summary environmental assessment for …

Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—China National Investment and Guaranty Corporation’s

Green Financing Platform Project (RRP PRC 50096)

SUMMARY ENVIRONMENTAL ASSESSMENT FOR REPRESENTATIVE SUBPROJECTS

1. This report summarizes preliminary environmental assessment for representative subprojects for the Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—China National Investment and Guaranty Corporation’s Green Financing Platform Project. For each subproject, the summary environmental assessment includes three parts: (i) a brief description of the representative subprojects; (ii) anticipated environmental impacts of the representative subprojects; and (iii) proposed environmental category for the representative subprojects. 2. The representative subprojects included in this summary environmental assessment report are as follows:

(i) Xuanhua District Heating Subproject (ii) Xingtai Biomass Power Generation Subproject (iii) Zhaoyuan Phase II 49.8MW Windfarm Construction (iv) Waste Heat Recovery from Huludao Zinc Plant for District Heating (v) Waste Heat Recovery from Baotou Steel Company for City Heat Supply (vi) Sanmenxia 3rd Hospital Energy Management Project (vii) Upgrade Desulfurization System for Sinters in Jinxi Steel Plant (viii) Upgrade Desulfurization System of Guojin Coal-fired Power Plant (ix) Heat Pump for Space Heating to Central Lake District, Zhengding, (x) Green Leasing in BTH region (xi) Beijing Qingke Smart E-bike R&D project

3. Based on proposed environmental categories for all the representative subprojects, only Xingtai Biomass Power Generation Subproject is classified as Category B with high risk for the environment while the other subprojects are classified as Category B and Category C. Therefore, environment due diligence report of Xingtai Biomass Power Generation Subproject is presented in Appendix I of this report.

http://www.adb.org/Documents/RRPs/?id=50096-002-3



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I. Subproject 1: Xuanhua District Heating Subproject

A. Subproject description 4. The proposed subproject uses low-temperature waste water from generator cooling water of a power plant inside Xuanhua Steel Plant to supply space heating to 3 million square meters (m2) of buildings. Phase One of the subproject was commissioned in 2015 which supplied heat to 0.834 million m2 of buildings. Phase Two (the proposed project to be financed by Asian Development Bank [ADB] fund) plans to supply heat to additional 2.166 million m2 using low-temperature waste heat. This subproject will save energy, reduce emission, and also improve the economic performance of the project operator.

5. Under Phase One of the subproject, the pumping station, water softening system, power distribution room, controlling room, 6.65 kilometer (km) long of trunk line (diameter of 1,000 millimeter [mm]), 6 km secondary pipeline have been constructed, and 6 heat exchangers were retrofitted in 2015. Phase Two of the subproject will build a 5 km of trunk heating line and 10 km of secondary heating pipeline, and will retrofit 20 heat exchangers. B. Anticipated environmental impacts

6. The anticipated environmental impacts for constructing secondary heating pipelines and heat exchange stations (HES) as well as operation phase are included in domestic tabular environment impact assessment (EIA) provided by project owner and are summarized below. 7. Anticipated impacts during the construction phase of the low-temperature system include soil erosion, wastewater, air pollution, noise, solid waste, and occupational health and safety.

(i) Erosion and Spoil. Construction activities such as pipeline excavation and burial may lead to surface soil erosion. Based on the pipeline route map, pipeline construction site is generally along existing roads in urban areas and there are no rivers, streams, or lakes that are likely to be affected. Construction activities may generate surplus spoil. Spoils will be reused on site as much as possible.

(ii) Wastewater. The primary wastewaters of the proposed project during the construction phase are domestic wastewater (from construction workers) or construction wastewater (from washing construction equipment and vehicles, pipeline washing and pressure test and runoff wastewater during rainfall). There are no surface water bodies at or near the construction sites based on site visit. However, inappropriate disposal of wastewater may cause soil or groundwater resources contamination.

(iii) Air pollution. Anticipated sources of air pollution from construction activities include: (i) dust generated from earth excavation and filling; (ii) dust generated from disturbed and uncovered construction areas, especially on windy days; (iii) dust generated by the movement of vehicles and heavy machinery on roads; and (iv) emissions from construction vehicles (gaseous carbon monoxide [CO] and nitrogen oxides [NOx]), heavy diesel machinery and equipment.

(iv) Noise Impacts. A significant increase in localized noise is expected during construction. Noise during pipeline construction will be generated by trench excavators, rollers and other compaction machinery. Traffic noise will be generated by material and equipment transportation. Though noise levels may be high, the impacts will be temporary and localized.

(v) Solid waste. Solid waste generated during construction phase includes construction waste and domestic waste. Construction wastes include brick rubble,

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waste packing materials, cement block, waste wood, spoil, and other types of waste. Spoils will be reused on site as much as possible. Inappropriate waste storage and disposal could affect soil, groundwater, and surface water resources, and hence, public health and sanitation.

(vi) Worker Occupational Health and Safety. Construction may cause physical hazards to workers from noise and vibration, dust, handling heavy materials and equipment, falling objects, work on slippery surfaces, and construction safety.

8. Anticipated impacts during the operational phase of low-temperature system include wastewater, noise, solid waste and occupational health and safety issue.

(i) Wastewater. The primary wastewater of the proposed project during the operational phase are domestic wastewater of HESs staff and production wastewater from pipeline cleaning and water treatment. All wastewater will be treated in the wastewater treatment plant (WWTP) in Xuanhua Steel Plant and discharged to municipal sewer.

(ii) Noise. Noise will be generated from the operation of HES. (iii) Solid waste. Solid waste of the proposed project during operation phase will be

domestic waste. Domestic waste will be collected and treated by local sanitation department. The proposed project will not discharge any production waste during operation but some waste will be generated during equipment maintenance which will be collected and treated by certificated company.

(iv) Worker occupational health and safety issue. Plant operation poses occupational health risks to workers. There are some risks during the operation of the primary pump station, HES and maintenance of the heating pipelines such as physical hazards to workers from noise and vibration and chemical hazards to workers by chemicals.

C. Proposed environmental category 9. The subproject is classified as Category B for the environment in accordance with the Environmental and Social Management System (ESMS).

