RHODIACO/PTA EXPANSION

completed

- 3 - May 31, 1995International Finance CorporationA Member of the World Bank GroupEnvironmental Review Summary (ERS) Project Name Brazil-Rhodiaco PTA Expansion Region Latin America Sector Industry Project No 0047771. Rhodiaco Ind. Quimica Ltda (Rhodiaco) is a producer of PTA (purified terephtalic acid). Rhodiaco is owned by Rhodia-Ster and Amoco, and located within the Rhodia-complex near Campinas in Southern Brazil. The proposed project consists of an increase in the PTA production capacity from current 110,000 tons per year (tpy) to 230,000 tpy.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; • liquid effluent treatment and discharge; • solid waste management; • noise in working environment; • catalyst handling, recovery and recycling; • plant safety, spill prevention, fire protection and emergency response; • training of employees; and • employee health care.The information provided about how these potential impacts would be addressed in the Rhodiaco project is summarized in the paragraphs that follow.3. As part of the expansion program, Rhodiaco will install a new scrubber for efficient cleaning of the oxidation off gases resulting in reduction of CO and VOC concentrations in these gases. The condensing system for recovery of acetic acid will be upgraded on both the old and the new dehydration tower to reduce the amount of acetic acid released to the ambient air. The existing incinerator for crude TA residues will be shut down. This equipment was emitting high levels of particulate and will be replaced by a catalyst recovery unit. The recovered catalyst will be recycled. The new automatic controls (DCS) should reduce accidental emissions from both units by providing closer and smoother control of the operation.4. The wastewater treatment facility at the plant will be duplicated by adding three more aeration basins and two clarifiers. The cleaned wastewater will be discharged to the Atibaia River. The expanded wastewater treatment facility is designed to obtain 40 mg BOD/liter, 150 mg COD/liter, 1 mg SS/liter and 0 mg oil and fat/liter.5. The only solid waste to be produced at the Rhodiaco facility is the biological sludge from the wastewater treatment plant. It is estimated that 1,400 tons of sludge will be produced each year with a water content of 91%. The biological sludge will be stored internally for later incineration.6. Noise levels from equipment will be specified to be below 80 dbA with the exception of the air compressor. The compressor building will not require permanent presence of employees and employees visiting for carrying out control functions will be using compulsory hearing protection. This will ensure acceptable noise levels for employees. The nearest residence is more than 1.5 kilometers from the facility and no effects are foreseen.7. The catalysts in the process (manganese, cobalt and bromine) are considered hazardous and special precautions are taken for handling these chemicals. The loading equipment is conceived for dust or vapor aspiration to avoid dispersion. The unit handling the catalysts has its own hygiene and safety technician, who is assigned to the plant''s medical group, will follow the health and hygiene standard. These operational standards are already implemented at the existing facility and will be followed in the expansion project. Further, to eliminate the generation of incineration ashes with a high content of Co and Mn, a new catalyst recovery unit will be set-up. The recovered catalyst will be returned to the process.8. The two main raw materials for PTA production are acetic acid and paraxylene. To avoid contamination of the project site and prevent major accidents, a series of precautions are taken. This includes erection of all units on a concrete or anti-acid floor in order to avoid soil infiltration, equipment of all unloading places with dikes to contain spills in case of leakage, blanketing of storage of flammables, installation of fire water network and fixed fire fighting equipment, fire water ring pipe in storage areas, reinforcing of control room to allow it to withstand a hypothetical explosion at the facility, adoption of HAZOP analysis in the design of the facility and incorporation of recommendations from the analysis. An emergency plan has been prepared for the facility and the facility has its own fire brigade.9. Employees are regularly trained in safety procedures as well as to the dangers involved in handling the different chemicals and catalysts. Contractors entering the facility are given a two hour introduction to the specific danger of products and installations by one of the plant safety technicians. Special training for all employees will be conducted prior to start-up of the expansion plant to ensure full understanding of design modifications.10. As in the other Rhodia plants in Brazil, there is a doctor present in the plant every working day (Monday to Friday) and a nurse is available 24 hours per day. Every employee must pass a medical exam before being hired and then another medical exam every year.11. 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 Rhodiaco and by conducting periodic supervision.12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Rhodiaco''s proposed project is designed to meet World Bank environmental, health and safety policies and guidelines, and host country requirements.niels\brazil\rhodiaco\ersP:\CTEEU\RHODIACO.ERS