QENOS PTY LTD Annual Report on Manufacturing Operations at Qenos Olefins, Plastics, Resins and Elastomers Sites to Altona Complex Neighbourhood Consultative Group April 2004 CONTENTS CONTENTS 1 SUMMARY 2 INTRODUCTION 3 SAFETY HEALTH and ENVIRONMENT (SH&E) POLICY & CHARTER 4 2003 AUDIT PROGRAM 6 SH&E MANAGEMENT SYSTEM 7 COMMUNITY COMPLAINTS 7 ENVIRONMENTAL INCIDENTS 8 EPA WASTE DISCHARGE LICENCES 9 CITY WEST WATER TRADE WASTE AGREEMENT 12 PRESSURE SAFETY VALVE ISSUES 13 NOISE ABATEMENT 14 WASTE REDUCTION PERFORMANCE MEASURES 15 SOLID & EPA PRESCRIBED WASTES 17 ENERGY EFFICIENCY & GREENHOUSE GASES 18 GROUNDWATER MANAGEMENT PLAN 19 ENVIRONMENT IMPROVEMENT PLAN (EIP) 20 COMMUNITY RIGHT TO KNOW & COMMUNITY INTERFACES 21 PERSONAL SAFETY PERFORMANCE 22 HEALTH INITIATIVES 23 MAJOR HAZARD FACILITIES (MHF) REGULATIONS 24 SH&E INCIDENT SUMMARY 27 Annual Report to ACNCG, 2004 Page 1 QENOS PTY LTD SUMMARY In 2003, production at Qenos was again steady following the return to normal rates the previous year. Highlights of performance this year are: • achieving environmental accreditation of the Resins site and re-accreditation of the other three sites; • the Elastomers plant passed 3 years without a community complaint or a Trade Waste noncompliance; • the Plastics site recorded 3 years without a reportable incident; • reduction in emissions of the Class 3 indicator, butadiene, by 30% • connection of the Spent Caustic Carbonation system tail gas to the boilers to avoid generation of highly odorous spent catalyst, and the removal of the spent catalyst from one of the two reactor beds • completion of 16 noise reduction projects at Plastics two years ahead of plan • implementation of the WasteCert electronic waste transport certificate system • redirection of Elastomers plant effluent to the Plastics waste water treatment plant • pressure safety valve lifts at Olefins decreased by more than 50% • removal of soil stockpiles from Olefins site • installation of new flare tip at Olefins • completion of sewer inspection at Olefins, and development of a routine sewer inspection plan • completion of the Olefins environmental performance review and progressing the recommendations from this Areas for improvement are: • continuing to address means of reducing incidents and community complaints at the Olefins site • working to reverse the increase in the number of injuries to contractors Annual Report to ACNCG, 2004 Page 2 QENOS PTY LTD INTRODUCTION In July 1999, Orica Limited and Kemcor Australia Ltd combined their polyethylene, polypropylene, synthetic rubber and engineering plastics operations into a new joint venture, Qenos Pty Ltd. Qenos Pty Ltd is owned equally by ExxonMobil and Orica and operates plants in Sydney and Altona. This annual report addresses the year 2003 operations of the four manufacturing sites at Altona, Qenos Olefins, Qenos Plastics, Qenos Resins and Qenos Elastomers. Figure 1 Total production, kt 1000 500 673 700 691 532 549 556 353 0 1997 1998 1999 2000 2001 2002 2003 Total production across all the sites in kilotonnes is shown in Figure 1. This is based on production of hydrocarbon intermediates that are transferred to other plants as well as production of final products for sale. Production was normal in 2003 with few interruptions to operations. Qenos Olefins Qenos Olefins uses ethane gas from Bass Strait and gas oil liquid from the Mobil Altona refinery to produce ethylene and propylene (used to manufacture plastics) and butadiene (used to manufacture synthetic rubber). Two byproducts (gasoline and gas oil tar) are also produced. Qenos is still reviewing conversion of SCAL 1 from gas oil feedstock to a gaseous feedstock. Qenos Plastics Qenos Plastics uses ethylene from the Olefins site to manufacture polyethylene. The lowpressure polymerisation plant produces high-density polyethylene (HDPE) used for products such as milk bottles, irrigation and gas piping and household containers. Qenos Resins Qenos Resins also produces HDPE from ethylene manufactured by Olefins but by a different process from Qenos Plastics. The HDPE from Resins is used in a similar range of products to that from Plastics, but especially for Mobile Garbage Bins. Polypropylene is also produced at Resins from propylene manufactured by Olefins. Polypropylene, a harder plastic material than HDPE, is used in the manufacture of films, tapes and injection moulded products eg. food containers. Annual Report to ACNCG, 2004 Page 3 QENOS PTY LTD Qenos Elastomers Qenos Elastomers manufactures polybutadiene rubber (BR) by the polymerisation of butadiene in a solution process. The major feedstock, butadiene is supplied by the Olefins site. Qenos Elastomers is the only producer of synthetic rubber in Australia and the products are supplied to a wide range of industries with the tyre industry as the major customer. SH&E POLICY & CHARTER Qenos SH&E POLICY Qenos has a combined Safety, Health and Environment Policy to match the integrated approach in its Safety, Health and Environment Operating System (SHEOS). This Policy incorporates the best aspects of policies from shareholders, and includes reference to Responsible Care. The Policy is as follows: At Qenos, we believe that all injuries, occupational illnesses and environmental incidents are preventable. We are committed to, and everyone who works at Qenos must show responsibility for, operations, products and practices that protect the safety and health of our employees, contractors, customers and the community, as well as protecting the environment. This is more than another element in our business competing for priority; it is an absolute requirement. We will: • strive for a workplace that is free from injury, illness and incident • encourage employee initiatives that contribute to a safe and improved environment at work, home and in the community • minimise risks associated with the manufacturing, transportation, use and disposal of our products • anticipate, analyse and discuss risks with those affected, and monitor events to ensure proper control • conduct all operations and market all products with adequate safeguards • be prepared for emergencies, responding quickly and effectively to incidents resulting from our operations • efficiently use materials and energy, and dispose of wastes in a safe and environmentally sound way • continuously