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programs focus on raw material selection and a more precise phosphorus allocation, and the addition of phytase enzyme to improve phosphorus utilization. Suomen Rehu has been able to reduce the amount of added phosphorus by almost 700 t/a in poultry and pig diets between 1995 and 1997. This enables the reduction of the phosphorus content of manure by 30 percent, which in turn promotes environmentally compatible livestock production and enables farmers to increase the number of animals they keep. Feeding management can also be utilized in developing poultry diets without any added growth promoter substances with an antibiotic effect; and pork diets without any added growth promoters. As a result of these types of feeding programs, the proportion of feeds produced by Suomen Rehu without such additives has steadily increased. In 1997, 85 percent of the pigs fed with Suomen Rehu feeds received diets without any added growth promoters. ISO-VILJA TM technology, developed by Suomen Rehu, is a commercial quality and environmentally oriented cultivation concept. Targeted nutritional content and feeding value, controlled quality with respect to product hygiene and residues, and traceability from cultivation to transportation and the feed factory are the most significant features of ISO-VILJA TM technology. ISO-VILJA TM is used by Suomen Rehu to enhance the quality of raw materials used for feed manufacturing. A transparent, documented quality chain for animal production and livestock-based foodstuffs is employed. The benefits of ISO-VILJA TM technology to the farmer include better profitability as a result of higher yields and significant savings in fertilizers. In addition, residual nitrogen in the soil can be reduced by up to 60 percent. In 1997, 1600 farmers adopted this cultivation method, 3000 farmers received training on the E-46 Environmental Accountability TABLE E-8 The Most Significant Environmental Incidents at Business Units between 1995 and 1997 Cultor Business Sector/Division Accident or Leakage CFS Xyrofin, Kotka, Finland A discharge valve of a caustic (NaOH) storage tank was accidentally left open in summer 1996, causing a leak of 22.5 tonnes of caustic soda into the sea. A capital project for a new storage tank and distribution system was undertaken as corrective action. CFS Xyrofin, Kotka, Finland In summer 1997, wastewater was discharged into the sea for seven days (approximately 120 hours in total) due to pretreatment, electricity, and wastewater treatment system failures. CFS Flavor Technology A package containing ethanol-based flavoring products was shipped improperly from the Corporation, East Windsor, U.S. facility in summer 1997. Penalties of FIM 52,000 have been paid. This led to changes in risk management in the shipping of hazardous materials Cultor Baking, Vaasan Baking, An oil leakage took place in summer 1996 as a result of old pipelines and corroded valves. Nelo Bakery, Finland The soil was treated immediately in cooperation with the authorities. Cultor Nutrition Finnsugar, Fire damage in summer 1997. No damage to the environment or production resulted. Kantvik, Finland Cultor Nutrition EWOS, Scotland 1) Land near the factory was previously used for landfill between 1993 and 1996. Landscaping and clean-up was carried out during 1997. Clean-up costs totalled FIM 640,000. 2) Fish oil leakage into a stream took place in summer 1996. A total of FIM 3600 in fines were paid. 3) Fish oil leakage into a stream in late 1996 and early 1997. The case was treated immediately in cooperation with the authorities. No legal action was taken. 4) Fuel oil leakage in summer 1997 as a result of the failure of old pipelines. Clean-up costs totalled FIM 210,000. A total of FIM 18,000 fines were paid. The wastewater system mentioned on Page 29 in this report will reduce the risk of contamination of the local water system from taking place in the future. Cultor Feed Ingredients ᭿ To reduce odor generated by betaine production at the Naantali plant. ᭿ To implement documented quality and environmental management systems. ᭿ To reduce effluent loadings and improve energy efficiency at Pacific Protein. Cultor Baking ᭿ To develop the concept of controlled farming. ᭿ To improve health and safety at bakeries. Cultor Nutrition FINNSUGAR DIVISION ᭿ To further reduce the