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Approval of the Environmental Impact Report for Ningxia Coal Company’s 700,000 tons/year coal-to-olefins new material demonstration project) Author/Source: Ministry of Ecology and Environment of the People’s Republic of China Date: 2020-03-27 Clicks: 76 Approval regarding the Environmental Impact Report for the 700,000 tons/year coal-to-olefins new material demonstration project jointly developed by Shenhua Ningxia Coal Company and Saudi Basic Industries Corporation (Ningxia Coal Company’s 700,000 tons/year coal-to-olefins new material demonstration project) **Ningxia Coal Industry Co., Ltd., Energy Group: We have received your company’s application letter requesting approval for the Environmental Impact Report of the 700,000 tons/year coal-to-olefins new material demonstration project jointly developed by Shenhua Ningxia Coal Company and Saudi Basic Industries Corporation (Ningxia Coal Company’s 700,000 tons/year coal-to-olefins new material demonstration project) (Document No. Ningxia Coal [2019] 30). After examination, the approval is as follows: 1. The project is located in the Ningdong Energy and Chemical Industry Base in the Ningxia Hui Autonomous Region; it uses local coal resources as raw material and employs processes such as pressurized coal gasification, purification, methanol synthesis, and methanol-to-olefins conversion to produce 700,000 tons per year of polyolefin products. The main components of the project include units for coal gasification under pressure, shift reaction, low-temperature methanol washing, sulfur recovery, methanol synthesis, methanol to olefins (MTO), polyethylene production, polypropylene production, and air separation. Auxiliary engineering mainly includes coal-fired boilers, tank areas, coal silos, circulating water systems, flare systems, etc. Environmental protection engineering mainly includes sewage treatment systems, reclaimed water systems, evaporation crystallization units, waste gas treatment devices, oil and gas recovery systems, etc. The main products include 350,000 tons/year of polyethylene and 420,000 tons/year of polypropylene; the main by-products include sulfur, etc. The project construction meets the overall requirements of the \"Environmental Access Requirements for Modern Coal Chemical Industry Projects (Trial)\". The project is located in the upper and middle reaches of the Yellow River, at the border between Ningxia and Inner Mongolia. The Ningdong Energy and Chemical Industry Base is a water-scarce area where coal resources are intensively exploited and transformed; as a result, there is significant pressure to prevent cross-border air pollution and to improve the regional environmental quality. It is necessary to strictly implement various pollution control measures and environmental risk prevention strategies, establish strict environmental management systems and monitoring plans, and set up timely and effective emergency response and coordination mechanisms. After comprehensive consideration, our department agrees in principle to the nature, scale, process, location of the construction project, as well as the environmental protection measures outlined in your company’s environmental impact report. II. The following tasks should be given priority in project construction and operation management: (1) Implement the relevant requirements for ecological protection and high-quality development in the Yellow River Basin, adopt the concepts of ecological protection and environmental quality improvement. During design, construction, and operation, in line with the goals of \"environmental protection first\" and \"green development\", as well as the principles of circular economy and clean production, it is necessary to further optimize process routes and design schemes, use high-quality equipment and raw materials, and strengthen energy-saving, consumption-reducing, and water-saving measures in various facilities in order to reduce the generation and emission of pollutants at the source. (II) Strictly implement various measures for air pollution prevention and control. Depending on the properties of the pollutants in various process exhaust gases, treatment methods such as washing, incineration, filtration, and recycling are employed. The processing capacity and efficiency of these treatment facilities must be sufficient to ensure that emissions of various air pollutants comply with ** and relevant local standards. Dusty exhaust gases from coal bunkers, transfer stations, ash and slag storage areas, etc., are treated using the bag filter dust removal process. After meeting the secondary standards stipulated in the “Integrated Emission Standard for Air Pollutants” (GB16297-1996), they are discharged. The waste gas from coal drying in the gasification unit is treated using the \"low-nitrogen combustion + bag filter\" process; after meeting the special emission limits specified in the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015), it is released into the atmosphere. In accordance with the requirements of the \"Environmental Access Conditions for Modern Coal Chemical Industry Projects (Trial)\\", we generally approve your company’s proposal to adopt \"ultra-low emission\" standards for the waste gas generated during coal drying as part of the environmental protection demonstration efforts for this project. The waste gas from low-temperature methanol washing is treated using a \"water washing + adsorption\" process; after meeting the emission limits specified in the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015) as well as the secondary standards set out in the \"Emission Standards for Odorous Pollutants\" (GB14554-93), it is released into the