Background Analysis for Development and Establishment of a Lubricating Oil Management System - Final Project Report
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BOSNA I HERCEGOVINA BOSNIA AND HERZEGOVINA FEDERACIJA BOSNE I HERCEGOVINE FEDERATION OF BOSNIA AND HERZEGOVINA FEDERALNO MINISTARSTVO PROSTORNOG FEDERAL MINISTRY OF PHYSICAL UREĐENJA I OKOLIŠA PLANNING AND ENVIRONMENT FEDERALNO MINISTARSTVO PROSTORNOG UREĐENJA I OKOLICE United Nations Environment Programme Basel Convention SLOVAK ENVIRONMENTAL AGENCY Coordinating Unit for the Mediterranean Action Plan Basel Convention Regional Centre Bratislava Background Analysis for Development and Establishment of a Lubricating Oil Management System - Final Project Report Prepared by Bosna-S Consulting Sarajevo, June 2006 Background Analysis for Development and Establishment of a Lubricating Oil Management System Project Title: BACKGROUND ANALYSIS FOR DEVELOPMENT AND ESTABLISHMENT OF A LUBRICATING OIL MANAGEMENT SYSTEM IN BOSNIA AND HERZEGOVINA Contract Number: Contract number 03/20-23-4-558/05-1signed between Federal Ministry of Physical Planning and Environment and Bosna-S Co., based on the MoU signed between the Federal Ministry of Physical Planning and Environment, UNEP/SBC, UNEP/MAP and BCRC Project Duration: 10 months starting from September 15, 2005 Client: Federal Ministry of Physical Planning and Environment M. Tita 9a, 71000 Sarajevo Consultant: Bosna-S Consulting Ul. Nova 26, 71000 Sarajevo Verner Huseljic, B.Sc. Chem. Eng. Fethi Silajdzic, B.Sc. Mech. Eng. Esma Kreso, B.Sc.Env. Eng. Domagoj Bacic, B.Sc. Mech. Eng. Nikola Jovanovic, B.Sc. Mech. Eng. Support and Coordination: Ministry of Physical Planning and Environment of FBiH Mrs. Azra Basic Mr. Mladen Rudez Ministry of Urbanism, Civil Engineering and Ecology of RS Mrs.Radmila Kostic Basel Convention Regional Centre Bratislava Mrs. Dana Lapesova 2 Final Project Report, by Bosna-S Consulting Sarajevo, June 2006 Background Analysis for Development and Establishment of a Lubricating Oil Management System TABLE OF CONTENTS 1. INTRODUCTION........................................................................................................... 4 2. METHODOLOGY APPLIED.........................................................................................8 3. FINDINGS AND ANALYSIS OF COLLECTED INFORMATION........................... 13 3.1 Review of legal and institutional framework ........................................................ 13 3.2 Local lubricants industry and market .................................................................... 16 3.3 Imports and Exports of Lubricants........................................................................ 20 3.4 Sales and consumption .......................................................................................... 21 3.5 Used oil generation estimates................................................................................ 23 3.6 Current practices related to lubricants use............................................................. 25 3.7 Assessment of environmental impacts and risks related to lubricants use............ 26 3.8 Analysis of available used oil treatment facilities................................................. 33 3.8.1 General treatment methods............................................................................ 33 3.8.2 Current disposal of used oils in Europe......................................................... 35 3.8.3 Disposal facilities in BiH............................................................................... 36 4. ESTABLISHMENT OF DATABASE/INVENTORIES .............................................. 43 5. ANNEXES .................................................................................................................... 44 ANNEX 1 - SAMPLE QUESTIONNAIRES................................................................ 45 ANNEX 2 - LIST OF QUESTIONNAIRES RECIPIENTS ........................................ 46 ANNEX 3 - LISTS OF IMPORTERS AND DISTRIBUTORS ................................... 47 Final Project Report, by Bosna-S Consulting Sarajevo, June 2006 Background Analysis for Development and Establishment of a Lubricating Oil Management System 1. INTRODUCTION The primary purpose of lubricants is to reduce friction between moving parts of various equipment or machinery. The use of lubricants minimises material wear and contributes to improved efficiency of equipment or machinery, and fuel and energy savings. The main categories of lubricants are lubricating oils and lubricating greases. These are used in numerous applications, which can be classified in one of the following two groups: • Automotive applications - in marine, air, railway and road transport vehicles, off-road earth moving equipment employed in agriculture, mining, construction works, etc. • Industrial