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II. Subproject 2: Xingtai Biomass Power Generation Subproject

A. Project description 10. The proposed subproject consists of a biomass power generation plant, a primary biomass fuel storage site, and 50 secondary biomass fuel processing and storage sites. The construction of the power plant and primary fuel storage facility are almost completed. 11. The biomass power generation facility has a 120 tons/hour (t/h) high-temperature and high-pressure circulated fluidized boiler (CFB) with a 30 megawatt (MW) Siemens maintenance-free extraction condensing turbine. As fuel to CFB, mixed biomass and wood chips will be used. High efficient pumps and blowers with variable frequency drive are used to improve energy efficiency. Pulsed jet bag-filter is used to remove particulate matters. Selective non-catalytic reduction (SNCR) for denitrification (de-NOx) is used and it can remove 45% of nitrogen oxide (NOx) from flue gas. B. Anticipated environmental impacts

12. Since the construction work is almost completed for the biomass power plant, the following describes only the anticipated environmental impacts during the operation phase. Based on the domestic EIA report, the impacts during operation include wastewater, air pollution, noise, solid waste, and occupational health and safety issue.

(i) Wastewater. The domestic water of the plant is from municipal water and the production water is reclaimed water from Pingxiang Lijie WWTP. The plant will have a water treatment system for reclaimed water treatment with a process of ultra-filtration; two levels reverse osmosis and electrodeionization. The primary wastewater of the proposed subproject during the operational phase includes domestic wastewater and production wastewater from boiler, circulating cooling water and water treatment system. All wastewater will be partly recycled and discharged to Pingxiang Lijie WWTP for treatment.

(ii) Air pollution. The primary air pollution of the proposed subproject is the exhaust gas of the power generation units and the main pollutants include sulfur dioxide (SO2), NOx, particulate matter (PM) and carbon dioxide (CO2). In addition, the power plant will have one limestone storage room, one bottom slag storage room, and one ash storage room which will result in dust pollution without mitigation measures.

(iii) Noise Impacts. Noise during operation phase comes from the burning system and power generation system; noise is typically generated from equipment such as pumps, fans and turbine.

(iv) Solid waste. Solid waste of the proposed subproject during operation will be domestic waste, ash, slag and fugitive dust, desulfurization waste and sludge generated during reclaimed water treatment. Domestic waste will be collected and treated by local sanitation department. Other waste will be collected and treated by authorized companies.

(v) Worker Occupational Health and Safety. Plant operation poses occupational health risks to workers. Accidental release of chemicals and hazardous materials may present health and safety risks to workers. Biomass materials also present fire and burn hazards. Noise exposure to some workers is also a health risk.

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C. Proposed environmental category 13. This proposed subproject is classified as Category B with high risk for environment in accordance with the ESMS.

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III. Subproject 3: Zhaoyuan Phase II 49.8 MW Wind farm Construction

A. Subproject description 14. The proposed wind farm subproject is located in Zhaoyuan, northwest of Shandong Province. Shandong is one of the well-developed provinces located in the east coast of the People’s Republic of China (PRC). Shandong’s gross regional product ranked third among all provinces in the PRC for years just behind of Guangdong and Jiangsu provinces. The subproject will install 18×2.1 MW and 6×2.0 MW generators with total capacity of 49.8 MW. After the commissioning, it will supply 112 GWh zero-emission electricity to the grid and therefore contribute to the air quality improvement in the greater BTH. 15. Using 2.0 MW and 2.1 MW wind gen-set for power generation is a common practice in the PRC. By the end of 2014, 9746 sets of 2.0 MW wind generator have been installed.1 This type of generator is adopted well in low wind speed areas (wind resource category IV region) where the subproject located. B. Anticipated environmental impacts 16. The anticipated environmental impacts of wind farm during both construction and operation phases are summarized below based on domestic tabular EIA. 17. Anticipated impacts during the construction phase of the wind farm include soil erosion, wastewater, air pollution, noise, solid waste, and occupational health and safety.

(i) Erosion and Spoil. Construction activities such as earth excavation and filling may lead to surface soil erosion. Construction activities may also generate surplus spoil. Spoils will be reused on site as much as possible.

(ii) Wastewater. There are no surface water bodies at or near the construction sites. However, inappropriate disposal of domestic wastewater (from construction workers) or construction wastewater (from washing construction equipment and vehicles, and runoff wastewater during rainfall) may cause soil or groundwater resources contamination.

(iii) Air pollution. Anticipated sources of air pollution from construction activities include: (i) dust generated from earth excavation and filling; (ii) dust generated from disturbed and uncovered construction areas and construction material storage area, especially on windy days; (iii) dust generated by the movement of vehicles and construction machinery on roads; and (iv) emissions from construction vehicles (gaseous CO and NOx) and heavy diesel machinery and equipment.

(iv) Noise Impacts. A significant increase in localized noise is expected during construction. Noise during construction phase will be machinery noise generated by construction machinery and traffic noise generated during material and equipment transportation. Though noise levels may be high, the impacts will be temporary and localized.

(v) Solid waste. Solid waste generated during construction phase includes construction waste, waste packing materials and domestic waste. Construction wastes include cement block, spoil, and other types of waste. Spoils will be reused on site as much as possible. Inappropriate waste storage and disposal could affect soil, groundwater, and surface water resources, and hence, public

1 NEA, Renewable Energy Data Manual 2015.

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health and sanitation. (vi) Worker Occupational Health and Safety. Construction may cause physical

hazards to workers from noise and vibration, dust, handling heavy materials and equipment, falling objects, work on slippery surfaces, and others.

18. Anticipated impacts during the operational phase of the wind farm include wastewater, noise, solid waste, light pollution and occupational health and safety issue.

(i) Air pollution. The proposed subproject will not discharge any air pollutants during operation. Because there is a canteen in the project site, cooking fume will be discharged by canteen ventilator.

(ii) Wastewater. The primary wastewater of the proposed project during the operational phase is domestic wastewater of workers. Domestic wastewater will be treated by on-site domestic wastewater equipment and discharged to municipal sewer. No production wastewater will be generated.