atmosphere. The exhaust gas from the crude methanol storage tank in the methanol synthesis unit, as well as the regeneration waste gas from the MTO unit, are treated to meet the special emission limits specified in the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015) before being released. The sulfur recovery unit employs a process of \"hydrogen reduction + selective oxidation + flue gas combustion + alkaline washing\"; the flue gas is discharged into the atmosphere after meeting the special emission limits specified in the \"Emission Standards for Pollutants in Petroleum Refining Industry\" (GB31570-2015) as well as the secondary standards set out in the \"Emission Standards for Odorous Pollutants\". The exhaust gases from the ethylene-vinyl acetate (EVA) plants, polypropylene plants, and polyethylene plants are treated through dust removal and combustion in RTO furnaces; the resulting exhaust gases are discharged after meeting the requirements of the \"Emission Standards for Pollutants in the Synthetic Resin Industry\" (GB31572-2015). The flue gas from the boilers in the heating station is treated using a process that combines low-nitrogen combustion and selective catalytic reduction for nitrogen oxide removal, dual-chamber six-electrode field electrostatic dust removal, ultrasonic atomization dust removal, and ammonia-based desulfurization. This ensures that the emissions meet the limits specified in the \"Emission Standards for Air Pollutants from Thermal Power Plants\" (GB13223-2011) before being released into the atmosphere. Strengthen control measures for volatile organic compounds (VOCs), malodors, and toxic and harmful gases to effectively curb unorganized emissions. Establish a leakage detection and repair system to regularly inspect the static and dynamic sealing points of equipment and facilities. Methanol is stored in internal floating roof tanks, and oil and gas recovery facilities are installed in the tank area and loading/unloading systems. The sewage treatment plant is equipped with sealing covers, and malodorous gases are treated using a process of \"biological deodorization + activated carbon adsorption\". The exhaust gases are discharged only after meeting the relevant standards specified in the \"Emission Standards for Malodorous Pollutants\" (GB14554-93) and the \"Emission Standards for Pollutants in the Petrochemical Industry\" (GB31571-2015). Earnestly implement control measures for exhaust gas pollution, such as those for coal storage silos. Under normal operating conditions, the total annual emissions of sulfur dioxide, nitrogen oxides, VOCs, and smoke and dust from the facility shall not exceed 144.96 tons/year, 478.81 tons/year, 552.04 tons/year, and 130.08 tons/year, respectively. Explore the implementation of carbon dioxide emission control or comprehensive utilization measures to minimize the project’s carbon dioxide emissions. (III) Strictly implement various water pollution prevention and control measures. The water supply and drainage system is constructed in accordance with the principles of separating rainwater from sewage, separating clean water from polluted water, treating water according to its quality, and reusing water. Further optimize water usage plans, increase the rate of water reuse, and reduce the consumption of fresh water and the volume of wastewater generated. Further optimize the wastewater treatment and reuse solutions to ensure that production wastewater is treated and reused in a manner appropriate to its specific characteristics under normal operating conditions. Construct a wastewater holding system with sufficient capacity to ensure that wastewater does not enter the external environment under abnormal operating conditions. Wastewater from the gasification process, low-temperature condensate from the shift unit, wastewater from the methanol-water separation tower in the low-temperature methanol washing unit, stripping wastewater from the methanol-to-olefins unit, and pelletizing wastewater from the polyolefins unit, along with domestic sewage, are sent to the wastewater treatment plant for comprehensive biochemical treatment. This treatment system utilizes a process that includes a homogenization tank + A/O system + secondary sedimentation tank + high-efficiency sedimentation tank + V-type filter + ozone contact reaction + BAF. Wastewater from the circulation system, brine from the desalination and condensate purification units, boiler wastewater from the power station, and saline wastewater from the domestic water treatment system are sent to the plant’s saline wastewater treatment unit, where they are treated through a process that involves homogenization + high-density clarifier + V-type filter + multi-stage resin beds + ultrafiltration + reverse osmosis + continuous activated carbon adsorption/regeneration; most of this treated water is then reused ； The concentrated water undergoes a series of crystallization processes via the \"nanofiltration + six-effect falling-film evaporation unit + MVR evaporation-crystallization unit + vacuum drum unit\" process, to produce sodium chloride and sodium sulfate that meet relevant product standards; these are sold as by-products. (IV) Strengthen various environmental risk prevention measures to effectively avert environmental risks. Strengthen the management of storage, transportation, and use of chemical materials and hazardous substances. Install automatic monitoring, alarm, emergency shutoff, and emergency shutdown systems in accordance with relevant standards, as well as monitoring and alarm systems for flammable and toxic gases and online analysis systems. Additionally, implement accident response systems for fire, explosion, and poisoning incidents. In