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Environmental Monitoring Report Annual Report for November 2013-October 2014 February 2015 People’s Republic of China: Tianjin Integrated Gasification Combined Cycle Power Plant Project Prepared by HuanengTianjin IGCC Co. Ltd. and Mr. Zhu Chao for the Government of the People’s Republic of China and Asian Development Bank.

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Page 1: People’s Republic of China: Tianjin Integrated ... · ABBREVIATIONS ADB – Asian Development Bank CCS – carbon capture and storage CCUS – carbon capture, utilization and storage

Environmental Monitoring Report

Annual Report for November 2013-October 2014 February 2015

People’s Republic of China: Tianjin Integrated

Gasification Combined Cycle Power Plant Project Prepared by HuanengTianjin IGCC Co. Ltd. and Mr. Zhu Chao for the Government of the People’s

Republic of China and Asian Development Bank.

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ABBREVIATIONS

ADB – Asian Development Bank CCS – carbon capture and storage CCUS – carbon capture, utilization and storage CHNG – China Huaneng Group CHRI – China Huaneng Research Institute CO2 – carbon dioxide CSC – construction supervision company EIA – environmental impact assessment

EMD – environmental monitoring division

EMP – environmental management plan EMS – environmental monitoring station EMU – environment management unit EPB – environmental protection bureau HGC – HuanengGreenGen Co. HIPEMS – Harbor Industrial Park Environmental Monitoring Station HIPMC – Harbor Industrial Park Management Committee HTICL – Huaneng Tianjin IGCC Co. Ltd. IGCC – integrated gasification combined cycle MEP – Ministry of Environmental Protection PIU – project implementation unit PRC – People’s Republic of China SEIA – summary environmental impact assessment TSP – total suspended particulates TEPB – Tanggu Environmental Protection Bureau

WEIGHTS AND MEASURES

gce – grams per coal equivalent ha – hectare KWh – kilowatt-hour m – meter m3 – cubic meter m3/h – cubic meters per hour mm – millimeter MW – megawatt t/d – tons per day

NOTE

In this report, "$" refers to US dollars

This environmental safeguards monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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CONTENTS Page

MAPS

I. Introduction 1

A. Background 1

B. Project summary 1

C. Implementation Organization 2

II. implementation process 3

A. Overall Project Engineering Progress 3

B. Project Cost Associated with the Environmental Management Plan 7

III. Implementation of the Environmental Management Plan 8

A. Background 8

B. Implementation of Environmental Management and Monitoring Plan 8

C. Implementation of Mitigation Measures 11

D. Implementation of Environmental Monitoring Program 16

E. Information Disclosure 17

IV. Environmental Monitoring 18

A. Monitoring Under the Environmental Monitoring Framework of the Project 18

B. Additional Monitoring 22

V. Conclusions and Recommendations 29

Appendix 1. Photos of the Project 31

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BASIC PROJECT INFORMATION

ADB Loan No. Loan 2616-PRC

Project Title Tianjin Integrated Gasification Combined Cycle Power Generation Plant Project

Borrower People’s Republic of China

Executing Agency China Huaneng Group

Implementing Agency HuanengTianjing IGCC Co., Ltd.

Total Estimated Cost $419.59 million ($135 million from ADB’s ordinary capital resources and $5.0 million grant from Climate Change Fund)

ADB Loan $135 million from ADB’s ordinary capital resources and $5.0 million grant from the Climate Change Fund

Counterpart Financing Equity of $84.0 million and domestic loan $195.59 million

Loan Approval Date 8 February 2010

Loan Agreement Signed Date 28 May 2010

ADB Loan Effectiveness Date 25 August 2010

Project Complete Date 31 October 2014

Original Loan Closing Date 31 December 2012

Exchange Rate CNY 1 = $0.1464 $1.00 = CNY6.83

Date of Latest ADB Loan Review Mission August 2012

Type of This Report The Fifth Annual Environmental Safeguards Monitoring (EMP Monitoring) Report

Period Covered by This Report November 2013–October 2014

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I. INTRODUCTION

A. Background

1. This report is the fifth environmental management plan (EMP) monitoring report of the Tianjin Integrated Gasification Combined Cycle (IGCC) Power Plant, covering the period of November 2013 –October 2014. It is prepared by the Huaneng GreenGen Co. Ltd. (hereafter referred to as GreenGen), with the assistance from Mr. Zhu Chao, the loan implementation environment consultant of the Tianjin IGCC Power Plant Project. The previous EMP monitoring reports were prepared on October 2009, May 2012, November 2012 and November 2013 respectively and submitted to the Asian Development Bank (ADB). The EMP monitoring reports were reviewed by the ADB and have been posted in the ADB website. 2. The fifth environmental monitoring report is prepared in accordance with the environmental monitoring framework for the project. The field sampling, laboratory analysis, and site inspection were undertaken by the monitoring facility at GreenGen1, the Binhai New Area environmental monitoring station (EMS)2, China Hydropower Research Institute (CHRI), Harbor Industrial Park Management Committee (HIPMC), Tianjin and Binhai New Area Environmental Protection Bureaus (EPBs). B. Project Summary

3. The project is to develop a commercial-scale IGCC plant with 250 megawatt (MW) capacity. The main components of the project are located in the Harbor Economic Area, Binhai New Area , Tianjin, the People’s Republic of China (PRC), as shown in maps 1 and 2. 4. The environmental impact assessment (EIA) for the Tianjin IGCC power generation plant was completed by Tianjin Environmental Protection Research Institute in May 2007 and approved in July 2007. The summary environmental impact assessment (SIEA) was prepared by GreenGen and endorsed by the Asian Development Bank (ADB) in 2008. The SIEA for Tianjin Integrated Gasification Combined Cycle Power Plant Project is available at the ADB website.3 5. The Tianjin IGCC power generation plant is the first IGCC plant in the PRC. The IGCC power generation plan supplies (i) base-load electricity to the local grid, and (ii) steam and heat to other facilities within the Harbor Industrial Park. Upon full-scale operation, 1.5 billion kilowatt-hours of electricity will be generated annually. 6. The project includes the construction of the following:

(i) Coal gasifier with a processing capacity of 2,000tons per day;4 (ii) Gas turbine and steam turbine combined cycle, consisting of one 171MW of gas

turbine, one 110MW of steam turbine, and waste heat boiler;

1 GreenGen established a monitoring facility as a part of environmental capacity building activities.

2 Tanggu district was merged into Binhai New Area in December 2009.

3 http://www2.adb.org/Projects/reports.asp

4 The coal gasifier used is a two-stage dry pulverized coal gasifier. The production process includes coal grinding

and drying, pulverized coal compression and feeding, coal gasification, slag removal, dust removal, wet scrubbing, ash flushing water treatment, and wastewater treatment.

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(iii) Syngas purification system, with a processing capacity of 160,739 normal cubic meter per hour (Nm3/h);

(iv) Sulfur recovery system (7.89t/a); (v) Flaring system with torch of 80 meters high and 900 millimeters in diameter; (vi) Other items including air separation facility; water supply; power supply; ash

removal system; wastewater treatment and discharge system; water recycling system; boiler water supply system; and fire water system;

(vii) Storage and transport system, including coal transport, storage and distribution system; emergency ash yard; onsite temporary solid waste yard; oil tank; and oil pump room;

(viii) Temporary workers’ accommodation; and ; (ix) Permanent office and residential building; (x) CO2 capture component, which is under construction as project expansion.

C. Implementation Organization

7. CHNG is the EA of the project. CHNG established GreenGenin2005 for management support. GreenGen established Huaneng Tianjin IGCC Co. Ltd. (HTICL) in 2008 to develop the Tianjin IGCC plant project. HTICL is the implementing agency (IA) of the project. GreenGen has provided management support and oversight to HTICL. Establishing HTICL as a separate project entity (i) brought transparency, (ii) improved accountability and corporate governance, while taking a task force approach to project development that can ensure a strong management focus. GreenGen provided management support and oversight to HTICL, while supporting project implementation, particularly in relation to financial management, financial control, and accounting, and ensuring good governance of the project. GreenGen has been also responsible for liaising with CHNG. Figure 1 below describes the implementation arrangement of the project. 8. HTICL established a project implementation unit (PIU). PIC has regularly monitored and reviewed the project progress. HTICL also established an environmental management unit (EMU) which is included in its operation division to coordinate implementation of the environmental management plan (EMP) with the Tianjin Environmental Protection Bureau (EPB). The EMU oversaw the environmental management and monitoring during construction and operation, including the environmental supervision of contractors. Actions taken by project institutions are provided in the Section III.

