29. Impact of Clean Air Act Amendments • Data shows large impact on surface water acidity

30. Impact of Clean Air Act Amendments • Less impact on NOx as this was not regulated as tightly • As of July 2007, USA had no NOx non-attainment areas

31. Ozone Non-Attainment • 0.08 ppm 8 hr standard • Federal reformulated gasoline (RFG) is mandatory in non-attainment areas • > 1/3 of U.S.A. is currently on RFG Source www.epa.gov

32. Ozone Reduction • Most VOCs come from plants • Scope for reducing industrial VOC emissions is small • Focus has now shifted towards more stringent controls on NOx

33. Air Pollutant Emissions Control • SOx • Easiest method is to remove S from fuel • Substitute Nat Gas or low sulfur heating oil for bunker oil • Amine scrub fuel gas more deeply: U.S. EPA - 162 ppm H2S in fuel gas (20 ppm SO2 in flue) • More expensive is SOx capture by flue gas scrubbing (FGD) • NOx • Must distinguish between “fuel” and “thermal” NOx • Fuel N can be addressed by substitution • Lower flame temperatures reduce thermal NOx • Steam injection • Burner design • Numerous tail gas treatment processes are available • Selective catalytic reduction (SCR) with NH3 • Biological treatment, non-catalytic reduction, …

34. Sweet gas Acid gas Lean amine Steam Sour gas Rich amine Fuel Desulfurization • Simple amine absorption process allows fuel gas sulfur to be reduced to 40 ppm at low cost • H2Scan be reduced to 1 ppm or less using advanced absorption or adsorbent processes

35. Catalytic De-NOx • Very Expensive • Operates at 400-700°F • Used in Retrofits when Ultra-Low NOx burners cannot be used • Coupled with air preheat system

36. Air Pollutant Emissions Control • CO • Reduced by burning using excess air (but bad effect on NOx) • CO2 • Not currently regulated • Can be recovered for underground storage, oil recovery • CO2 capture from high pressure gases is relatively cheap • Can use amine processes similar to fuel desulfurization • Physical solvents such as Selexol are usually cheaper • “Oxyfuel” combustion using pure oxygen makes CO2 collection easier, but is capital intensive • Cost of CO2 capture and disposal ~ $40/ton

37. Air Pollutant Emissions Control • Particulates • Mechanical collectors, e.g. cyclones • For bulk separation • High loadings, e.g., Catalytic cracking • Electrostatic Precipitators (ESPs) • Electrical charges cause dust to migrate across streamlines by electrophoresis • Useful for smaller particles • Fabric Filters (“Baghouses”) • Lower loadings • Higher pressure drop • Wet Gas Scrubbers • Low pressure drop • Transfers air pollutant into liquid stream Electrostatic Precipitator

38. Air Pollutant Emissions Control: VOCs • Recovery • Condensation • Cheap, but seldom meets target • Scrubbing • Low ΔP, but creates liquid waste • Adsorption • Effective & expensive • Destruction • Incineration (purpose, heater or flare) • Expensive, but can recover fuel value • Catalytic oxidation • Works to very low levels, but catalysts can be sensitive • Biological treatment • Cheap, but low throughput and sensitive to toxics Adsorption Plant

39. Air Pollutant Emissions Control: VOCs • Fugitive emissions • Can be 20 – 80% of VOC emissions • Sources include • Valves (packings, open line valves) • Seals on pumps, compressors, instruments • Flanges • Pressure relief valves • Tank roof seals • Can be reduced by • Improved inspection and maintenance • Better equipment • Dual seals, seal-less pumps, dry gas seals • Welded instead of flanged joints

40. Air Pollutant Emissions Control: VOCs • VOCs are also emitted from site waste water • Open drains • Water treatment plant • Drains are common on plant • Sample points • Instruments • Maintenance • Specify closed drains or water sealed drains when necessary

