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1. Project Summary and Relationship to China's Agenda 21 This project seeks to treat the wastewater discharged from the Taiyuan Chemical Industrial Park. The treatment plant will reduce pollution and provide a secondary water source for industry. Meanwhile, this project will utilise solid waste, such as coal ash generated from the industrial park, to produce industrial aluminium oxide and cement. The project will open an effective way to reclaim the solid waste of the chemical industry. This project is based on programme areas 14C and 19A of China's Agenda 21, and related to programme areas 19B and 12B.

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2. Background

Taiyuan Hexi Chemical Industrial Park is one of the important chemical industrial bases in China. Its daily consumption of fresh water is 120,000 tons (including domestic use in this area, and excluding the water consumption of Taiyuan No. 1 Power Plant), and the daily discharge of industrial wastewater is approximately 100,000 tons. Every year, a large amount of wastewater which contains about 8,000 tons of CODcr, 4,000 tons of NH4+-N, 100 tons of phenol, is discharged into the environment without treatment, causing serious surface and ground water pollution in the Taiyuan area. According to the Shanxi Environmental Quality Report 1994, the water quality in the Xiaodian Bridge section of the Fenhe River was in critical condition: CODcr concentration was 116.61 mg/l, NH4+-N 43.06 mg/l, and phenol 3.05 mg/l. These concentrations were 5.8 times, 215.3 times and 305 times more than the Class IV Surface Water Quality Standard. The serious pollution of the Fenhe River and groundwater has threatened the health and environment of 30 million people living downstream of the river. Under the support of the provincial and municipal governments, Taiyuan Chemical Industry Group Corp. (TCIGC) constructed the Nanyan Wastewater Treatment Plant and installed pre-treatment equipment in most of the chemical plants in the industrial park. The Nanyan Wastewater Treatment Plant costs a total of 70 million yuan and treats 60,000 tons of wastewater daily. However, the treated wastewater, which is directly discharged into the Fenhe River, contains much a higher concentration of inorganic salt and COD than those required for reusable industrial water, thus causing a vast waste of water resources and polluting the Fenhe River. Therefore, the park wishes to correct the situation through recycling the effluent from the wastewater treatment plant. This project will reduce water pollution and promote efficient use of the water. The Chemical Fertiliser Plant of TCIGC consumes 45,000 tons of fresh water (residential water included) and discharges 38,000 tons of wastewater daily. The plant discharges 2,300 tons of COD and 3,500 tons of NH4+-N annually. So an effective wastewater treatment for the plant is critical to the water pollution control of the Fenhe River. Over the past years, million of tons of solid waste, such as fly ash from boilers, has been accumulated in Taiyuan Hexi Chemical Industrial Park. The Taiyuan Power Plant and Fertiliser Plant produce 700,000 t/a of solid waste which contains over 30% of Al2O3, the PVC production line generates 20,000 tons(200,000 tons in future, planned) of calcium carbide which contain much Ca(OH)2, and the sulphuric acid production plant produces 280,000 tons of sulphur iron ore residue annually. Those solid wastes are stored up in the park for decades and occupy tens of hectares of land. As a result, the groundwater quality in the area is jeopardised . Since Taiyuan is a dry city with little rain, the fly ash also creates serious air pollution problems in the windy season. Therefore, TCIGC is urgently searching a way to properly dispose of and utilise the solid waste. The municipal government of Taiyuan has paid much attention to the pollution problems of Taiyuan Hexi Chemical Industry Park. In the last decade, the government has raised 100 million yuan to construct dozens of pollution control facilities. In 1994, the Shanxi provincial government formed a task force for Fenhe River Pollution Control, which is responsible for the cleanup the Fenhe River in ten years. As a part of the Development Plan of TCIGC, this project has been incorporated into the Pollution Control Plan for Fenhe River and the Ninth Five Year Plan of Shanxi province and the Ministry of Chemical Industry of China. TCIGC is one of the ten largest chemical group enterprises in China with a fixed asset of 2.89 billion yuan. In 1995, its sales income was 1.45 billion yuan and the profit and tax was 89.8 million yuan. Currently, the corporation has 32 branches with 29,682 staff members. 3,700 of them are middle to high level technicians. Therefore, the corporation has the financial ability and the human resources to complete this project. TCIGC has contacted some foreign environmental companies to investigate how to reuse the treated wastewater from Nanyan Wastewater Treatment Plant since October 1994. Some foreign companies have shown strong interest and confidence in using reverse osmosis film technology to desalinise the wastewater from Nanyan Wastewater Treatment Plant. The project proposal for introducing this technology has been finished and the preparation work has just started. As for the wastewater treatment project of the Chemical Fertiliser Plant, TCIGC has commissioned the Nanjing Fuhang Environmental Protection Engineering Institute to carry out a feasibility study. The study focused on the possibility of employing the T oxidation ditch process and the Ozone/ Activated carbon process to treat 50,000 tons of wastewater and produce 24,000 tons of reusable water daily. The feasibility study has been completed and submitted to the Planning Commission and the Environmental Protection Agency of Shanxi province for approval. TCIGC has conducted a preliminary investigation on how to reclaim and utilise the solid waste generated in the park. The group has conducted cost-effectiveness analysis on the process of using coal ash to produce aluminium oxide and cement and these applications in European countries. At present, TCIGC has prepared some equipment for this process, such as a gypsum and sulphuric acid producing unit.

