3-2 Cleaner Production Demonstration in Paper-making, Chemical Fibre Pulp Factory and Steel Factory A. Clean Production Demonstration Project:Construction of A Straw Pulp and Paper Manufacturing Plant B. A Demonstration Project for Cleaner Production of Chemical Fibre Pulp C. A Demonstration Project For Cleaner Production of Steel 3-2a Clean Production Demonstration Project:Construction of A Straw Pulp and Paper Manufacturing Plant Project Scope and Relationship to China's Agenda 21 This project seeks to improve the arrangement and structure of industry, and develop cleaner production practices in the pulp and paper industry. The project is based on programme areas 12A, 12C, and 12D of China's Agenda 21. 1. Background The paper industry is a key component of the national economy in China. However, discharges from paper plants have become a major cause of water pollution throughout the country. Currently China's paper industry is trailing behind other sectors in economic development. Paper and paperboard output reached 18.10 million tons in 1993; per capita paper consumption however is far lower than the world average. Due to the serious lack of wood, cereal straws are used as the raw material in more than 65 percent of China's paper mills. Most of the mills are small township enterprises. It is estimated that 5,360 small paper mills produce less than 10 thousand tons of paper per year. The total output of straw pulp in China ranks first in the world. China has gained significant experience in straw pulp production, including pulp making, bleaching, paper making and alkali recovery. China's "Eighth Five Year Plan" and "Ten Year Development Programme" for the paper industry are designed to transform and restructure the entire industry, thus streamlining manpower and raw material consumption to achieve cleaner production. Serious problems plague paper mills, including poor processes and technical equipment. As a result, the mills consume large amounts of energy and raw materials, low alkali recovery rate (only 30%), produce poor quality products and cause serious pollution. The pulp and paper industry is one of the major causes of environmental pollution in China. The annual discharge of toxic and hazardous wastewater is 5.3 billion m3, which accounts for 20 percent of China's total wastewater discharges. Organic pollutants released by paper mills account for over 30 percent of China's organic industrial wastewater pollutant discharge. Therefore pollution from these mills has seriously hindered the development of China's paper industry as well as the overall quality of life of the affected population. This project, formulated by the China National Council of Light Industry (CNCLI), proposes to establish a demonstration central pulp mill with 30 thousand tons/year capacity in Taian City, Shandong Province. A Paper Industry Group has been organized in Taian City and funds have been collected to initiate the demonstration project. The preparation work including feasibility studies and preliminary design was completed over one year ago. There are over 80 pulp and paper mills situated in Taian City in central Shandong Province. These mills discharge into the Dawen River which flows at the foot of Mt. Taishan. Wastewater discharges from the paper mills amount to 30 million m3 annually which flows into Dongping Lake, a major water source and a reservoir of the regional water transfer system. Pollution of the lake will negatively impact tourism, cause extinction of biological species and threaten the health and livelihood of over 25,000 people in seven towns. 2. Objectives Long-term Objectives To revitalize China's paper industry to a new standard through reorganization, technical transformation and capability development in production process and management systems, and to disseminate clean production process developed in the demonstration project throughout China's paper and pulp industry. Immediate Objectives Establish a cleaner production research center and expert group to investigate policies, regulations, management techniques and technologies for the paper and pulp industry. Establish a demonstration project: a central pulp mill with 30,000 tons/year capacity in Taian City. Introduce technologies which will have an annual alkali recovery of 10,000 tons and an increased output of US$ 30 million. Regulate wastewater discharge quality to meet national discharge standards at completion of the demonstration project. 3. Activities 3.1 Organize a clean production research center and expert group consisting of administrators and technical experts under the leadership of CNCLI. Formulate ongoing clean production programs for the pulp and paper industry. Formulate industrial policies, laws and regulations for pollution control of light industries. Develop a national information and technology dissemination program. Encourage international exchange and cooperation to develop clean production technology and technique capabilities on development. Project duration is three years. 