23922 - Ecogreen II

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Environmental Review Summary

Project Number

23922

Company Name

PT. ECOGREEN OLEOCHEMICALS

Date ERS Disclosed

Dec 16, 2004

Country

Indonesia

Region

East Asia and the Pacific

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jan 21, 2005
Signed : Jan 24, 2005
Invested : Mar 15, 2005

Sector

All Other Chemical Product

Industry

other

Department

Regional Industry - MAS Asia & Pac

Project Description

PT Ecogreen Oleochemicals (Ecogreen or the company), an IFC portfolio company, was established in 1989 and has grown to become the world’s fourth largest and Indonesia’s only producer of natural fatty alcohols. At present, Ecogreen has a production capacity of 122,000 tpa and annual sales of about $105 million. Ecogreen has two production plants in Indonesia, located at Batam and Medan, and affiliated marketing and distribution companies in Singapore, Germany and the USA. The Company exports 95% of its production of which 50% is to Asia-Pacific and about 20% each to the Americas and Europe. Ecogreen also sells fatty acids, methyl esters and glycerin, which are by-products of the fatty alcohol production process.

Ecogreen plans to implement a $50 million project, in which IFC will invest a $25 million A Loan, to add about 70,000 tonnes per annum (tpa) to its existing fatty alcohol production facility at Batam, Indonesia. This project, based on the technology from Davy, UK, will allow the company to improve its international competitiveness.

Environmental and Social

The sponsor has presented plans which are expected to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements - the host country laws and regulations and the World Bank Group (WBG)/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.

- Environmental, health and safety management. Both Medan and Batam plants are certified by International Organization for Standardization (ISO) for their quality management system (ISO 9001) and environmental management system (EMS) (ISO 14001). Ecogreen has expressed its intention to integrate its management systems to include quality, environment, health, safety and social accountability.

- Raw material sourcing. Ecogreen uses mainly kernel palm oil in its processes, sometimes supplemented with coconut oil. Raw materials are purchased from various sources in the open market and delivered by road or by sea to the Ecogreen plants. Oil in bulk is shipped to public ports located in the vicinity of the company’s plants and delivered to the plants via pipeline.

- Air quality impacts (including odor) and abatement. Ecogreen has all the necessary facilities to ensure compliance with government regulations and IFC requirements. The air emissions and ambient air quality meet both local regulatory requirements and WBG/IFC guideline limits. Odor is not a problem in either plant. The company provided IFC with adequate information and documentation regarding their management of emissions and air quality.

- Waste water quality and treatment. The liquid effluents from both plants meet both local regulatory requirements and WBG/IFC guideline limits. The Company has installed an anaerobic digestion system in Batam plant to further reduce the COD load to the bio reactor. Dewatered sludge from the wastewater treatment plants is used as compost material in the company’s green areas. The anaerobic digestion system has the capacity, by design, to treat the additional wastewater generated from the expanded fatty alcohol production. The Company will take appropriate methods to ensure all liquid effluent parameters meet WBG/IFC guideline limits.

- Cleaner production. The company has an ongoing program to optimize the use of resources, such as energy and water, and to reduce the production of waste. These efforts have significantly increased the efficiency of the plants and the effectiveness of the process.

- On-site waste management procedures. The production of non-hazardous waste, including significant quantities of industrial waste, such as glycerin pitch, is handled in accordance with recognized good practice. The waste is separated and recycled or disposed of as appropriate. Ecogreen is currently selling glycerin pitch to soap manufacturers. Spent oils and other hazardous wastes are dealt with consistently with IFC’s Hazardous Materials Management Guidelines. A specialized and government-accredited company regularly collects hazardous wastes from Ecogreen’s plants to dispose of appropriately. The Company will also take appropriate methods to ensure the operation of on-site landfill meets all requirements of the local regulations and WBG/IFC policies/guidelines.

- Handling and storage of fuel and other hazardous materials. A number of materials used in Ecogreen’s plants are hazardous (flammable, explosive, toxic, in pressurized vessels, etc.). The company has undertaken a risk analysis of its plants and has taken appropriate measures to prevent accidents involving hazardous scenarios or materials. Pressurized vessels are regularly inspected to ensure their integrity. New methanol storage facility will be installed at Batam plant. Ecogreen will ensure the tank farm meet all the applicable requirements of the American Petroleum Institute (API). Ecogreen will also conduct a new safety auditing upon the completion of this project.

- Health/safety, fire prevention, and emergency response. Ecogreen has a very good track record in relation to loss-time accidents. Ecogreen has adequate life and fire safety plans, and emergency preparedness and response plans. The Company has all the necessary equipment in place to handle accidents. Each plant has an occupational health and safety committee with well-trained members. Everybody in Ecogreen is aware and values good housekeeping as a means to prevent accidents. All plant personnel receive regular safety and emergency response training.

- Community relations and community development. Ecogreen’s Batam plant is relatively isolated. The only dwellings in the vicinity of the plant are those for company staff and scattered squatters across the road from the plant. Neighboring the Belawan, Medan plant, however, there is a sizable fishing village (approximately 10,000 inhabitants). Ecogreen’s social work at the Batam plant is mostly focused on the employees’ housing complex and in the school and mosque located nearby. At the Belawan, Medan plant, the company has implemented a number of social activities that cover the company’s housing complex, the fishing village and the public port. Ecogreen has a social program adequately resourced and budgeted.

- Environmental Action Plan. The Company has developed an Environmental Action Plan (EAP), which consists of separate action plans and reflects the requirements of this ERS. The Company will implement the EAP during the Project preparation and execution, and ensure the requirements of this ERS are satisfied according to its schedules.

Conclusion & Monitoring

IFC will evaluate the project’s compliance with the applicable environmental and social requirements during the lifetime of the project through the following methods:

- Review of the annual monitoring reports (AMRs) prepared for the project.
- The status of implementation of any measures contained in the Environmental Action Plan;
- Periodic site supervision visits will also be conducted, if necessary.

This Environmental Review Summary (ERS) is prepared and distributed in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Any documentation that is attached to this ERS has been prepared by the project sponsor or in conjunction with the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. The following ERS is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Environmental Review Summary

Project Description

Environmental and Social

Conclusion & Monitoring

Similar Projects

Projects

Environmental Review Summary

Project Description

Environmental and Social

Environmental Category B Disclosure Requirementsy

Environmental and Social Issues

Proposed Mitigation for Environmental and Social Issues

Environmental and Social Documentation

Conclusion & Monitoring

Conclusion

Monitoring and Compliance

Press-Release

Related SPI

Similar Projects

Disclaimer