improve our safety, health and environmental performance through effective management systems, measurements and targets Annual Report to ACNCG, 2004 Page 4 QENOS PTY LTD • expand our knowledge of safety, health and the effect of our operations on the environment, and share this knowledge with others • strive to be a trusted and responsible member of the community through performance, full and open communication, and involvement • work with others to develop responsible laws, regulations and standards, based on sound science and assessment of risks, as required to further safeguard the workplace, community and environment. These commitments are in addition to our basic intent to comply with all safety, health and environmental laws, regulations and Responsible Care requirements. Risk: identify it, assess it, control it. In addition, all employees are asked to sign a Safety, Health and Environment Charter. The Charter sets out accountabilities for all employees and line managers. SH&E CHARTER Everybody • Learn and follow all SH&E requirements related to the job • Maintain SH&E awareness in all tasks, preventing injuries, illnesses or safety or environmental incidents • Maintain a clean and orderly work area at all times • Constantly review the workplace for hazards which could lead to injury, illness or incident and initiate appropriate corrective actions • Report to work fit for duty without impairment from alcohol, drugs, medications or other influences • Address improper SH&E practices observed in co-workers including contractors • Look for opportunities to improve SH&E performance and actively participate in SH&E improvement activities • Immediately report all injuries, illnesses and safety and environmental incidents • If ill or injured, actively participate in rehabilitation programs to promote recovery. Annual Report to ACNCG, 2004 Page 5 QENOS PTY LTD Line Managers • Clearly communicate the vision and Expectations and keep SH&E as the top priority in all decisions, actions and communications • Provide leadership for the development and implementation of SH&E plans • Ensure that rules and procedures for preventing all SH&E incidents in your work area are in place and are enforced • Lead by example by setting high SH&E standards, following rules, procedures, and using good work practices • Know the SH&E requirements of the job performed by the people you lead and ensure they are appropriately trained • Audit work practices frequently and do not tolerate any deviations from required standards, addressing any known SH&E non-conformance or opportunity for improvement with appropriate priority • Ensure that all contractors are managed or supervised to the same standards as Qenos employees • Create an environment of openness, trust and mutual respect which allows everybody to excel and be recognised for good SH&E performance • Participate in investigation of SH&E incidents and ensure that recommendations to prevent recurrence are followed through to completion • Promptly arrange rehabilitation for an ill or injured employee, providing full support for them and their family. 2003 AUDIT PROGRAM The 2003 audit program included internal reviews of the Qenos Safety, Health and Environment Operating System (SHEOS), waste contractor self-auditing with spot checks by Qenos, a Regulatory Compliance audit of Elastomers, and external auditing by the EPA appointed auditor. The EPA Appointed Environmental Auditor conducted an audit to cover Elastomers, Olefins, Plastics and Resins, focussing on performance, environmental risk assessment and communication with the community as well as ensuring the Accredited Licensee scheme requirements were in place at Qenos. The Auditor highlighted the elimination of the odorous residues from the Spent Caustic Plant by directing the tailgas to the boilers and the reduction of Class 3 indicators to atmosphere by a more focussed Leak Detection and Repair program. The report, which confirmed that the Accredited Licensee criteria were satisfactorily met, has been given to the Victorian EPA separately. An audit of Solid Waste Management supervised by the EPA accredited auditor was included in that report. SH&E MANAGEMENT SYSTEM Annual Report to ACNCG, 2004 Page 6 QENOS PTY LTD An internal assessment audit of the SH&E Operating System(SHEOS), which incorporates the Safety Management System, Environment Management System and Responsible Care requirements confirmed continuing improvement in our SHEOS, during 2003. The long term continuing improvement of the SHEOS is shown in Figure 2. The average rating for the 21 practices within SHEOS for 2003 was 3.7 (out of a possible 4.0.), which was an incremental improvement on our average rating of 3.6 for the 2002 external assessment by ExxonMobil personnel from around the world. Figure 2 Altona SHEOS Improvement History 4 3.5 3 Qenos External 2.5 2 1.5 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year COMMUNITY COMPLAINTS Unfortunately the record breaking low number of complaints received in 2002 was not sustained in 2003 as shown by Figure 3. 20 of the community complaints received related to odour, mostly caused by an incident that resulted in storage of effluent in the Stormpond at Olefins. Improvements to the Effluent Treatment Plant and elimination of an odorous residue should result in lower impact on our neighbours by the end of 2004. 17 complaints were about flaring at Elastomers, Olefins and Plastics. The Olefins flaring was mostly due to two major compressor trips. The Plastics flaring was due to loss of power supply, a matter which has been taken up with our power company, and is likely to show improvement due to the installation of new equipment in the first half of 2004. 