(iii) Noise. Noise of the proposed project during operational phase will be generated from operation of wind turbines.

(iv) Solid waste. Solid waste of the proposed project during operation phase will be domestic waste and production waste. Production waste is mainly machine oil during maintenance of wind turbines and will be collected and treated by certificated company—Xinguang Luhuan Recycled Resource Company.

(v) Light pollution. Wind turbine blades may cause light pollution to staff and surrounding residents.

(vi) Worker occupational health and safety issue. Plant operation poses occupational health risks to workers. There are some risks during the operation and maintenance of wind turbines such as physical hazards to workers from noise and vibration, falling objects, work on slippery surfaces, and others.

C. Proposed environmental category 19. The proposed subproject is classified as Category B for environment in accordance with the ESMS.

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IV. Subproject 4: Waste Heat Recovery from Huludao Zinc Plant for District Heating

A. Subproject description 20. The subproject is located in Huludao, Liaoning Province. It will recover waste heat from Huludao Zinc Industry Co., Ltd. to supply heat to the city of Huludao. The plant discharges a lot of waste heat from various processes of zinc production. The plant also has a combined heat and power facility to supply steam to these processes. The waste heat will be recovered from 10 sub-processes and classified into four types: flue gas, cooling water, slag washing water, and sulfur acid cooling process. Heat exchangers will be installed in stacks to recover heat from flue gas, cooling water and acid cooling process. A phase-change material will be used to recover heat from slag washing water since slag is treated intermittently. 21. The proposed subproject will construct a heating pipeline from the zinc plant to the primary HES and install waste heat recovery systems. The subproject is expected to supply heat of 0.53 GJ/m2 to heat 1.5 million m2 area in winter season and replace 70 small coal-fired heat only boilers. B. Anticipated environmental impacts

22. Anticipated impacts during the construction phase of the subproject include soil erosion, wastewater, air pollution, noise, solid waste, and occupational health and safety.

(i) Erosion and Spoil. Construction activities such as pipeline excavation and burial may lead to surface soil erosion. Construction activities may generate surplus spoil. Spoils will be reused on site as much as possible.

(ii) Wastewater. The primary wastewaters of the proposed project during the construction phase are domestic wastewater (from construction workers), construction wastewater (from washing construction equipment and vehicles, pipeline washing and pressure test and runoff wastewater during rainfall). Inappropriate disposal may cause soil or groundwater resources contamination.

(iii) Air pollution. Anticipated sources of air pollution from construction activities include: (i) dust generated from earth excavation and filling; (ii) dust generated from disturbed and uncovered construction areas and construction material storage area, especially on windy days; (iii) dust generated by the movement of vehicles and heavy machinery on roads; and (iv) emissions from construction vehicles (gaseous CO and NOx) and heavy diesel machinery and equipment.

(iv) Noise Impacts. A significant increase in localized noise is expected during construction. Noise during pipeline construction will be generated by trench excavators, rollers and other compaction machinery. Noise during waste heat recovery units will be machinery noise generated by construction machinery. Traffic noise is generated during material and equipment transportation.

(v) Solid waste. Solid waste generated during construction phase includes construction waste, and domestic waste. Construction wastes include brick rubble, cement block, waste construction materials, waste packing materials, spoils, and other types of waste. Spoils will be reused on site as much as possible. Inappropriate waste storage and disposal could affect soil, groundwater, and surface water resources, and hence, public health and sanitation.

(vi) Worker Occupational Health and Safety. Construction may cause physical hazards to workers from noise and vibration, dust, handling heavy materials and equipment, falling objects, work on slippery surfaces, and others.

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23. Anticipated impacts during the operational phase of the subproject include wastewater, noise, solid waste and occupational health and safety issue.

(i) Air pollution. The proposed project will not discharge any air pollutants during operation.

(ii) Wastewater. The primary wastewaters of the proposed project during the operational phase are domestic wastewater from staff and production wastewater from pipeline cleaning and water treatment. All wastewater will be treated in the WWTP in Huludao Zinc Plant and discharged to municipal sewer.

(iii) Noise. Noise of the proposed project during operational phase will be generated from operation of waste heat recovery units and primary HES including equipment such as pumps.

(iv) Solid waste. Solid waste of the proposed project during operation phase will be domestic waste. The proposed project will not generate any production waste during operation but some waste will be generated during equipment and pipeline maintenance. Domestic waste will be collected and treated by local sanitation department. Production waste will be collected and treated by certificated company.

(v) Worker occupational health and safety issue. Plant operation poses occupational health risks to workers. There are some risks during the operation of the primary HES and waste heat recovery units and maintenance of the heating pipelines such as physical hazards to workers from noise and vibration and chemical hazards to workers by chemicals.


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V. Subproject 5: Waste Heat Recovery from Baotou Steel Company for City Heat Supply

A. Project description 25. The project is located in Baotou, Inner Mongolia. It will recover waste heat from slag of blast furnaces and convertors of Baotou Steel Company to supply heat to the residential area of Baotou Steel Company and the city of Baotou. It will supply 3,800,000 GJ of heat during 6 months in winter heating season. The subproject includes three parts: (i) waste heat recovery from the slag of No. 4 and No. 6 blast furnaces; (ii) waste heat recovery from the convertor slag; and (iii) waste heat recovery t from slag of blast furnace No. 7 and No. 8.

26. Except installing heat recovery systems, the subproject will also build 1.2 km long pipeline with diameter of 400 millimeters (mm) to connect to the existing pipelines and transfer the recovered heat from blast furnace No.7 and No.8 to the primary HES. A 2.5 km long pipeline with diameter of 800 mm and 1 km long pipeline with diameter of 1,000 mm will also be built. Another 4.8km long pipeline with diameter of 1,000 mm will install to connect the primary HES to the existing heating network. B. Anticipated environmental impacts

27. Anticipated impacts during the construction phase of heating pipelines connected to primary HES and waste heat recovery units include soil erosion, wastewater, air pollution, noise, solid waste, and occupational health and safety.

(i) Erosion and Spoil. Construction activities such as pipeline excavation and burial may lead to surface soil erosion. Construction activities may generate surplus spoil. Spoils will be reused on site as much as possible.