the event of an accident, the process exhaust gases from various units are sent to the flare system for treatment. The setup includes an accident water pollution control system that encompasses cofferdams in the plant area and fire dikes in the tank area, as well as initial rainwater collection tanks in the plant area and accident water collection tanks for the entire facility, to ensure effective containment of untreated wastewater and accident water. Optimize the collection and conveyance routes for accident-related wastewater; strictly manage the construction of stormwater and sewage pipelines; implement separate systems for stormwater and sewage to prevent accident-related wastewater from contaminating the stormwater system. Facilities for controlling water pollution caused by accidents and facilities for temporarily storing wastewater should be designed and constructed separately, and shall not be used interchangeably in non-accident situations. In emergencies, rely on the park’s accident water tank. The collected accident water is sent to the wastewater treatment plant for proper disposal. Your company should take effective measures to ensure that accident wastewater does not enter the Yellow River in the event of any accidents. Improve the emergency response plans for sudden environmental incidents, the special emergency response plans for groundwater pollution incidents, and the special emergency response plans for hazardous substance leaks, and refine the emergency evacuation plans. In accordance with the principles of “classified management, tiered response, and regional coordination”, an emergency coordination mechanism has been established between the project and the Ningdong Energy and Chemical Industry Base, local people’s governments, and relevant departments. Regular emergency drills for sudden environmental incidents are conducted to effectively prevent and control environmental risks. (5) Effectively implement measures to prevent and control pollution of groundwater and soil. Groundwater pollution prevention and control is carried out in accordance with the principles of \"source control, zonal prevention and control, pollution monitoring, and emergency response\". In strict accordance with the requirements of the \"Technical Specifications for Seepage Control in Petrochemical Projects\" (GB/T50934-2013), seepage control measures are implemented in designated areas for pollution control, such as key pollution control zones and general pollution control zones, to further strengthen the seepage control requirements for sewage and accident water collection tanks (channels). Strengthen the daily maintenance of the leakage prevention facilities; any damaged ones should be repaired and reinforced promptly to ensure their stability and safety. Strengthen the detection of leaks in concealed works; once a leak is detected, immediate remedial actions should be taken to prevent contamination of groundwater and soil. Establish a sound monitoring system for groundwater and soil. Based on the layout of key pollution prevention and control areas, groundwater flow directions, and environmental protection objectives, groundwater and soil monitoring points should be appropriately established, and the groundwater and soil monitoring plan must be strictly implemented. Once groundwater pollution occurs, immediate emergency measures should be taken to minimize the adverse environmental impact on water bodies and soil. (6) Improve the level of operational management, intensify personnel training, and strengthen environmental protection efforts under abnormal operating conditions. Formulate comprehensive inspection, maintenance, and operation procedures from an environmental protection perspective; further optimize process routes and design schemes; take necessary coal blending measures to ensure stable quality of coal used in the project; reduce the frequency of abnormal operating conditions such as startups and shutdowns as well as pollutant emissions; strengthen the design and operational management of the flare system; and strictly prohibit the emission of pollutants beyond specified limits under abnormal operating conditions for extended periods. During abnormal operating conditions such as startup, shutdown, inspection, and maintenance of the production units, the waste gas is sent to the flare system for treatment. Enhanced operation management of the sulfur recovery unit is implemented to prevent equipment failures from resulting in large amounts of acidic gas being sent to the flares for combustion. Strengthen the management and monitoring of the low-temperature methanol washing exhaust gas from purification units as well as the ammonia-based desulfurization units, in order to effectively control hydrogen sulfide emissions and ammonia leakage. The wastewater treatment system should be commissioned prior to the startup of the main production equipment. Under abnormal operating conditions, wastewater should be temporarily stored in wastewater holding tanks of sufficient capacity, depending on its quality; the wastewater in these tanks is then sent back to the wastewater treatment plant for processing. Further optimize the design of the temporary storage pool system by installing high liquid level alarm devices and plant-wide shutdown interlock devices to prevent operation at high liquid levels. Establish a sound management and scheduling system for the water system to achieve refined management thereof. When necessary, measures such as reducing the production load on main process equipment or shutting it down shall be taken to ensure that no wastewater is discharged. (7) Strictly implement measures to prevent and control solid waste pollution. In accordance with