environmental impact of sugar beet cultivation. To incorporate environmental management in the quality management system. ᭿ To finalize the LCI (Life Cycle Inventory) on sugar beet and its main products in 1995. ᭿ To further reduce the environmental impact of drying beet pulp. ᭿ To promote the recovery/recycling of packaging waste and increase the use of bulk transportation. EWOS ᭿ To further reduce the environmental impact of fish farming. ᭿ To develop alternative protein sources for fish feed production. SUOMEN REHU ᭿ To further improve the division’s environmental management system and reinforce the image of Finnish food as clean and wholesome. New objectives Implementation of Cultor’s sustainable development value process Environment Quality Regulatory and ethical issues ᭿ A study was initiated in 1997 to explore suitable biological methods for an odor treatment investment. This will be completed in mid-1998. ᭿ Enzyme operations received ISO 9001 certification in 1994, and Betaine operations ISO 9002 certification in 1997. The certification target for ISO 14001 covering both operations was 1999. ᭿ An investment has been made in pretreatment of wastewater and heat recovery systems. ᭿ Investments in flour dust removal systems at various bakeries. ᭿ Further work has been done, together with the Sugar Beet Research Centre. Goals have been set as part of implementing the ISO 14001 standard. ᭿ The LCI was completed in 1995. ᭿ The overall nitrogen loading associated with fish feed has been reduced by 80% over the last 20 years, and has now reached the level where further improvements will be difficult to obtain without affecting feed quality properties. ᭿ Work has been done on soya as an alternative protein source. ᭿ Suomen Rehu received ISO 14001 certification in 1996. Value network thinking and supplier auditing have been promoted. Improvements have also been made to feeding management systems, and ISO-VILJA TM technology has been introduced. ᭿ Develop Cultor’s environmental database to better meet the needs of both the Group and divisions. Improve the reliability of the data collected through the database. ᭿ Develop indicators for environmental, quality, regulatory, and ethical issues to measure performance; and conduct a pilot study to test the suitability of the indicators chosen. ᭿ Implement Cultor’s new Quality and Environmental Policy in operations. ᭿ Develop documented quality and environmental management systems for all of Cultor’s major business units Divisions to set detailed targets and objectives. ᭿ Continue to conduct LCIs for major products and use LCIs as an internal environmental management tool. ᭿ Start monitoring transportation data at Group level. ᭿ Improve the follow-up of H&S indicators at both Group and divisional level. Develop the data collected and definitions used. ᭿ Start using self-assessment as a Group-wide tool for continuous improvement. ᭿ Continue internal benchmarking for process improvements and start external benchmarking. ᭿ Start divisional cross-auditing. ᭿ Implement the new Regulatory Policy in divisional operations. Create standard operational procedures based on the policy and set goals for Cultor’s regulatory work. ᭿ Implement the Animal Trial Policy in divisional operations. ᭿ Implement the Modern Biotechnology Position Paper in divisional operations. ᭿ Continue proactive dialogue with stakeholders, particularly in the area of modern biotechnology. TABLE E-9 Environmental Report 1995 Objectives Progress technology, and 14,000 technical leaflets were distributed. (See Figs. E-39 through E-41.) Environmental reports Objectives and targets. Table E-9 describes the progress that Cultor has made in implementing the objectives detailed in its 1995 Environmental Report. New objectives are also given, linked to four key areas: implementation of Cultor’s sustainable development value process, the environment, quality, and regulatory and ethical issues. The objectives and corporate target objectives are updated annually. E-48 Environmental Accountability FIG. E-39 Taking a chlorophyll measurement on one of the farms using Suomen Rehu’s ISO- VILJA TM advanced cereal farming concept. (Source: Cultor.) Reference and Additional Reading 1. Soares, C. M., Environmental Technology and Economics: Sustainable Development in Industry, Butterworth-Heinemann, 1999. Environmental Air Monitoring (see Emissions) Environmental Economics* Environmental resources and effects are difficult to quantify using the usual economic terms and definitions. “Environmental economics” includes special Environmental Economics E-49 FIG. E-40 Amount of inorganic phosphorus used at Suomen Rehu. (Source: Cultor.) FIG. E-41 Pig feed production with and without growth promoters. (Source: Cultor.) *Source: AssiDomän, Sweden. Adapted with permission. additional costs and revenues generated by environmental measures, whether compulsory or voluntary. A discussion of the term follows with specific reference to the information source’s corporate policy. Yardsticks of Environmental Economics (Reference Corporation: AssiDomän) Biological diversity External, independent certification of forestry preserves biological diversity at the same time as active forestry is pursued. By means of the certification process, the market can complement and hasten necessary legislation. The development and introduction of new ecological forestry methods and the certification process are viewed as investments in the future by companies that practice them. The additional costs of these efforts within AssiDomän in 1995, 1996, and 1997 have been estimated at MSEK (millions of Swedish kronor) 100, 120, and 150, respectively. As the new methods gradually become the accepted norm, the actual voluntary additional costs are estimated at half this amount. Certification raises the value of forest assets, and certified products are expected to yield additional revenues amounting to several tens of millions of Swedish kronor for AssiDomän over many years. These measures contribute strongly to improving global image as a proactive and leading force in the environmental field. This is a particularly strong corporate objective in western European countries, such as Sweden. In AssiDomän’s case, much of the corporation’s holdings and the head office are in Sweden. However, it has assets elsewhere, notably Germany. Reduced emissions Environmental measures to reduce emissions from the plants are undertaken in response to local legislation, license conditions, environmental charges, and taxes, and as voluntary investments. The Swedish legislation and licensing procedure requires the best available technology within reasonable economic limits—an effective stimulus to advances in environmental technology. Within AssiDomän, efforts are being concentrated on reducing discharges of oxygen-demanding substances to water, reducing emissions of acidifying sulfur and nitrogen oxides to air, and energy conservation measures. Large environmental investments are often undertaken as part of other major capital investments, particularly at pulp and paper mills. The environmental capital cost is between 10 and 25 percent of the project (around MSEK 300 in 1997 for AssiDomän). Environmental charges and taxes amounted to approximately MSEK 50. Note that some of these taxes are specific to individual countries. They are not yet globally accepted practice. For instance, Sweden charges NO x and SO x taxes; as of 2001, the United States does not. Roughly 10–20 percent of the environmental investments can be regarded as voluntary. In some cases they can yield direct additional revenues for products with an environmental profile (goodwill investment, enhancing the company’s image, name, and trademarks). See also Table E-10. Some examples: ᭿ The new biofuel boiler in Frövi reduces the oil requirement, permits increased biofuel use, and is projected to become increasingly profitable as energy taxes rise. ᭿ Ash restoration: Recovering the ashes from the wood-processing mills, treating them and returning them to suitable soils will eventually be necessary due to the E-50 Environmental Economics threats of soil acidification and nutrient deficiency in combination with future waste requirements and charges. Several trials are under way. ᭿ Reduced sulfur content in ship fuels: This voluntary measure incurred a short- term additional cost for AssiDomän, but was more environmentally cost-effective than alternative measures to reduce sulfur emissions. It influenced the decision of authorities regarding environmental charges for shipping. Research and development on cleaner and more energy-efficient processes Research and development investments in the group amounted to around MSEK 210 in 1997. It is