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3. Objectives

3.1 Long-term objective To promote sustainable development of China's chemical industry and to reduce pollution in the Fenhe River, via reclamation of industrial waste from TCIGC

3.2 Immediate Objectives * To abate the serious water pollution and develop new water sources for the Taiyuan Hexi Chemical Industry Park, and to upgrade the level of denitrification and tertiary treatment for chemical industrial waste water; * To reclaim and utilise solid waste to produce aluminium oxide and cement.

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4. Outputs and Activities

4.1 Tertiary treatment and reuse of the effluent from the Nanyan wastewater treatment plant * Investigate the applications of anti-permeation technology abroad, and carry out the feasibility study and cost-effectiveness analysis for its application in Taiyuan Hexi Chemical Industry Park; * Introduce reverse osmosis film and technology, and construct a tertiary treatment facility with a production capacity of 12,000 t/d of reusable water. Monitoring Indicators: construction of the tertiary treatment facility with the quality of its effluent meeting the requirement of water for industrial use, in which TDS< 400 mg/l, COD<10mg/l. Implementing Agencies: organised by Taiyuan Chemical Industry Group Corporation, implemented by its Water Supply Plant.

Time Schedule: January 1997 - December 1998

4.2 Comprehensive treatment and reuse of ammonia containing wastewater discharged from the Chemical Fertiliser Plant * Carry out the feasibility study on comprehensive denitrification treatment of wastewater; * Separate the wastewater flow with different levels of pollutant concentration, pretreat 100 -150 t/h of wastewater with high concentration of ammonia by purging with pH adjustment or film separation. The process will recover 10,000 t/a ammonia sulphate, and NH4+-N concentration of pre-treated wastewater will decrease from 350mg/l to 100mg/l; * Build a secondary treatment plant that adopts oxidation ditch process to denitrify pre-treated wastewater with a capacity of 50,000t/d. The process will reduce the NH4+-N concentration to 25 mg/l and the COD to 60 mg/l; * Build a tertiary treatment facility that uses ozone and activated carbon technology. The plant will have a capacity of 25,000 t/d and recycle treated water for industrial use. The COD will be reduced to less than 20 mg/l and the NH4+-N to less than 10 mg/l. Monitoring Indicators: production of 25, 000 t/d reusable water for industry; reduction of 3, 000 t/a of NH4+-N and 1,400 t/a of COD discharged into the Fenhe River annually. Implementing Agencies: organised by Taiyuan Chemical Industry Group Corporation, and implemented by its Chemical Fertiliser Plant .

Time Schedule: January 1997 - December 1998

4.3 Production of aluminium oxide using the solid waste from Taiyuan Hexi Chemical Industry Park * Conduct investigation, cost-effectiveness analysis and feasibility study on combined production of aluminium oxide and cement from the solid waste; * Construct a 50,000 t/a aluminium oxide production line, of which the main equipment includes a melting reaction furnace, retting device, filter, forging furnace, and dust separator. Monitoring Indicators: a feasibility study , construction of an aluminium oxide production line with a capacity of 50,000 tons of qualified industrial aluminium oxide annually. Implementing Agency: Taiyuan Chemical Industry Group Corporation

Time Schedule: January 1997 - June 1999

4.4 Production of cement using the solid waste from Taiyuan Hexi Chemical Industry Park * Make use of the residues of aluminium oxide production, other industrial solid waste and the existing facilities to construct a 200,000 t/a cement production line, in which the key equipment include: dryer, back cycle cement burning furnace, ball grinder, burned materials and cement warehouse, etc. Monitoring Indicator: construction of the cement production line with the annual output of 200,000 t/a of cement with accepted quality standards. Implementing Agency: Taiyuan Chemical Industry Group Corporation

Time schedule: January 1997 - June 1999.

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5. Inputs

5.1 Chinese Inputs Chinese inputs mainly include the site and equipment for the construction project, transportation, office, communication and living facilities for the construction workers, technical and monitoring data, domestic experts and technicians, and part of the funding for project construction.

5.2 International Inputs International inputs mainly include the reverse osmosis film technology and its equipment, technology and key equipment for combined production of aluminium oxide and cement, and part of the funding for the project construction. 5.3 Budget The total investment for this project is US$ 71.55 million. The Chinese side will raise US$ 36.24 million from domestic source, while the foreign aid and investment will cover the other US$ 35.31 million.

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Table 1. Budget by Item (in million US dollars)

Table 2. Budget by Output (in million US dollars)

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6. Benefits It is estimated that this project could bring an annual sales of US$ 23.892 million and a tax exempted profit of US$ 10.312 million after its completion. Not considering possible risks in project implementation, the static payback period of the investment for the project will be 5.4 years. If these risks are included, the static payback period of the investment will be 7.7 years. The investment will bring 300 million RMB profit and 250 million RMB tax income for the government. The new facilities will reduce discharge by 7000 t/a COD, 3000 t/a NH4+-N and 90 t/a phenol discharge. As a result, the pollution of the Fenhe River section in Taiyuan can be greatly alleviated. Development of a new 36,000 t/d source of industrial water will promote water saving, which will help to solve the water supply problem for industries with the annual production value of 2-3 billion yuan, increase profit by 200 million yuan and tax by 250 million yuan. This project will also save mineral resources and dispose of 300,000 tons of solid waste accumulated in the Taiyuan Hexi Chemical Industry Park annually.

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7. Risk Funding is a problem and might delay the project. Currently, many state-owned enterprises are short of funds, thus the funds available for the project are very limited. This problem can be solved by obtaining support from the central and local governments, introducing international investment, and giving an economic incentive for industrial waste reclamation. China lacks the necessary technologies for the project. The difficulty can be overcome by introducing completely integrated processes, technologies and equipment from abroad.

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