Oxiteno Nordeste S.A. Industria e Comercio - ethylene oxide expansion

completed

- 2 - May 24, 1995INTERNATIONAL FINANCE CORPORATIONA Member of the World Bank GroupINTERNATIONAL FINANCE CORPORATIONA Member of the World Bank Group May 24, 1995 BRAZIL: Oxiteno Nordeste S.A. Industria e Comercio Environmental Review Summary1. Oxiteno Nordeste S.A. Industria e Comercio and its parent company, Oxiteno S.A. (Oxiteno), are privately owned producers of various ethylene oxide derivatives like ethylene glycol, ethanolamine, glycol ethers and ethoxylate. The proposed project involves expansion of Oxiteno''s existing facility for production of ethylene oxide and ethylene oxide derivatives. The operation is within the main petrochemical complex of the Camacari Industrial Estate north of Salvador, Bahia, 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 information submitted by the project sponsor and the technical appraisal and site review completed by IFC''s Chemicals, Petrochemicals and Fertilizers Department staff. The following potential environmental, health and safety impacts of this project were analyzed: • air emissions; • solid waste management; • liquid effluents; • noise; • plant integrity; • safety and emergency response; and • occupational health and safety issues.The information provided about how these potential impacts would be addressed in the Oxiteno project is summarized in the paragraphs that follow.3. The plants receive their power and steam from the nearby Copene plant. Air emissions are limited to a small waste heat boiler fired on process off gases and a CO2 vent. However, the regenerator vent gas is normally sold to Petrobras and used for injection into local oil fields as part of a CO2 flooding program to increase recovery of crude oil. The reabsorber overhead stream is only vented on shutdown.4. There is no significant production of solid waste at the plants. The ethylene oxide catalyst is collected and sent for recycling to recover the silver content. Solid waste is either disposed of at the licensed sanitary landfill, which is managed and controlled by the local government, or sent for incineration at CETREL''s licensed solid waste incinerator.5. Wastewater from the processes are treated at the CETREL common treatment facility for the Camacari complex. Oxiteno''s wastewater represents less that 2% of CETREL''s capacity. CETREL''s effluent complies with local requirements and World Bank guidelines and is discharged through a deep water ocean outlet.6. The Oxiteno facility is located within the Camacari industrial complex which is kept well separated from residential areas. The nearest residential area is eight kilometers away. Oxiteno has invested heavily in noise reduction of equipment and noise only reach levels where hearing protection is required in specific areas like around the main compressor.7. The integrity and safety of the Oxiteno installations are ensured by installation of gas and heat detectors in strategic locations throughout the plant. All storage areas are properly diked and separated to prevent domino effects should an accident occur. Butyl alcohol is the only feedstock stored on site in a separately diked tank farm. The ethylene oxide storage is in refrigerated spheres with nitrogen blanketing. Further, the spheres have a water deluge system for auxiliary cooling and fire fighting if necessary. Products are stored in a third separate and diked tank farm. There is generous separation between individual plants in the Camacari industrial complex, this ads further to the overall safety of the complex.8. Oxiteno''s operators and staff are trained in fire fighting and conducts fire drills and exercises once a month. The plant has a large industrial foam generating fire fighting tender, a back up fire fighting vehicle and auxiliary equipment including breathing equipment, radios etc. Oxiteno''s fire fighting capability is backed by cooperative agreements with the other companies within the industrial complex.9. To ensure a good health standard of its employees, the sponsor has established a health center and their senior operating staff is trained in first aid. Oxiteno also has access to PAME (Emergency Medical Assistance Plan), an integrated system of Camacari complex companies, which is available with a doctor, nurses and all emergency necessities, at the nearby Copene plant.10. IFC will ensure ongoing compliance with World Bank environmental, health and safety policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by Oxiteno and by conducting periodic supervision.11. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Oxiteno Nordeste S.A. Industria e Comercio''s proposed project is designed to meet World Bank environmental, health and safety policies and guidelines, and host country requirements.