2004 has started on a much improved note with zero complaints for the first two months. Annual Report to ACNCG, 2004 Page 7 QENOS PTY LTD Figure 3 Community Complaints 70 66 66 59 60 50 39 40 32 41 39 27 30 19 16 01 02 20 10 0 94 95 96 97 98 99 00 03 ENVIRONMENTAL INCIDENTS The following incidents were reported in accordance with the agreed Leak and Spill reporting procedure. All have been discussed at past ACNCG meetings. ELASTOMERS SITE There were no reportable incidents on the Elastomers site in 2003. OLEFINS SITE There was an improvement in the number of reportable incidents on the Olefins site during 2003, the number dropping from eight to seven. These are summarised below: 7/01/03 Olefins 20/01/03 Olefins 8/02/03 Olefins 16/04/03 Olefins 12/06/03 Olefins 5/08/03 Olefins 14/10/03 Olefins Heavy flaring following Scal-2 charge gas compressor, C-701, trip due to faulty vibration sensor. Scal-1 C-352 also tripped when Scal-2 went down. 4 complaints made this a reportable incident. Loss of containment of 1400kg of hypochlorite during transfer from one tank to another. Contained in a bund so no environmental damage. Reported to WorkSafe and EPA. Loss of containment of 12000kg of sulphuric acid when pinhole developed in manhead weld on TK969. All acid was contained in the tank bund, and recovered for use. Loss of containment of up to 5000 kg of sulphuric acid from temporary road tanker when plug in outlet line failed. Most of the acid flowed into the dirty water sewer and was neutralised prior to discharge. Some flowed outside the bund across stones into the clean water sewer, but was contained to the area and neutralised in-situ. PSV discharge to atmosphere of 50kg Benzene and 70kg Butadiene from T681 PSV following Scal 2 trip after cooling water failure. Heavy flaring following Scal-1 loss of lean oil flow when bringing T209A on line, and subsequent trip of three compressors. Exceeded smokeless capacity, with heavy smoking for 30-60 minutes. Total of 5 complaints made this a reportable incident. Odour from quench oil on surface of storm pond following ETP oil breakthrough. 3 complaints on first night and one the next day make this a reportable incident. Total of 7 complaints over 5 days. Investigations were carried out for each incident and follow-up actions identified. Full details of these incidents were issued to EPA and the ACNCG at the time of the incident. Annual Report to ACNCG, 2004 Page 8 QENOS PTY LTD A review, including input from the Accredited Licence auditor, was conducted in the first half of the year and the second half of the year shows a marked reduction in the number of incidents. The recommendations from the review have been incorporated into the Environment Improvement Plan. PLASTICS SITE There were no reportable incidents at the Plastics site in 2003. RESINS SITE There were 3 reportable incidents at the Resins site in 2003. 21/01/03 Resins 11/04/03 Resins 27/05/03 Resins Particulate. Release of 200-500kgs of polypropylene powder from the FBD was carried to Prixcar. Washing of cars was paid for by Resins. Root cause appears to be plugging of cyclone not recognised by operator. Loss of containment of 18m3 (14000kg) of Exxsol D30 solvent when pump left running and overfilled sludge tank. The solvent flowed into drains which flowed back into the sludge pit, so spill was fully contained. Loss of containment of approximately 1.5 tonnes of propylene from R29 when manhead gasket failed. Emergency services and regulators were notified and emergency procedures activated. An investigation was undertaken with the participation of an ACNCG member. EPA WASTE DISCHARGE LICENCES Table 1 shows a comparison of the estimated emissions from the Olefins, Elastomers, Plastics and Resins sites with the discharge limits specified in the EPA licence. There are no exceedances. In 2003,the Accredited Licence was renewed for Elastomers, Olefins and Plastics, and Resins was added.The increases in emissions of particulates, hydrogen chloride and Total Organic Compounds emissions are due to the addition of Resins discharges to those from the other sites. Annual Report to ACNCG, 2004 Page 9 QENOS PTY LTD Table 1: Qenos Performance compared with EPA Licence: Compound EPA bubble licence, tpa or gm/min Ammonia Benzene Butadiene Cyclohexane Carbon monoxide Hydrogen Chloride Nitrogen Oxides Particulates 12 15 45 15 811 gm/min Styrene Sulphur dioxide Total Organic Compounds 2000 emissions, tpa or g/min (excludes Resins) 10.1 7.9 22.0 10.5 660 gm/min (peak rate) 2001 emissions, tpa or g/min (excludes Resins) 6.4 7.7 11.8 6.5 660 g/min (peak rate) 2002 emissions tpa or g/min (excludes Resins) 6.4 6.6 31.4 6.5 660 g/min (peak rate) 578 175 gm/min 459 76 gm/min (peak rate) 456 76 g/min (peak rate) 462 76 g/min (peak rate) 5 440 1500 19.9 134 496 1.0 119 317 0.5 124 380 4.4 gm/min 2003 emissions, tpa or g/min (includes Resins)* 6.4 5.9 20.4 6.3 660 g/min (peak rate) < 0.1 g/min ( Nil) 477(458) 116 g/min (peak rate) (76) 0.4 142** 709(328) * For comparison with previous years, figures in brackets refer to emission levels from Elastomers, Olefins and Plastics only. **The increase in Sulphur Dioxide emissions was due to direction of the Olefins Spent Caustic tailgas to the boilers, which enabled Olefins to stop generation of a highly odorous solid waste. The waste has caused many community complaints in the past. Annual Report to ACNCG, 2004 Page 10 QENOS PTY LTD Table 2 shows a comparison of the results of water discharge at the Qenos Plastics site with the discharge limits specified in the EPA licence. Testing showed compliance with licence limits. Plastics Effluent Monitoring Summary, 2003 PLASTICS WASTE WATER DISCHARGE TO LAND ( IRRIGATION / DAM ) 2003 Month : Jan Feb Mar Apr May Jun Volume ( m3 ) Licence Requirement : Weekly discharge volume : 10,000 m3 2907 1846 33 6002 2392 Total Jul 5959 12792 Aug 7265 Sep Oct Nov 11394 11900 Dec 21267 18929 102,686 Yearly discharge volume : 220,000 m3 PLASTICS WASTE WATER MONITORING RESULTS 2003 Month : BOD Suspended Solids E. Coli Dissolved Oxygen pH Annual Report to ACNCG, 2004 Page 11 Jan Feb Mar Apr Licence May Jun Jul Aug Sep Oct Nov 2 <2 <10 <2 3 <10 7 8 <10 2 7 <10 4 10 <10 2 2 0 10 66 0 22 39 2 <2 7 0 <2 5 0 4 11 <10 10 8 8.1 7.9 8.5 8.3 9.7 8.3 8.9 8 8.4 8 8.2 7.8 8.3 7.8 8.3 8 8 8 7.7 7.6 Dec <2 <40 mg/L 21 <80 <10 <400,000 org/100 mL 7.5 >5mg/L 7.8 6.0 - 9.0 QENOS PTY LTD EPA LICENCE NON-CONFORMANCES There were 3 instances of noncompliance with Qenos’ EPA licences in 2003: Olefins Smoking F655 Furnace Stack - following C-701 trip, furnace feed rates were dropped quickly, fuel to furnace mistakenly adjusted wrong way leading to fuel rich firebox and resulting smoke. Ringlemann 3 for 1 minute, exceeded SEPP allowance. Elastomers Smoking flare - exceeded allowance of five hours of smoking for 2003. (Majority from D359 overpressure incident of 29/3/03). May incident due to ethane-rich fuel gas in flare header