41. Environmental Impact • Air pollution • Water Pollution • Hazardous Waste • Waste Minimization

42. U. S. Water Pollution Regulations 1972 Federal Water Pollution Control Act (“Clean Water Act” 33 U.S.C. ss/1251 et seq., 1977 ) • Achieve clean water for swimming, boating, and protecting fish and wildlife by 1983 • Amended 1977 and 1987 with focus on toxics and water quality • EPA sets water quality standards for pollutants in surface waters • EPA sets effluent guidelines for each industrial sector • Unlawful to discharge any pollutant into navigable waters without a permit

43. Water Pollution Water pollutants include: • Process waste streams • Sour waters (H2S, NH3) • Salt waters (neutralized streams, softeners, deionizers, etc.) • Hydrocarbon contaminated process waters • Biologically contaminated waters (e.g. broths) • High ph/low ph waters (spent acids and caustics) • Utility waste streams • Cooling tower water blowdown (usually largest source) • Boiler blowdown • Run-off streams • Rain water • Hydrant flushing • Equipment washing

44. Wastewater Treatment Systems Biological Treatment - Aeration Clarifier Gravity Sand Filter

45. Water Pollution • Process waste streams • Sour waters (H2S, NH3) • Salt waters (neutralized streams, softeners, deionizers, etc.) • Hydrocarbon contaminated process waters • Biologically contaminated waters (e.g. broths) • High ph/low ph waters (spent acids and caustics) • Utility waste streams • Cooling tower water blowdown (usually largest source) • Boiler blowdown • Run-off streams • Rain water • Hydrant flushing • Equipment washing • Low concentrations of certain highly toxic pollutants set performance limits for biological treatment • Waste water segregation and use of multiple treatment processes is usually most economical

46. Environmental Impact • Air pollution • Water Pollution • Hazardous Waste • Waste Minimization

47. U. S. Hazardous Waste RegulationsResource Conservation and Recovery Act (RCRA) 42 U.S.C. s/s 321 et seq. 1976 • Ultimate objective is to protect groundwater from contamination • “Cradle-to-grave” hazardous waste management • From identification as a waste to final disposal • Generator identifies waste as “hazardous” if it is on a regulatory list or if it has a characteristic of flammability, toxicity, corrosivity or reactivity • Hazardous wastes must be labeled and tracked in transport • Treatment is required to low levels of contaminants • Final disposal into a hazardous waste landfill of residual solid material (e.g., incinerator ash) • Addresses only current and future facilities (not abandoned or historic sites – see SARA)

48. Final Disposal of Wastes • Incineration • Usually not cheapest, but may recover fuel value • Possible issue with chlorine containing wastes and dioxin formation • Landfill • Usually after pretreatment such as dewatering, neutralization, biotreatment, extraction, vitrification, fixation, etc. • If hazardous by regulatory definition then requires treatment to reduce contaminants to very low level • Land Treatment (“land-farming”) • Sludge is spread over a large area of land and degraded by soil microbes • Useful for oil sludges, spent adsorbents, etc. • Care must be taken to control waters to prevent groundwater contamination • Recycle • If a viable case can be made, e.g., rubber, aluminum

49. SOLID WASTE TYPICAL TREATMENT Tank bottom sludges Oil recovery, incineration, fixation Cooling tower sludges Fixation Exchanger bundle cleaning sludges Fixation Coke fines Incineration, fixation Spent catalysts Neutralization, metals recovery, fixation Chemical precipitation sludges Incineration, fixation Silica gels Fixation Organic wastes Incineration Waste biological sludges Dewatering, land application, incineration Pathogenic wastes Incineration API separator sludge/waste oils Oil recovery, incineration and fixation Typical Treatment for SpecificOil Refinery Solid Wastes

50. Hazardous Waste from Abandoned Operations Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or Superfund) 42 U.S.C. s/s 9601 et seq. (1980) • Created a tax on the chemical and petroleum industries for cleaning up abandoned or uncontrolled hazardous waste sites • Established prohibitions and requirements concerning closed and abandoned hazardous waste sites and provided for liability of persons responsible for releases of hazardous waste at these sites The law authorized two kinds of response actions: • Short-term removals, where actions may be taken to address releases or threatened releases requiring prompt response. • Long-term remedial response actions, that permanently and significantly reduce the dangers associated with releases or threats of releases of hazardous substances that are serious, but not immediately life threatening.