. .. ... ..... ...... Public Disclosure Authorized Hunan~CePrvice PRC . .......... - Envieronm-yn t As se oflt. P Plant Phase 2 Extension Project (2 x 300MW), Hunan Province, PRC ... -, Public Disclosure Authorized ~~~~- F~~~~~~R?S~~~~~~~~:; F ., < - .~~~~~~~~~~~~~ ' - -P"*t ,;tmpany... '.:ebruay 199 Public Disclosure Authorized 7- r_e- PowerCowuU ~ ~ -, ,N,',-.I .~~ ,,,9-~~~~Fbur Public Disclosure Authorized COMMERCIALIN CONFIDENCE This reportwas preparedby POWERGENplc for China ElectricPower Technology Import & Export Corp.Hunan Electric Power Company under Contract No. 971JBJGB/000072 GB. Thiscontract was to assistHunan ElectricPower Company (HEPC) in the productionof an EnvironmentalAssessment Reportto meet World Bank requirements,in collaborationwith HEPCand NanjingElectric Power ResearchInstitute (NEPRI). The reportis mainlybased upon information supplied by HEPCand NEPRI NeitherPOWERGEN nor any personsacting on its behalf.(a) makesany warranty,express or implied, with respectto the use of any information,apparatus, method or processdisclosed in thisreport or that suchuse may not infringethe rightsof any thirdparty, or (b) assumesany liabilitieswith respectto the use of, or for damagesresulting in any way from the use of, any information,apparatus, method or processdisclosed in the report,except in so far as any warrantyor liabilityarises out of the termsand conditionsof theabove Contract. © PowerGenpic 1998 No part of this publicationmay be reproduced,stored in a retrievalsystem or transmitted,in any form or by any meanselectronic, mechanical, photocopying, recording or otherwise,except as providedfor under theterms of the aboveContract. 4;.Z2.... A...... .. +N --. 2S..........?.. l ..... ,.-. A, =- ........... HUNAN POWER DEVELOPMENTPROJECT Environmental Assessment of the Le.yang Power Plant Phase2 ExtensionProject (2 x 300MW), Hunan Province, PRC Part A - PowerPlant PT/98/EA94/R *i1g PowerConsult AP e l February1998 HUNAN POWER DEVELOPMENT PROJECT ENVIRONMENTAL ASSESSMENT ADDENDUM TO PART A-Leiyang Power Plant Phase 2 Extension Project Emissionsof NitrogenOxides Background The proposed project will utilize a locally available anthracite coal which, as is typical of this fuel, contains a low fraction of volatile material. To burn this fuel efficiently boilers must be designed to provide the coal an environment of relatively high temperatures for relatively long exposure times. Unfortunately, high temperature-long combustion times are also conditions which favor formation of nitrogen oxides (primarily nitrogen oxide, NO). As a result, emission levels of nitrogen oxides from well designed anthracite fired boilers will most likely exceed emission levels of nitrogen oxides obtained by utilizing more conventional coals. Both Chinese environmental standards (650 mg/Nm3 ) and World Bank Environmental Guidelines (300 ng/joule) for nitrogen oxides emissions from power boilers were developed for conventional coals. Therefore, the proposed design for the Leiyang Power Plant-Phase 2 will exceed both Chinese and World Bank environmental requirements/guidelines. Discussion The World Bank project team informed the Borrower (Hunan Electric Power Corporation) about the above standard excessive emission levels of NO, and recommended that they use state-of-the-art boilers and discuss the matter with Chinese environmental authorities. The World Bank also provided the Borrower with what is considered to be "best international practice" for NO, emissions from modem anthracite boilers. Information presented to the Borrower is based on discussions between power sector industry representatives and the World Bank in a consultation process on the new draft environmental guidelines for thermal power stations. Representatives of power sector industry and other stake holders recognized that the value of 1500 mg/Nm3 proposed for boilers using low volatility (e.g. anthracite) coals is realistic and achievable. This figure has been incorporated in the updated World Bank environmental guidelines which have not yet been officially adopted. With this information, the Borrower engaged in discussions with the National Environmental Protection Agency (NEPA) and the Ministry of Electric Power (MOEP). Both these organizations agreed to allow an emission level of 1300 mg/Nm3 (see attachment). Chinese officials are currently in the process of revisiting their environmental regulations to accommodate anthracite fuels and ensure their full enforcement in the future. This Environmental Assessment examines modifications to air quality likely to occur relative to Chinese air quality standards and any subsequent impacts on the human and natural environment from the proposed power station. Although some violation may occur to the short term (hourly) Chinese