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Figure 1.Implementation Organization

Source: Huaneng Tianjin IGCC Co., LTd.

II. IMPLEMENTATION PROCESS

A. Overall Project Engineering Progress

9. The construction of the Tianjin IGCC power generation plant started on 6 July 2007 and completed in December 2012. Trial operation started in January 2013. In this reporting period-November 2013 to October 2014, the trial operation of the whole IGCC project was conducted for 13 times. These trial operation results show an increasing load factor, from 73% to 85%, with the recent load factor of 81%. Environmental monitoring was jointly conducted by China Environmental Monitoring Station and Tianjin Environmental Monitoring Station in March and August 2014 for environmental acceptance of the project. 10. Most trial operations lasted about 6-20 days. The longest trial operation started on September 13,2014 and continuously operated for 62 days. Trial operation results show an increasing load factor, from 73% to 85%, with the recent load factor of 81%. The continuous output of IGCC plant has reached 200MW, and the load factor has exceeded 75%, which meets the minimum requirement for environmental acceptance set by the Ministry of Environmental Protection. By the end of November 2014, total electricity generated amounted to 1265GWh, including 222GWh in 2013 and 1043GWh in 2014. The trial operation performance is detailed in Table 1.

China Huaneng Group

Project Executing Agengy

Huaneng Tianjin IGCC Co. Ltd.

Project Implementing Agency

GreenGen Company Ltd.

- Prvode management support to CHNG

- Supervise and oversight the HTICL

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Table 1: Trial operation performance of the IGCC project in 2014

Date Actual output (MW)

Load factor

November 3-6, 2013JNovember15-16, 2013 190 73%

February 3-10, 2014 200 77%

January 18-28, 2014 220 85%

February 8-17, 2014l 190 73%

February 24- March1, 2014 195 75%

March10-16, 2014 220 85%

March 24- April12, 2014 200 77%

April12-May 8, 2014 200 77%

June17-July31 , 2014 200 77%

August15 – September13, 2014 200 77%

September13 –November 17, 2014 210 81% Source: Tianjin IGCC Co, 2014.

11. The trial operations identified some technical problems, including insufficient capacity of air separation system, fuel flexibility of gasifier and combustion nozzle of gas turbine. The air separation system needs to be upgraded to achieve required capacity, and the technical parameters and design of the gasifier should be improved to allow the gasifer to accept different quality coal, which requires better selection of combustion nozzle that is suitable for syngas with low heating value and also can extend its service life. The main challenges of the trial operation found were relating to the capacity of air separation system and gas turbine. The early trial operations showed that air separation system’s capacity was not sufficient for full capacity operation (250MW) of the IGCC plant due to selection of domestically made equipment, which had less capacity than the designed one. The gas turbine’s combustion nozzle was not most suitable for syngas with low heating value. After testing different combustion nozzles and identifying suitable one, these issues have been resolved and the plant is ready for commercial operation. 12. Table 2 summarizes the details of engineering progress.

Table 2: Summary of Engineering Progress Project Components

Summary Progress

Contractor/ Implementer

Implementation Status

I. Civil Works

A. Chemical Island Civil Works

1. Air Separation Unit

Air separation equipment was installed. Continuous operation has been achieved, the only issue with the operation of air separation system is recycling cooling fan, and problem with the fan has been solved

Sinopec No.4 Construction Co.

Completed

2. Coal Gasifier Coal gasification system was installed. Trial operation of gasification system was conducted for 13 times during the reporting period,

Sinopec No.4 Construction Co.

Completed

3. Fuel Delivery System

Fuel delivery system has been installed. It is used successfully

Sinopec No.4 Construction Co.

Completed

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Project Components

Summary Progress

Contractor/ Implementer

Implementation Status

4. Syngas Cleaning All the equipment of syngas purification system has been installed. The syngas cleaning has achieved successful operation.

Sinopec No.4 Construction Co.

Completed

5. Sulfur and Ash Removal Facility

Sulfur and ash removal facility have been constructed and are ready for operation. During first year trial operation , sulfur recovery system operation was successful

Sinopec No.4 Construction Co.

Completed

6. Seawater Intake Pumping Station

A pumping station for seawater intake has been constructed, and used successfully.

No.2 Engineering Co. of China Communication No.1 Shipment Bureau

Completed

7. Seawater supply pipeline

Seawater supply pipeline has been installed.

Henan Zhongyi Chemical Equipment Installation Co.

Completed

8. Seawater Cooling Tower Anticorrosion

Anticorrosion measure for seawater cooling tower has been implemented.

Dalian Good Anticorrosion Engineering Co.

Completed

9. Waste Water Disposal

Both industrial and residential wastewater disposal systems have been constructed and are ready for operation. Wastewater treatment systems were successfully tested. The treated residential wastewater and industrial wastewater are reused, and the treated coal gas wastewater is piped to central water treatment plant in the industrial park. During January –June, 2014, a total of 23000t treated coal gas wastewater is sent to industrial park wastewater treatment plant.

Jiangxi Jianglian Energy & Environment Co., Ltd.

Completed

10 temporary slag storage site

The slag site started construction in June 3, 2012 and main components of the slag site was completed in June 30, 2012.The remaining work - installation of roof at the slag site was completed early 2014 .The amount of slag storage is very small, as most of slag is used at the construction site adjacent to the IGCC project, the new construction site is to construct a natural gas fired power and heat plant.

Shandong Dingshen Building Installation Co.

Competed

B. Power Island Civil Works

1. Combined cycle Block

The construction of the gas-steam combined cycle island had been completed in September 2011.The trial operation of the gas turbine was successfully conducted on 2 October 2011 using fuel oil. On 1 November 2011, the trial operation of the gas-

Tianjin Power Construction Co.

Completed

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Project Components

Summary Progress

Contractor/ Implementer

Implementation Status

steam combined cycle was conducted using fuel oil.

2. Heating Heat supply system has been constructed.

Tianjin Power Construction Co.

Completed

3. Water Supply and Treatment facilities

Water Supply and treatment facilities have been constructed. They are in normal operation.

Jiangxi Jianglian Energy & Environment Co., Ltd.

Completed

II. Earth Works

1. Site treatment

Site treatment in almost areas including surface hardening with cement and ceramic tiles and re-vegetation with trees and grass has been completed. By October 24,2013, only small areas adjacent to the sulfur recovery system and coal gasification island cooling tower is not treated, a site greening agreement was signed in July 2014, and contractor will plant trees and grasses on the remaining untreated area (about 25857m

2) , the

agreement will be implemented during July 2014 to June 2015. In addition, CO2 capture facility is under construction in the area next to syngas purification system.

The remaining untreated site is expected to be treated by June 2015, the sites mainly include bare areas adjacent to sulfur recovery system and cooling tower of coal gasification island.

III. Trial Operation

1. Coal gasification testing

Trial operation of coal gasification system was conducted for 9 times during the reporting period, the trial operation showed that the gasifier only accepts limited range of coal, namely low ash and low fusion temperature coal, additional technical improvement is needed to optimize the gasifier, so that the gasifier can accept a broad range of coal supply source, and produce qualified and sufficient syngas for follow up power generation .The coal gasifier is now ready for commercial operation. The trial operations shows that the gasifier can achieve 85% of the designed target in syngas production, the output would be increased if the two-stage design is further improved.

Huaneng Group Clean Energy Technology Research Co.

Ready for commercial operation.

2. Gas turbine trial operation

Various combustion nozzles were tested during trial operation to identify best nozzle to be adopted. During the reporting period, and the main technical issue is the gas turbine’s adaptability to syngas. The gas turbine requires high heating value syngas in

Shanghai Electric Power Group

Ready for commercial operation

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Project Components

Summary Progress

Contractor/ Implementer

Implementation Status

the summer, while low heating value syngas in the winter. With proper technical measures, now the only issue is the easy overheat of the combustion nozzles in gas turbine.

