This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social 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 social conditions at the following facilities: T6 Terminal (T6), T6 Industrial (T6I), Aceitera Chabas (ACHA), General Deheza Oil Plant, General Deheza Refinery, General Deheza Peanut Plant, General Deheza Bottling Plant, and Santa Eufemia Swine Farm. The following potential environment, health and safety and social impacts of the projects were analyzed at each site:
- Health and safety management systems;
- Ambient and point source air emissions, including workplace air quality;
- Liquid effluent management, including stormwater drainage and treatment; and
- Solid waste management.
The findings at each site are summarized below:
Terminal 6 S.A.:
The site, which employs 180, is located in the city of Puerto General San Martin next to the Paraná river in the Province of Santa Fe. Founded in 1987, T6 provides facilities and services for the exporters of agricultural products, mainly oilseeds. T6 has two berths, each with four loading arms.
- Environment, health and Safety Management:
One environmental, and occupational health and safety group oversees T6 and T6I operations. They have instituted a thorough employee-training program, the results of which are a very low rate of accidents and work related injuries. T6 has an agreement among themselves, neighboring soybean oil plants, and the Naval Prefecture/Coast Guard. Through this agreement, the Coast Guard enforces maritime regulations (e.g. prohibiting discharge of ballast or bilge water into the Paraná River). If vessels moored at T6’s berths discharge ballast or bilge, T6 is required to contact the Coast Guard and report the incident. In addition, T6 has, together with their neighboring facilities, established an emergency abatement plan, and purchased required spill containment and fire fighting equipment.
- Air Emissions:
To reduce dust generation at each berth, loading arms penetrate each vessel hull when delivering grain. Also, all the conveyor belts are covered and are fitted with dust collection equipment. Collected particulate is then captured in cyclones or bag filters . Furthermore, T6 uses a range of devices to limit dust emissions from its grain storage operations. Truck and rail unloading takes place in enclosed buildings. T6 has implemented a peripheral cleaning program, using both manual labor and mechanized equipment (street sweepers). Very little grain goes to waste, the potential for grain dust explosions is minimized through attentive housekeeping and maintenance activities, and workplace respirable dust exposures in most areas is within Argentine regulatory and IFC guideline limits. In areas where dust and noise exceed regulatory and guideline limits, employees are equipped with personal protective equipment.
- Wastewater Management:
There are five effluent discharges of points of storm, process, and sanitary wastewater into the Paraná River. Storm water is affected by moderate quantities of accumulated grain, which can’t be reached by the sweepers. Consequently this material is discharged into the River during storm flow conditions. Although not currently monitored, this effluent may not meet IFC guideline limits for effluent discharges into surface waters. The Terminal uses two extended aeration plants to treat sanitary wastewater generated at the administration building and the employee changing room prior to being discharged into the Paraná River. Although in compliance with Argentine regulations, the effluent exceeds IFC guideline limits for discharge to surface waters. Process wastewater emanates from the industrial plant at T6I. As part of this investment, T6 will undertake indicated technical actions to bring effluents into compliance with IFC guideline requirements.
- Solid Wastes:
The facility generated minimal solid waste that is disposed in a local municipal landfill.
T6 Industrial S.A.
T6I is a fully automated soybean crushing facility with an installed crushing capacity of 8,000 tons/day of soybean and a storage capacity of over 200,000 tons. This plant produces crude degummed oil, soybean meal, and husk pellets for animal feed. Although existing and expansion plants will receive grain and steam from the same source, both of these plants will function independently. The plant has two natural gas-fired boilers that produce respectively 70 and 90 tons/hour of steam. The expansion project includes an additional boiler with a 120-ton steam capacity. The plant consumes approximately 120-130 m3 of water per hour. This water is sourced from the Paraná River. After being treated, approximately 10m3 are sent to T6 and the remaining 110m3 are consumed in T6I. The boilers consume ~55m3 and the remaining 55m3 is consumed in the cooling towers and other plant processes, principally extraction. With the new expansion project water consumption will double.
- Environment, health and Safety Management:
T6I has the same thorough environmental and health and safety management systems as T6.
- Air Emissions:
Extensive dust management equipment controls ambient and workplace dust levels and maintains these in accordance with Argentine regulatory and IFC guideline limits of 150ìg/m3 and 10mg/m3 respectively. Boiler emissions and ambient air quality meet IFC guideline limits (NOx is well below IFC limits of 320 mg/Nm3). The plant has a 0.6 l/ton loss of hexane (in the flour, process effluent, and air emissions), which is below the industry average of I liter/ton.
