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Capturing Regional Synergies in the Kwinana Industrial Area

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Project 3B1: Capturing Regional Synergies in the Kwinana Industrial Area

Capturing Regional Synergies


in the Kwinana Industrial Area
2008 Status Report

July 2008

Dick van Beers


Centre of Excellence in Cleaner Production
Curtin University of Technology

Electronic copy of report will be available from:


http://www.csrp.com.au/publications/2008/pubs2008.html

This project is carried out under the auspice and with the financial support of the Centre for Sustainable
Resource Processing, which is established and supported under the Australian Government’s Cooperative
Research Centres Program. The Centre for Sustainable Resource Processing is a joint venture between
Alcoa, ANSTO, BHP Billiton, CSIRO, Curtin University of Technology, Newmont, Rio Tinto, The
University of Queensland, Xstrata, Anglo Platinum, TAFE, Murdoch University. OneSteel, Orica, Rocla,
Department of the Environment and Heritage, Hatch, Kwinana Industries Council, Minerals Council of
Australia, Gladstone Area Industrial Network, and URS.
Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

Acknowledgements

ACKNOWLEDGEMENTS

This status report is an output of the research project of the Centre for Sustainable Resource
Processing (CSRP) on ‘Capturing Regional Synergies in the Kwinana Industrial Area’. The
research was conducted by Curtin University of Technology (a core participant of CSRP)
through its Centre of Excellence in Cleaner Production (CECP) in close collaboration with the
Kwinana Industries Council (KIC, an associate participant of CSRP). The CSRP is
established and supported under the Australian Commonwealth Cooperative Research Centres
Program.

The author also wishes to acknowledge the contributions made to the report by Dr. Michele
John, Karin Schianetz, Dr. Wahidul Biswas, Mrs. Albena Bossilkov, and A-Prof Chris Lund
(all at Curtin University of Technology). The Kwinana Industries Council (in particular Mr.
Chris Oughton and members of the Eco-Efficiency Committee) and industry representatives
(Dr. David Cooling, Dr. Rod Lukatelich, Mr. Cameron Schuster, and Mrs. Genevieve
Mannin) are thanked for their feedback and guidance of the project. Also acknowledgements
to all member companies of the Kwinana Industries Council for their participation, data
provision and positive response to the project. Special acknowledgements to Dr. Rene van
Berkel for his guidance and input to the first two years of the research outlined in this status
report. Mrs. Tonia Swetman (former Director of KIC) and Ms. Laurinda Shaw (former Chair
of KIC Eco-Efficiency Committee) are thanked for their support and input to the CSRP
Kwinana Synergies Project.

The execution of this project benefits from supportive research on engineering tools and
technologies for regional synergy developments (with contributions from Mrs. Albena
Bossilkov (Curtin) and Dr. Glen Corder (University of Queensland).

CONTACT DETAILS

For queries and comments on this status report, please contact:

Karin Schianetz Chris Oughton


Centre for Sustainable Resource Processing (CSRP) Director
C/o Centre of Excellence in Cleaner Production Kwinana Industries Council (KIC)
Curtin University of Technology 41 Hope Valley Road
GPO Box U 1987, Perth Naval Base, WA 6165
WA 6845, Australia Tel. +61 (0)8 9437 0161
Tel. +61 (0)8 9266 3268 Fax +61 (0)8 9437 0101
Fax +61 (0)8 9266 4811 Email: Chris.Oughton@cciwa.com
Email: k.schainetz@curtin.edu.au Internet: http://www.kic.org.au
Internet: www.csrp.com.au / www.c4cs.curtin.edu.au