(ii) Wastewater. The primary wastewaters of the proposed project during the construction phase are domestic wastewater (from construction workers), construction wastewater (from washing construction equipment and vehicles, pipeline washing and pressure test and runoff wastewater during rainfall). Inappropriate disposal of may cause soil or groundwater resources contamination.

(iii) Air pollution. Anticipated sources of air pollution from construction activities include: (i) dust generated from earth excavation and filling; (ii) dust generated from disturbed and uncovered construction areas and construction material storage area, especially on windy days; (iii) dust generated by the movement of vehicles and heavy machinery on roads; and (iv) emissions from construction vehicles (gaseous CO and NOx) and heavy diesel machinery and equipment.

(iv) Noise Impacts. A significant increase in localized noise is expected during construction. Noise during pipeline construction will be generated by trench excavators, rollers and other compaction machinery. Noise during waste heat recovery units will be machinery noise generated by construction machinery. Traffic noise is generated during material and equipment transportation.

(v) Solid waste. Solid waste generated during construction phase includes construction waste, and domestic waste. Construction wastes include brick rubble, waste construction materials, waste packing materials, cement block, waste wood, spoil, and other types of waste. Spoils will be reused on site as much as possible. Inappropriate waste storage and disposal could affect soil, groundwater, and surface water resources, and hence, public health and sanitation.

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28. Anticipated impacts during the operational phase include wastewater, noise, solid waste and occupational health and safety issue.


(ii) Wastewater. The primary wastewaters of the proposed project during the operational phase are domestic wastewater from staff and production wastewater from pipeline cleaning and water treatment. All wastewater will be treated in the WWTP in Baotou Steel Company and discharged to municipal sewer.

(iii) Noise. Noise of the proposed project during operational phase will be generated from operation of waste heat recovery units and primary HES including equipment such as pumps.

(iv) Solid waste. Solid waste of the proposed project during operation phase will be domestic waste. The proposed project will not generate any production waste during operation but some waste will be generated during equipment and pipeline maintenance. Domestic waste will be collected and treated by local sanitation department. Production waste will be collected and treated by certificated company.

(v) Worker occupational health and safety issue. Plant operation poses occupational health risks to workers. There are some risks during the operation of the primary HES and waste heat recovery units and maintenance of the heating pipelines such as physical hazards to workers from noise and vibration and chemical hazards to workers by chemicals.


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VI. Subproject 6: Sanmenxia 3rd Hospital Energy Management Project

A. Project description

36. The proposed subproject will install an energy management controller (Smart-WESTARⓇ) in the air conditioning system of Sanmenxia 3rd Hospital, Henan Province. The Smart⁃

WESTARⓇ has software and hardware components. The hardware includes computer servicer,

three data transfer module at heat pumps, a temperature sensor and a pressure sensor at water tank, 20 sets of temperature sensor at different areas of the hospital and cables for data communication. The software includes energy database, consumption data analysis module, domestic load optimization module, consumption forecasting module and efficiency measure option module. Through measuring data of temperature and pressure, the energy management controller could optimize the operation scheme of air condition system (such as flow speed of cooling water, capacity of motors needed) and save electricity of 350 MWh per year which is accounted for 16% of its annual consumption. It is a typical and mature automatic control technology for energy savings. B. Anticipated environmental impacts of the proposed subproject

30. The anticipated environmental impacts for installing Smart-WESTAR Ⓡ as well as

operation phase are summarized below.

31. Anticipated impacts during the installation of Smart-WESTAR Ⓡ include noise and

occupational health and safety. (i) Noise Impacts. Noise during installation phase will be generated during

hardware components installation which will be temporary and localized. (ii) Solid waste. Solid waste generated during installation phase includes waste

during hardware installation such waste material, and domestic waste. (iii) Worker Occupational Health and Safety. Construction may cause physical

hazards to workers from noise and vibration. 32. Anticipated impacts during the operational phase of the proposed project are very limited and minimal. Only domestic wastewater and domestic waste from staff will be generated. No air

pollutants will be generated and noise impacts of operation of Smart⁃WESTARⓇ are very limited.

C. Proposed environmental category 33. Category C for environment is proposed in accordance with the ESMS.

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VII. Subproject 7: Upgrade Desulfurization System for Sinters in Jinxi Steel Plant

A. Project description 34. Jinxi Steel Plant is located in Hebei Province. In 2015, Emission Standards of Air Pollutants for Sintering and Pelletizing of Iron and Steel Industry required all existing iron and steel plants to meet more strict emission requirements (GB28662-2012). Jinxi Steel Company has nine units of desulfurization facility for its five sinters and four pellet machines. Wet calcium process is used currently. The plant needs to remove more pollutants from the flue gas in order to meet the new standards. This proposed subproject will install magnesium oxide wet scrubbing system to upgrade the desulfurization facility of 2×265 m2, 1×195 m2 and 1×90 m2

sinters and remove more sulfur and dust.

35. The magnesium oxide wet scrubbing system for flue gas desulfurization is a mature technology adopted by many industries. Wet scrubbers remove SO2 and other pollutants from gas stream by contacting the flue gas with an aqueous solution or slurry containing a sorbent. Wet oxide scrubbing system has a lower liquid-gas ratio than the wet lime/limestone process which results in low electricity consumption from circulating pumps. The by-product of magnesium sulfate will be transported by trucks to a building material manufacturing site. The concentration of SO2 and PM in the flue gas will be reduced to 35 mg/m3 and 30 mg/m3, respectively from 100 mg/m3 and 50 mg/m3 before the upgrade. B. Anticipated environmental impacts 36. Anticipated impacts during the construction phase of the new desulfurization system include wastewater, air pollution, noise, solid waste, and occupational health and safety.

(i) Erosion and Spoil. Construction activities will be limited in the existing desulfurization system and impacts to surface soil erosion will be limited. Construction activities may generate surplus spoil. Spoils will be reused on site as much as possible.