- Wastewater Management:
Storm water is discharged to the Paraná River. Process wastewater is currently managed in ponds designed to segregate liquids and solids by gravity separation. Supernatant is pumped from a wet well directly to the Paraná. Monitoring data show that key effluent parameters although in compliance with Argentine regulatory limits exceed IFC guideline limits for treated effluent discharge to surface waters. BOD levels are at 179.1 mg/L compared to WB standard of 50mg/L, COD levels are at 457.5 mg/L compared to WB standard of 250 mg/L, oil and grease levels are at 26mg/L compared to WB standard of 10mg/L, and TSS levels are at 94.5mg/L compared to WB standard of 50 mg/L. Wastewater minimization will help to reduce the volume of wastewater to treat. As the existing plant does not have adequate capacity for plant expansion, both waste minimization and capacity expansion will be addressed. Sanitary wastewater is treated in small-extended aeration systems prior to discharge to the Paraná River. As part of this investment, AGD/T6I will undertake a wastewater management study to define technical modifications needed for storm, process and sanitary wastewater management to comply with IFC guideline limits.
- Solid Wastes:
Solid waste generated at the facility is limited and are either recycled or disposed of in accordance with local regulations.
Aceitera Chabás S.A. (“ACHA”)
The ACHA plant, which employs 179, has an installed crushing capacity of 7000 tons/day and a total storage capacity of over 200,000 tons. This plant produces crude degummed oil, meal, and husk pellets. As opposed to T6I, ACHA uses a cold dehulling process. The facility has several quality certifications, such as Quality Control Feed Materials for Animal Feed Certification (GMP13) from the Dutch Product Board for Animal Feed (PDV). In addition SGS conducted an inspection and gave ACHA a score of 4.74 over 5, that is, very good agricultural practices with regards to elaboration, storage, and dispatch of meals and pellets of soya. Process water is sourced from wells (72m3/day). The plant has two boilers of 40 tons steam/hour that are fired with on natural gas and in winter run on fuel oil when natural gas is scarce. ACHA production is transported by rail to T6.
- Environment, health and Safety Management:
ACHA follows Aceitera General Deheza Operational Office’s Environmental and Health and Safety Corporate Policies. ACHA, together with AGD, conduct an annual training program, which includes training sub-contractors. This comprehensive program has allowed ACHA to reduce work-related accidents to a minimum, their risk insurer ranked them with a “level 4”, the lowest risk level. All vehicles are owned by third parties (450 trucks transit through the plant per day), they own 4 front loaders that are maintained in in-house workshops. The plant has fire abatement equipment installed throughout the plant. Potable water is purchased from the local community with which ACHA has very good relations stemming from good operation as well as a rerouting of a rail spur to eliminate passage to trains through the town.
- Air Emissions:
Particulate from operations is well controlled with extensive equipment and is recuperated in bag filters and cyclones. Collection equipment effectiveness is complemented with an established cleaning program, using both manual labor and mechanized equipment (street sweepers). The boilers have emissions controls resulting in ~100 mg/m3 of NOx, well below IFC guideline limits of 320 mg/Nm3. The plant has a 1 l/ton of hexane loss, which is the same as the industry standard. ACHA is installing a new solvent extraction roaster (extracts hexane from flour and emission gases) that will reduce hexane loss to 0.5-0.8 l/ton , well below the industry standard. Supplemental monitoring data, which is required to define current status, will be submitted in for ambient air quality and process emissions.
- Wastewater Management.
Storm water collection channels throughout the plant discharge to a distant surface drain; collected storm water either evaporates or percolates into the local aquifer. Process effluents include boiler blow down, cooling towers discharges, condenser and wash water from extraction. ACHAs wastewater treatment system consists of three ponds; treated effluent is discharged to a storm water canal. Treated effluent complies with Argentine regulatory limits but slightly exceeds IFC guideline requirements: the BOD5 levels are at approximately 50-70mg/L compared to WB standard of 50mg/L, oil and grease levels have been reported up to 37mg/L compared to IFC guideline limits of 10mg/L. As part of this investment, the treatment system will be adjusted to bring the effluent into compliance with IFC guideline limits. Sanitary wastewater is treated in septic tanks and the effluent is discharged into a subsurface absorption system.
- Solid Wastes:
Domestic solid wastes are sent to the municipal landfill; lubricating oils and flammable liquids are managed by certified third parties; paper, cardboard, and metal scarp are sold for recycling; and construction debris is used for landfill operations. All wastes are properly stored when on site.
Aceitera General Deheza S.A.
Aceitera General Deheza (AGD) houses the operations headquarters. The complex consists of 6 different areas, the oil plant, the bottling plant, the peanut plant, the distribution center, the storage buildings, and the general administration, that employ 350 people. The group also possesses two additional peanut plants in Villa Mercedes (NIZA) and Alejandro Roca, a small oil plant in Dalmacio Velez (this is a small plant, crushes 500tn/day, it is 25-30 years old, it was revamped 1 year ago, environmental data has just began to be collected for it), a swine farm in Santa Eufemia, more than 40,000 head of cattle, and approximately 140,000ha of land. NIZA also manufactures end products, such as juices and mayonnaise. In addition AGD owns 20 storage facilities and one seed selection facility. The bottling plant, the two peanut plants, and the seed selection plant have certified quality management systems (ISO 9001-2000).