3.2 Establish a 30,000 tons/year demonstration project for centralized pulping in Taian City Introduce advanced technology and equipment for pulp manufacture and alkali recovery from straw pulp black liquor. Adopt best available techniques and technologies compatible with advanced Chinese equipment for the demonstration project through international exchanges, investments and capability building. Import key technology and equipment including wet stock preparation machine, disc presser, continuous horizontal tube digester, vacuum washer and replaceable presser, non-chlorine bleaching apparatus, four driver multi-cylinder paper machine, super finishing machine, double winder recovery unit for black liquor, multi-effect evaporator and automatic control systems. Training of administrative personnel and key technicians for clean production demonstration project. The duration of this activity will be five years. This project will be implemented by China National Council of Light Industry. 4. Inputs The estimated financial input for this project is US $64.00 million, of which one-half of the total is sought from international financing. Table 1 presents funding details. 4.1 International Inputs Academic and technical exchanges and business negotiation. Inviting foreign specialists for planning and consultation. Importing key advanced equipment. Training abroad. Demonstration project seeds money. 4.2 Domestic Inputs Procedures for application submission and approval of the project Inviting domestic experts Complete civil facilities engineering Data gathering Training and capability development Demonstration project seeds money Environmental impact assessments 4.3 Budgets Budget (in million US dollars) Activity Chinese Input External Input Grant Soft-loan Total 3.1 1.0 1.0 2.0 3.2 30.0 30.0 60.0 3.3 1.0 1.0 2.0 Total 32.0 2.0 30.0 64.0 The payback time for the investment is estimated at 8.5 years (including 5 years for construction). The project loan will be repaid by Taian Paper Industry Group and Shandong Province. 5. Benefits Following project implementation, the results and findings of the demonstration project will be disseminated for adoption nationwide. The anticipated result is cleaner production through waste reduction, recycling and reuse, and more efficient utilization of process inputs. The alkali recovery rate in the paper industry will rise from 30 percent to 75 percent, resulting in a discharge reduction of 600,000 tons annually. This will reduce organic effluent concentrations by 70 percent.   3-2b A Demonstration Project for Cleaner Production of Chemical Fibre Pulp Project Scope and Relationship to China's Agenda 21 The project is based on programme area 12C of China's Agenda 21 - Development and Application of industrial technology. This project is related to programme area 12B of China's Agenda 21 concerning development of cleaner production methods, programme area 13B, improving energy efficiency and energy conservation, and programme area 14D, management and sustainable development of land resources. 1. Background It is common knowledge that China has a scarcity of cultivable land and as a result the country is experiencing a cotton shortage thus chemical fibers are augmenting the supply. Foremost among chemical fibers are viscose fibers which have similar properties to natural fibers. China produces 240,000 tons of viscose fibers annually which consumes approximately 250,000 tons of chemical fibre pulp. Cotton liner is the basic raw material for the production of chemical fibre pulp and amounts to approximately 87.5% of the total pulp utilized by the chemical fibre industry. The proposed project involves clean production of cotton liner pulp. Data provided by major pulp mills in Shanghai, Nanjing and Xinxiang indicates that production of one ton of pulps results in an effective discharge containing 300-400kg of COD and 100kg of BOD. The primary source of the high contaminant discharge is poor production techniques and the large volume of untreated chemicals and organic waste which is discharged with the black liquor draining from the pulp processing. Shanghai has three major chemical fibre pulp mills which on daily basis discharge concentrated black liquor into Hangpu River equipment to the daily effluent drainage load of a mid-size city. Two of the three mills are inclose proximity to the water intake of a municipal water plant thus the effluent significantly contaminates the city's drinking water. This problem is duplicated in may other cities in China. Shanghai Municipality has approved the transfer of the three pulp mill operations to remote rural area and their consolidation into the Shanghai General Chemical fibre Pulp Mill. This will result in only one waste stream which can be more effectively treated. Thus significantly reducing contaminant discharge and facilitating Chemical recovery. The consolidation of the mills will therefore promote cleaner production. The General