(ii) Wastewater. The primary wastewaters of the proposed project during the construction phase are domestic wastewater (from construction workers), construction wastewater (from washing construction equipment and vehicles and runoff wastewater during rainfall). There are no surface water bodies at or near the construction sites based on site visit. However, inappropriate disposal of domestic wastewater or construction wastewater may cause soil or groundwater resources contamination.

(iii) Air pollution. Anticipated sources of air pollution from construction activities include: (i) dust generated from existing equipment demolition; (ii) dust generated from disturbed and uncovered construction areas, especially on windy days; (iii) dust generated by the movement of vehicles and heavy machinery on roads; and (iv) emissions from construction vehicles (gaseous CO and NOx) and heavy diesel machinery and equipment.

(iv) Noise Impacts. Noise during construction phase will be machinery noise generated by construction machinery and traffic noise generated during material and equipment transportation. Though noise levels may be high, the impacts will be temporary and localized.

(v) Solid waste. Solid waste generated during construction phase includes construction waste, and domestic waste. Construction wastes include, cement block, waste construction materials, waste packing materials, spoil, and other types of waste. Spoils will be reused on site as much as possible. Inappropriate

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waste storage and disposal could affect soil, groundwater, and surface water resources, and hence, public health and sanitation.


37. Anticipated impacts during the operational phase include air pollution, wastewater, noise, solid waste and occupational health and safety issue.

(i) Wastewater. The primary wastewaters of the proposed subproject during the operational phase are domestic wastewater and production wastewater from desulfurization. Domestic wastewater will be treated in WWTP of Jinxi Steel Plant and discharged to municipal sewer. Desulfurization wastewater will be used to make MgSO4 and discharged to WWTP of Jinxi Steel Plant for treatment.

(ii) Air pollution. The primary air pollution of the proposed subproject is the exhaust gas of the new desulfurization system which includes SO2, NOx, PM, and CO2. The concentration of SO2 and PM in the flue gas will be reduced to 35 mg/m3 and 30 mg/m3, respectively from 100 mg/m3 and 50 mg/m3 before the upgrade.

(iii) Noise Impacts. Noise of the proposed project during operation phase will come from the desulfurization system; noise is typically generated from equipment such as pumps and fans.

(iv) Solid waste. Solid waste of the proposed project during operation phase will be domestic waste and desulfurization waste. Domestic waste will be collected and treated by local sanitation department. Desulfurization waste will be transported by trucks to a building material manufacturing site.


C. Proposed environmental category 38. Category B for environment is proposed in accordance with the ESMS.

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VIII. Subproject 8: Upgrade Desulfurization System of Guojin Coal-fired Power Plant

A. Project description 39. In 2011, the government issued the Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) which imposed more stringent emission requirements on PM, SO2, NOx, and mercury. Most power plants need to upgrade their desulfurization system to meet the new requirements. Guojin Coal-fired Power Plant in Shanxi Province has installed 2×300 MW generators and 2×1050 t/h boilers. Each boiler is installed with a SNCR desulfurization system. The proposed subproject will upgrade the old wet lime/limestone desulfurization system to remove SO2, NOx, dust and mercury of flue gas. The new system will use the original space of the old desulfurization system. 40. The integrated desulfurization process will remove SO2, NOx, dust and mercury of flue gas by using magnesium method and ozone denitrification process into one reactor. Magnesium oxide wet scrubbing system has a lower liquid-gas ratio than the wet lime/limestone process which results in low electricity consumption. The by-product is magnesium sulfate, which will be transported by trucks to a building material manufacturing site. Ozone denitrification process will reduce the NOx concentration in flue gas. The concentration of SO2, NOx, and PM in the flue gas will be reduced to 35 mg/m3, 50 mg/m3 and 5 mg/m3 respectively from 100 mg/m3, 100 mg/m3 and 20 mg/m3 before the upgrade. B. Anticipated environmental impacts

41. Anticipated impacts during the construction phase of the new desulfurization and denitrification system include wastewater, air pollution, noise, solid waste, and occupational health and safety.

(i) Erosion and Spoil. Construction activities will be limited in the existing desulfurization system and impacts to surface soil erosion will be limited. Construction activities may generate surplus spoil. Spoils will be reused on site as much as possible.

(ii) Wastewater. The primary wastewaters of the proposed project during the construction phase are domestic wastewater (from construction workers), construction wastewater (from washing construction equipment and vehicles and runoff wastewater during rainfall). There are no surface water bodies at or near the construction sites based on site visit. However, inappropriate disposal of domestic wastewater or construction wastewater may cause soil or groundwater resources contamination.

(iii) Air pollution. Anticipated sources of air pollution from construction activities include: (i) dust generated from existing equipment demolition; (ii) dust generated from disturbed and uncovered construction areas, especially on windy days; (iii) dust generated by the movement of vehicles and heavy machinery on roads; and (iv) emissions from construction vehicles (gaseous CO and NOx) and heavy diesel machinery and equipment.

(iv) Noise Impacts. Noise during construction phase will be machinery noise generated by construction machinery and traffic noise generated during material and equipment transportation. Though noise levels may be high, the impacts will be temporary and localized.

(v) Solid waste. Solid waste generated during construction phase includes construction waste, and domestic waste. Construction wastes include, cement block, waste construction materials, waste packing materials, spoil, and other

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types of waste. Spoils will be reused on site as much as possible. Inappropriate waste storage and disposal could affect soil, groundwater, and surface water resources, and hence, public health and sanitation.


42. Anticipated impacts during the operational phase include air pollution, wastewater, noise, solid waste and occupational health and safety issue.

(i) Wastewater. The primary wastewaters of the proposed project during the operational phase are domestic wastewater of staff and production wastewater from desulfurization. Domestic wastewater will be treated in WWTP of Jinxi Steel Plant and discharged to municipal sewer. Desulfurization wastewater will be used to make MgSO4 and discharged to WWTP of Jinxi Steel Plant for treatment.

(ii) Air pollution. The primary air pollution of the proposed project is the exhaust gas of the new desulfurization system which includes SO2, NOx, PM, and carbon dioxide (CO2). The concentration of SO2, NOx, and PM in the flue gas will be reduced to 35 mg/m3, 50 mg/m3, and 5 mg/m3 respectively from 100 mg/m3, 100 mg/m3 and 20 mg/m3 before the upgrade.