estimated that approximately MSEK 65 of these have a direct or indirect link to the environment. These investments include the projects concerning bleaching, air and water pollution control, and “ecocycles” that are for the most part being pursued on a joint sectoral basis. A unique AssiDomän project in cooperation with suppliers is black liquor gasification, where a demonstration plant is planned at AssiDomän Kraftliner in Piteå. This new technology is expected to become a breakthrough that will provide higher energy efficiency and twice the production of electrical energy from biofuel. The project has been granted state energy subsidies amounting to half of the construction and experimentation costs totaling MSEK 475. Environmental Economics E-51 TABLE E-10 Some Environmental Key Ratios Purchased Electricity Fossil Fuels (kWh/SEK 1 ) (kWh/SEK 1 ) Type of Activity 1997 1995 1997 1995 AssiDomän’s five pulp 0.88 0.39 0.89 0.37 and paper mills in Sweden Industry, pulp and — 2 0.46 3 — 2 0.27 3 paper mills AssiDomän’s corrugated 0.06 — 2 0.13 — 2 board and sack production 4 1. Value added is the sum of operating profit after depreciation and payroll expenses. 2. No data available. 3. Energy consumption: source—ÅF-IPK, Energy Consumption in the Pulp and Paper Industry, 1994 (in Swedish). Value added: source—SCB, Industrial Statistics, 1995. 4. Applies to all plants in the Group. NOTE: It is AssiDomän’s ambition to contribute to the development of environmental key ratios that can describe how the environmental work affects resource use and financial position. Since energy use is strongly environment-related and furthermore an important cost item for the forest products industry, AssiDomän’s energy use is reported here in relation to value added. This reflects both the energy intensity of the company’s own activities, and sensitivity to energy price changes. The difference between 1995 and 1997 is explained for the most part by the fact that the price level for the end products, and thereby the value added, was considerably higher in 1995. It is of interest to note that energy use in relation to value added is nearly 10 times lower in corrugated board and sack manufacture than in the pulp and paper mills. The table also shows that AssiDomän is at roughly the same level as the rest of the Swedish pulp and paper industry. Energy price sensitivity is shown by the fact that when converted to energy costs, the expenditures for electricity and fossil fuels correspond to 10–20 percent of the value added. Development of resource-efficient packaging Development of more resource-efficient, lighter-weight, and more transport-efficient packaging is not just environmentally, but also often economically desirable. (See Fig. E-42.) Life-cycle assessments (LCAs)* as a basis for the development work are an important tool here. The potential for commercial exploitation of the environmental benefits is greater if these benefits can be promoted as part of a new product or packaging solution. Examples of such projects within AssiDomän are: ᭿ A stronger sack paper that enables the density of the paper to be reduced by more than 10 percent for certain applications. See Fig. E-42. ᭿ The launch of the board Frövi Light. An example: 25 percent reduced board weight for a frozen food pack in Germany resulted in fewer and lighter-weight shipments plus MSEK 0.7 in reduced packaging charges for the customer. ᭿ New barrier-coated papers that replace aluminum-foiled papers, which are difficult to recycle. ᭿ Continued promotion of “eco-white” kraftliner, based on a new process for significantly more efficient wood and fiber utilization plus totally chlorine-free bleaching. Thanks to the improved environmental profile, it has been possible to speed up the market introduction, resulting in additional revenues of several tens of millions of Swedish kronor. Within the corrugated packaging business, a design and material optimization program has been developed and has resulted in the launch of several new types of packaging with both reduced material consumption and lower costs. One example is a tray for detergent. The improved environmental profile convinced the German manufacturer Henkel to choose this new packaging solution, permitting a 28 percent weight reduction. Environmental management systems (EMS) The total costs of work with EMS in the Group