July 2008 Page 2 of 144


Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

Executive Summary

EXECUTIVE SUMMARY

This status report provides a summary of the findings and progress made in the period from
April 2004 to June 2008 of the research project of the Centre for Sustainable Resource
Processing (CSRP) on ‘Capturing Regional Synergies in the Kwinana Industrial Area’
(hereafter referred to as the Kwinana Synergies Project). The research is being conducted by
Curtin University of Technology through its Centre of Excellence in Cleaner Production in
close collaboration with the Kwinana Industries Council (KIC). The overall objective of the
project is to provide hands-on support to the companies in the Kwinana Industrial Area (KIA)
to develop, evaluate and implement regional synergy opportunities, thus creating greater eco-
efficiencies. Such opportunities include the recovery and reuse of one company’s by-product
(solid, liquid, or gaseous) as alternative input material, or the shared use of utility
infrastructure (e.g. water, energy). Regional synergies are pursued with the objective of
reducing the net environmental impact of the KIA, while enhancing business performance and
meeting community expectations. The Kwinana Synergies Project has substantially achieved
its stated objectives and this is reported in Appendix 1.

Current regional synergies in Kwinana


The research has confirmed the close collaboration and integration that already exists in the
KIA, which has initially developed in response to perceived business opportunities and
environmental and resource efficiency considerations. 47 regional synergies are already in
place in the KIA, 32 of these are by-product synergies and 15 involve shared use of utility
infrastructure. The existing regional synergy projects in Kwinana greatly exceeds ‘business-
as-usual’, and are more diverse and significant than reported for other heavy industrial areas
(Bossilkov et al. 2005). This positions Kwinana among the international leading edge
examples of regional synergy development. The benefits of existing synergies in Kwinana
often go well beyond the conventional business case benefits. Resource security, increased
efficiency, lower operational costs, reduced landfill disposal, and employment are some of the
key benefits from regional synergies presented in this report. It is clear that a wide range of
drivers and barriers exist which are influenced by diverse set of stakeholders (eg. companies,
regulators, community). In addition, trigger events played an important role in synergy
developments in Kwinana. The complete set of drivers, barriers, and trigger events, rather
than one specific aspect, determines the business and sustainability case of a regional synergy
opportunity, and hence are key to the implementation of by-product or utility synergy
projects.

Methodology
The approach applied to identify, evaluate, and implement synergy opportunities includes the
following steps: planning and organisation; (preliminary) assessment; feasibility studies; and
implementation/continuation. There is general agreement that the principal flows in the KIA
have been well documented, after 35 companies provided their baseline data with regard to
the consumption of materials, energy and water and generation of by-products, wastes and
emissions (to water, air and land). More than 120 new potential synergy opportunities have
been identified through four activities: the database of company inputs and outputs; review of
earlier KIA reports; industry discussions; and focused opportunity identification workshops
on energy, water, and inorganic by-products. A list of prioritised synergy opportunities have
been presented to the KIC. Current efforts focus on the development and implementation of

July 2008 Page 3 of 144


Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

Executive Summary

promising synergy opportunities and building upon the foundation research on collective KIA
strategies for the recovery and reuse of inorganic by-products, water, and energy.

Feasibility work on selected synergy opportunities


(Pre-)feasibility studies for 18 short-listed one-on-one synergies are currently being conducted
with regard to by-products (e.g. organic waste, wooden pallets, catalysts), water (e.g. oily
wastewater, demineralised water, and treated effluent) and energy (e.g. energy recovery from
flue gases, waste oil). The type and level of research assistance for these synergies depends
entirely on the specific research needs of the industries involved. To date, industries have
taken ownership of eleven of these synergies, while seven synergies have medium to high
chances of being implemented by industry. An example of a synergy that is up for
implementation includes the treatment of oily wastewater from the Kwinana Nickel Refinery
by the BP Refinery. A synergy with promising prospects for implementation as a long-term
option is the supply of treated effluent from CSBP to the Kwinana Nickel Refinery (5 years
away). There is a commitment from the industries, KIC, and the CSRP to implement further
regional synergies and thereby enhance the sustainability of the KIA.