3. Air Separation system testing and trial

The operation of the air separation system was conducted successfully during the reporting period. The only issue is that the existing air separation system is difficult to reach designed output, currently it only achieves 75% of the designed target, it actually affects normal operation of the whole plant. Technical upgrade is needed to increase the capacity of the system.

Xi’an Thermal Power Research Institute.

Ready for commercial operation

4. All project systems

The longtime continuous trial operation started on September 13-November 17, 2014, and has achieved two-month normal operation at load factor over 80%,

Huaneng Group Clean Energy Technology Research Co.

Ready for commercial operation.

B. Project Cost Associated with the Environmental Management Plan

13. The actual total project investment is CNY3178.39 billion ($465.30 million). The total environmental investment of the Project is CNY209.88 million ($30.73 million), accounting for 7% of the total project investment. The environmental investment covers three waste-treatment facilities, an environmental monitoring station, accident precautions and emergency measures, and other facilities. By the end of December 2012, all the environmental investment had been utilized. The breakdown spending of the environmental management investment is shown in Table 3.

Table 3: Breakdown of environmental investment of the IGCC project

Item Contents Amount (((( ))))CNY million

Actual project investment Waste gas treatment

3178.39 Dust removal system and other slag, ash and

dust removal equipment 185.59

Sulfur recovery system Syngas purification system

Flaring system On-line monitoring system,, stack and duct

Wastewater treatment Wastewater treatment system 12.50 Noise treatment Noise treatment facilities 1.50

Soil erosion control Soil erosion control, monitoring etc. 6.72 Solid waste treatment Slag site 0.80

Re-vegetation Trees and grass planting and conservation 0.97 Others 1,00

Subtotal of environmental cost 209.88 Investment cost/total project cost 7%

Source: Tianjin IGCC Project Completion Environmental Acceptance Monitoring Report, China EMS and Tianjin EMS, June 2014.

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III. IMPLEMENTATION OF THE ENVIRONMENTAL MANAGEMENT PLAN

A. Background

14. The EMP was developed aligning with the ADB safeguard policy environmental impact assessment (EIA) report of the Tianjin IGCC Project that was approved by MEP in July 2007. The EMP was agreed between the ADB and CHNG as a part of the loan agreement. The domestic EIA was approved by the Ministry of Environmental Protection on March 29, 2010. 15. The loan covenants of the project stipulate the following agreements on environmental safeguards, which are presented in the table below.

Table 4: Environment Related Project Agreements and Compliance Status Environment Related Project Agreements Compliance Status

HTICL, the implementing agency, will ensure that construction, operation, maintenance, and monitoring of project facilities is in strict conformity with (a) all applicable national and provincial environmental laws and regulations, the ADB’s Environment Policy (2002), and other national, provincial, and local laws and regulations and standards on environmental protection, health, labor, and occupational safety; and (b) all environmental mitigation and monitoring measures detailed in the design and construction contracts, the operational guidelines, and the approved EIAs, summary EIA, and the EMP for the project.

Yes. Local EPBs, environmental supervision company, construction companies and IA work together to ensure the project comply with national and provincial environmental laws and regulations, all the environmental mitigation and measures are taken as required in the approved EIAs.

HTICL will ensure that an adequate number of full-time personnel and sufficient resources are provided to monitor the implementation of the environmental monitoring program, under the guidance of the Binhai New Area Environmental Protection Bureau (BEPB).

Yes. The HTICL allocated sufficient personnel and sufficient resources to implement the EMP, including 2 management personnel and 8 staff for environmental monitoring. The environmental monitoring facilities include an environmental monitoring lab, on-line wastewater monitoring system, on-line gas turbine exhaust monitoring system and other monitoring devices for TSP and noise etc.

HTICL will ensure that TEPB will review any changes to the project design that may have a potential for causing negative environmental impacts, so that environmental monitoring and mitigation measures are adjusted accordingly in consultation with ADB.

Yes. The revised EIA was approved by the Ministry of Environmental Protection on March 29, 2010. There is no major changes with pollution control facilities of the IGCC project, therefore the project EMP remains unchanged.

HTICL will submit regular monitoring reports to ADB and semi-annual environmental reports in a format acceptable to ADB, until the loan closing date.

HTICL submit regular monitoring reports to ADB and annual environmental monitoring reports in a format acceptable to ADB.

B. Implementation of Environmental Management and Monitoring Plan

16. The EMP indicates the roles and responsibilities of institutions involved in project. Table 5 summarizes the roles and responsibilities of institutions and the progress of their actions in regard to the EMP.

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Table 5: Summary of Institutional Arrangement and Actions Taken by Institutions

Roles and Responsibilities Actions Taken Up To the End of Reporting Period HNG The executing agency Holds final responsibility of the EMP implementation

CHNG, the EA, has overseen the Tianjin IGCC power generation plant project.

Huaneng GreenGen Co.

GreenGen provided management support to project implementation to HTICL, particularly in relation to financial management, financial control, and accounting, and ensuring good governance of the project.

Huaneng Tianjin IGCC Co. Ltd.(HTICL) (IA) Establish an EMU Responsible for EMP implementation Hire environmental monitoring units for EMP monitoring Prepare EMP monitoring reports and submit them to ADB

• HTICL established the PIU, which regularly monitors and reviews the progress of the project. • HTICL established the EMU. The EMU oversaw environmental management and monitoring during construction and operation, including the environmental supervision of contractors. Mr. Liu Zhenghua, Deputy General Manager, was appointed for the management of the EMU, and Mr. Wu Zhihong and one staff with the project division were responsible for routine environmental management and monitoring during project construction period. The EMU circulated the EMP to all construction contractors and included EMP due diligence as a part of contracts. • The EMU supported/supervised the contractors to be responsible for implementing the necessary environmental mitigation measures during the construction. • The EMU emphasized capability building in environmental management and monitoring. As part of their capacity building activities, HTICL purchased state-of–art equipment for air quality, water quality, and noise monitoring. HTICL established one testing laboratory at the IGCC project site, and hired eight staff for environmental monitoring. HTICL installed continuous monitoring systems to monitor (i) tail gas emissions from waste heat boilers, and (ii) wastewater discharge from coal gasification wastewater. • Since June 2011, HTICL hired several eligible companies for site treatment. They planted trees and grass, installed ceramic bricks, and built new landscape in the project area. By the end of October 2014, all the project site treatment was completed, except few bare area at CO2 capture facility which is under construction, and would be completed by May 2015. • HTICL has established a relative complete environmental management system, a total of more than 10 environmental management regulations and codes have been worked out, covering environmental protection technology supervision and management, environmental management, solid waste management etc. HTICL attaches importance to environmental protection documents management, and has established daily report of environmental facility operation and environmental monitoring, the HTICL designated staff to specially manage environment documents. • HTICL has signed contract with Tianjin Weolia Environmental Service Co to transport and disposal all dangerous solid waste generated by the IGCC Project, and temporary dangerous solid waste storage bin has been established in the sulfur recovery area. • Slag site at Junliangcheng Coal Fired Power Plant has been and as slag transfer site for Tianjin IGCC Project. The on-site temporary slag site has been constructed, with a total storage capacity of 7300t. HTICL has prepared Emergency Preparedness for Environmental

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Pollution Accident and Emergency Management Procedures for Dangerous Chemicals, covering environmental risk management and processing measures, emergency management organization and duties. etc.

Construction supervision companies (CSCs) Supervises all contractors to follow the EMP in order to ensure environmental protection measures to be properly implemented during the construction.

• As for CSCs, Beijing Zhongdalian Consulting Co. and China Chengda Engineering Co. were selected through competitive bidding. They provided close supervision to all contractors to follow the EMP and environmental protection measures and the construction process of environmental facilities. • The CSCs performed daily check to supervise the project construction. Coordination meetings among contractors, implementing agencies, and the CSCs have been conducted on a daily basis during the construction. • The CSCs issued notices of action correction to contractors upon the occurrence of any noncompliant activity with the EMP. • The CSCs, together with the implementing agency and contractors, had weekly and monthly meetings to discuss issues on work safety, environmental protection, and others. As for environmental protection, dust control, noise control, waste and wastewater treatment have been major topics.