(iii) Noise Impacts. Noise of the proposed project during operation phase will come from the desulfurization and denitrification system; noise is typically generated from equipment such as pumps and fans.

(iv) Solid waste. Solid waste of the proposed project during operation phase will be domestic waste and desulfurization waste. Domestic waste will be collected and treated by local sanitation department. Desulfurization waste will be transported by trucks to a building material manufacturing site.



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IX. Subproject 9: Heat Pump for Space Heating to Central Lake District, Zhengding, Hebei Province

A. Project description 44. Central Lake District in Zhengding, Hebei Province plans to construct one convention center, one sports center, some hotels, and commercial buildings with a total floor area of 1.4 million m2 around a man-made lake. All buildings will be constructed between 2017 to 2023. The proposed subproject will build an energy station underground for delivering heat to city utility for space heating and cooling. The energy station uses heat pump technology to absorb heat from ground water and waste water

45. The project is divided into three phases. Phase One adopts ground-source heat pump technology to supply heat to 378,145 m2 and cooling to 223,517 m2. The heat is absorbed from shallow underground (soil) by drilling wells under the man-made lake before water was filled. Phase Two also adopts ground-source heat pump technology to supply heat to 329,300 m2 and cooling to 253,100 m2. The heat is absorbed from underground water. Phase Three will absorb heat from wastewater from Zhengding New District WWTP (3 km away in the east) to supply heat to 287,913 m2 and cooling to 112,679 m2. The total heating load is 57,240 kW with 41 W/m2 and 1,451-hour capacity factor (120-day from November 15 to March 15) and cooling load of 72,324kW with 65W/m2 and 863-hour capacity factor (122-day from June 1 to September 30). Phase One will drill 2,591 holes with depth of 120 meter each. Phase Two will drill 51 wells (17 pumping wells and 34 injecting wells). Phase Three will build 6 km pipe to connect the energy station to the waste water treatment plant. B. Anticipated environmental impacts

46. Anticipated impacts during the construction phase include soil erosion, wastewater, air pollution, noise, solid waste, and occupational health and safety.

(i) Erosion and Spoil. Construction activities such as pipeline excavation and burial and well drilling may lead to surface soil erosion. Construction activities may generate surplus spoil. Spoils will be reused on site as much as possible.

(ii) Wastewater. Well drilling may cause groundwater resources contamination without mitigation measures. The primary wastewaters of the proposed project during the construction phase are domestic wastewater (from construction workers), construction wastewater (from washing drilling equipment and vehicles, wastewater generated during pipeline excavation and burial, wastewater generated during drilling and runoff wastewater during rainfall). Inappropriate disposal of domestic wastewater or construction wastewater may cause soil or groundwater resources contamination.

(iii) Air pollution. Anticipated sources of air pollution from construction activities include: (i) dust generated from earth excavation and filling and drilling activities; (ii) dust generated from disturbed and uncovered construction areas, especially on windy days; (iii) dust generated by the movement of vehicles and heavy machinery on roads; and (iv) emissions from construction vehicles (gaseous CO and NOx) and heavy diesel machinery and equipment.

(iv) Noise Impacts. A significant increase in localized noise is expected during construction. Noise during pipeline construction will be generated by trench excavators, rollers and other compaction machinery. Noise during well drilling will be generated by drilling activities. Though noise levels may be high, the impacts will be temporary and localized.

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(v) Solid waste. Solid waste generated during construction phase includes construction waste, and domestic waste. Construction wastes will be generated during drilling activities and excavation and filling which includes spoil and other types of waste. Inappropriate waste storage and disposal could affect soil, groundwater, and surface water resources, and hence, public health and sanitation.

(vi) Worker Occupational Health and Safety. Construction may cause physical hazards to workers from noise and vibration, dust, handling heavy materials and equipment, falling objects and others.

47. Anticipated impacts during the operational phase of heat and cool supply include wastewater, noise, solid waste, and occupational health and safety issue.


(ii) Wastewater. The primary wastewaters of the proposed project during the operational phase are domestic wastewater. No production wastewater will be generated during operation phase but some wastewater will be generated during water treatment. All wastewater will be send to Zhengding New District WWTP for treatment.

(iii) Noise. Noise of the proposed project during operational phase will be generated from heat and cool supply equipment such as pumps and heat pumps.

(iv) Solid waste. Solid waste of the proposed project during operation phase will be domestic waste. The proposed project will not discharge any production waste during operation but some waste will be generated during equipment maintenance. Domestic waste will be collected and treated by local sanitation department. Equipment maintenance waste will be collected and treated by certificated company.

(v) Worker occupational health and safety issue. Plant operation poses occupational health risks to workers. There are some risks during the operation phase such as physical hazards to workers from noise and vibration and chemical hazards to workers by chemicals.


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X. Subproject 10: Green Leasing in BTH region

A. Project description 49. Beijing Guozi Financial Leasing Co. Ltd (hereinafter referred to as Guozi) is established in April 2014 with CNY900 million registered capital. It takes energy efficiency and environmental protection as one of the focal businesses. As of July 2016, about CNY1.6 billion leasing capital were invested in 39 energy efficiency and environmental protection projects covered various fields such as district heating supply, waste to energy, clean and renewable energy, green transport, energy efficiency improvement in industries and buildings. Most of these projects are located in the BTH region. District heating supply and power plant efficiency improvement are two types of project that Guozi involved which accounted for 13% and 14% of total leasing capital respectively. 50. One case is selected to describe what technologies Guozi green leasing program has adopted in the past. The case is reducing coal consumption of power generation through upgrading the flow passage of steam turbine. 71. There are many coal-fired 300 MW sub-critical power plants operated in the PRC. Due to defects in design, manufacture, installation, operation and maintenance, the energy efficiency of these generators are lower than the benchmark efficiency. Guozi provided leasing capital to an ESCO called “Guangzhou Zhiguang” to modify the flow passage of a steam turbine and improve turbine performance and reliability at Guangzhou Zhujiang Power Plant. The following technologies were used for the project:

(i) Re-design of the blade with better aerodynamic efficiency to minimize losses; (ii) Devices with better steam leakage control to minimize leakage between stages

and cylinders; (iii) Use of new nozzles to prevent corrosion; and (iv) Improved design of high pressure diaphragms to reduce leakage.

