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.

• 4.1 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.

5. Benefits

The proposed relocation and upgrading project to achieve cleaner production will significantly improve Changchun's air quality while insuring that one of the city's major economic asset remains operating. The major impact of the project is anticipated to be a 75% reduction of ash and particulate emitted from the facility.