smoking when displaced to flare by nitrogen during normal tank filling operations. Elastomers Hole found in effluent line, discharging effluent to land on-site. No pollution concerns, however this is a technical breach of licence. CITY WEST WATER TRADE WASTE AGREEMENT Waste minimisation is a requirement of the Agreement and this is achieved through the EIP. However, Qenos is stewarded by the ACNCG and CWW on the total effluent to sewer as well as the traditional wastes and emissions. Sewer discharge volume relative to production is shown in Figure 4 Figure 4 Total Waste to Sewer ML / kt production 5 4.0 4 3 3.2 3.0 2.7 3.0 3.0 2.9 2 1 0 1997 1998 1999 2000 2001 2002 2003 Sewer discharge volumes for Olefins and Elastomers were down on last year by over 5% due to a number of water reduction projects being implemented during the year. At Olefins condensate recovery facilities were improved to reduce the amount of hot condensate going to sewer. In a co-operative approach from CWW, the Trade Waste Agreement was varied to allow short duration discharges up to 42°C so that Olefins could run effluent closer to the normal spec of 38°C without risk of a licence breach if the temperature spiked a couple of degrees. This has allowed a very significant reduction in the amount of cooling water required to meet the spec. Also, effluent from the Elastomers plant, which is quite clean now that SBR is shut down, has been redirected to the Plastics plant where there was excess capacity in the on-site Waste Water Treatment Plant following the closure of the HPPE plant. This treated effluent is now used for cooling water make-up rather than being discharged to CWW sewer as trade waste. These changes were made towards the end of 2003, so the full benefit is not reflected in the 2003 figures, but should appear in the 2004 results. Annual Report to ACNCG, 2004 Page 12 QENOS PTY LTD The effluent cooling heat exchangers at Olefins do not provide sufficient cooling to eliminate the need to use cooling water. One of these exchangers failed towards the end of 2003, so this is being viewed as an opportunity to replace it with a similar unit but with greater capacity to ensure lo wer effluent temperatures. The replacement is expected during 2004. CWW Trade Waste Agreement Non-conformances The following incidents have been fully reviewed with the EMT. Olefins 3/2/03 The Combined Final Effluent sample tested 1.8 mg/l for sulphides, versus a spec limit of 1.0 mg/l. The Nutriox addition pump was found stopped. Pump restarted and sample retested shortly after, and back in spec. A low flow alarm has now been incorporated into the Nutriox addition facilities. Olefins 4/6/03 Combined Final Effluent sample collected by CWW was tested at 180 mg/l ammonia, versus a spec limit of 50 mg/l. Investigation revealed the drain rate of treated blue water from TK964 had been inappropriately increased on the preceding night shift. This had been put back to normal flowrate by the dayshift team by the time this sample was collected. Resins 28/7/03 Effluent sample collected by CWW tested 3.0 mg/l for Exxsol D30 solvent, versus a spec limit of 2.0 mg/l. No specific event was identified to cause a high solvent level. A program to determine typical solvent levels is underway. Olefins 14/10/03 Free oil was discharged to the CWW sewer. Excessive oil accumulation due to a bad pump seal and poor operation of oil removal facilities in the Olefins Effluent Treatment Plant had lead to a breakthrough of oil into the final effluent stream. The ETP is being opened for a full clean out, and operating practices and procedures are being reviewed. The leaking pump seal is being replaced with a different design that will not put oil to sewer PRESSURE SAFETY VALVE AND HIGH PRESSURE ALARM PERFORMANCE Implementation of the final report of the Pressure Management Review Committee continued in 2003. Olefins focus is on ensuring stable operations to continuously reduce the SV lift frequency, and the decrease in lifts by 30% was a significant achievement. Of the 47 lifts, 24 arose from abnormal incidents; a power dip, cooling water failure and a compressor trip. During 2003, there were 53 pressure safety valve lifts across all the Qenos sites, significantly lower than the 75 recorded for 2002. Seventeen of these resulted in discharge of hydrocarbons to atmosphere. Annual Report to ACNCG, 2004 Page 13 QENOS PTY LTD Table 3 – PSV lifts by site Site Olefins Elastomers Plastics Resins No. of PSV Lifts 2002 2003 67 47 0 4 2 0 6 2 NOISE ABATEMENT Environmental noise data continued to be collected from the noise meter located at Charles Road, within one of the closest residential areas to the Complex. The noise meter is connected by a microwave link to a computer at the Plastics site. During 2000 a new basis for the analysis and reporting of noise levels was developed. This method uses noise levels measured under a set of standard conditions as the indicator of Qenos’ progress in reducing background noise from Olefins and Plastics. The parameter measured by the meter is LA90, or the noise level that is exceeded 90% of the time, over a long period. The LA90 gives a better indication of background noise levels because it filters out peaks caused by short-term noise sources eg. nearby passing cars or wildlife. The LA90 measured at Charles Road is related closely to the wind direction and speed. LA90 data collected when the wind is blowing towards the noise meter from the Complex, at between 2 and 4 metres per second and between the hours of 10 pm and 6 am will be used as a measure of Qenos’ progress in reducing plant noise. There was a slight adjustment to widen the angle of the relevant wind data in May 2002 as it was felt that some Qenos sources may not have been captured by the previous settings. Qenos has a target of a 2.5dBA reduction in noise over a 5 year period due to noise abatement measures at the major noise sources within the Olefins and Plastics site. The shutdown of the Olefins and Plastics plants towards the end of 2000 due to industrial action provided a unique opportunity for the collection of noise data at Charles Road without the inclusion of noise from Qenos’ plants. As can be seen from Figure 6 the average LA90 without the plants operating and at the standard conditions was approximately 50 dBA, 5 dBA less than