Chemical Fibre Pulp Mill has completed land requisition, feasibility studies and preliminary design. A major portion of the investment for the new facility has been secured, and procurement of major imported equipment is under negotiation. Most domestic chemical pulp mills are under technical renovation. During the "Eighth Five Year Plan" and "Ninth Five Year Plan" all pulp mill renovation is required to follow a clean production and effective effluent treatment strategy. The proposed project will provide a very significant example for the technical upgrading of all China's pulp mills. The present chemical fibre cotton liner production process and technology in China is obsolete. This results in inefficient production and ineffective extraction and recovery of black liquor. Although the black liquor concentrations are removed through mixing with process waste water, the organic pollution (COD) content continues to significantly exceed discharge standards. Effluent handling therefore in China's mills is economically not feasible due to the high cost of end of the pipe treatment. Some advanced clean production equipment imported from overseas suppliers such as the Fourdrinier washing Machine is increasingly utilized in China. This extracts 90% of the process black liquor compared with the older plate type washing machines which only have an extraction rate of 60%. The more advanced washing equipment is effective for mid-process black liquor extraction and reduction. However, some other new processes, for example continuous beating equipment, remains to be imported. Shanghai, the largest city and the financial and trade center of China, has a strong desire to control the effluent from the three pulp mills. The proposed project however lacks sufficient financing and requires capacity building and standards development capabilities for successful implementation. 2. Objectives Long-term Objectives To achieve clean production of chemical fibre pulp through substantial reduction and control of black liquor discharge to surface waters. To improve the pulp production process and enhance the development of viscose fibre production. Immediate Objectives To relocate the three existing chemical fibre pulp mills and to consolidate them in one new model clean production chemical pulp mill. To import certain key equipment as listed below and improve the production process reduce contaminant discharge and implement chemical recovery and recycling strategies. The proposed Shanghai General Chemical Pulp Mill as an example facility will produce 30,000 tons of chemical pulp per year and will meet the following standards. - Discharge of COD to the Huang Pu River will decrease from 44 tons/day to 1.6 tons per day - Discharge of BODs to the Huang pu River will decrease from 25 tons/day to 0.7 tons per day The black liquor extraction rate will increase from 60.5% to 90%. The quality of treated effluent will meet the Shanghai local discharge standards thus making a great contribution to the improvement of the Huang Pu River water quality. The Shanghai Chemical Fibre Pulp Mill is proposed as a demonstration project to illustrate advanced chemical fibre production processes and pollution reduction techniques. The experience gained from the technology transfer and upgrading will be adopted by other pulp facilities such as the Nanjing and Baoing Mills which are currency operating with obsolete equipment and by other mill nationwide which foresee that in the year 2000, 70% of the Chinese Chemical fibre pulp mills will reach current Shanghai production level. 3. Activities 3.1 In accordance with principles and policies stipulated in the programme areas of China's agenda 21, the proposed chemical fibre mill will improve management systems and establish complete administration structure for sustainable development, the facility shall meet all necessary standards and regulations for cleaner production of chemical pulps. The duration of this activity two years. 3.2 To develop the Shanghai Chemical Fibre Pulp Mill as a demonstration project for clean production of chemical pulps. The proposed pulp mill is to be organized by the production decisions of the existing No.5, No.6, No.7 pulp mills following relocation and consolidation. It is proposed to re-establish the Shanghai General Chemical Fibre Pulp Mill by late 1995 with and annual production capacity of 30,000 tons and with a total capital investment of 140,000,000 yuan RMB. The mill will be located in Feng Xian County - a suburban area of Shanghai. During the production process the wax, lignin and gum will be dissolved out from the cotton linker during heating in alkali. The resulting black liquor which contains large quantities of alkali and organic matter has high COD content lup to tens of thousands mg/l. The current pulp washing processes are very in effect therefore a large quantity of black liquor flows into the mid-process stage, and finally discharges into Huang Pu River. As part of the proposed project it