Environmental & Social Review Summary
Project Number
8391
Company Name
Green Charcoal (Pty) Ltd.
Date ESRS Disclosed
Feb 5, 2010
Country
South Africa
Region
Africa
Last Updated Date
Dec 31, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Jul 25, 1997
Signed : Sep 28, 1997
Invested : Nov 7, 1997
Sector
Coal Mining
Industry
other
Department
Regional Industry - MAS Africa
Project Description
ENVIRONMENTAL REVIEW SUMMARY
Project Name South Africa-Green Charcoal (Pty.) Ltd.
Region Sub-Saharan Africa
Sector Charcoal manufacturing
Project No. 008391 May 22, 1997
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1. This project, which is to be financed through the Africa Enterprise Fund (AEF), involves the construction and operation of a plant to produce high quality lump charcoal for export, primarily to Europe and the far east. The plant is to be located in Humansdorp, about 75 kms west of Port Elizabeth in Eastern Cape province. The charcoal to be produced is intended to meet the German "DIN" standard for charcoal, which is widely applied among European Union (EU) countries and which requires a minimum carbon content of 80%. The manufacturing process will utilize wattle (Acacia sp.) trees as the basic raw material. Wattle is regarded as an alien and invasive species by the South African Ministry of Water Affairs and Forestry (MWAF) and Department of Nature Conservation, because it utilizes large amounts of water at the expense of indigenous trees and other vegetation. MWAF has initiated an extensive program to eradicate the tree from water catchment areas throughout the province. In the past year the program has yielded a stockpile of 75,000 tons of black wattle (Acacia mearnsii) which is enough to supply the plant with raw material for an estimated 5 years. Vegetation surveys indicate that an additional 17,000 hectares (ha) of wattle (about 20 years of raw material) is available within 30 kms of the plant. The project will create job opportunities for 150 people within the plant and a further 500+ subcontractor positions to harvest, load and deliver raw material to the plant, in a region of South Africa where unemployment in towns runs at approximately 50%, and much higher in the outlying rural areas.
The project will utilize an "environmentally friendly" retort technology to produce the charcoal, which drives off unwanted liquids and gases released during the production process and burns these liquids and gases as the fuel for the process and thus does not require any outside fuel source. In conjunction with Thermopower Furnaces, the leading designer of industrial furnaces in South Africa, one of the project sponsors has developed and patented a new continuous horizontal retort specifically for the project. Tests conducted under the auspices of the Center for Scientific and Industrial Research (CSIR) and confirmed by the Societe Generale de Surveillance (SGS), a leader in pre-shipment inspection and independent laboratory analysis, indicate that the retort can produce charcoal at superior yields and higher DIN specifications than the best technology currently available.
2. 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 key environmental health and safety issues that were analyzed are as follows:
• source of raw material;
• harvesting and transport of raw material;
• water and power supply, including fuel storage if applicable;
• disposal of solid wastes;
• disposal of liquid wastes, including sewage;
• air emissions;
• workplace air quality;
• provision of personal protective equipment and employee health and safety training; and
• fire protection and emergency response.
IFC has reviewed the project proposal provided by Green Charcoal, as well as independent information provided by CSIR and SGS. Relevant elements of this information as regard the key issues listed above are described below.
3. Source of raw material: For at least the first five years of its operation, the plant intends to utilize 75,000 tonnes of black wattle trees that have already been harvested under the South African government''s Reconstruction and Development Program (RDP). The RDP''s "Working for Water" project is overseen by MWAF and has been endorsed by the World Wildlife Fund and the Endangered Wildlife Trust. At such time as Working for Water''s stockpiles are exhausted, Green Charcoal has identified 17,000 ha of wattle infestation within 30 kms of the proposed plant site, an amount that would provide in excess of 20 years'' supply of raw material.