applications - in a variety of specific mobile or stationary industrial equipment In terms of extent, i.e. frequency of use, main types of lubricants1 are: - Motor (engine) oils for road traffic vehicles - Automotive gear oils - manual transmission, hypoid oils - Automatic transmission fluids - Universal/special tractor oils - Oils for other off-road vehicles, mobile machinery and equipment, including oils for two-stroke chainsaw motors in forestry - Railroad oils - Marine oils, i.e. oils for nautical applications - Aircraft oils - Hydraulic oils - Compressor oils - Turbine oils - Industrial gear oils - Metalworking oils, including water soluble oils - Oils for electric installations, e.g. transformer oils - Heat transfer oils, including cooling oils - Slide way oils - Oils for stationary engines, e.g. gas engines - Process oils - Lubricating greases for automotive and industrial applications 1 in the context of this study, the terms lubricants and lubricating oils also refer to oils whose primary function is other than lubrication, for instance various process oils, electric insulation oils or heat transfer oils 4 Final Project Report, by Bosna-S Consulting Sarajevo, June 2006 Background Analysis for Development and Establishment of a Lubricating Oil Management System Lubricants are internationally classified according to viscosity (mostly SAE - Society of Automotive Engineers’ classification used for automotive oils, and ISO - International Standardisation Organisation’s classification for industrial oils), consistency (NLGI – U.S. National Lubricating Grease Institute’s classification used for lubricating greases), as well as according to application performances, expressed through widely adopted quality specifications set by international institutions, manufacturers’ associations (e.g. ACEA - Association des Constructeurs Européens d'Automobiles, or European Automobile Manufacturers Association, API - American Petroleum Institute), but also individual original manufacturers of equipment and vehicles - OEM (Mercedes-Benz/DaimlerChrysler, Volkswagen, Man, Volvo, Atlas Copco, Wartsilla, Caterpillar, Allison, etc.). Even though lubricants of various types, viscosity classes and performances to some extent differ, primarily in quantitative chemical composition, from the environmental protection point of view, in terms of qualitative composition they can be considered in an integral way, focusing on their common, essential ingredients and properties. Lubricating oils, in particular used (waste) lubricating oils, represent one of the most hazardous mainstream categories of environmental pollutants. Whether direct or indirect, their short- and long term impact on soil, waterways, plants, health of animals and humans is substantial if they are handled or disposed of in an uncontrolled manner. Once discharged, their natural degradation can sometimes take up to a few years. Besides this, inadequate burning of used oils, which is a widespread practice in the Central and Eastern Europe region, often leads to further significant air emissions of pollutants. Currently there is no lubricating oil management system in Bosnia and Herzegovina (BiH) and all of its components, including the legal basis and reporting/monitoring mechanisms, are yet to be developed and implemented. The level of public awareness in respect of environmental impacts of waste, i.e. used lubricating oils is very low. According to relatively recent studies, estimated 8,000 to 10,000 tonnes of used oils have been dumped or improperly burned in Bosnia and Herzegovina during the year 2001. With only one local facility for used oil regeneration (re-refining), based on an environmentally inappropriate technology running at less than 10 % of its full capacity, and no organised used oil collection in place, the current situation in this respect is alarming and requires urgent action. Due to the fact that there has been no systematic gathering of information on lubricants flows and applications, clear insight in the situation could not be obtained and no effective planning for establishment of a lubricating oil management system could commence. The following table summarises the changes in Bosnia and Herzegovina of relevance for lubricants management, induced with the dissolution of former Yugoslavia, outbreak of war and transition from the mainly state-planned to increasingly privatised, market economy: 5 Final Project Report, by Bosna-S Consulting Sarajevo, June 2006 Background Analysis for Development and Establishment of a Lubricating Oil Management System BY 1992 CURRENTLY New lubricants market monopolised numerous players Used oil recycling tax incentive stimulating none subsidies/ incentives used oil regeneration Used oil collection system relatively good none Local processing 3,000 – 8,000 t/y symbolic (no regeneration) (regeneration)