that observed while the plants were operating. This demonstrates that the target of a 2.5dBA reduction is significant. In fact, current levels are averaging close to the 52.5dBA level There were technical problems after the noise meter was sent for a calibration test in October 2002, and useable data was not retrieved until February 2003. A step change downwards was noticed following this, with monthly average noise levels in the 49 - 51 dBA range, whereas they had previously been around 52 –53 dBA. A subsequent calibration check was performed in December 2003, and results since may have stepped back up to the 51 –52 dBA range. A total of 16 noise reduction projects were completed at the Plastics site in 2003, well ahead of their scheduled due date of June 2005. Annual Report to ACNCG, 2004 Page 14 QENOS PTY LTD Figure 5 Noise at the Charles Rd noise meter under standard conditions (Between 10 pm and 6 am, wind direction 265-285°, (265-323° from May-02), wind velocity 2-4 m/s) 60.00 58.00 Plants shut down Incomplete data due to technical problems with software Problems with noise meter following calibration/service Wind direction increased to o 265-323 from May 2002 Meter calibrated mid Dec 2003 56.00 54.00 52.00 50.00 48.00 46.00 44.00 Feb-04 Dec-03 Oct-03 Aug-03 Jun-03 Apr-03 Feb-03 Dec-02 Oct-02 Aug-02 Jun-02 Apr-02 Feb-02 Dec-01 Oct-01 Aug-01 Jun-01 Apr-01 Feb-01 Dec-00 Oct-00 Aug-00 Jun-00 40.00 Apr-00 42.00 WASTE REDUCTION PERFORMANCE MEASURES VOLATILE ORGANIC COMPOUNDS (VOCs) Total VOC emissions to the atmosphere from the Qenos sites are shown in Figure 6. VOCs include ethylene, propylene, propane, butadiene, ethane, styrene, benzene and mineral turpentine. Figure 6 VOC Emissions Resins 3500 22002250 3000 2500 Olefins, Plastics, Elastomers 2000 1500 1000 0 625 416 271 331381 500 1080776 662 437 496 317 380 328 0 93 97 98 99 00 01 02 03 Annual Report to ACNCG, 2004 Page 15 QENOS PTY LTD Figure 7 VOC tonne/kt production 6.0 4.0 2.0 0.0 4.4 4.2 1.7 1.5 1.7 1.3 1.3 1997 1998 1999 2000 2001 2002 2003 Year VOC emissions from the four sites decreased slightly in 2003, despite an increase in production. Efforts to reduce VOC emissions are focused on reducing emissions of the Class 3 indicators, benzene and butadiene, as a priority. In 2003, Qenos submittted a plan to reduce emissions of Class 3 indicators, especially butadiene, which became a Class 3 indicator in 2002 . The plan is to give priority to pipes carrying process streams containing benzene and butadiene in identifying and repairing leaking valves. While the threshold value above which the EPA requires the valve to be repaired is 10000ppm, Qenos has dropped the threshold to 200ppm for streams containing Class 3 indicators. This is equivalent to world’s best practice. Figure 8 shows benzene emissions to air. Benzene emissions dropped slightly to a record low level despite the increase in production. Figure 8 Benzene Emissions - Tonnes 27 30 25 20 15 10 5 0 18 13 93 97 98 7 8 8 7 6 99 00 01 02 03 Butadiene emissions, shown in Figure 9, were reduced to a record low level(except when the Butadiene Extraction unit was shut down for most of 2001) in 2003, due to institution of the more stringent Leak Detection and Repair program. This resulted in repair of a number of valves that may have been leaking because of a prolonged shutdown in 2001. Figure 9 Butadiene Emissions - Tonnes 150 128 100 48 50 22 21 22 12 98 99 00 01 31 20 02 03 0 93 Annual Report to ACNCG, 2004 Page 16 97 QENOS PTY LTD Styrene emissions to air are shown in Figure 10. The main source of styrene emissions was the SBR dryer at Elastomers. With the closure of the SBR plant styrene emissions have been almost eliminated. A small source of styrene remains as part of the Olefins process. Figure 10 Styrene Emissions -Tonnes 47 50 40 27 30 25 23 20 20 10 1 0.5 0.4 01 02 03 0 93 97 98 99 00 SOLID AND EPA PRESCRIBED WASTES Total EPA prescribed wastes and non prescribed wastes (general wastes) transported from Qenos are shown in Figures 11, 12 and 13. The total waste transported off site in 2003 was slightly lower than 2002, reflected by a reduction in the waste per unit production (see Fig 13) although there was an increase in prescribed waste. F ig u re 1 1 T o ta l P r e s c rib e d W a s te - T o n n e s 1 2 0 0 0 1 0 0 0 0 1 0 0 0 0 8 0 0 0 6 0 0 0 3 3 6 0 3 1 2 3 2 8 3 6 2 8 9 4 4 0 0 0 1 7 6 5 2 4 6 6 2 5 7 6 2 0 0 0 0 9 3 9 7 9 8 9 9 0 0 0 1 0 2 Note: Figures since 1997 include the Resins site. F ig u r e 1 2 T o ta l G e n e r a l W a s t e - T o n n e s 1500 1116 963 1134 994 1167 1000 677 750 01 02 515 500 0 93 Annual Report to ACNCG, 2004 Page 17 97 98 99 00 03 0 3 QENOS PTY LTD Figure 13 Total Solid Waste Tonne/kt Production 8.0 6.0 6.4 7.6 6.1 6.9 5.5 5.9 5.6 4.0 2.0 0.0 1997 1998 1999 2000 2001 2002 2003 The Resins Solid Liquid Separator powder waste stream, amounting to 2-300 tonnes, was reclassified from general to prescribed waste, explaining the significant reduction in general waste this year, and the corresponding increase in prescribed waste. We are exploring opportunities for potential markets for this waste. The project to eliminate the sulfatreat catalyst beds in the Olefins Spent Caustic Carbonation unit by redirecting the tail gas into the boilers was implemented early 2003. One of the two catalyst beds has been emptied with the remaining bed scheduled for mid-2004. Once emptied, Olefins will no longer produce this waste stream, eliminating about 100 tonnes per year of highly odorous solid waste. The Collex project to convert some wastes into fuel briquettes has progressed, with trials completed successfully, and the Works Approval submitted to EPA. Selection of the briquetting machine is underway, and Collex expects construction to begin before mid-year, with commissioning in 3Q. Minister for the Environment, John Thwaites, presented Collex with an award for the first project under the Business Energy Innovation Initiative on March 21, 2004. Potentially, up to 50% of Qenos’ solid prescribed waste can be converted to fuel in this process, thereby removing the need to send these wastes to secure landfill. Two byproduct streams produced at the Resins site, polyethylene wax and powder collected from the Solid Liquid Separator, are currently disposed of to prescribed waste landfill. Both streams can go to the