during 1997 is estimated to be about MSEK 30. EMAS registration or ISO certification provides a strategic advantage for customer relations, but is not expected to yield direct additional revenues. However, it is noted that setting environmental objectives and plans entailed by certification/registration can in the long run yield significant efficiency gains that clearly outweigh the costs. See Table E-10. Analysis of potential environmental debts is a part of ongoing EMS work. The costs of rectifying environmental debts known today are estimated to be less than MSEK 10. Consequences for Long-Term Profitability Specific environmental issues in AssiDomän are: Conservation of the world’s forests Widespread demands for increased protection of the world’s forests, including old- growth forest in the northern coniferous forest belt, have led to restrictions and E-52 Environmental Economics * The term life-cycle assessment is used here with a different connotation from that of the entry “LCA,” which concerns LCA of turbomachinery components. Environmental Economics E-53 FIG. E-42 Long, strong fibers are a prerequisite for resource-efficient manufacture of strong packaging. The photo shows spruce fibers at a magnification of 100 times. (Source: AssiDomän.) thereby some scarcity of high-quality softwood timber. AssiDomän’s vast holdings of forest land are one of the group’s most important assets in this context, and certification of these holdings further enhances their value. Emission requirements and environmental charges Completed environmental investments have given AssiDomän and most other Nordic pulp and paper mills a lead over many international competitors—a lead which can often amount to several hundred million Swedish kronor in investments per mill. In Sweden, environmental charges and taxes on, for example, acidifying sulfur and nitrogen oxides, as well as on climate-warming carbon dioxide, are used as one of the policy instruments for bringing about environmental improvements. Such economic instruments are now being adopted to an increasing extent internationally—a trend that will benefit the Swedish forest products industry. Legislation concerning packaging, waste paper, and waste A few years ago, packaging based on new fiber appeared to be seriously threatened by planned legislation within the EU in particular. Waste paper and various waste paper systems have been favored legislatively. The negative consequences have not materialized, however, since the legislation has become less radical and adjustments have been made in the marketplace. AssiDomän has increased its usage of waste paper where this has proved economically and environmentally feasible. The drive toward increased standardization both in Europe and globally entails both advantages and disadvantages. All things considered, however, this trend is viewed more as an opportunity than as a threat. Ecolabeling The ecolabeling of sawn timber is viewed by AssiDomän as economically advantageous since most of AssiDomän’s forestry operations have been FSC-certified. There is still very little ecolabeling of packaging, compared with consumer goods. Ecolabeling is not expected to affect profitability. Additional Costs, Additional Revenues, and Goodwill The annual additional costs for environmental investments and other environmental measures that AssiDomän undertakes as strategic, voluntary investments are estimated at MSEK 120–130. The life of these investments can vary widely, however, since the additional values to which they give rise sometimes have a short duration (environmental promotion, ecolabeling) of one or two years. Forest certification, corporate image, trademarks, and customer alliances are examples of goodwill investments with considerably longer lives. Industry Comparisons AssiDomän compares favorably with its Nordic competitors in environmental concerns, particularly with regard to forestry practices and the introduction of EMS. The generally high level of environmental compatibility in Nordic companies gives the Swedish forest product industry a lead over many international competitors in, E-54 Environmental Economics [...]... 0.98 3. 34 4,700 4, 360 ST, EMG Gas exhauster End gas (2) Gas exhauster End gas (2) Gas exhauster End gas (2) 20 ,000 kg/h 0.07 15.71 5,300 10,500 kg/h 0. 