• The CSC prepared weekly and monthly supervision reports throughout the entire construction period, which indicate the status on construction quality, implementation progress, work safety and environmental protection.

Contractors Responsible for implementing the EMP during the construction

• The construction contractors were bound by their contracts to prepare their own EMPs for their construction site and follow them in their activities.

• The two major contractors are: (i) Tianjin Power Construction Co., responsible for the construction of power plant and utility facilities; and (ii) Sinochem No.4 Construction Co., responsible for the construction of the coal gasification and air separation system. Both companies established an EMD which is headed by the Vice Presidents of each company. The EMD of Tianjin Power Construction Co. has three staff members, while Sinochem No.4 Construction Co. has three to four staff members working at the so-called ‘technology and quality department’, who are responsible for the management of engineering quality and environmental protection.

Environmental Monitoring Stations (EMS) Conduct EMP monitoring and provide data to the IA

• The Binhai New Area EMS has conducted the monitoring of air, water quality, noise, ecological impacts, and solid waste treatment in the project area. The monitoring results have been sent to Bingai New Area EPB and the implementing agency. • The China Hydropower Research Institute has conducted monitoring on water and soil loss in the project area. The monitoring results have been submitted to the Tianjin Water Bureau and the implementing agency. • Tianjin Binhai New Area EPB and Harbor Industrial Park Management Committee have undertaken site inspections. The inspection results have been sent to the implementing agency

A loan implementation environmental consultant Prepare environmental safeguards monitoring (EMP monitoring) reports Review environmental monitoring data and

• Mr. Zhu Chao was hired as a loan implementation environment consultant to review monitoring data and to prepare the EMP monitoring reports. • Mr. Zhu Chao has reviewed all the environmental records, data, and information relevant to the project. • Mr. Zhu has conducted site visits, reviewed environmental monitoring data, and assisted the IA, and prepared the first, second,

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environmental management reports

third and four the environmental monitoring reports to the ADB on October 2009, May 2012, November 2012, November 2013 and July 2014 respectively.

Local EPB Ensures the project comply with the PRC environmental laws, regulations, and standards

The Binhai New Area EPB, together with Harbor Economic Area Management Committee has regularly conducted site inspections of the project site during construction and trial-testing periods.

CHNG =China Huaneng Group, CSC = construction supervision company, EMD = environmental management division, EMP = environmental management plan, EMU = environmental management unit, EPB = environmental protection bureau, HIPMC=Harbor Industrial Park Management Committee, IGCC = integrated gasification combined cycle, HGC = Huangeng GreenGen Co., PIU = project implementation unit.

C. Implementation of Mitigation Measures

17. The EMP lists measures to mitigate environmental adverse impacts of the project. This section provides the summary of the EMP and the highlights of the EMP implementation.

1. Pollution Control and Mitigation Measures during the Project Implementation

18. The EMP indicates pollution control and mitigation measures for environmental assurance during the project construction and operation. As mentioned earlier, all the project components of the Tianjin IGCC power generation plant have been constructed. Currently, the IA mainly conducts trial operation to perfect whole power generation system. The longest continuous trial operation (already 1 month) was conducted on June 17, 2014. However, due to the use of new technologies, the IGCC power plant has not reached its design capacity (up to 74% so far), and the environmental acceptance by the Ministry of Environmental Protection would be conducted by the end of 2014. Table 4 presents the EMP during operation and the summary of actions taken by the project implementation agency.

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Table 6: The Environmental Management Plan (EMP) of the Tianjin IGCC Project and the Implementation Status of the EMP during the Operation Phases

Impact

Mitigation Measures

Location

Responsibility

Implementation Status Implement-ation

Supervision

A. Soil

1. Soil erosion Soil erosion from exposed areas will be mitigated by ensuring exposed areas are compacted and re-vegetated where possible. Soil contamination will be prevented by installing oil separators at wash-down and refueling areas and installing secondary containment at fuel storage sites. All hazardous wastes and hazardous materials will be stored in properly designed storage facilities.

Project site

EMU WRB Most soil erosion measures have been completed, the only remaining task is site treatment in small areas around syngas purification system and the coal gasification island cooling tower sulfur recovery operation site. All the site treatment has been completed by October 2014. The soil control measures include: � Slope protection engineering; � Site and road hardening; � Land reclamation engineering ; � Flooding control engineering; � Re-vegetation engineering; and � Temporary soil control

engineering.

B. Wastewater

1. Wastewater disposal

Recycling system and cooling tower wastewater will be disposed of at the site wastewater treatment plant and then at the Harbor Industrial Park wastewater treatment plant. Chemical water treatment and boiler operation wastewater, coal-gasification wastewater, and sulfur-recovery system wastewater will be treated on site and disposed of at Harbor Industrial Park wastewater treatment plant. Air-separation system wastewater will be recycled as make-up water for the cooling tower. Other industrial wastewater will be collected and treated on site (air flotation)

Project site

EMU Local EPB

• Wastewater from air cooling tower and air separation system is reused as makeup water for the cooling tower, which reduced water consumption. • Wastewater from boiler water treatment system is partly treated at on-site industrial waste water treatment facility with a capacity of 100m

3/h, and

sent to recycling cooling water system of the chemical island, meanwhile the rest of the wastewater is sent to cooling water system of the power island as cooling water together with sea water. • Wastewater from coal gasification

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and then reused as make-up water for cooling recycling water. Residential wastewater will be treated on site by two stage biological contact oxidation method and reused on site.

web scrubbing system is pretreated at on-site and then, sent to harbor Economic Area wastewater treatment facility for further treatment, the treated wastewater discharge is less than 22m

3/h.

• Other wastewater from coal gasification is collected and treated onsite and recycled as make-up water for the cooling tower.

• Residential wastewater is collected and treated at on-site residential wastewater treatment facility with a capacity of 20m

3/h,, the treated

wastewater is sent to recycling cooling water system for chemical island.

C. Air Pollution

1. Emission Control

Cyclone emission control and wet scrubbing will be used for raw syngas purification. Shell-Paques biological desulfurization process is used for sulfur recovery from raw coal gas. Bag dust collector will be installed at coal processing system. Water spraying will be used for dust control at the power plant, and raw coal stored in totally closed bunkers and transported under closed conditions. Closed transport and vehicle cleaning will be used to control flying dust. Ongoing air quality monitoring will ensure compliance with local air quality standards. The coal processing system will have a bag dust collector with dust removal efficiency of 99.9%. NOx emissions will be controlled by using a low-NOx burner and steam injection (100 tons per hour) before the syngas enters the gas turbine. Mercury emissions will be controlled by selecting low-mercury Shenhua coal and high dust

Project s site

EMU Local EPB

• Dust collectors and ventilation devices are installed at each transfer stations of coal transport, coal milling and drying systems. A filtering system is installed at raw coal bin, fly ask recycling bin, and coal milling system.

• The coal milling and drying system is equipped with 3 raw coal filters, 3 pulverized coal filters, 3 fly ash filters, which collect coal dust and fly ash generated from the recycling process of broken coal and milled coal.

• The pulverized coal feed system has 2 primary coal dust filters and 1 secondary dust filter.

• Water spraying devices are installed at coal transport trestle, coal storage bin, coal transfer station, and conveyor belt for broken coal.

• Dust collecting bag is installed at fly ash storage site, of which dust

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removal techniques that will achieve 90% mercury removal efficiency.

remove efficiency is greater than 99%.

• Wet scrubbing is used to remove dust entrained in coal gas.

• Lo-Cat II chemical desulfurization process is used for sulfur recovery from raw coal gas, and sulfur removal efficiency is greater than 99.5%.

• Online continuous air emission monitoring system is installed to monitor SO2, NOx, and smoke of the waste gas from waste heat boiler.

• High quality coal is used with sulfur content less than 0.3%* and ash content less than 10%.

D. Noise

1. Noise impacts

Noise mitigation measures will include enclosure of relevant equipment, noise suppression controls on relevant machinery, and siting of particular facilities away from property boundaries. Ongoing noise monitoring will assess compliance with the requirements of noise standards at industrial facility boundaries (GB12348-1990). Mitigation measures during operation for noise impacts on workers will include standard occupational health and safety practices to relevant PRC standards.