4. Harvesting and transport of raw material: Raw material will be transported to the plant along a branch of Spoornet''s (South Africa''s rail system) narrow gauge railway line into the Langkloof valley. To facilitate the transport of raw material by rail, Green Charcoal will establish its plant at an existing unused rail station between Humansdorp and Assegaibos. Green Charcoal has already agreed to favorable transport rates with Spoornet, and is in the process of finalizing a long-term agreement for the transport of wattle logs. From the rail head logs will be loaded onto wagons and transported to the plant. The sponsors intend to assist in the establishment of subcontractor organizations in the vicinity of the plant to undertake all transport activities.
5. Water and power supply, including fuel storage: The proposed site for the plant has a natural spring within its boundaries, which will be used for drinking and ablution purposes. Water for the processing plant will be drawn from a borehole to be drilled on the property. Power for the facility will be supplied by the South African electric utility, Eskom, which has agreed to bear the cost of installing a 300 meter long Eskom line from the main lines to the project site as well as a transformer to convert high voltage electricity for use at the plant. Although power interruptions are known to occur in this part of South Africa, the sponsors are not planning to install a backup power source. As a result, no fuel will be stored at the project site. The reason for this decision is that the power requirements for the plant will be such that a very large and expensive generator would be needed to keep the facility operating in the event of a power outage. The retorts are designed with slip-on doors which automatically close down the system in the event of a power cut. Provided the power resumes in a reasonable amount of time, very little loss of product quality will occur.
6. Disposal of solid wastes: Charcoal production produces very little in the way of solid wastes. Virtually all logs obtained can be used in the process, irrespective of species, moisture content, or size. The sponsors have undertaken extensive experimentation and analysis to determine optimum log size/moisture content ratios to ensure constant input quality. Logs of between 25 and 150 cm in diameter and 10% to 45% moisture content can be used in the Green Charcoal retort. The retort process will be computer controlled to take into account the variances in log size and moisture content of a particular batch so as to ensure optimal (83%) and consistent carbon content in the product. Batches that do not meet optimal quality standards for export can readily be sold in South Africa. The small amount of fines produced (5 kg per tonne of product) can be sold to a local manufacturer of charcoal briquettes for the local market, for use as feedstock. Non-process wastes generated by the enterprise (e.g., office wastes) will be collected in bins and disposed periodically at a landfill in Humansdorp. Biodegradable wastes (wood scraps, garden cuttings) will be composted and used as mulch on lawns.
7. Disposal of liquid wastes, including sewage: Liquid wastes are also minimal. Any condensable organic process products will be collected in sumps and sold to a local manufacturer of wood poles for use as a wood preservative. The area where the plant is to be located is predominantly rural. As a result, there is no municipal waste water/sewerage collection and treatment system. The sponsors therefore intend to install a series of septic tanks and soakaways to collect the facility''s waste water and sewage. The tanks will utilize biological agents to digest the sewage, with the result that the tanks will need to be pumped out infrequently if at all. Water used in the cooling process is converted to steam and released to the atmosphere.
8. Air emissions: The design of Green Charcoal''s retort, which operates on a continuous basis, allows for the processing of wood with a higher moisture content without losing combustion efficiencies. The high efficiency of the continuous retort increases the amount of burnable pyrolysis products, enabling the breakdown of these products more completely. The only emissions expected from the system are carbon dioxide (CO2), steam, and small amounts of volatile organic compounds (VOCs). The retort has been designed with an afterburner to burn all noxious gases, including VOCs, that might be produced, although in test runs insufficient volumes of gases have been produced to require the afterburner. The sponsors have noted that emissions may vary somewhat depending on the quality of the wood inputs. Small dry logs are unable to utilize all of the available heat, with the result that some carbon monoxide (CO) may be produced. Wetter logs, on the other hand, allow for virtually complete combustion and produce almost no emissions. No gaseous emissions tests have been carried out on the patented Green Charcoal retort furnace. Based on the analyses of the product and the test efficiencies of the prototype retort unit, however, the sponsor estimates that the volumes of VOCs produced are less than 1 kg per tonne of product when the unit is running in equilibrium. At IFC''s request, the sponsors have agreed to carry out emissions testing after plant startup has been completed and the facility is in full operation, and have agreed to provide IFC with a copy of the analytical results. the sponsors have also stated that they will install condensation tunnels, if necessary, to ensure that emissions comply with relevant South African standards and World Bank guidelines.
