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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 .
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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 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 • Use of low-waste technology • Use of less hazardous substances • Furthering of recovery and recycling of substances generated and used in the process and of waste • Comparable processes, facilities or methods of operation which have been tried out with success on an industrial scale • Technological advances and changes in scientific knowledge • The nature; effects and volume of emissions concerned
Annex 4 cont. • Commissioning dates for new or existing installations • Length of time to introduce BAT • Consumption and nature of raw material used in process and energy efficiency • Need to prevent or minimise the over all impact of emissions • Need to prevent accidents and to minimise consequences • 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 EffectsMay 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 1 Identify alternative options GL 5 Identify alternative options GL6 Gather and validate cost data GL 2 Inventory of emissions and consumption GL7 Define cost components GL 3 Calculate/assess cross-media effects GL 8 Process cost information GL 4 Interpret cross-media conflicts GL 9 Attributing costs to environmental protection Cost effectiveness analysis Balance of costs and environmental benefit
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 product Cost 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)
ExamplesPreem 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 %
ExamplesPreem 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 % 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 NOx NOx 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
ExamplesPreem refinery, Gothenburg Two parallel crude distillation units 50 % fuel oil and 50 % refinery gas to each furnace NOx NOx 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 millAnnual cost, investment 100 MSEK (~10M Euro) different interest rate and depreciation MSEK/year
Skopress- PM5 (2)Balancing costs and benefits Value of energy saving
Skopress- PM5 (3) Value reduced NOx emission Värde av energibesparing
Shopress- PM5 (4) Value reduced CO2 Emission Value reduced NOx emission Värde av energibesparing
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