Environmental & Social Review Summary
Project Number
7854
Company Name
Tvornica Cementa Koromacno d.d.
Date ESRS Disclosed
Feb 5, 2010
Country
Croatia
Region
Europe
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jun 19, 1997
Signed : Nov 29, 1997
Invested : Mar 27, 1998
Sector
Cement
Industry
Manufacturing
Department
Regional Industry MAS LAC & EUR
Project Description
Environmental Review Summary (ERS)
Project Name Croatia-Koromacno Cement
Region Europe
Sector Cement and Construction Materials
Project No. 007854
March 27, 1997
1. This project involves Phase II of a modernization and expansion of the Koromacno cement plant located in the village of Koromacno on the southern tip of the Istrian peninsula, northwestern Croatia. Formerly a socially-owned enterprise, Koromacno was converted into a joint stock company in 1992 and a 52.4% majority ownership sold to Societe Suisse de Ciment Portland S.A. (SSCP) of Switzerland. SSCP is itself majority owned by Holderbank, the world’s leading cement producer. The existing dry process plant dates from 1976 and has large reserves of limestone and shale at a quarry adjacent to the plant. Other raw materials are supplied by ship and truck. The plant’s port facilities can receive ships with up to 10 m draft and are mainly used for loading and unloading of bulk cargo. Electricity is provided through the local power grid. Process water is obtained from brackish water wells and subsequently treated in a desalination system.
2. A Phase I modernization program , completed in 1995, resulted in an increase in clinker capacity from 900 to 1,100 mtpd and substantially improved the environmental performance of the plant. Phase I installation of a new pre-heater and bag filters designed for dust emissions of less than 40 mg/Nm3 on the new clinker cooler have, according to Koromacno, reduced total dust emissions, including existing raw mill, to 60-80 mg/Nm3. Emissions were tested by Croatian authorities subsequent to Phase I and found to be within local limits. The environmental cleanup to date has been widely publicized, including visits to the plant by Croatian government officials and Swiss & Croatian press reporters. It has also been featured on Croatian TV as an example of environmental cleanup. The Phase II program will continue this process, and will further increase clinker capacity to 1,500 mtpd, complete further environmental improvements to meet Western European environmental standards, adapt the kiln to burn alternative fuels, construct additional silo capacity and install a palletizing line in the plant, and establish distribution terminals with covered storage and bulk silo capacity in Zadar, Zagreb and Rijeka.
3. Koromacno’s kiln is currently fired primarily with coal and heavy oil. As part of the Phase II program, the company plans to contract with a local company specialized in waste collection to collect and deliver used tires and motor oil to the plant. The used oil will be filtered to remove metal particles before delivery to Koromacno. Transformer oil and refinery waste will not be used. The intention is to initially provide 15% of the kiln heat requirement from alternative fuels. This will be progressively increased to a maximum of 50% within five years. A detailed alternative fuels study is currently underway. Holderbank’s use of similar technology in over 50% of its European cement plants has been accepted and closely monitored by regulatory authorities. The Company has worked closely with Croatian environmental authorities and has taken the Croatian officials to Switzerland to see similar plants in operation. Aside from the potential cost saving, use of these alternative fuels is highly positive to the environment as they will reduce the consumption of primary fossil fuels and relieve the community of a waste disposal problem.
4. 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 appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Technical and Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:
· air emissions, including emissions from kiln firing with alternative fuels;
· liquid effluents;
· noise:
· spill prevention and protection of water resources;
· solid and liquid waste disposal;
· potential contamination of distribution terminal sites from present or past uses;
· fire prevention;
· equipment safeguarding; and
· employee exposure to noise and dust.
The sponsor has presented plans to address these issues and demonstrate the proposed project will comply with applicable governmental and World Bank requirements. The information provided by the sponsor about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.
5. Installation of new bag filters on the raw mill/kiln and cement mill are a core part of the Phase II project. The existing electrostatic precipitators on the raw mill/kiln and the cement mill will be replaced in order to meet the World Bank guideline of 50 mg/Nm3 for dust emissions from all major equipment. As part of its Phase II instrumentation upgrades, Koromacno is installing permanent measurement equipment for monitoring of dust, CO, SO2, and NOX. Because cement kiln emissions are mainly governed by volatile components in the raw materials, the impact of burning alternative fuels on air emissions is expected to be small. Based on Holderbank and industry experience, no change is expected from the use of waste oil as fuel. Use of used tires as fuel is expected to result in an increase in CO emissions, accompanied by a considerable decrease in NOX emissions. Koromacno will implement its alternative fuels project in full compliance with World Bank guidelines for air emissions.