Project site

EMU Local EPB

• Mufflers were installed in some of noisy machinery to mitigate noise pollution. And highly noisy equipment is installed in a closed area (See appendix 1for the details of the implementation status of noise mitigation measures).

• Low noise equipment is selected as far as possible ;

• Arbors are built all around the project boundary to reduce noise pollution.

E. Solid Waste

1. Solid waste disposal

Hazardous waste generated during construction will be collected and stored separately on site in approved facilities. Hazardous waste will be removed from site to approved hazardous waste disposal facilities by a licensed waste transportation company. Storage, collection, transportation, and disposal of hazardous wastes will be conducted in conformance

Project site

EMU Local EPB

• Air separation system will generate around 123 tons and 74 tons of waste molecule sieve solvent and aluminum solvent every 8 years as designed, however these wastes were not generated during the reporting period. The Project made contract with Tianjin Weolia Environmental Service Co., a licensed hazardous

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with relevant PRC regulations. Potential fire hazards from leaked syngas will be mitigated by establishing a firefighting system. Other measures include (i) work safety precautions with site selection and arrangement of buildings;(ii) safety measures at each stage of the production process, such as automatic cut-off valves; (iii)safety measures for electric and telecommunication devices; (iv) installing fire protection and fire alarm systems; (v) establishing a work safety responsibility system; (vi) specific safety measures for diesel storage area; and (vii) emergency response system closely integrated into the local industrial park emergency response system.

waste management company, who will be solely responsible to handle, collect, transport, and treat these hazardous waste solvents.

• Syngas purification system will generate approximately 15.7 tons of waste activated carbon every 3 years, which will be handled, collected, transported, and treated by Tianjin Weolia Environmental Service Co, the contractor.

• The sulfur recovery system requires around 6 tons of COS hydrolysis agent every 6 months, during trial operation, element sulfur was produced. There is no Waste COS hydrolysis agent generated during the reporting period.

• Waste coal from coal milling; and slag and flay ash from coal gasification system are collected in bins, temporarily stored at solid waste collection site, and reused at nearby construction site of natural gas-fired power plant.

• Residential solid waste is collected, temporarily stored at solid waste collection site, and then, transported to a municipal landfill site by a local hygiene authority.

• Fire extinguishers are installed in every site where equipment has possible gas leakage.

* According to requirement by local EPB, the ash and sulfur content of feed coal should be less than 10% and 1% respectively, as local government is taking stricter measures to control local air pollution. EIA = environmental impact assessment, EMU = environment management unit, EPB = environmental protection bureau, HGC = Huaneng Greengen Co., PRC = People’s Republic of China, t/d = metric tons per day, WRB = water resources bureau. Source: Tianjin Environment Protection Research Institute. 2007. Huaneng Greengen Tianjin IGCC Project Environmental Impact Assessment. Tianjin

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D. Implementation of Environmental Monitoring Program

19. As part of the roles and responsibilities of the EMU in the EMP monitoring plan, The EMU coordinates the environmental monitoring activities. The monitoring methods used in the monitoring station strictly followed the national standards, and analysis devices complied with technical requirements of relevant state standards. Raw data collected from monitoring sources went through three layers of review systems: After correction and verification, a technical person in charge performed final data determination. The final monitoring results were reported to the local environmental management department on a regular basis. 20. During the reporting period, ambient air quality monitoring was performed by the Harbor Economic Area EMS using a continuous analyzer. The air quality monitoring results through the continuous analyzers were sent automatically to the database in the Binhai New Area EMS. The Binhai New Area EMS prepared environmental compliance monitoring reports according to the national laws and regulations and submitted them to the Binhai New Area EPB. The EMU of the IA also monitored the TSP at main emission monitoring sites quarterly. The air pollution emission of waste gas from waste heat boilers is monitored continuously by on-line monitoring system. 21. Automatic on-line monitoring (continuously for COD and NH3-N) and lab testing (for BOD and SS) methods are used to monitor the quality of wastewater and treated wastewater. On-line monitoring system is installed at residential wastewater treatment plant, and lab testing was conducted daily) to monitor the quality of treated industrial wastewater, including general production wastewater and coal gas purification wastewater. 22. Table 7 provides the EMP monitoring framework of the Tianjin IGCC power generation project during project operation and the summary of implementation status.

Table 7: The Environmental Management Plan (EMP) Monitoring Framework and the Implementation Status of the EMP Monitoring

Item

Authority

Monitoring Framework

Monitoring Frequency

Implementation Status

1. Wastewater discharge quality

Local WRB

pH, SS, CODcr, BOD5, metals, scan, NH3-N, water flow,

Daily , online COD and NH3-N monitoring

Trial operation of the plant has been conducted for two years, the coal gas purification wastewater treatment operated in step with the trial operation of the IGCC plant . The COD and NH3-N is monitored continuously for treated coal gas purification wastewater, and other parameters are monitored daily for both residential wastewater and production wastewater during trial operation.

2. Air quality Local EPB CO, SO2, NOX, PM10

Continuously monitored by a monitoring station 200 m to the project site

The monitoring plan is implemented as indicated in the environmental monitoring plan, air quality is monitored by an continuous monitoring device operated by local EPB The air quality data were monitored continuously and sent to local EPB automatically.

3. Air Emission IA CO, H2S, SO2, Online This monitoring plan has been

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Item

Authority

Monitoring Framework

Monitoring Frequency

Implementation Status

monitoring NOX, PM10 monitoring for flue gas from gas turbine

implemented as indicated in the environmental monitoring plan. The fuel gas from gas turbine is monitored through continuous emission monitoring system.

4.sound quality of the project site

IA Noise at site boundary

Monitoring quarterly

The main noisy areas of the project have been monitoring quarterly , and noise at project boundaries started monitoring in March 2014, when the project achieve 24 days of continuous operation. The noise monitoring at project boundary was conducted once only during the monitoring period, it does not fully comply with the required monitoring frequency.

5. Air quality at project site

IA TSP Monitoring monthly

The monitoring plan has been implemented as indicated in the environmental monitoring plan.

BOD5 = biological oxygen demand (5 day), CO = carbon monoxide, COD = chemical oxygen demand, EPB =environmental protection bureau, H2S = hydrogen sulfide, NH3-N = ammonia, NO2 = nitrogen dioxide, NOx = nitrogen oxide, pH = acidity measure, PM10 = particulate matter below 10 microns, SO2 = sulfur dioxide; SS = suspended solids, TPH = total petroleum hydrocarbons, TSP = total suspended particles, WRB = water resources bureau. Source: Tianjin Environmental Protection Research Institute (2007) and Huaneng GreenGen Tianjin IGCC Project Environmental Impact Assessment Report.

E. Information Disclosure

23. The project installed sign boards inside the plant reminding workers of health and safety issues. GreenGen has been operating a proper channel to address all potential complaints relating to the project. A designated staff is assigned to set up a complaint registry, promptly investigate any complaint associated with the project, and record the details and nature of a complaint, the complainant, the date and actions taken as a result of the investigation. The designated staff coordinated with local environmental bureaus, both Tianjin and Binhai New Area EPBs to deal with any complaints raised by local organizations and residents. Based on discussion with local government environmental management departments and the IA, it is confirmed that by October 2014, there has been no environmental infringement recorded during November 2013-October 2014. No environmental complaint from local residents and others was received. 24. The fourth environmental monitoring report, which was prepared by the loan implementation environment consultant and the IA and submitted to ADB, has been posted in the ADB project website in 2014. This fifth environmental monitoring report will be soon publicly available through the ADB website. 25. In March 2014, Tianjin Environmental Monitoring Station conducted a public consultation activity for project completion acceptance, questionnaires were distributed to local stakeholders, including local residents, workers and governmental officials and business persons, a total of 100 replies were received. The survey results are shown in Table 8.

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Table 8: Statistics of public consultation survey

Survey content Reply Percentage (%) Construction period

Noise impact None 87 87 Small 13 13 Serious 0 0

Dust impact None 85 85 Small 15 15 Serious 0 0

Wastewater impact None 93 93 Small 7 7 Serious 0 0

Environmental complaint Yes 0 0 No 100 100

Trial operation period

Waste gas impact None 81 81 Small 19 19 Serious 0 0

Wastewater impact None 91 91 Small 9 9 Serious 0 0

Noise impact None 86 86 Small 14 14 Serious 0 0

Solid waste transport and treatment

None 91 91 Small 9 9 Serious 0 0

Any environmental accident

None 100 100 Yes 0 0

Your attitude toward the environmental protection of the IGCC project

Satisfaction 89 89 Relative satisfaction

11 11

No satisfaction 0 0 Source: Environmental Monitoring Report of IGCC project for Project Completion Acceptance , China Environmental Monitoring Station, 2014.