14 7 .47 6,800 4, 000 kg/h 0.07 15.71 9,070/ 16 ,44 0/ 16 ,44 0 2, 43 0 ST 870 ST 565 ST 1993 2 1980 Axial-centrifugal Air Gas expander 63 ,40 0 Nm3/h 0.99 6.06 6,950 1 1989 47 ,755 Nm3/h 3 .20 1 1989 Centrifugal Hydrogen 16,9 52 kg/h 6 .48 1.59 11 ,25 2 1,100 EMG 2 1986... 1.59 11 ,25 2 1,100 EMG 2 1986 106,630 kg/h 2. 32 1 .20 5, 840 2 1987 116,000 kg/h 2. 87 1 .20 5 ,40 0 1 1988 Centrifugal Steam Centrifugal Steam Centrifugal Steam 116,000 kg/h 2. 35 1 .41 6,800 1,370 ST 1,700 ST 2, 660 ST 1 1986 Compr Type Fluid Handl Gas expander 30,500 Nm3/h 21 .50 7,500 7,500 5,660 ST, GE 1,950 2, 45 0 (1) EM = electric motor (2) End gas = mixture of CO2, H2S, steam EMG = electric motor with gear... Station process flow diagram (Source: Hunt and Beanland.) TABLE E- 12 Teesside Power Station CCGT Leak Scenarios Leak Event Cases Orifice Size (mm) Mass Rates (kg/sec) Small (6 mm dia) 3 0 .25 ≤... expansion joints as seen in Figs E -45 A, E -45 B, and E -45 C: ᭿ Hot to hot ᭿ Hot to cold ᭿ Cold to cold Although designs may vary slightly there are basic principles that must be followed to ensure a trouble-free life for the expansion joint For example, to avoid differential thermal expansion at the connecting flanges, both flanges must be made Expansion Joints FIG E -45 A Expansion joint: hot to hot (Source:... alternative solutions are excellent noncondensable gas extraction process efficiency and the high levels of * Source: Ansaldo, Italy Adapted with permission Expansion Joints E-57 FIG E -44 Compressor set for Castelnuovo geothermal power plant (Italy) (Source: Ansaldo.) vacuum that can be achieved This accounts for power savings of between 40 and 60 percent with respect to other technical solutions such... surfaces at temperatures up to 40 0°C were measured as part of the study This is below the published autoignition temperature of natural gas, but for the above reasons it is not possible to discount autoignition as a potential source of ignition 3 Discharges of fuel from leaks may generate static that can ignite the ensuing flammable vapor 4 Mechanical failure of rotating equipment that may generate sparks... assessment * Source: Adapted from extracts from Hunt and Beanland, “A Risk Based Approach to the Potential for CCGT Enclosure Explosions: A Study on Teesside Power Station,” Eutech Engineering Solutions Ltd., UK, ASME paper 98-GT -44 6 E-68 Explosion; Explosion Hazard Analysis; Explosion Hazards FIG E-55 ᭿ Teesside Power Station (Source: Hunt and Beanland.) A hazard analysis (HAZAN) to quantify the risk from... are identical having acoustic enclosures for noise suppression with ventilation for gas turbine cooling See Table E- 12 Figure E-56 shows the station’s basic process flow diagram From this diagram it can be seen that there are a number of fuel sources available to ensure continuity of process steam supply to the adjacent chemical companies The primary fuel source is natural gas supplied from either the... frame of the expansion joint See Fig E -45 A The inside surface of the frame sees the full gas temperature almost instantly yet the outer flange that the joint is mounted on is at this instant cold This particular frame configuration has been used successfully for many years on conventional coal-fired stations where there is a startup period that allows all steel parts to reach optimum gas temperature over... with multiple flange joints, which operate at high pressure and can give rise to explosion hazards within the enclosure in the event of fuel leaks For a 40 -MW machine the pipework may include 30 flanges or flexibles, whereas a 25 0-MW machine may have over 20 0 flanges, 90 flexibles, etc The explosion hazards are relevant to smaller gas turbine–based CHP schemes (3–50 MW) up to large CCGT installations The . exhauster 10,500kg/h 0. 14 7 .47 6,800 870 Philippines End. gas (2) ST ENEL—Roma 3 1993 Gas exhauster 4, 000kg/h 0.07 15.71 9,070/ 565 Pisa (Italy) End. gas (2) 16 ,44 0/ ST 16 ,44 0 Nitric Acid Plant UHDE-Dortmund. for 1 1989 Centrifugal 16,952kg/h 6 .48 1.59 11 ,25 2 1,100 Szazhalombatta (Hungary) Hydrogen EMG Sugar Mill I.S.I.—Padova 2 1986 Centrifugal 106,630kg/h 2. 32 1 .20 5, 840 1,370 Finale E Pontelongo. — 2 0 .46 3 — 2 0 .27 3 paper mills AssiDomän’s corrugated 0.06 — 2 0.13 — 2 board and sack production 4 1. Value added is the sum of operating profit after depreciation and payroll expenses. 2.

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