6. Koromacno has also inventoried locations of secondary dust emissions and needed improvements. Existing filters for the raw meal blending silos were replaced at the end of 1996. The exiting cement silos in the factory are fitted with filters and are in good order. The new silos to be constructed during Phase II will also be fitted with bag filters to meet current environmental standards. The quarry and the coal, gypsum and slag storage areas can be subject to blown dust during the dry summer months. The quarry road and the crusher and storage areas are sprayed with water for dust control. Koromacno uses a street sweeper that constantly cleans up the port area. It has also, as part of the Phase I investment, installed new bulk cement loading equipment complete with bag filters at the port. Clinker is presently shipped from Koromacno through its quay by loading the ship with a simple open crane. During the dry summer period there is the potential to generate some blown dust, which the company plans to mitigate by wetting down of the clinker during loading and ensuring the clinker is lowered, not dropped, into ship’s hold.
7. Koromacno is a dry process cement plant, and obtains its modest process water needs from brackish water wells. Potable water is provided by the municipal system. Under Phase I, Koromacno installed a new reverse osmosis desalination plant to supply treated process water. Effluent from the desalination plant is discharged to the Adriatic Sea. All process water is recycled within the plant. In Phase I, a new storm water system was installed on the main factory (kiln) level to capture stormwater runoff, and water collected by this system is directed to a sedimentation tank before being discharged into the sea. Concerning sanitary waste, the plant is presently connected to the municipal system, and the plant is cooperating with the municipality regarding future wastewater treatment needs.
8. Ambient noise levels were measured by government authorities in January 1996 at locations in the plant and nearby village and school yard. According to the measurements taken, the World Bank guideline for industrial areas is met within the plant. Daytime residential limits (55 dBA) are met at the village and school; however, the nighttime limit for a residential area (45 dBA) is marginally exceeded. The company plans, as part of the Phase II project, to construct a noise wall around the cement mill to shield the residential area from intrusive noise.
9. Goods handled by the port include raw materials (coal, slag, gypsum, clinker, bauxite) and shipments of equipment and supplies. Use of the port facilities by others is very limited. The Phase II expansion will not require major port construction or dredging. A motorized sweeper is used to clean up any spillage before it washes to the harbor. Cement is loaded by a new closed blower system in which is fitted with a bag filter. Fuel oil and diesel are delivered by truck and stored in above grounds tanks with containment bunds.
10. The quarry has a further life of 50 years. While specific reclamation plans for Koromacno are still under development, worked-out areas will be reclaimed consistent with Holderbank policy in a manner to protect the environment. The quarry and surrounding area had in the past been used by the Company and others to dispose of old equipment; this has been stopped and much of the old equipment has already been sold for scrap and that which remains is gradually being removed from the site.
11. Dust collected from the electrostatic precipitators, bag house and other locations will be recycled in the kiln. Ash from coal and oil firing and tire components such as steel cord will become part of the cement product and will not require disposal. Conventional solid waste generated by day-to-day operations of the plant will be disposed of in accordance with local regulations.
12. Sites for the proposed storage silos in Zadar, Zagreb and Rijeka have not yet been acquired. Koromacno is considering two options - build or acquire existing facilities, and will conduct appropriate due diligence during the site selection process for the distribution terminals to ensure that it does not assume liability for sites that are environmentally impaired from past activities. Koromacno will ensure that the terminals will comply with local environmental standards and that the silos will be fitted with appropriate dust collection systems.
13. Most elements of a cement plant are not highly vulnerable to fire, except the coal grinding plant, which is constructed in accordance with German DIN standards for fire/explosion protection. The new control room (constructed as part of Phase I) has a sprinkler system. The factory site has two hydrant systems for fire fighting - a ground level system connected to the process water system and a second new high pressure system. Additional fire fighting support is available from the municipal fire station is at Labin, 10 km away.
14. Employment at the plant is currently about 250 persons. The plant manager has responsibility for health and safety and training programs. Programs that are consistent with Holderbank practices and World Bank guidelines are being put in place as part of the Phase I and II expansion and modernization. Design for health and safety concerns such as equipment safeguarding and employee exposure to noise and dust will be consistent with Holderbank practices and World Bank guidelines.
15. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of Croatia requirements, and World Bank policies, and environmental, health and safety guidelines.
16. IFC will monitor Koromacno’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.
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March 27, 1997 9:20 AM
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
