SSL Bosnia IV

completed

The proposed project is an A Loan of up to $10 million to Sisecam Soda Lukavac (“SSL” or “the company”), the Bosnian soda ash producing subsidiary, and a repeat IFC client, of the Sisecam Group, one of the largest glass producers in the world. The loan will be used to finance energy and resource efficiency and productivity improvement investments of SSL, and will as a co-benefit also bring about reductions in emissions to the air from SSL’s boilers.The project will be IFC’s fourth engagement with the company and will include;Financing of cost overruns in the installation of a new energy efficient boiler (namely boiler 8) which was in part supported by a previous IFC project (project # 33387). Installation is complete, trial runs are on-going, and the boiler is expected be fully operational by June 2016. Upgrade and renovation of an existing boiler (namely boiler 7) to have fluidized bed combustion and higher efficiency. Rebuilt boiler 7 is expected to be operational by early 2019. Neutralization of alkaline process waste water. For the neutralization project, SSL considers two technologies; (i) use of the emissions from the flue gas desulphurization (FGD) of the new boiler; or (ii) use the emissions of the lime kiln. The tender for design will be completed by the end of 2016 and the project will be operational by the end of 2017. Condensate heat recovery project / resource efficiency projects. The condensate heat recovery project will facilitate greater power generation by SSL and reductions in process steam heating needs. Other efficiency projects include insulation of boiler channels, pipes, valves and some water tanks, elimination of air leakages, replacement of low efficient motors, and installation of variable speed drivers.The boiler investments will be specified to meet contemporary air emissions regulations in Bosnia Hercegovina which are aligned with the World Bank Group’s (“WBG”) Thermal Power Environmental Health and Safety (“EHS”) Guideline guidance values in degraded airsheds, and represent a major reduction in emissions to air of particulate matter and sulphur oxides (“SOx”). The new and refurbished boilers are also expected to achieve more complete combustion of coal than is currently the case. This will have dual benefits of reducing coal use by around 11%, and also allow fly ash to be sold to a local cement company for use in blended cement. Currently, the high carbon content of ash prevents this.