relevant national and local regulations, and following the principles of \"reduction, resource utilization, and harm reduction,\" solid waste is collected, processed, and disposed of in a classified manner to ensure that no secondary pollution occurs. Recyclable waste catalysts and the like are recovered by the manufacturers, while the biochemical sludge from wastewater treatment plants and the waste alkaline solutions from processing units are utilized in the existing projects of your company. Crystallized mixed salts and similar materials are sent to the hazardous waste disposal facilities within the industrial park for safe disposal; the landfills used for this purpose must meet the requirements set out in the \"Standards for Pollution Control of Hazardous Waste Landfills\" (GB18598-2019). General solid wastes such as gasification ash, boiler ash, etc. should be given priority for comprehensive utilization; those that cannot be utilized in this way are sent to the industrial park’s landfill for disposal. The project shall not be put into operation until the waste dump and hazardous waste disposal facilities in the park on which it relies are completed. (8) Implement sound pollution protection measures. Priority should be given to the use of low-noise equipment, and noise reduction measures such as sound insulation, vibration damping, and noise cancellation should be employed to ensure that the noise level at the factory boundary meets the corresponding standard limits specified in the \"Emission Standards for Environmental Noise at the Boundaries of Industrial Enterprises\" (GB12348-2008). (9) Strictly implement various monitoring plans for pollution sources and the ecological environment during both the construction and operation phases. In accordance with relevant standards and regulations, improve the environmental monitoring plan. Establish a registry system for pollution sources, carry out long-term monitoring, retain original monitoring records, and regularly disclose the results of pollutant emission monitoring to the public. Install an online continuous monitoring system for pollutant emissions as required, and connect it to the environmental protection authorities. If pollutant emissions exceed the allowed levels, the cause must be identified immediately and measures taken. (10) Establish an environmental management team suited to the project’s environmental protection efforts, improve various corporate environmental management systems, and strengthen environmental management. During the project construction and operation phases, the company proactively releases information on environmental protection efforts and willingly accepts societal oversight. Establish smooth channels for public participation, strengthen publicity and communication efforts, promptly address environmental issues raised by the public, and meet their legitimate demands for environmental protection. (11) Project construction must strictly implement the \"three simultaneities\" system, which requires that environmental protection facilities be designed, constructed, and put into use simultaneously with the main project. The construction tender documents and construction contract should specify environmental protection clauses and responsibilities, and earnestly implement environmental protection measures during the construction period. Conduct the environmental protection acceptance upon completion in accordance with the prescribed procedures. After the environmental impact report has been approved, if there are significant changes to the nature, scale, location, production process, or environmental protection measures of the project that may lead to a substantial change in its environmental impact (particularly an increase in adverse environmental effects), the environmental impact report for the project must be resubmitted for approval. (12) Before any actual discharge of pollutants occurs in the project, all environmental protection measures shall be carefully outlined and implemented in accordance with the approved environmental impact assessment documents. The list of pollutant discharges and other relevant information shall be included in the pollution discharge permit, thereby ensuring a seamless connection between the environmental impact assessment and the application for the pollution discharge permit; discharges shall be carried out in compliance with the provisions of this permit. In accordance with the “Administrative Measures for Post-Evaluation of Environmental Impacts of Construction Projects (Trial)”, a post-evaluation of environmental impacts shall be conducted within 3 to 5 years after the project becomes operational. The implementation status of the pollution discharge permit should serve as an important basis for this post-evaluation. III. Your company shall assist the people’s governments at all local levels and relevant departments in carrying out the following tasks: (1) Work together with the relevant departments of the Ningxia Hui Autonomous Region’s people’s government and the Ningdong Energy and Chemical Industry Base Management Committee to strengthen communication with the people’s governments of Inner Mongolia Autonomous Region, Ordos City, Ejin Horo Banner, as well as relevant departments, and with the Shanghaimiao Economic Development Zone Management Committee. This will help to further implement the provisions outlined in the ‘Memorandum of the Symposium on Strengthening Environmental Protection between Ningxia and Inner Mongolia’, and to improve mechanisms for joint pollution control and emergency response to environmental risks. (II) In cooperation with the People’s Government of the Ningxia Hui Autonomous Region and relevant departments, as well as the