Synergy scoping study for the proposed Hydrogen Energy Plant


Hydrogen Energy (joint venture of BP Alternative Energy and Rio Tinto) have been working
on plans to establish an integrated gasification combined cycle (IGCC) plant in Kwinana that
would be fully integrated with carbon capture and storage. Such a plant would provide
significant opportunities for establishing new supply chain, by-product, and utility synergies
with the existing Kwinana industries. This would result in business and sustainability benefits
for the companies involved and the Kwinana region as a whole. A scoping study has been
completed through the CSRP Regional Synergies Program to explore and evaluate the
regional synergy opportunities emerging from the proposed hydrogen power plant. The
project has confirmed the great potential for new synergies (over 20 by-product, utility and
supply chain synergy opportunities were identified). As part of the study detailed assessments
were conducted to explore short-listed synergy opportunities. The study would provide the
basis for Hydrogen Energy to secure critical resources (process and cooling water) and market
demand for the Hydrogen Energy project (green steam) and developing regional synergies
with the Kwinana industries. Unfortunately, it has recently become clear that the proposed
Hydrogen Energy plant in Kwinana can not go ahead due to the presence of gas chimneys in
the geological underground sink for the carbon dioxide.

Collective KIA strategy on inorganic by-products reuse


Large volumes of inorganic by-products in the KIA are stockpiled from current operations
(e.g. bauxite residue, kiln dusts, fly ash, iron making slag) and past operations (e.g. gypsum).
The reuse of inorganic by-products has not yet materialised on a significant scale in Kwinana.
In February 2007, the CSRP ‘Kwinana Industrial Inorganic By-Product Reuse’ started with
support from Alcoa, CSBP, and the KIC. The first stage of the project revealed that the
inorganic by-products available in Kwinana could be used to supply the growing demand for
already scarce building and construction materials in Western Australia. Although regulatory
frameworks exist elsewhere (e.g. European Union, USA), one of the main obstacles for the
Kwinana industries is obtaining governmental approvals for the reuse of their inorganic by-
products. Through this CSRP spin-off project, a new regional synergies program is being
developed involving a coordinated stakeholder approach that targets the realisation of large

July 2008 Page 4 of 144


Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

Executive Summary

volume reuse opportunities that have both a good business and sustainability case and also
government and community support.

Collective KIA strategy on water reuse


The major water consuming companies in Kwinana use more than 30 gigaliters of water per
year. Baseline assessments of water inputs and outputs have been conducted for these
companies, including brainstorming sessions with company staff on opportunities for
exchanges of water between industrial operations, joint water treatment, and joint storage of
water. Current research efforts focus on providing industry assistance to progress the one-on-
one company synergies short-listed at the KIA Water Synergies Workshop, and scoping ways
forward for the further development of four collective KIA water synergies. These collective
synergies include the reuse of treated effluents as separate streams or as an aggregated source,
reuse of boiler blowdown from power generation, and the further development of the
Kwinana Water Reclamation Plant (assessed by the Water Corporation).

Collective KIA strategy on energy reuse


The discharge of waste heat is a significant source of energy loss in many Kwinana operations
using hot processes, utilities and/or process equipment. The major energy consuming
industries in KIA consume a total of about 95 PJ/yr of “virgin” energy sources. Following up
on a KIA energy survey and energy workshop, a scoping study was delivered on energy
recovery from flue gases in the KIA. It revealed that the total energy release from Kwinana
flue gases is estimated at approximate 6,300 TJ/yr, with up to 3,000 TJ/yr over 300 oC. The
scoping report presents a set of promising recovery opportunities, covering both on-site (eco-
efficiency) and collaborative (regional synergies) options. Through discussions with the KIC,
it became clear that a business case exists for bringing in external expertise to further develop
promising energy recovery opportunities. The Kwinana Synergies Project is now facilitating
the engagement between Kwinana industries and external expert organisations to build upon
the results of the flue gas scoping study. A promising area of research is an assessment of
business and sustainability case for an evaporative water treatment system utilising recovered
energy from KIA flue gases.