briquetting process when it becomes available, however recent work has identified potential markets for these materials, and it is expected that both will soon be saleable products. Together, these streams comprised 950 tonnes of prescribed waste to landfill in 2003, or 96% of Resins total prescribed waste. ENERGY EFFICIENCY AND GREENHOUSE GASES Qenos operations are large consumers of fuel and electricity. This results in significant carbon dioxide emissions from both on-site furnace and boiler combustion and off-site electricity generation. A number of energy saving steps were identified at Qenos Olefins and implemented in 2003 resulting in savings of about 3000 tonnes. The tonnes CO2 per tonne of production parameter was 3% lower as shown in Figure 14. In 2003, Qenos Altona submitted a Greenhouse Management Report to the Victorian EPA as required by the Greenhouse Gas Emissions and Energy Efficiency in industry PEM. The report described projects which are scheduled to be completed over the next 4 years which Annual Report to ACNCG, 2004 Page 18 QENOS PTY LTD are expected to result in savings of 16-17000 tonnes of CO2 per annum. Should the conversion of SCAL1 to gaseous feed proceed, then additional greenhouse gas abatement would result. Figure 14 Tonne CO2/tonne production (includes Resins post 1997) 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 1.4 1.37 1.25 1.07 1.07 1.06 1.14 1.26 1.39 1.23 1.19 1990 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Note: These figures are taken from the Annual Greenhouse Challenge Update. This CO2 equivalent figure includes carbon dioxide produced by the generation of electricity consumed by the plants as well as carbon dioxide produced onsite by fuel combustion. Following international conventions, only CO2 from electricity generation, combustion and methane is covered. GROUNDWATER MANAGEMENT PLAN A round of groundwater monitoring was conducted by Qenos in November to coincide with monitoring by the other Complex companies. This will assist in determining the effectiveness of groundwater cleanup activities directed at chlorinated hydrocarbons, being undertaken by Dow and APPL. The monitoring confirmed that the small benzene plume under the Olefins site is not changing. Importantly, the offsite monitoring wells, downstream of the plume, continue to be benzene free. Another possible source of the plume was eliminated in 2003 when the underground sewers in the vicinity of the plume were surveyed and found to be intact with no leakage. This was the last of the possible sources to be eliminated, leaving the most obvious conclusion that the plume has resulted from some historic source. Qenos will continue to monitor the plume on an annual basis. Annual Report to ACNCG, 2004 Page 19 QENOS PTY LTD ENVIRONMENT IMPROVEMENT PLAN (EIP) Qenos’ performance in completing the Action Items in EIP3 is shown below: Table 3: Completion of EIP items. Year Completed Deferred Indefinitely Rolled Over 2001 12 1 9 2002 12 0 2 2003 17 0 3 Total 41 1 14 A total of 17 EIP items were completed or closed out in 2003, including 3 new items that were added during the year. Good progress was made on a further 3 items that were not due until end of 2004. 3 items that were due in 2003 have been rolled over for completion in 2004. These are work on the Olefins Effluent Treatment Plant, diversion of wastes from landfill and completion of the Groundwater Management Plan. The item deferred indefinitely is the desludging of the Elastomers cooling pond. Some of the major achievements included: • • • • • • • • • • achieving accreditation of the Resins site and re-accreditation of the other three sites connection of the Spent Caustic Carbonation system tail gas to the boilers to avoid generation of highly odorous spent catalyst, and the removal of the spent catalyst from one of the two reactor beds a 30% reduction in Butadiene emissions through tightening of LDAR program action limits completion of 16 noise reduction projects at Plastics two years ahead of plan implementation of the WasteCert electronic waste transport certificate system redirection of Elastomers plant effluent to the Plastics waste water treatment plant removal of soil stockpiles from Olefins site installation of new flare tip at Olefins completion of sewer inspection at Olefins, and development of a routine sewer inspection plan completion of the Olefins environmental performance review and progressing the recommendations from this Further progress has been made by Collex on the waste to fuel project, with the Works Approval submitted to the EPA, and briquetting machine selection underway. Qenos is currently exploring more attractive alternatives for some of the major waste streams that should result in them becoming saleable products. Significant reductions in fresh water consumption have been made at the Olefins plant, which has also resulted in corresponding trade waste volume reductions. Work continues to further reduce water usage, with options for water re-use being explored. EIP3 expires in 2004, and work has begun on the development of EIP4. COMMUNITY RIGHT TO KNOW AND COMMUNITY INTERFACES Annual Report to ACNCG, 2004 Page 20 QENOS PTY LTD Qenos and the Complex continue to be involved in the Altona Complex Neighbourhood Consultative Group(ACNCG), the City of Hobsons Bay City Pride Committee and Altona Secondary College Horticultural/City West Water Community Centre through the Complex Community Liaison Adviser. The ACNCG consists of senior executive managers from the Altona Chemical Complex (ACC) together with eleven volunteer representatives nominated from the local community. Three of these representatives are founding members of the ACNCG, with 15 years of continuous service each. Other representatives from the Environment Protection Authority (EPA), WorkSafe Victoria, City West Water (CWW) and City of Hobsons Bay Health Services department attend the meetings. A Councillor from the Hobsons Bay City chairs the meetings in an independent capacity. : This group ensures effective consultation between community and industry providing a system of accountability and transparency of industry to its local community. e.g. bi-monthly ACNCG public meetings; alternate monthly site Environment Monitoring Team (EMT) meetings. EMTs include community representatives); special