51. After the retrofitting, the coal consumption for electricity supply reduced 10 ton of coal equivalent per kilowatt-hour and therefore saved 15,000 tons of coal equivalent per year. B. Anticipated environmental impacts of the proposed subproject

52. Because it is a Green Leasing project, anticipated environmental impacts of this subproject is not involved in this report. C. Proposed environmental category 53. Based on the requirements of ESMS, environment categorization of the green leasing subproject is not required, a sub-ESMS should be established in the financial leasing company.

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XI. Subproject 11: Beijing Qingke Smart E-bike R&D project

A. Project description 54. Beijing Tsinova Technology Co., Ltd. (hereinafter referred to Tsinova) was established in 2014. It received CNY4 million of venture capital in February 2015. As a high-tech company focusing on leading technologies and original designs, TSINOVA has released four smart pedelecs tailored for urban mobility so far. It could replace cars on the road and reduce traffic in the city. The Tsinova Smart E-bike is equipped with the world-leading VeloUP!TM smart drive system and a vehicle-level chip and control technologies to accurately regulate power output based on an intelligent understanding of road conditions and rider’s intentions in a real time manner. This system is made up of five parts: vehicle control unit (VCU), sensors, battery and Battery Management System (BMS), motor, and controller area network (CAN) 55. The smart drive system is the core technology of the smart E-bike. The aim of this technology is to better identify road conditions during ride as well as the intention of riding under dynamic road conditions so as to adjust corresponding power output. TSINOVA will continue research and development of VeloUP!TM smart drive system. B. Anticipated environmental impacts of the proposed subproject 56. Because this is a research and development (R&D) project, the proposed project will not have a construction phase. Anticipated impacts of the proposed project which include wastewater, noise, solid waste, and occupational health and safety are very limited and summarized below.

(i) Wastewater. The primary wastewater of the proposed project is domestic wastewater and R&D wastewater from equipment cleaning. All wastewater will be discharged to municipal sewer for treatment

(ii) Noise Impacts. Noise of the proposed project is mainly from drive of E-bike and is very limited.

(iii) Solid waste. Solid waste of the proposed project includes R&D waste and domestic waste. Domestic waste will be collected and treated by local sanitation department. R&D waste except waste battery will be collected and treated by certificated company. Waste battery will be collected and treated by battery manufactures.

(iv) Worker Occupational Health and Safety. R&D activities poses limited occupational health risks to workers such as physical hazards to workers from E-bike and potential chemical hazards to workers by waste battery.


Appendix 1 21

Appendix I: Environment Due Diligence Report for Xingtai Biomass Power Generation Subproject

A. Company information 1. Kaidi Ecological and Environmental Technology Co., Ltd. was established in 1993 in Wuhan, Hubei Province. It is a publicly traded company listed in Shenzhen Stock Exchange. It focuses on green, low carbon, and environmental protection areas and its core businesses include biomass power generation, environmental-friendly power generation, shale gas, EPC (engineering, procurement, and construction) and coal. By the end 2015, it has a total asset of more than CNY30 billion and net asset more than CNY7 billion. In the first quarter of 2016, its business turnover was CNY878 million and the profit was CNY92 million. 2. The company has more than 180 subsidiaries with more than 5,000 employees. It has 39 biomass power generation facilities in operation with a total capacity of more than 1,000 megawatt (MW). B. Project description 3. The proposed subproject consists of a biomass power generation plant, a primary biomass fuel storage site, and 50 secondary biomass fuel processing and storage sites. The construction of the power plant and storage facility are almost completed (see Figure 1). 4. The biomass power generation facility has a 120 tons/hour high-temperature and high-pressure circulated fluidized boiler (CFB) with a 30 MW Siemens maintenance-free extraction condensing turbine. Mixed biomass and wood chips will be used as the fuel of the power plant. High efficient pumps and blowers with variable frequency drive are used to improve energy efficiency. Pulsed jet bag-filter will be used to control particulate matter emissions. Selective non-catalytic reduction (SNCR) will be used to control NOx emissions and it has an efficiency of 45%. C. Project Location 5. Location of the proposed project is shown in Figure 2 below. Based on the domestic environment impact assessment (EIA), the nearest sensitive receptor is Changyan Zhuang, which is 50 meters (m) away in the east, and Yanjia Tun, which is 60 m away in the south. D. Site visit note on construction site 6. Environmental Due Diligence. Since the construction of the subproject is almost completed and thus it is considered as an “Existing Facilities” under the Asian Development Bank (ADB) Safeguard Policy Statement (SPS) 2009. An environmental compliance audit shall be conducted prior to the approval of the subproject for ADB financing. A preliminary environmental impact assessment was conducted during a site visit in September 2016 and the preliminary findings are presented below. 7. Initial review on environmental safeguards. On 1 September 2016, the ADB consulting team1 and Appraisal Center for Environmental and Engineering (ACEE), which is

1 The ADB consulting team consisted of technical as well as environmental specialists. Dai Lei, PPTA national

environment specialist, is a member of the team.

22 Appendix 1

supporting the executing agency for implementing the environmental aspects of the environmental and social management system (ESMS), conducted an initial visit of the biomass power generation plant.

Figure 1: Biomass Power Plant Under Construction

Appendix 1 23

Figure 2: Project location Map

Source: PPTA consultant.

8. Personal protection equipment during the site visit. Prior to the plant site visit, no health and safety orientation was provided but a safety hat was provided to each visitor. 9. Construction site. Based on the site visit, the team found that some mitigation measures in the domestic EIA are not implemented, including: (i) no fence for construction site (Figure 3); (ii) no water spray for construction site to control dust and the construction site was dusty; (iii) no rubble road is built at the outlet of construction site to reduce the soil taken by tires of vehicles; and (iv) poor management of soil backfill (Figure 4). In addition, no environmental monitoring is conducted even though environmental monitoring requirements are clearly identified in domestic EIA.