26. Regarding environmental impact during project trial operation, 81% people surveyed think there is no impact on their living and work, and 19% thinks these exists small impact; 86% people think there is no wastewater impact on their living and work, and 9% think there is small impact; 86% people think there is noise impact on their living and work, while 14% think there is small impact; 100% people think there is no environmental pollution accident occurred during trial operation period.

IV. ENVIRONMENTAL MONITORING

27. The project environmental monitoring framework defines the types of monitoring during operation. This section presents the progress of environmental monitoring framework in details and the summary of environmental monitoring results. A. Monitoring Under the Environmental Monitoring Framework of the Project

1. Air Quality Monitoring

28. During project operation, total suspended particulate (TSP) is identified as a main pollutant of concern. As indicated in the EMP, a local EPB is responsible for air quality

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monitoring on a monthly base. During the fifth reporting period, air quality has been monitored by Harbor Economic Area EMS, which is located 20 meters northeast of the project site. PM10, SO2, and NO2, have been monitored through a continuous analyzer during the trial operation period. Monitoring results, summarized in Table 9, show that air quality based on daily average still meets the Class III air quality standard (GB3095-1996).Air quality data in this period is provided in Table 6, only PM10 concentration failed to meet the Class II standard during November 2013 to October 2014. With the measures against air pollution taken by local government, the daily average of PM10 concentration has been reduced remarkably, but still failed to reach Class II standard. Tianjin is taking aggressive measures to fight against air pollution, including reducing coal consumption, constructing gas fueled heat supply system and closing small coal fired boilers.

Table 9: Air Quality Monitoring Results Unit: mg/m3 Date PM10 SO2 NO2

Daily average

November 2013 0.18015 0.05700 0.06000 December 2013 0.18411 0.08200 0.06800 January 2014 0.15392 0.06600 0.03500

February 2014 0.10260 0.04700 0.01600

March 2014 0.14936 0.04700 0.01700

April 2014 0.10607 0.03900 0.00600

May 2014 0.09468 0.01900 0.00200

June 2014 0.05609 0.01800 0.00300 July 2014 0.10677 0.01300 0.00100

August 2014 0.11273 0.01300 0.00800

Sept. 2014 0.11403 0.02300 0.00700

Oct. 2014 0.14119 0.03100 0.00600

Nov. 2014 0.17784 0.04200 0.00600

Dec. 2014 0.11895 0.05900 0.01500 Class II standard (GB3095-1996) 0.10 0.06 0.12 Class III Standard 0.15 0.10 0.12

m3 = cubic meter, mg = milligram, NO2 = nitrogen dioxide, S02 = sulfur dioxide, PM10 =

particulate matter below 10 microns. Source: Harbor Economic Area Environmental Monitoring Station, 2014.

29. The IA monitored ambient TSP in the project site quarterly. Flue gas from gas turbine has been monitored using continuous emission monitoring system. The ambient TSP sampling sites are located between combined cycle tower and “C” shape building. A smart middle flow TSP sampler is adopted to collect samples. The data listed in Table 10 is daily average before August 2014. Since August 2014, the TSP monitoring is conducted weekly, and monitoring results are listed in Table 8, the monitoring point is only CC tower. The monitoring results show that all the TSP concentration monitored are far below the emission limit required by GB13223-2011.

Table 10: TSP at main emission points Monitoring date Monitoring point TSP (mg/m

3)

December 3, 2013 CC tower 0.28 IG tower 0.29 Air separation workshop 0.26 February 10, 2014 CC tower 0.27 IG tower 0.29 Air separation workshop 0.26 May 2, 2014 CC tower 0.26

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IG tower 0.28 Air separation workshop 0.29 July 10, 2014 CC tower 0.25 IG tower 0.28 Air separation workshop 0.27 August 2014 CC tower 0.267 IG tower Air separation workshop September 2014 CC tower 0.279 IG tower Air separation workshop October 2014 CC tower 0.298 IG tower Air separation workshop Emission limit of gas fuel (non-natural gas) power plant (GB13223-2011)

10

Note: GB13223-2011 is a new emission standard for thermal power plant implemented after January 1, 2012. Source: monthly environmental monitoring report by the IA.

30. The IA monitored the flue gas continuously by on-line monitoring system, the monitoring results ( monthly average ) show that the SO2, smoke ( including all size of particulates in the flue gas) and NOx emission concentration is within the emission limit for gas turbine (fueled by syngas), see Table 11.The IA has taken proper measures to ensure the NOX emission within the allowed emission limit, these measures include adding certain amount of ammonia to the flue gas treatment system to reduce NOx emission, and this measure is very effective.

Table 11: Air pollution emission of flue gas from gas turbine unit: mg/m3 Monitoring date SO2 NOx PM

November 2013 1.36 45.00 0.16 December 2013 0.39 28.61 0.20 January 2014 1.96 43.70 0.19

February 2014 2.10 45.00 3.00

March 2014 4.22 44.22 0.56

April 2014 24 48 0.50

May 2014 23 41.21 0.92

June 2014 4.20 44.00 0.50

August 2014 2.19 37.02 0.0

September 2014 4.0 38.32 0.2

October 2014 1.2 36.12 0.0

GB13223-2011 (mg/m3)

35 50 10

Note : the emission limit requirement is applicable for gas turbine (fueled by non-natural gas, here refers to syngas). Source: monthly environmental monitoring report by the IA

31. Tianjin Environmental Monitoring Station monitored dust emission concentration at fly ash bin filter, pressurized transport system, pulverized coal bin and coal grinding and drying system in March 2014, and the monitoring results show than all the dust emission concentration are with allowable limit required by Comprehensive Emission Standard for Air Pollutants (GB16297-1996), see Table 12

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Table 12: Monitoring results of dust (TSP) emission at main pollution source Pollution source

Monitoring site

Monitoring times

Waste gas flow (m (( N m3/h)

Emission concentration (mg/m3)

Emission rate (kg/h)

Fly ash bin filter

Outlet A 6 409-410 0.94-1.16 3.7-4.7*10-4

Outlet B 6 408-411 0.86-1.06 3.7-4.3*10

-4

Accumulative emission

6 8.3-8.8*10-4

GB16297-1996 120 39 Pressurized transport system

Outlet A 6 2895-2907 39.4-50.4 0.11-0.15 Outlet B 6 2891-2908 3.68-5.11 (1.1-1.5)*10

-2

Outlet C 6 2888-2902 34.9-43.7 0.10-0.13 Accumulative emission

0.244-0.271

GB16297-1996 120 99.8 Pulverized coal bin

Deduster A 6 2387-2549 22.2-31.9 (5.4-8.1)* 10-2

Deduster B 6 2350-2512 19.2-28.8 (4.2-5.2) *10

-2

Deduster C 6 2559-2712 15.6-22.0 (4.2-5.8)* 10-2

Accumulative emission

0.16-0.18

GB16297-1996 120 49.5 Coal grinding and drying system

Outlet A 6 12801-13282 19.5-21.8 0.25-0.28 Outlet B 6 11037-11357 48.5-51.8 0.53-0.58 Outlet C 6 11340-11657 36.3-42.5 0.41-0.48 Accumulative emission

1.22-1.29

GB16297-1996 120 116 Source: Environmental Monitoring Report of IGCC project for Project Completion Acceptance, China Environmental Monitoring Station, 2014.

32. H2S emission was monitored in March 2014, the monitoring was conducted at two discharge points of sulfur recovery system. The results show that the H2S emission rate exceeded the Emission Standard for Effluvium Pollutants (DB12/-059-95). The IA took correction measures immediately; the measures mainly include the expansion of adsorption volume of the adsorption chamber and increase of adsorption time. After upgrade, H2S was monitored again in August 2014, and the monitoring results show that H2S emission from the sulfur recovery system can meet the standard, see Table 13.