Ningdong Energy and Chemical Industry Base Management Committee, and in accordance with the requirements set out in the “Letter from the General Office of the Autonomous Region’s People’s Government Approving the Plan for Reducing Pollutants to Improve the Atmospheric Environment Quality in the Area of the 700,000-ton/year Coal-to-Olefins New Material Demonstration Project” (Ningzhengban Han [2019] No. 44), the “Letter Approving the Plan for Reducing Pollutants to Improve the Atmospheric Environment Quality in the Area of the 700,000-ton/year Coal-to-Olefins New Material Demonstration Project” (Ningdong Guan Han [2020] No. 16), and the “Letter on Confirming the Total Emission Limits for Key Pollutants from the Shenhua-SABIC Joint Venture’s 700,000-ton/year Coal-to-Olefins New Material Demonstration Project” (Ninghuan Han [2019] No. 657), it is necessary to complete on schedule various projects aimed at reducing emissions, including the ultra-low emission upgrades for the power boilers currently in use by your company’s Olefins Division, improvements to dust removal systems in the coal grinding process, upgrades to the wastewater treatment facilities to address uncontrolled emissions, and improvements to the exhaust gas treatment systems for low-temperature methanol washing units. Additionally, upgrades are required for the power boilers in use by your company’s Methanol Division, as well as for the wastewater treatment facilities and exhaust gas treatment systems for low-temperature methanol washing and methanol synthesis units. Moreover, the shutdown of the Lingzhou Power Plant operated by Ningxia Ninglu Coal and Electricity Co., Ltd. is also part of these efforts. These measures are intended to ensure that the reductions in sulfur dioxide, nitrogen oxides, particulate matter, and VOCs resulting from these projects are at least 386 tons per year, 968 tons per year, 260 tons per year, and 1,104 tons per year, respectively. The requirements for renovation measures of the replaced enterprise shall be included in the discharge permit. Before the commissioning of this project, it is necessary to ensure that the aforementioned projects for reducing atmospheric pollutant emissions are properly implemented, and that the pollution discharge permits of the enterprises being replaced have been amended or revoked. (III) In cooperation with the Ningdong Energy and Chemical Industry Base Management Committee, accelerate the development of the park’s environmental infrastructure, including rigid landfills for hazardous waste, as well as measures to prevent environmental risks, to ensure that the environmental protection facilities supporting this project meet the required standards. Strengthen the management and routine maintenance of the accident water control system in the park; under normal conditions, wastewater must not be discharged into the park’s accident water tanks. It is strictly prohibited to use these tanks as storage areas or temporary holding sites for wastewater. The accident tank in the park is equipped with a return pump to promptly send wastewater back to the sewage treatment facility for processing; wastewater must not be discharged into the external environment through the accident tank. (4) Cooperate with the Management Committee of the Ningdong Energy and Chemical Industry Base to ensure proper planning and control. Maintain a sufficient buffer distance between residential and industrial land; no environmentally sensitive buildings such as residential, educational, or medical facilities shall be planned or constructed within the project’s protection zone. (5) In cooperation with the Ningdong Energy and Chemical Industry Base Management Committee, establish an environmental monitoring system for the industrial park that includes both major pollutants and characteristic pollutants, and carry out long-term monitoring of environmental air, groundwater, etc., during both the project construction phase and the operation phase. Once any issues with ecological and environmental quality are detected, effective countermeasures should be taken promptly. IV. Your company must earnestly implement various environmental protection measures and environmental risk prevention measures. At the same time, it works together with local ** authorities and relevant departments to implement various measures for reducing and replacing regional pollutants, and to advance efforts such as the construction of environmental protection facilities and the development of emergency response capabilities for environmental risks. The project must not be put into operation until the aforementioned work is completed. V. Tasks such as the reduction and substitution of regional pollutants, for which local people’s governments at all levels bear primary responsibility, shall be incorporated into the supervision and management of ecological and environmental protection. VI. Our department has entrusted the Northwest Inspection Bureau and the Department of Ecology and Environment of the Ningxia Hui Autonomous Region to carry out supervision, inspection, and management related to the \"three simultaneities\" principle for this project. VII. Your company shall, within 20 working days after receiving this approval, send the approved environmental impact assessment report to the Northwest Inspection Bureau of our department, the Department of Ecology and Environment of the Ningxia Hui Autonomous Region, and the Environmental Protection Bureau of the Ningdong Energy and Chemical Industry Base Management Committee, and shall subject itself to regular supervision and inspection by the competent ecology and environment authorities at all levels as required. Ministry of Ecology and Environment March 17, 2020