incident Review teams (called as required) include community members in all phases of investigation and remediation. Major sponsorship throughout the year included the Qenos Art Show, funding of the antigraffiti trailer, and financial and goodwill support for Whitelion - an organisation that delivers a range of programs and services to young people within the juvenile justice system. Other sponsorships for the year were : • • • • • • • • Ongoing sponsorship Qenos Perpetual `Lynch Shield' - Altona/Altona North District Cricket Clubs Altona City Football Club - Junior Development Kooringal Golf Club - Ladies Bowl Clean Up Australia Day - Altona Bayside College - Great Victorian Bike Ride Rotary Club Charity Golf Day Altona Softball Club Various sponsorships to local kindergartens, schools and colleges Leadership Victoria held a very successful Economics Seminar on our site and participated in a plant tour. Qenos continues to attract business and educational/student interest in its operations, and during the year, hosted a number of tours of its sites. Whilst there were a number of approaches from students seeking information on plastics, there were no Community Right to Know enquiries for 2003 PERSONAL SAFETY PERFORMANCE Annual Report to ACNCG, 2004 Page 21 QENOS PTY LTD Qenos aims for worldclass performance in Personal Safety for both its employees and contractors. Table 4 details the number and type of injuries in 2003 and Figures 14 and 15 detail the long-term trend of our performance in this area. (Total Recordable Injury Rate (TRIR) is based on the number of reportable injuries per 200,000 hours worked). Measures put in place in 2002 have resulted in an improvement in the 2003 TRIR and the introduction of a Behaviour-Based-Safety program on all sites is expected to deliver further improvement in injury performance in 2004. The 2003 TRIR for Qenos employees and contractors was 0.6 and 2.5 respectively. Hours worked were 1.3 million for employees and 250 thousand for contractors. Table 4 – Personal Safety Performance Figures, Altona 2003 Lost Time Injury Medical Treatment/Restricted Work Case Injury First Aid injuries Total Recordable Injury Rate (TRIR) 2003 Qenos Contractor 0 0 4 3 22 0.6 13 2.5 Figure 14 Altona Own Employee TRIR 3.5 3 2.5 TRIR 2 1.5 1 0.5 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year The 2003 Qenos contractor performance was disappointing with three reportable injuries occurring in the 4th quarter. This followed a period of three years in which there were no reportable injuries on the plants. (The two reportable injuries in 2002 occurred in the Administration areas). The three reportable injuries in 2003 occurred while carrying out low-risk activities, (speck of dust in eye, cut chin on workbench drawer, fractured thumb while handling scaffold poles). During 2004 continued emphasis will be placed on all contractor activities including the activities that have traditionally been considered to be low-risk. Annual Report to ACNCG, 2004 Page 22 QENOS PTY LTD Figure 15 Altona Contractor TRIR 6 5 TRIR 4 TRIR 3 2 1 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year HEALTH INITIATIVES Workplace exposure monitoring programs for specific chemical and physical agents continue to be carried out at each of the operating sites. Results indicate that exposures to these hazards are maintained below occupational exposure standards. Personnel receive training in the nature, exposure and control of the hazards present in the workplace. In 2003 the Material Safety Data Sheet system, Infosafe 2000, was used to provide chemical safety information to all personnel. Hard copy MSDS manuals are available at all sites for operators and emergency services. MSDSs for all Qenos products are available on the Qenos website. A major effort was made to ensure all the MSDSs were current. Qenos maintains management manuals, policies and procedures for hazards encountered in the workplace. Each site has hazard registers that include asbestos and workplace hazardous substances. During 2002 all Qenos industrial cooling tower systems had registrations renewed with the Department of Human Services (DHS). Legionella risk management plans for the industrial cooling towers on all sites were internally assessed. Ongoing medical programs continue to show no evidence of adverse health effects arising from workplace exposures. The Annual Benzene Medical Surveillance Program, which focuses on employees potentially exposed to benzene in the workplace, again reported no health effects that could be related to benzene exposures. Qenos conducts rigorous internal assessments for compliance with occupational health and safety legislation. Continuous improvement projects are initiated as a result of monitoring programs and internal assessments. These projects are stewarded to completion within specified time frames. During 2003 Elastomers introduced improved local ventilation to improve control of hydrocarbons during sampling. Elastomers also demonstrated improved control of hydrocarbons by introducing new product testing and specifications as well as modifying plant extraction system operation and maintenance. Annual Report to ACNCG, 2004 Page 23 QENOS PTY LTD Qenos is striving to minimise employee noise exposure. During 2003 noise control projects were implemented to reduce employee exposure and plant emissions. MAJOR HAZARD FACILITIES (MHF) REGULATIONS All the Qenos manufacturing facilities have been registered as Major Hazard Facilities. Qenos has a 5 year Licence to Operate, obtained in December 2002 with a condition linked to Olefins SCAL1 conversion project. Post licensing, WorkSafe implement an ‘Oversight’ activity to ensure licensed facilities safety obligations are met. The scope of WorkSafe oversight covers major incident safety and all other relevant occupational health & safety and dangerous goods regulatory obligations. The oversight activity is managed through a yearly plan established through consultation with the facility (Qenos) and other government agencies (eg MFESB, Office of Gas Safety etc). A key activity is a detailed inspection that incorporates a review of safety management system elements that WorkSafe sees as important for Major Hazard management. In 2003 Qenos had a detailed inspection performed in November, the SMS elements checked