Environmental & Social Review Summary
Project Number
25566
Company Name
OMNIA FERTILIZER LIMITED
Date ESRS Disclosed
Mar 1, 2007
Country
South Africa
Region
Africa
Last Updated Date
Nov 30, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 21, 2007
Signed : Mar 4, 2008
Invested : May 9, 2008
Sector
Nitrogenous Fertilizer
Industry
Manufacturing
Department
Regional Industry - MAS Africa
Project Description
The objective of this project is to provide a Carbon Delivery Guarantee for Certified Emissions Reductions (CERs) to be generated by Omnia Fertilizer Limited (Omnia) Sasolburg, South Africa, through installation of a nitrous oxide (N2O) destruction facility at its nitric acid plant. This project will reduce the N2O emissions from Omnia Fertilizers’ nitric acid plant by up to 98% by installing an N2O catalytic reduction facility in the tail gas section of the process downstream of the absorption tower. Implementation of the project will result in GHG emission reductions, conservatively calculated between ~550,000 – ~580,000 tCO2e per year. Thus, in 2008, for example, total tCO2e will be reduced from ~615,000 to ~33,000 tCO2e. Catalytic reduction of N2O occurs when the N2O reacts with a reducing agent in contact with a catalyst. The reaction removes the oxygen from the N2O molecules and forms one or more compounds. This project activity will result in revenue to Omnia from the sale of CER''s, which will be utilized to defray significant capital investment and ongoing maintenance costs for the facility. The project brings not only environmental benefits in the form of reduced N2O and NOx emissions but also, as the first nitric acid plant in South Africa to seek registration, it can act as the catalyst to encourage other South African nitric acid producers to implement N2O reduction measures. Moreover, the project will create construction jobs during erection of the N2O reduction facility and sustainable employment in maintaining and monitoring facility performance. A portion of the revenue from the sale of CER’s will help alleviate unemployment and poverty in the host community.
Overview of IFC's Scope of Review
IFC’s review of this proposed investment included a site visit to Omnia Fertilizers’ Sasolburg, South Africa, factory and desk review of pertinent public and private documents. These include:
- Omnia’s Annual Report (2006);
- Omnia Safety, Health, Environment and Quality Management (SHEQ) Policy (both documents are published on Omnia’s website at http://www.omnia.co.za/index.html);
- formal presentations including Sasolburg Factory Overview, Omnia Induction and Omnia Fertilizers’ OHS statistics for the past three years; and
- existing nitric acid manufacturing technology and the proposed tail gas treatment facility that will reduce greenhouse gas emissions by up to 98% described in detail in the Clean Development Design Mechanism Project Design Document for Omnia Fertilizer Limited Nitrous Oxide (N2O) Reduction Project.
- Omnia’s Annual Report (2006);
- Omnia Safety, Health, Environment and Quality Management (SHEQ) Policy (both documents are published on Omnia’s website at http://www.omnia.co.za/index.html);
- formal presentations including Sasolburg Factory Overview, Omnia Induction and Omnia Fertilizers’ OHS statistics for the past three years; and
- existing nitric acid manufacturing technology and the proposed tail gas treatment facility that will reduce greenhouse gas emissions by up to 98% described in detail in the Clean Development Design Mechanism Project Design Document for Omnia Fertilizer Limited Nitrous Oxide (N2O) Reduction Project.
E & S Project Categorization and Applicable Standard
Environmental and Social Mitigation Measures
Stakeholder Engagement
Related SII