Comprehensive assessment of synergy opportunities


A screening tool has been developed as part of the CSRP Project ‘Enabling Tools and
Technologies for Capturing Regional Synergies’. This Synergy Screening Tool has been
designed to assess the sustainability contribution and ease of implementation of synergy
opportunities (Bossilkov and van Berkel 2005). The tool has been applied to all identified
synergy opportunities in Kwinana to assist the KIC, companies, and the Kwinana Synergies
Project with strategic guidance on which synergies (not) to select for feasibility assessments.

Development of KIA Sustainability Roadmap


As with elsewhere in Australia (and globally), the KIA is facing sustainability challenges on
various fronts, such as increasing water and energy scarcity, climate change, an aging
workforce, and growing community expectations. Given the ever increasing sustainability
pressures, there is strong desire to address sustainability challenges in the KIA, through a pro-
active and collaborative industry approach. A sustainability roadmap is being developed to
assist the KIC and its industry members with strategic decision making on the long-term
sustainability of the KIA (“what the future could look like and how do we get there”). At the

July 2008 Page 5 of 144


Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

Executive Summary

heart of the roadmap is a set of key performance indicators for each of seven priority themes
(e.g. greenhouse gas emissions, energy, water, economic performance, ecological health,
community, workforce). Aspirational targets and subsequent strategies are being developed
for those activities where the KIC has an influence and can make a positive impact. The
indicators and their targets will enable constructive stakeholder discussions (e.g. government
and community) on emerging local issues and possible future directions for the KIA.

Project achievements
In summary, the Kwinana Synergies Project has so far achieved:
Recruitment ƒ Recruitment of 36 companies to participate in the project.
Existing synergies ƒ Description and mapping of existing synergies in KIA.
Database ƒ Up-to-date database of resource input and output flows for 35
companies.
Synergy opportunities ƒ Development of a comprehensive list of over 120 synergy
opportunities.
ƒ Prioritisation of identified synergy opportunities with regard to
their sustainability contribution and achievability.
ƒ Practical assistance to Kwinana industries on the development
of 18 selected synergies (ongoing).
Collective strategies ƒ Development of collective strategies for the KIA on the
recovery and reuse of inorganic by-products, water, and energy.
Sustainability roadmap ƒ Assistance to the KIC with the development and
implementation of a KIA Sustainability Roadmap
Spin-off projects ƒ Development of two CSRP spin-off projects (reuse of Kwinana
inorganic by-products and a synergy scoping study around the
proposed hydrogen power plant in Kwinana).
Workshops ƒ Organisation and facilitation of five opportunity identification
workshops (on energy, water, and inorganic by-products).
Promotion ƒ Delivery of three journal papers (plus two in submission), 11
conference publications, and 14 industry reports on regional
synergy development in the KIA.

Specific deliverables of the Kwinana Synergies Project from June ‘07 to June ’08 include:
ƒ Progressing a diverse mix of synergy opportunities with the Kwinana industries resulting
in the implementation of synergies.
ƒ Completion of a scoping study on energy recovery from Kwinana flue gases, including
work with KIC and its members to capitalise on the study findings.
ƒ Development of a KIA Sustainability Roadmap to assist the KIC and its industry members
with strategic decision making on the long-term sustainability of the KIA.
ƒ Update of KIA Input & Output Database and review of synergy opportunities in the KIA.
ƒ Assistance with the completion of the CSRP project ‘Hydrogen Energy Industrial Synergy
Opportunity Investigation’.
ƒ Assistance with the execution of the CSRP project ‘Kwinana Industrial Inorganic By-
Product Reuse’.
ƒ Delivery of three journal papers, one conference paper, and three industry reports to
promote regional synergy development in Kwinana.