is planned that fourdrinier washing machines will be installed to extract black liquor. Following recovery, the will be concentrated and burned. The heat value of black liquor and alkali recovered can be used fourth production process. Since the black liquor contamination from pulp production is virtually eliminated and alkali is recovered, the pulp mill can thus achieve cleaner production. In addition to importing a new washing machine technology, the existing batch type beating machine will be replaced wth continuous beating machine thus increasing energy efficiency and maximizing black liquor extraction rates. An advanced automatic bleaching process is also to be imported to upgrade the correct manual operation and to reduce the consumption of chemical raw materials. The proposed project will require an investment of 2,524,000 US dollars to import a total of 11 units of advance machinery of which 2,036,000 US dollars will be directly used to purchase the imported equipment, while 488,000 US dollars will be used to purchase domestic made machines. Table 1 presented bellow, lists proposed equipment to be purchased. The duration of this activity will be two years. 3.3 The production of cotton pulp at the proposed Shanghai Chemical Fibre Pulp Mill should amount to one seventh of the total national pulp output. All other existing pulp mills which have a similar production capacity could - Benefit from the Shanghai experience between 1996-2000. The duration of this activity will be two years. This project will be implemented by China General Textile Association and undertaken by related mill. 4. Inputs 4.1 The total investment for the proposed Shanghai Chemical Fibre Pulp Mill is US $16.09 million (of which US $5.1 million is reserved for environment protection inputs including black liquor recovery effluent biological treatment and spent gas treatment). The proposed project requires an international loan of US $2.52 million, the investment for the black liquor recovery equipment. 4.2 Capacity Building, including training, supervising by foreign experts, establishment of standards and criteria will require 90,000 US dollars. The project will input approximately 50,000 US dollars from local financial sources and requires 40,000 US dollars from international sources as technical assistance or loans, international capacity building technical assistance grants may be tied to equipment purchase. 4.3 The proposed Shanghai Chemical Fibre Pulp Mill will have an estimate annual sales revenue of US $21.96 million, profit of US $1.75 million and past- tax revenues of US $1.19 million. Therefore the new pulp mill will have the capability for loan repayment. Budget (in million US dollars) Item Chinese Input External Input Grant Soft-loan Total Experts and training 0.03 0.02 0.05 Formulation of standard critera 0.02 0.01 0.03 Technical information 0.01 0.01 Recovery of black liquor 2.52 2.52 Miscellaneous 13.48 13.48 Total 13.53 0.04 2.52 16.09 5. Benefits The proposed pulp mill will greatly promote clean production of chemical fibre pulp and sustainable development. The total discharge contaminant load from pulp production will be reduce by over 80%, and improve the Huang Pu River water quality. As mentioned above discharge the COD will be reduced from 44 tons per day to 1.6 tons per day. Due to significant water consumption most of large chemical pulp mills are located near to rivers and lakes, thus significantly impact water quality this demonstration project will provide a model for upgrading China's major pulp mills and as such will considerably improve water quality in the nation's major water bodies.   3-2c A Demonstration Project For Cleaner Production of Steel Project Scope and Relationship to China's Agenda 21 This project is based on programme areas 12B, 13B, and 13C of China's Agenda 21, concerning development of cleaner production methods, enhancing energy efficiency and conservation, and cleaner coal technology. It is also related to chapter 18A concerned with control of atmospheric pollution and acid rain. 1. Background Pollution of the environment, especially atmospheric pollution due to emissions from coal burning is of major concern in China. A large quantity of ferric oxide dust and harmful gases, including sulphur dioxide, carbon monoxide and carbon dioxide which are emitted by China's industrial facilities harm human health and damage animal and plant development.In recognition of these facts, the government has set strict air quality standards to regulate dust and gas emissions from combustion sources. Environmental protection bureau at all levels have imposed some pollution control criteria and monitoring requirements. These regulatory tools however , have not achieved their purpose due to China,s obsolete industrial technology. Therefore implementation cleaner production techniques is considered of great significance for the control of emissions, particularly in the steel industry which is one of China's most polluting