24 Appendix 1

Figure 3: No fence for construction site

Figure 4: Inadequate and dust backfill management

10. Biomass storage facility. The primary biomass fuel storage facility is located inside the biomass power plant. Based on the site visit, the team found that the construction of the primary biomass fuel storage facility was completed and is being used already. Biomass materials collected from the field are stored in the facility. There are two biomass materials piles on-site: cotton straw pile, and waste wood pile.

Appendix 1 25

Figure 5: Biomass fuel storage facility

11. Firefighting equipment and facilities were installed in the storage plant (Figure 6).

Figure 6: Firefighting equipment

26 Appendix 1

E. Domestic approval status for the proposed subproject 12. The full domestic EIA report is required according to the People’s Republic of China (PRC) laws and regulations. The EIA report covered (i) one biomass power generation plant; and (ii) one biomass fuel storage facility located inside the power plant. The domestic EIA report was approved by Hebei Provincial Environmental Protection Department on 24 January 2013. The biomass power plant is expected to be in trial operation in November 2016. Environmental acceptance tests are required once the power plant is close to its design capacity and before commercial operation. F. Land acquisition 13. Land permit (approved on 14 March 2014) was provided by the project owner to the team. Land acquisition specialist conducted relevant due diligence work and confirmed that the land was acquired in 2013, 3 years before the construction was started. So the subproject is category C for social impact. 14. There is a power substation (Figure 7) inside the facility and power transmission lines connecting the substation to the main power grid has also been constructed. These components are built, secured and operated by China’s State Grid and land acquisition was done by the State Grid.

Figure 7: Secured power transformation station

Appendix 1 27

G. Quick review on domestic EIA—Anticipated environmental impacts and mitigation measures for the proposed subproject

15. Since the construction work is almost completed for the biomass power plant, the following describes only the anticipated environmental impacts and mitigation measures during the operation phase, which are based on the domestic EIA. These impacts include wastewater, air pollution, noise, solid waste, and occupational health and safety issue.

1. Air pollution 16. The primary air emissions from the exhaust gas of the power generation units are sulfur dioxide (SO2), NOx, particulate matter (PM), carbon monoxide (CO) and carbon dioxide (CO2). Besides, the plant will have one limestone storage room, one bottom slag storage room, and one ash storage room which will result in dust pollution without mitigation measures. Recommended mitigation measures are as follows:

(i) The boiler will be installed with low-NOx burner technology; (ii) The boiler will use furnace limestone injection desulfurization to reduce SO2

concentration in exhaust gas; (iii) Exhaust gas will be treated with selective non-catalytic reduction denitrification

technology to remove NOx; (iv) Exhaust gas will be filtered using bag filters to remove PM; (v) Exhaust gas will be discharged through one 80 meters high stack with online

continuous emission monitoring systems to monitor NOx, SO2, and PM concentration; and

(vi) Bag filter and gas collection hood will be installed at the top of limestone storage room, bottom slag storage room and ash storage room. Treated exhaust gas will be discharged through two 25 meters high stacks.

2. Wastewater

17. The domestic water of the plant is from municipal water and the production water is reclaimed water from Pingxiang Lijie Wastewater Treatment Plant (WWTP). The plant will have a water treatment system for reclaimed water treatment with a process of ultra-filtration, two levels reverse osmosis and electrodeionization. The primary wastewaters of the proposed subproject during the operational phase are domestic wastewater and production wastewater from boiler, circulating cooling water and water treatment system. Recommended mitigation measures are as follows:

(i) Wastewater from the canteen will be treated in an oil separator. Domestic wastewater of the plant will be treated in a septic tank. Treated canteen wastewater and domestic wastewater will be sent to Pingxiang Lijie WWTP for treatment;

(ii) Production wastewater is from the boiler; circulating cooling water and chemical water treatment system will be recycled and used in coke quenching process;

(iii) Condensate water and cooling water of the boiler system will be used as circulating cooling water;

(iv) Wastewater from circulating cooling water and boiler water treatment system will be treated and stored in reused water tank and used as road spray water, greening water and ash and slag spray water;

(v) Boiler blow down water will be used as ash and slag spray water to control dust; and

28 Appendix 1

(vi) Seepage-proofing measure will be implemented to prevent ground water pollution.

3. Noise

18. Noise of the proposed subproject during operation phase will come from the combustion of biomass fuel and power generation system; noise is typically generated from equipment such as pumps, fans and turbine. Recommended mitigation measures are as follows:

(i) Low-noise equipment will be used at the power plant; (ii) Equipment such as fans will be equipped with silencers. Equipment will be

installed with acoustic shield or place inside plant buildings with shock absorption;

(iii) Cool tower will be located at northwest corner of the power plant with higher walls to be away from nearby sensitive receptors; and

(iv) Trees will be planted near the site boundaries to reduce noise.

4. Solid waste 19. Solid waste of the proposed project during operation phase will be domestic waste, ash, slag and fugitive dust, desulfurization waste and sludge generated during reclaimed water treatment. Recommended mitigation measures are as follows:

(i) Domestic waste of the plant will be collected by local sanitation department, then transported and treated in Pingxiang County Landfill;

(ii) Sludge generated during reclaimed water treatment will be transported and treated in Pingxiang County Landfill; and

(iii) Desulfurization waste, ash, slag and dust will be sold to local certificated company as raw materials.

5. Worker occupational health and safety issue

20. Plant operation poses occupational health risks to workers. Accidental release of chemicals and hazardous materials may present health and safety risks to workers. Biomass materials also present fire and burn hazards. Noise exposure to some workers is also a health risk. Mitigation measures for worker occupational heat and safety are not included in domestic EIA. Recommended mitigation measures are suggested as summarized as follows:

(i) During the operational phase, an environment, health and safety plans/procedures shall be developed and implemented, and adequate training shall be provided to workers;

(ii) PPE, including ear plugs, hard hats, goggles, gloves, safety shoes, will be provided to workers;

(iii) No unauthorized personnel should be allowed into the boiler room, steam engines, and power generation units;

(iv) Fire-fighting equipment shall be kept in working condition at all time; and (v) An emergency risk and response plan will be established and drilled

periodically.