were – Permit to Work, Third Party Management, Management of Change and Asset Integrity. Additionally a review of WorkSafe nominated safety critical controls was also performed, this included routine testing and fault management. No major issues were identified. Items for action are listed in applicable Qenos work lists and will also be followed up in the 2004 oversight plan. A pleasing comment noted in the inspection report from WorkSafe was ‘ fewer issues were raised during this inspection than during the licensing verifications, which suggests an improvement in the implementation of SHEOS’. WorkSafe additionally use the number of incidents associated with dangerous goods as a performance indicator, Qenos and WorkSafe work closely together on the review of these incidents to determine if there are any issues for follow up. The 2004 Oversight plan is in the process of being finalised. Gas Safety (Safety Case) Regulations Qenos intends to move forward on obtaining a Safety Case for the operation of complex gas facilities. This includes items such as boilers, furnaces and other gas combustion equipment. The Office of Gas Safety (OGS) is the regulator with the responsibility of implementing these and the associated Gas Installation regulations. Qenos sees this as a means to enhance the effectiveness of our safety management systems and develop stronger links with the OGS. It will complement activities linked to the MHF licensing requirements Electricity Safety Management Scheme (ESMS) The Electricity Safety Act of 1998 provides the opportunity for individual companies to apply variations to the regulations to achieve equal or better safety outcomes applicable to electrical installations through the establishment of an ESMS. The Act also provides the opportunity for persons authorised under an approved scheme to be exempt from certain sections of the Act or from the Regulations. Annual Report to ACNCG, 2004 Page 24 QENOS PTY LTD The Office of the Chief Electrical Inspector (OCEI) is responsible for electrical safety in Victoria and manages the applications received for ESMSs. Qenos plans to make application for an “employer operator” ESMS to the OCEI in the 4th quarter of 2004. Final approval may take up to 18 months Annual Report to ACNCG, 2004 Page 25 QENOS PTY LTD DANGEROUS GOODS STORAGE The following materials classified as Dangerous Goods are stored or processed at Qenos. The quantity range is shown in tonnes. The data presented below is based on Safety Case documentation. Acetylene Ammonia Butadiene Butene/butylene Carbon Monoxide Hexane Ethane Ethylene Hydrogen Hydrogen Sulphide Nitrous Oxide LPG Propylene Acetone Benzene Cyclohexane Isopropyl Ether Ethanol Diesel Petrol (Motor Spirit) Heptane Iso-propanol Kerosene Methanol Pentane Naphtha (olefins gasoline) Toluene Turpentine substitute Cuprous Ammonia Acetate 0-1 10-100 1000 - 10000 1000 - 10000 0-1 0-1 0-1 1000 - 10000 1 - 10 0-1 0-1 1 - 10 100 - 1000 0-1 10-100 100 - 1000 1 - 10 0-1 10-100 10-100 0-1 10-100 1 - 10 1 - 10 10-100 1000 - 10000 1 - 10 1000 - 10000 Compressed gas NOS* 0-1 Ethylene 1 - 10 Methane/Natural gas 1 - 10 Propane 10-100 Actrene 230W 1 - 10 Hexene 10-100 DiMethylDisulphide 10-100 Acetic Acid 10-100 Pyrophoric Organometallic NOS* 10-100 Flammable Liquid NOS* 1 - 10 Bis(Triphenylsilyl)Chromate 0 - 1 Isoprenyl Aluminium 1 - 10 Triethyl Aluminium 1 - 10 Ethyl Aluminium Sesquichloride 10-100 Diethyl Aluminium Chloride 10-100 Quench Oil 1000 - 10000 Magnesium Ethylate 1 - 10 Diethylaluminium Ethoxide 10-100 Heavy Gas Oil 1000 - 10000 Carbon Black Feedstock 1000 - 10000 Mobil DTE Light 10-100 Diethanolamine 10-100 Ethylene Glycol 1 - 10 Tertiarydodecylmercaptan 1 - 10 Diethylhydroxyamine1 - 10 Organic Peroxide 1 - 10 Butane 0-1 100 - 1000 * NOS denotes “Not Otherwise Specified” Technical information and Material Safety Data Sheets are available for these materials on request. Annual Report to ACNCG, 2004 Page 26 QENOS PTY LTD Annual Report on Manufacturing Operations at Qenos Olefins, Plastics, Resins and Elastomers Sites to Altona Complex Neighbourhood Consultative Group April 2004 SH&E INCIDENTS: QENOS PTY. LTD. ALTONA SITES PROCESS SAFETY SIGNIFICANT INCIDENTS PERSONNEL HEALTH & SAFETY Fatality 2 0 0 LTI3 OTHER INCIDENTS Table 7: ENVIRONMENT 1 - Employee - Contractors Medical Treatment 4 -Emp - Cont First Aid 5 - Emp - Cont 0 0 4 3 22 13 Leak or spill requiring immediate MFB and EPA notification 6 A multiple (>=4), accepted community complaint incident Leak or spill requiring post-event notification to relevant authorities6 Accepted community complaint TRANSPORT 0 3 0 0 0 7 0 41 Incident Summary 1. Significant Plant Incident: an incident such as a fire, hazardous chemical or flammable dust release or explosion that results in the sounding of the community alarm or accident costs in excess of $500k 2. Fatality: a work related death of an employee, on-site contractor or visitor occurring in the period of the survey. 3. Lost Time Injury/Illness: work related occurrence that results in a permanent disability or time lost from work of one full day or shift or any time after the day of the shift on which the injury occurred. 4. Medical Treatment Injury/Illness (not including those involving lost time): a work related injury requiring treatment by a medical practitioner which is beyond the scope of normal firstaid according to the Australian Standard. 5. First-aid Treatment: a work related one-time treatment and any follow-up visit for observation, of minor scratches, cuts, burns, splinters and the like which do not normally require medical care. Such treatment is considered to be first-aid even if administered or supervised by a medical practitioner. 6. Leak and Spill: see “Leak and Spill Reporting Procedures, 1995” 7. Serious Transport Incident: an occurrence posing a danger or potential danger to life, property or the environment which results from a leakage, spillage, fire or explosion of goods during transport, including loading and unloading and requiring the presence of emergency services. 8. Other Transport Incident: an occurrence posing a minor danger to persons, property or the environment which results from a leakage, spillage, fire or explosion of goods during transport, including loading and unloading. Annual Report to ACNCG, 2004 Page 27
© Copyright 2026 Paperzz