industrial sources. The steel-making facility of the Changchun Iron and Steel General Works discharges large quantities of smoke and dust, due to obsolete equipment and technology, thus exceeding regulatory standards. The facility releases 3.2 million cubic meters of smoke annually into the environment, thus exceeding all particulate and gas emissions standards. Approximately 844 tons of ash is emitted, while the noise level near the plant can reach 102dB. The steel-making facility is located in an urban area, thus the pollution impacts nearby residents, which have raised protests and demanded a return to blue skies. The municipal government considers this problem a priority and has ordered that action be taken in a specified period of time. The steel-making plant is listed as one of the eight major pollution sources in Changchun. It is proposed that the facility, which is considered a key economic asset, be upgraded and advanced technology and equipment be installed. Therefore a cleaner production demonstration plant is proposed as a model for other plants. The experience will then be transferred to assist other facilities with improved quality and other technical improvements. Industrialized countries have developed cleaner production technologies and equipment to meet regulatory standards, thus decreasing pollution and emission quantities greatly. The experience they have accumulated can be transferred to assist environmental protection in China. Under the leadership of the Changchun municipal government, it is proposed to relocate the facility to a new site.Study has been made and the proposal has been adopted for implementation. The proposed facility relocation will mitigate the direct impact on the urban population, improve production efficiency due to equipment upgrading, boost production capacity, increase production range, promote the facility technical level and economic benefits, as well as build a clean steel-making production demonstration project. While the municipal government has approved the proposed project, funds are not currently available to implement the project. Thus both technical and financial assistance is needed from the international community in order to procure efficient steel-making equipment and build a cleaner production demonstration project. 2. Objectives Long-term Objectives Through technical upgrading, introducing advanced steel-making equipment, technology and techniques, ineffective traditional pollution control methods can be substituted for cleaner production techniques which would minimize ash and gas emissions, reduce noise, waste water discharge and other impacts of steel-making. Establish a demonstration project which would develop the metallurgical industry and transfer the techniques of clean production to other steel mills in China. Immediate Objectives Relocate the facility to a new site and construct a new advanced equipment, technology and techniques to achieve high output, improved quality, product variety and reduced pollution Reduce emissions by 75%. Particulate emission should not exceed 100 million-gram per cubic meter, noise should be below 90dB, and the environment should visibly improved. Provide a model for upgrading the metallurgical sector in China With advanced equipment and technology, increase product variety, decrease production cost, improve quality, and boost economic benefits. Establish a mid-size steel-making clean production demonstration project with an annual value of US $50 million and an after-tax profit of US $6.2 million. 3. Activities 3.1 Introduce advanced manufacturing technology and equipment. Construct a model clean steel- making plant. Equipment to be imported includes: A set of 50 ton superhigh power D.C. furnaces A set of 100 ton ladle refining furnaces R6M three-phase current three component square billet conticaster and continuous mill set 3.2 Import technical information including blueprints and specifications and invite foreign experts for consultation. 3.3 Train staff in modern manufacturing techniques and send staff to the countries from which technology and equipment will be imported for training. Master operation methods of imported equipment. 4. Inputs 4.1 Chinese Inputs To perform the proposed project, an estimated US $34.0 million is required including US $18 million in domestic inputs. 4.2 International Cooperation US $16.0 million in international financing. Changchun Finance Bureau will seek domestic loans to supplement existing funds at the steel works. International financing may be input as a loan or a joint venture. It is anticipated that the proposed facility will have an annual profit of US $7 million which will permit a return on international investment of 5-8 years. 4.3 Budget Budget (in million US dollars) Activity Chinese Input External Input Grant Soft-loan Total 3.1 0.50 0.50 1.00 3.2 17.00 15.00 32.00 3.3 0.30 0.30 0.60 3.4 0.20 0.20 0.40 Total 18.00 15.00 1.00 34.00 5. 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