This appraisal mission included the following representative facilities: the General Deheza Oil Plant, the General Deheza Refinery, the General Deheza Bottling Plant, the General Deheza Peanut Plant, and Santa Eufemia Swine Farm.
- Environment, health and Safety Management:
Environmental and health and safety issues for the entire group are managed from General Deheza. This unit establishes policies and procedures to be followed by the entire group and consolidates all the data collected by each plant. Each year AGD deploys a training program for the entire group. During the training sessions, revisions to corporate policies are presented, as well as general occupational health and safety and environment information. AGD conducts a performance evaluation for each facility. A scoring system is used to assign a score based on each plant’s results, leadership, policies, health and safety performance, and environmental performance. This scoring activity is essentially an annual internal audit. The output from the scoring activity is used to develop required corrective actions that are to be undertaken for each facility for during following year. At the end of each year each plant’s CAP is evaluated to determine its percent completion.
General Deheza Oil Plant
This plant has 3 crushing lines: line 1 crushes 1000 tons/day of sunflower seeds, line 4 crushes ~1500 tons/day of soybean, and line 5 crushes ~4000 tons/day of soybean or 2500 tons/day of sunflower seeds. A new hot dehulling plant is being installed. The boiler has a installed capacity of 120 tons/hr of steam and is fired with by a combination of seed husk and natural gas. The entire plant consumes 17 MW of electricity and future plans include installation of a 12MW turbine. The plant consumes 100m3 of local well water/hour. Wastewater from the refinery, the boilers, and from the extraction process is collected and piped to a wastewater treatment aerated lagoons. Effluent from the lagoon system does not meet IFC guideline requirements, although it does meet Argentine regulatory limits; final effluent is discharged to a storm water canal. Most of the water evaporates or seeps into the ground.
- Health and Safety:
This plant, as all others in this Group, follow strict Environmental and Health and Safety Policies instated by Aceitera General Deheza Operational Office. Injury levels are low, the plant has fire abatement equipment installed throughout the plant, all vehicles are owned by third parties (800 trucks transit through the plant per day) except for 8 trucks that serve local markets.
- Air Emissions:
Extensive dust and particulate collection equipment has been installed throughout the plant. This plant, as all others, has instituted a thorough cleaning program, using both manual labor and mechanized equipment (street sweepers). The boiler is equipped with an electrostatic precipitator , which reduces particulate from biomass fuel to 125 mg/Nm3 (design specifications), which is in compliance with Argentine regulatory limits and slightly above IFC’s standard of 100 mg/Nm3. Updated NOx and particulate concentration in the stack emissions will be submitted to IFC as part of regular reporting. Hexane loss amounts to 1 l/ton consistent with industry standards.
- Wastewater Management:
The Company monitors the process wastewater treatment system on a weekly basis, measuring both the quality of the effluent and the quantity being generated. Raw wastewater has a BOD5 of 490 mg/l and treated effluent BOD5 is ~60-90 mg/L. Wastewater management requires optimization to bring treated effluent into compliance with IFC guideline limits. A slightly contaminated fraction of process effluent (~50m3/hr) consisting principally of blowdown from cooling towers, boiler condensate, and water from flue-gas washing in the extraction process, will be diverted to irrigate a forestation project. Remaining, more contaminated process effluent (~10-20m3/hr) consisting of discharges from the refinery and the extraction process will be treated in the lagoons. This diversion and water reutilization project will be accomplished as part of this investment.
- Solid Wastes:
Ash from boilers is used to build/maintain roads within the plant; domestic solid wastes are sent to the municipal landfill; lubricating oils and flammable liquids are managed by certified third parties; paper, cardboard, and metal scrap are sold for recycling; construction debris is used for landfill operations; wooden pallets are returned to suppliers for recycling; sludge from the lagoons are drained is sent to the landfill or used as fertilizer; pesticide containers are triple rinsed, shredded, and discarded to the landfill; and phosphoric acid containers are washed and returned to supplier, who recycles them. All wastes are properly stored when on site.
AGD Refinery
The General Deheza Refinery includes two refining lines (450 tons/day and 200 tons/day. In general, almost all sunflower seed oil is refined, while little soybean crude oil is refined. Approximately 3% of soybean oil and 5% of sunflower oil is lost in the refining process. Refinery wastewater is treated prior to discharge to the wastewater treatment lagoons to recuperate all lost oil. Sulfuric acid and flocculants are used in the separation process and the resultant effluent contains oils and acid water. Sodium hydroxide is then added to neutralize the acid water prior to being sent to the treatment lagoons. The recuperated oils are either added to the husk pellets or sold to manufactures of oleins (acidulated soap stock) to use in food and soap products.