Table 13: H2S emission from sulfur recovery system before and after upgrade Monitoring

site Monitoring times

Waste gas flow (m (( N m3/h)

Emission concentration (mg/m3)

Emission rate (kg/h)

Before upgrade Outlet A 6 6069-6208 31.2-248 0.19-1.5 Outlet B 6 6338-6522 25.3-202 0.16-1.3

After upgrade Outlet A 6 6095-6286 0.031-0.149 (1.9-9.4)*10-4

Outlet B 6 5763-6008 0.694-5.0 0.0042-0.02

Standard ( DB12/-059-95)

0.91

Source: Environmental Monitoring Report of IGCC project for Project Completion Acceptance, China Environmental Monitoring Station, 2014.

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2. Solid Waste Monitoring

33. During the trial operation period, quarterly site inspections were conducted by local EPB and the Harbor Economic Area Management Committee. It is confirmed that all residential rubbish and waste building materials were collected properly and transported by a local hygiene company to a municipal solid waste landfill site in Binhai New Area. No on-site landfill was operated. No hazardous waste was generated during the trial operation period. During January – October 2014, about 17404t slag and 24047t fly ash was generated from coal gasification system, and slag and fly ash were reused at a construction site adjacent to the project site, and remaining slag and fly ash were stored in the temporary slag site in the project area. Agreement has been signed between the IA and Tianjin Binhai Shengyi Trade Co. for sale of slag and fly ash to local building materials factories or construction sites. During the reporting period, there is no dangerous solid waste generated. B. Additional Monitoring

1. Water and Wastewater

34. Water used for the project operation is supplied by a local water supply company. No ground water was extracted for any purpose. 35. There are three wastewater treatment facilities constructed for the project, respectively for residential wastewater, production wastewater and coal gas purification wastewater. The treated coal gas purification wastewater was monitored by continuous monitoring device. The treated residential wastewater and industrial wastewater is recycled at cooling water system of the chemical island. Regular inspection confirmed that there was no direct discharge of residential and industrial wastewater to surface water. The wastewater from coal gas purification is treated and sent to Harbor Economic Area wastewater treatment plant, the treated residential and industrial wastewater is monitored daily by a lab device of the IA, while the treated coal gas purification wastewater is monitored continuously. 36. As the treated residential wastewater and industrial wastewater is reused for recycling cooling water at Chemical Island, the HG/T 2923-2007 Water quality Standards for Reused Water for Recycling Cooling Water System is applicable. The monitoring results show that the treated residential wastewater, industrial wastewater and coal gas purification wastewater reached the relevant standard. The monitoring results of treated wastewater are shown in Tables 14-16.

Table 14: Monitoring results of treated residential wastewater

Monitoring Date PH

NH3-N (mg/l)

COD (mg/l)

BOD (mg/l)

2013.11.09 8.31 3.22 18 5

2013.11.13 8.22 1.27 16 5

2013.12.05 8.56 3.4 16

2013.12.17 7.85 4.8 20 4

2014.01.24 9.24 2.33 13 0

2014.01.25 7.99 3.29 15 1

2014.02.24 8.09 3.5 12 4

2014.02.25 8.7 1.5 11 4

2014.02.27 8.15 11.8 15 5

2014.03.05 7.99 5.88 18 5

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2014.03.24 7.57 1.9 9

2014.04.09 8.05 3.52 15 1

2014.04.21 8.42 2.61 16 4

2014.05.06 8.1 4.8 16 2

2014.06.30 7.99 6.2 18 5

2014.07.02 7.9 1.8 9

2014.07.03 7.9 2.9 14

HG/T3923-2007 6-9 15 80 5

Source: Monthly environmental monitoring report by the IA. Note: HG/T 2923-2007 is the Water quality Standards for Reused Water for Recycling cooling water system.

Table 15: Monitored results of treated industrial wastewater

Monitoring date PH

NH3-N ((((mg/l))))

COD (mg/l)

BOD (mg/l)

2013.11.13 8.12 0.224 11 0

2013.11.25 7.89 0.662 12 0

2013.12.05 8.04 0.854 9 1

2013.12.22 8.15 0.85 13 5

2014.01.26 8.39 0.96 8 4

2014.01.27 8.35 0.95 10 5

2014.02.24 7.77 0.71 9

2014.02.27 7.63 0.5 15

2014.03.05 6.99 0.89 18

2014.03.19 7.54 0.14 18 4

2014.04.09 6.9 0.01 17

2014.04.21 8.37 0.19 3

2014.05.06 7.82 0.796 18

2014.05.10 7.59 0.774 10 0

2014.06.30 7.86 0.385 12

2014.07.02 8.23 0.559 15

2014.07.03 8.25 0.832 18

2014.08.20 8 0.223 5

2014.08.27 8.03 0.726 6

2014.09.10 8.19 0.589 1

2014.09.22 8.29 0.823 0

2014.10.15 7.62 1.02 19

2014.10.29 8.09 0.441 22

HG/T3923-2007 6-9 15 80 5

Source: Monthly environmental monitoring report by the IA. Note: HG/T 2923-2007 is the Water quality Standards for Reused Water for Recycling cooling water system.

Table 16: Monitored results of treated coal gas purification wastewater

Monitoring Date PH SS

(mg/l) NH3-N (mg/l)

BOD (mg/l)

COD (mg/l)

2013.11.09 6.44

22.01

144

2013.11.13 7.56

18.95 15 126

2013.11.25 8.42

22.84

127

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2013.12.05 8.51

15.55 5 142

2013.12.17 7.62

21.85 5 138

2013.12.22 7.95

21.38

129

2014.01.24 8.55

24.44

119

2014.01.25 8.56

13.15 24 108

2014.01.26 8.57

18.15 13 128

2014.01.27 8.59

19.41

116

2014.02.24 8.62

19.18

138

2014.02.25 8.49

18.49

132

2014.02.26 8.66

25.19 30 104

2014.02.27 8.72

15

112

2014.03.05 8.65

14.77 13 121

2014.03.07 8.59

15.96 5 134

2014.03.19 8.88

16

109

2014.03.24 8.81

18.8

136

2014.04.09 8.57

17 28 118

2014.04.14 8.56

24

130

2014.04.15 7.89

17.24 14 146

2014.04.21 8.09

17.98

108

2014.05.06 8.07

23

127

2014.05.09 8.06

16.25 26 129

2014.05.10 8.16

17

135

2014.06.30 8.06

19.23 15 108

2014.07.02 8.06

17 24 118

2014.07.03 8.05

21

105

2014.08.20 8.45 456

2014.08.28 8.31 85 398

2014.09.10 8.25 75 332

2014.09.22 8.32 182

2014.10.14 8.32 468

2014.10.23 8.19 201

DB12/356-2008 Class III 6-9 ≤400 ≤35 ≤300 ≤500

Source: Monthly environmental monitoring report by the IA. Note: Note: DB12/356-2008 is the Comprehensive Discharge Standard for Wastewater.

2. Dust

37. Mitigation measures to control dust during the project operation were properly implemented. Regular inspections confirmed that no serious dust issue occurred during the project operation period.

3. Noise

38. The noise at 4 main noise sources was monitored weekly. Some mitigation measures like the use of noise control devises and the installation of major noisy equipment in isolated and closed environment helped to reduce main noise by 15-30dB(A). However, the monitoring

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results of main noise sources showed that the noise levels ranged from 60.2 dB(A) to 90.3 dB(A). Especially at the air separation workshop, high noise was detected (see Table 17). The IA offers earmuffs to each worker as personal protection device to protect hearing of workers working in noisy environment in the IGCC power plant.