standard for ambient levels of NO., it was considered to be insignificant, because: (a) daily and annual standards are met, (b) violations would be extremely infrequent, and, most important, (c) resultant ambient air quality will be in compliance with all ambient standards of the World Bank, WHO and western countries (e.g. Great Britain, USA etc.). Thus the EA concluded that this slight exceedance of the Chinese short term standard (not enforced in practice), will not result in any measurable environmental impact. Conclusion NEPA has officially approved the EA prepared for the project, with full recognition of the exceedances to current Chinese regulations for NO, emissions and air quality as discussed above. The World Bank supports this position, believing that: (a) the analysis presented in the EA clearly indicates that environmental impacts of NO, emissions are very limited and acceptable and (b) achievable standards based on international best practices are preferable to higher but not enforceable standards. The Borrower has agreed to maintain an environmental monitoring program which will, inter alia, include continuous and automatic monitoring of both ambient and emission levels of NO,. The Borrower has further agreed to adopt additional mitigating measures for NO, emission control should the monitoring program, and/or environmental authorities deem it necessary. Power Technology PowerTechnology Centre Ratcliffe-on-Soar Nottingham NGI 1 OEEUK Telephone:+44 (0)115936 2000 Fax:+44 (0)115936 2711 COMMERCIALIN CONFIDENCE PT/98/EA94/R HUNAN POWER DEVELOPMENTPROJECT Environmental Assessment of the Lelyang Power Plant Phase 2 Extension Project (2 x 300MW), Hunan Province, PRC Part A - Power Plant Technical Content Approved by Classification & DistributionApproved by Dr J Graham Mr J Rea Section Manager Manager Environmental Sciences Engineering& EnvironmentalSciences January 1998 IG rso e5e nSer ECJh rm g ab hoE 3 Pow"Genpic Reg~steredOffhce 53 NewBroad Strree LOnoon EC2M I JJ Regsteredm Enrgandand Mires ho~2366970 HunanPower Development Project (Part A) PowerConsult EXECUTIVESUMMARY The following summarisesthe environmentalassessment for the LeiyangPower Plant phase 2 extension project. The transmission system development requirementsassociated with the HunanPower Development Project are considered in a separatereport (Part B of this report) General Description 1 Locatedin the centreof China, HunanProvince has good communicationsand abundantresources. It is thereforean area for economicdevelopment and has developedrapidly in recentyears. At the endof 1995,the total installedelectricity generatingcapacity in HunanProvince was 8055.5MW,of whichhydropower was 4211.3MW(52.3% of the total)and thermalpower 3844.2MW(47.7%). In 1995, the whole provincegenerated and purchased33.94TW.h of electricalenergy, of which 1.359TW.hwas importedfrom neighbouringprovinces. Hunan province can not maintain a balancebetween electricity generation and consumption. Moreover,hydropower, which constitutes52.3% of the total-capacity,has a low guaranteedoutput, with utilisationas low as 2000 hours. This resultsin serious power shortages during dry seasons. Accordingto predictionsby Hunan ProvincialElectric Power Bureau,by the year 2000, the whole Provincewill require 55.0TW.helectricity and capacityof 10,000MW. By 2005, electricity demand is predicted to be 81.2TW.h, requiring a capacity of 14800MW. Therefore, it is imperativeto expedite further power constructionin Hunan province. 2 LeiyangPower Plant is a pitmouthpower plant located in centralHunan, close to a coal miningarea,. The 1stphase project (2x200MW) was commissionedduring 1988and 1989. The originalprogrammed capacity of the site was approvedto be 1200MW.Common facilities, such as watersupply, coal transportation, chemical water treatmentplant and railway,were constructedand completedaccording to this programmeddesign capacity. As a result of the existing facilities, the constructionof the 2nd phase extensionproject is characterisedby economical investmentand reducedconstruction period. This would help to alleviatepower shortagesin the southempart of Hunan,support the suppliesin the centralarea and promote regional economic development. The security of supply and economicoperation of the Hunangrid systemwould also be improved. 3 The constructionof LeiyangPower Plant 2nd phase projectconforms with the nationalstrategy of expeditingthe developmentof centraland westem parts of $ ES-i HunanPower Development Project (Part A) PowerConsult China. It also accordswith the energy policy of linking coal productionwith electricitygeneration to reducetransportation requirements. It is also in line with the plan of Leiyangmunicipality to developinto a "brand new industrialcity with electric