- Health and Safety: The Refinery follows AGD’s corporate health and safety policies.
- Air emissions: The plant has a small high-pressure boiler that runs on natural gas. The atmospheric emissions are insignificant. Workplace air quality will be monitored and included in the annual AMR.
- Wastewater Management:
The refinery produces approximately 2m3/hr of liquid effluent from crude oil and approximately 3m3/hr of liquid effluent from the production of oleins. Effluents are subjected to chemical/physical treatment prior to discharge to the treatment lagoons. The oleins plant decanters are not functioning properly resulting in poor separation of water and fatty acids. Resulting acidic effluent is sent to two unlined ponds located next to the Oil Plant’s treatment lagoons. The Company is working diligently to improve the performance of this process and has developed an abandonment plan for the interim storage ponds. As part of this investment the process upset will be resolved and the abandonment plan will be implemented.
- Solid Wastes: Small quantities of diatomaceous earth are used in the refinery process; this material is disposed at a local sanitary landfill.
General Deheza Bottling Plant
The bottling plant has an installed capacity of 15 million liters of oil per month, although it is currently running at 13 million of l liters/month. The plant uses PET and polyethylene for raw materials. It is producing 172,000 one-liter and one and one half liter capacity bottles and purchases bottles of 3 and 5 liters from third parties. The plant has 1 32-cavity injection machine and 3 blow-molding machines (each produces 12,0000 bottles/hr). Its reject levels are of approximately 2 –3 bottles per 1000 produced; all scrap is ground and recycled; raw material used to manufacture the bottles consists of approximately 90% virgin material and 10% reject material.
- Health and Safety: The bottling plant follows AGDs corporate health and safety policies.
- Air Emissions: None
- Wastewater Management:
All water used to cool molding machines is recycled. Cooling tower evaporative losses, which constitute ~7% of total volume, are made up with fresh water.
- Solid Wastes:
Cardboard scraps and plastic packaging scraps are taken by a third party recycling company. Wood pallets are returned to raw material suppliers.
General Deheza Peanut Plant
This plant has an installed capacity of 500tn/day. The Group has two other peanut plants, one located in Villa Mercedes called NIZA which produces semi-toasted peanuts and peanut butter, and one located in Alejandro Roca.
- Health and Safety: Follow AGDs corporate health and safety policies;
- Air Emissions: Dust is collected. No air emissions.
- Wastewater management: No liquid effluents.
- Solid Wastes: Minimal solid waste generation.
Santa Eufemia Swine Farm
In 1993 AGD expanded recently purchased operations by building a new three-stage facility (ISO WEAN system) near Santa Eufemia with a capacity of 1200 mothers. The new farm has three stages and eight buildings, each of which contains a series of barns All the barns in the three sites have grated floors and animal waste is collected in an underlying pit that is flushed once or twice a week with clean water or recycled lagoon surface water. Wastewater is piped to the wastewater lagoons The total mortality rate of the entire farm amounts to approximately 10%, normal figures for a swine production facility. Heaters in the barns are natural gas fired, all facilities have automatic feeders and drinking fountains, they all have automatic ventilation systems, and some have evapotranspiration cooling systems. In addition, this farm includes 5600 ha of croplands (730ha with peanuts and 2200 ha with soybean, 680ha with maize, and the remaining is pasture) and approximately 4000 cows.
- Health and Safety:
This farm follows AGDs corporate health and safety policies. The farm has strict bio-security requirements: there is a vehicle disinfection systems, all staff go through a strict cleaning process prior to entering each site. As a result of these strict security policies, illness levels on-site are very low. The Santa Eufemia Swine Farm won the 2002 Global Production Efficiency Award presented by Pig Champ (can you put this into perspective).
- Air Emissions:
Air emissions are minimal, only those from small incinerators seldom used for animal mortality. Odor levels are low.
- Wastewater Management:
Ground water is used for all purposes. Lagoon effluents are used to irrigate adjacent pastureland. AGD have conducted detailed studies to determine the quality of the soils and the appropriate wastewater volumes to apply to ensure avoiding exceeding the soils’ carrying capacity. Through this analysis they effectively utilize treated effluent from the ponds.
- Solid Wastes:
Animal mortality waste is digested in microbiological impermeable concrete pits. The resulting liquid is collected by a certified third party and discharged into a lined storage tank within the Rio Cuarto municipal landfill, where the liquids are left to evaporate. The resulting solids are discarded in the adjacent landfill.