9. Workplace air quality: As noted above, emissions from the retorts are expected to be minimal. Because the retorts are completely closed systems, all heat and other emissions are discharged through stacks, rather than into the workplace. The efficiency of the retorts is such that the product will be of very high quality and very low dust or soot content. Dust in the plant is not expected to be significant. Nonetheless, the sponsors have agreed that workers involved in offloading and bagging operations will be provided with face masks, if necessary, to ensure against excessive inhalation of dust or soot.
10. Provision of personal protective equipment and employee health and safety training: All employees will be provided with overalls and work boots. Workers involved in offloading logs will be provided with gloves, hard hats and steel-toed boots. Workers in the product offloading and bagging area will be supplied with gloves and face masks. Initially the plant will be equipped with a 900 cm diameter circular saw to cut the logs into standard sizes so as to optimize processing. Employees in the saw area will be given careful training as to the safe operation of the saw. The saw will have an automatic power cutoff switch to be used in the event of an emergency and will be equipped with guard rails and other safety features in accordance with international standards. Depending on the production volumes achieved in the first two years of operation, the sponsors intend to purchases hydraulic shears which will automate the log cutting process and will be significantly safer to operate. Transport of raw materials and finished product within the plant property will be done utilizing wooden pallets and forklifts by operators who have been trained in the proper and safe use of such equipment. As part of its community development efforts in the region, Green Charcoal intends, with the assistance of the provincial government, to construct a clinic for use by both its employees and residents in the area.
11. Fire protection and emergency response: The plant is to be located 31 kms outside of the town of Humansdorp and 21 kms from the smaller town of Kareedouw. Although both towns have municipal fire brigades, the distance of the plant from either town may make timely response to a fire difficult to ensure. As a result the sponsors intend to manage and equip the plant in such a way both to minimize the likelihood of fire and to enable their personnel to respond to a fire, if one occurs, utilizing in-house resources. The plant design calls for two portable fire trailers, for general fire fighting purposes. All offices will be equipped with smoke detectors and hand-held fire extinguishers and office personnel will receive training in the proper use of these devices. The product storage area is the most likely place where a fire might start. Product taken from the retorts must be stacked and allowed to cool for a minimum of 24 hours, to enable residual heat to disperse. During this cooling period, the product absorbs moisture from the air, resulting in the possibility of spontaneous combustion occurring. Consequently, Green Charcoal propose to install a sprinkler system in the product storage and bagging areas, to respond to any fires that may break out. The plant design includes plans for a 3000-4000 liter water tank, which will ensure adequate pressure for the sprinkler system. All employees will be given training in fire prevention methods, with particular emphasis on the potential fire hazards in the storage and bagging areas. Fire drills will be conducted on a regular basis, including annual drills in conjunction with the Humansdorp or Kareedouw fire brigade.
12. Other: At IFC''s request, Green Charcoal has provided copies of results of the product quality tests carried out by SGS under CSIR''s auspices. Green Charcoal has provided IFC with copies of letter from the Ministry of Water Affairs and Forestry, Eastern Cape Nature Conservation Department and Tsitsikamma/Kouga Water Conservation Project (TKWCP), confirming their support for the project. the letter from TKWCP states their willingness to supply stockpiled wattle logs as input to Green Charcoal''s production process. Under South African law, the company is not required to obtain specific environmental or occupational health and safety permits. Green Charcoal is in the process of obtaining the requisite planning permission for the site, known as a "departure from use" approval under the terms of the Land Use Planning Ordinance of 1985.
13. Based on its review of Green Charcoal''s environmental, health and safety practices, IFC concludes that the proposed project is being designed and will be operated to meet Government of South Africa requirements, as well as all relevant World Bank policies and environmental, health and safety guidelines. IFC will monitor 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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May 22, 1997 11:06 AM
Environmental and Social Mitigation Measures
Broad Community Support
Related SII