Table 17: Noise Monitoring Results at main noise sources Unit: dB (A)

Monitoring date CC Tower IG Tower In the front of the Air Separation Workshop

At bottom of Coal Gasifier

2014.2.28 60.5 76.3 65.4 72.7

2014.3.20 61.2 75.6 63.2 70.2

2014.3.28 79.5 77.9 87.6 77.3

2014.4.4 76.1 78.8 90.3 72.7

2014.4.11 78.2 78.3 88.9 75.4

2014.4.18 61.7 68.4 63.2 74.5

2014.4.25 79.4 78.3 88.7 76.2

2014.7.21 79.2 78.4 87.9 77.1

2014.7.28 79.5 78.8 88.2 76.9

2014.8.20 79.1 78.2 87.8 76.5

2014.8.27 79.2 78.1 87.9 76.4

2014.9.5 79.9 78.3 88.2 76.6

2014.9.10 79.8 78.2 88.1 76.3

2014.9.15 79.2 78.1 88.1 76.2

2014.9.25 79.2 78.2 88.3 76

2014.10.17 79.1 78 88.2 76.2

2014.10.24 79.9 77.2 86.9 74.5 Note: CC tower is the power generation cooling tower and IG tower is cooling tower of coal gasification island. Source: Quarterly environmental monitoring report by the IA. The date were monitored at daytime.

39. Tianjin Environmental Monitoring Station conducted ambient noise monitoring at the plant boundaries two times in March 2014. Each time included daytime and night monitoring. The monitoring results are shown in Table 18 and Table 19. The monitoring sites are shown in Fig.2. The monitoring results show that during trial operation, most of the project boundary noise level in daytime and all the project boundary noise level in night also exceeded the Emission Standard of Environmental Noise for Boundary of Construction Site (GB12523-2011), especially these noise levels at east project boundary (sites 3, 4 and 5) are much higher (around 80dB(A)). At east plant boundary, noise is also coming from the natural gas-fired thermal power plant by Huaneng Group. Thus, further noise mitigation measure is necessary. At west project boundary, tree planting was used as noise mitigation measure for the noise coming from Tianjin Alkali Plant. Yet, the results of noise monitoring show the tree mitigation measure is not sufficient.

Table 18: Results of first time noise monitoring at project boundary

No. Monitoring location Daytime Standard Night Standard

1 1m outside north boundary 62 65 60 55 2 1m outside north boundary 62 60 3 1m outside east boundary 79. 79 4 1m outside east boundary 82 82 5 1m outside east boundary 80 76 6 1m outside east boundary 69 68

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7 1m outside east boundary 67 68 8 1m outside south boundary 56 66 9 1m outside south boundary 61 65 10 1m outside west boundary 62 60 11 1m outside west boundary 76 78 12 1m outside west boundary 73 68 13 1m outside west boundary 66 69

Source: Environmental Monitoring Report of IGCC project for Project Completion Acceptance , China Environmental Monitoring Station , 2014.

Table 19: Results of second time noise monitoring

No. Monitoring location Daytime Standard Night Standard

1 1m outside north boundary 61 65 62 55 2 1m outside north boundary 61 62 3 1m outside east boundary 79 78 4 1m outside east boundary 82 81 5 1m outside east boundary 79 72 6 1m outside east boundary 64 65 7 1m outside east boundary 64 64 8 1m outside south boundary 62 59 9 1m outside south boundary 61 58 10 1m outside west boundary 62 61 11 1m outside west boundary 72 69 12 1m outside west boundary 70 67 13 1m outside west boundary 66 67

Source: Environmental Monitoring Report of IGCC project for Project Completion Acceptance , China Environmental Monitoring Station , 2014.

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Figure 2. Noise monitoring sites at project boundary

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Figure 3. Location of noise protection area

4. Total Emission

40. Based on hourly average data monitored in March 11-14, 2014, and load factor of 75.5-77.4%, and assuming that the annual operating hours are 5000h, total annual air emissions of SO2, PM and dust were estimated. As for SO2, the total emission would be 19.5 t, which would meet the requirement set by local EPB. Table 20 shows the detailed estimated air emissions.

Table 20: Total emissions of waste gas pollutants Item Amount of wa

ste gas (10000Nm3/a)

Dust (t/a)

Smoke (t/a)

SO2

(t/a)

Fly ash bin waste gas 410 0.0041 - - Pressurized transport system waste gas

4280 1.28 - -

Pulverized coal bin waste gas 3776 0.85 - - Coal grinding and drying system 35751 6.3 0.54 Combined cycle system waste gas

640397 2.1 6.3 19.0

Total 684614 2.1 6.3 19.54 Tianjin EPB requirement 33 Source: Environmental Monitoring Report of IGCC project for Project Completion Acceptance , China Environmental Monitoring Station , 2014.

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41. Total amount of wastewater and its COD and NH3-N contents were estimated. Total amount of COD and HN3-N would be 9.85t/a and 2.07t/a respectively, which would meet the requirement by local EPB. Table 21 shows the details.

Table 21: Total emissions of wastewater pollutants Item Amount of wast

ewater (10000m

3/a)

COD (t/a)

NH3-N (t/a)

oil (t/a)

Total discharge point

Discharge concentration (mg/L)

143 30 0.48

Total discharge amount

6.9 9.85 2.07 0.019

Tianjin EPB requirement

13.4 2.2

Source: Environmental Monitoring Report of IGCC project for Project Completion Acceptance , China Environmental Monitoring Station , 2014.

5. Soil loss

42. As for site treatment, re-vegetation was completed by October 2013, confirming that about 99% of the disturbed land area due to the project had been effectively treated and soil loss was successfully controlled. The remaining untreated site is located at CO2 capture project site , and would be treated by May 2015.

V. CONCLUSIONS AND RECOMMENDATIONS

43. All the environmental facilities have been constructed, and most of the facilities work properly. During the period of this report, trial operation was conducted for 13 times, the only remained environmental issue is noise, the IA currently offers earmuffs to workers to protect their hearing, and existing measures are not sufficient to achieve noise emission compliance at project boundaries. The IA will prepare the list of proposed noise mitigation measures to reduce noise at project site and project boundaries. The proposal will be sent to Huaneng GreenGen to seek associated financial support. The proposed measures include the following: (i) Establishing noise barriers around main noise sources including equipment and facility; (ii) Installation of noise adsorption material at main noise workshops; (iii) Planting arbors along project boundaries to reduce noise level. 44. It is also confirmed that no complaint associated with the project operation has been received. The EA and the IA has complied the EMP and environmental monitoring plan, and necessary information has been disclosed in accordance with the loan agreement. 45. The preparation for environmental acceptance of the project, which requires approval of Ministry of Environmental Protection, started in December 2014. It is recommended that the project implementation agency should continue implementing the EMP and EMP monitoring plan throughout the entire operation period, especially taking following corrective measures to make the project meet relevant standards:

(i) After the level of pollution source is identified, the environmental monitoring results from on line monitoring system should be transmitted to local EPB by directly;

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(ii) The noise monitoring plan should follow the EMP, namely monitoring day and night on a quarterly base at four project boundaries.

(iii) Install noise adsorption material at air separation workshop, and establish more noise barriers at main noise sources, especially air separation workshop, coal gasification system, IG tower and CC tower.

(iv) Planting arbors along project boundaries to reduce noise level. (v) Enhance daily maintenance and management of production and environmental

protection equipment, so as to ensure that all environmental protection equipment works in good condition, and pollution discharge can meet the standards.

(vi) Further enhance risk management, so as to avoid secondary environmental issue caused by work safety accident.

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APPENDIX 1. PHOTOS OF THE PROJECT

Fig. 1 Use of waste plastic box for planting (July 17, 2014)

Fig.2 Photo of syngas purification system (July 17, 2014)

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Fig. 3 photo fo two diesel tanks ( March 2014)

Fig. 4 Photo of temporary slag site (March 2014)

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Fig. 5 Slag bin of coal gasification system (July 17, 2014)

Fig. 6 Temporary coal storage site (october 2014)

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Fig.7 Site treatment next to cooling tower of the power generation island (July 17, 2014)

Fig. 8 Meadow beside the air separation building (July 17, 2014)

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Fig.9 Noise reduction device at the air separtion building (July 17, 2014)

Fig.10 Industrial wastewater treamtment plant (July 17, 2014)

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Fig. 11 Meadow along the main road of in the IGCC project area (July 17, 2014)

Fig.12 Coal transport corridor (July 17, 2014)

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Fig.13 Photo of coal gasifier (July 17, 2014)

Fig. 14 Building for residential wastewater treatment system (July 17, 2014)

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Fig. 15 Building for air separation system (July 17, 2014)

Fig. 16 Photo of accident water pool (July 17, 2014)

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Fig. 17 Trees outside the western project boundary (July 17, 2014)