Copesul Cracker Expansion

completed

Environmental Review Summary (ERS)Project Name Brazil- Copesul ExpansionRegion South AmericaSector PetrochemicalsProject No. 007272 December 2, 19961. The project involves the expansion of Copesul’s existing operations with a new 450,000 TPY naphtha-based ethylene cracker, and the necessary increases in utility and service capacities. The existing aromatics facilities will be expanded to handle the additional cracker capacity. In addition, MTBE capacity will be debottlenecked, and a new C3 splitter will be installed to upgrade the existing plant’s chemical grade propylene and refinery grade propylene from the nearby Petrobras refinery. The project will be located within Copesul’s existing complex in the Triunfo petrochemical complex in Southern Brazil.2. This is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Chemical, Petrochemical and Fertilizer Department staff. The following potential environmental, health and safety impacts of the project were analyzed:· air emissions;· liquid effluents;· solid wastes;· waste and liquid effluent minimization;· fire prevention, safety codes and emergency response;· employee health and safety; and· environmental policies and commitments.The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.3. Air emission from the processing plant complies with local requirements and World Bank guidelines. However, the on-site powerplant complies with local requirements but not World Bank guidelines. Copesul has initiated a technical-economical design study to clarify the needed changes to bring this facility in compliance with World Bank guidelines. The study will be ready by end January 1997, and Copesul will then present, for IFC approval, a plan for bringing the power plant in compliance with relevant guidelines. All new furnaces will be equipped with low-NOx state-of-the-art burners capable of continuous operation with low NOx emissions.4. The treatment of Copesul’s effluents are carried out SITEL, a specialized unit serving the complete industrial estate. SITEL’s treatment include physical/chemical treatment, biological treatment, and a final treatment to remove micro pollutants and substances resistant to the previous treatments. The effluent is then polished in eight ponds and disposed of at an area dedicated for irrigation with this water. No effluent is released to any water body and an underground water monitoring system consisting of 140 test wells are used to ensure that no ground water contamination takes place.5. Copesul initialized a centralized system for solid waste control (SICECORS) in 1983, and managed it until 1990. SICECORS has since been managed by the sanitary company of the State of Rio Grande do Sul in corporation with the central effluent treatment facility and is serving the entire industrial estate. SICECORS solid waste management includes recycling, and use of specialized landfills.6. Copesul is further developing internal programs to control generation of effluents and residues at the source. The aim is a zero discharge goal. The first phase of Copesul’s liquid effluent reduction program, including an awareness program towards effluent control, has resulted in a significant (factor three) reduction in effluents from 1989 to 1994.7. The project design will be based on the use of NFPA guidelines for fire protection, OSHA codes for personnel safety systems, and US design standards for equipment and piping design. Copesul has own fire brigade and is participating in the regional emergency response system. A risk analysis has been carried out revealing that Copesul’s overall risk to the public will be well below the normally accepted 1*10-6 criteria.8. Copesul has committed to the Responsible Care Program, coordinated in Brazil by ABIQUIM (Associação Brasileira da Indústria Química), which basic assumption is searching for the best practices related to occupational health, industrial safety, and environmental protection, hereby contributing to the preservation of the environment and sustained development. In 1987 Copesul, through a contract with Zoobotanic Foundation of the State of Rio Grande do Sul, began to implement a 68 ha. environmental protection park in order to preserve and study natural resources of the region. The park has been open to the public since 1994.9. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Brazil requirements, and World Bank policies, and environmental, health and safety guidelines.10. IFC will monitor Copesul’s compliance with World Bank policies and guidelines during the life of the project by evaluating environmental performance reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.P:\CTEEU\COPESUL.ERSDecember 3, 1996 1:50 PM