Sector: Air

Name of the Pilot Location: Ugljevik (Bosnia and – Republic of Srpska)

Proposed Project Title: Gypsum type scrubber installation for the Ugljevik Power Plant

Needs for technical assistance and investment: There is a need for a technical assistance for the feasibility study and investment for project realisation.

Summary of existing Environmental Situation: The site consists of a Thermal Power Plant and Mine, 65 % owned by the State. The power plant consists of one Boiler Unit fired by locally produced Brown , of 1000 t/h steam flow, generating 300 MW of electricity. The waste gases from the boiler are discharged from a 9.5 m diameter stack, 310 m in height.

3 The unit, because of the high sulphur content of the fuel, emits some 2,200 mg/Nm of SO2 (The State 3 standard for SO2 is 400 mg/Nm ) and 411 - 453 mg/Nm3 of NOx. In addition to the acid gases, the unit also emits some 93 - 111 mg/Nm3 of particulates. This data was monitored on the 3/8/04 by a stack monitor at 30 minute intervals. The result of the acid gas emissions will have a negative environmental impact on the inhabitants of Ugljevik, , some 18 km from the site and also on some 45 km from the site as a result of stack dispersion etc. As regards the Air Sector Plan, the site is registered on the Registrar of Polluters and has a duty to improve environmental emissions.

Strengths: Plant fully aware of environmental situation and has taken steps to address the short comings in terms of SO2 Control. Since the plant is registered and presumably discussions have been held with the Inspectorate the project should be well defined. With the proposal to install a second 300 MW Block, the installation of SO2 control equipment is important.

Weaknesses: The increase in operational and maintenance costs, plus raw materials for the scrubber, will reflect against bottom line revenue, since at present there is no fee payment for non compliance.

Opportunities: Plans exist for the installation of a Gypsum limestone type scrubber system. Doubling the present generation capacity will enhance the Plant and provide much needed power for the country.

Threats: Unless the plant brings the sulphur dioxide emissions into compliance there could be an injunction against the Station and prevent the proposed second block installation.

Summary of Directions for Future Work: To meet the requirements of the SEE Air Sector Plan, under the OJEC LCPD Directive 2001/80/EC, dated 27/11/2001, the Plant will need to address the following: Examine if the previous gypsum scrubber design can be adapted to use for the existing unit; Estimate additional costs of operation on the plant’s revenues; investigate the source of suitable absorbent reagents; check on the potential sales of the gypsum product; Firm up the details of the gypsum scrubber for the first unit installation and proceed with issuing of proposal document to vendors; Decide on suitable absorbent suppliers; Check emission conditions under reduced excess air operation on the furnace combustion; Should financing become available, proceed with the installation of the scrubber and ensure reduction of the present high sulphur dioxide emissions; Firm up decision for the installation of the second block, complete with electrostatic precipitators, low NOx burners and SO2 scrubber system for control of pollution down to that necessary to comply with the LCPD.

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