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Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

Executive Summary

Project outlook

In 2006, the project end date was extended by two years to June 2008 with support from
CSRP and the KIC. The project is being extended with a further two years to June 2010. This
acknowledges the fact that the project is delivering valuable outcomes for the involved parties
(Kwinana industries, KIC, and CSRP). For the next two years, the project will keep a strong
focus on pushing the implementation of the selected synergy opportunities (so-called
demonstration projects), and development of spin-off projects based on specific research
needs of the KIC and its members. The responsibility and outreach of the CSRP research team
can go as far as developing initial proxy business plans for implementation, but it is up to the
companies to decide whether and how to pursue feasible synergy opportunities.

The objectives of the Kwinana Synergies Project for the year 2008/09 are:
1. Realise (or significant progress towards) further new regional synergies in Kwinana as a
result of the project work.
2. Continue support to operating companies and the KIC with the development and
evaluation (including trials) of promising resource synergy opportunities.
3. Identify and assess further synergy opportunities in Kwinana that improve the overall eco-
efficiency of the area.
4. Support KIC with the development and implementation of a KIA Sustainability Roadmap.
5. Keep collected input/output data for principal materials, energy and water streams for
companies operating in and around Kwinana up-to-date.
6. Promote regional synergy achievements to increase understanding and recognition of
Kwinana’s unique synergistic competitive advantage amongst key stakeholders.
7. Further develop spin-off projects for selected one-on-one company and collective
Kwinana synergy opportunities.

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Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

List of Contents

LIST OF CONTENTS

Acknowledgements......................................................................................................................... 2
Contact details ................................................................................................................................ 2
Executive Summary ....................................................................................................................... 3
List of Abbreviations.................................................................................................................... 10

1 Introduction......................................................................................................................... 11
1.1 Overview ..................................................................................................................... 11
1.2 Kwinana Industrial Area.............................................................................................. 12
1.3 Regional Synergy and Industrial Ecology Concepts ................................................... 15
1.4 Historic Developments in Kwinana............................................................................. 15
1.5 Regional Synergies Research Strategy ........................................................................ 17
1.6 CSRP Kwinana Synergies Project............................................................................... 18
2 Current Regional Synergies ............................................................................................... 21
2.1 Overview ..................................................................................................................... 21
2.2 Examples of By-Product Synergies............................................................................. 25
2.3 Examples of Utility Synergies..................................................................................... 26
2.4 Sustainability Benefits of Regional Synergies ............................................................ 28
2.5 Drivers, Barriers, and Triggers for Regional Synergies .............................................. 29
3 Methodology ........................................................................................................................ 33
3.1 Overview ..................................................................................................................... 33
3.2 Planning and Organisation Phase ................................................................................ 34
3.3 Preliminary Assessment Phase .................................................................................... 34
3.4 Assessment Phase ........................................................................................................ 38
3.5 Feasibility Assessments............................................................................................... 39
3.6 Implementation & Continuation Phase........................................................................ 41
4 Feasibility Work on Selected Synergy Opportunities...................................................... 43
4.1 Overview ..................................................................................................................... 43
4.2 Selection of Synergies for Feasibility Assessments .................................................... 43
4.3 Progress on Selected Synergy Opportunities............................................................... 44
4.4 Sustainability Benefits of Selected Synergy Opportunities......................................... 51
4.5 Success Factors for Synergies ..................................................................................... 53
4.6 Synergy Scoping Study around Hydrogen Power Plant .............................................. 53
4.7 Way Forward ............................................................................................................... 56
5 Collective KIA Strategy on Inorganic By-Products Reuse ............................................. 57
5.1 Introduction and Sustainability Case........................................................................... 57
5.2 Current Status of Inorganic By-Products Recovery and Reuse in KIA....................... 57
5.3 KIA Workshop on Inorganic By-Products .................................................................. 60
5.4 CSRP Project ‘Kwinana Industrial Inorganic By-Product Reuse’ .............................. 62
5.5 Way Forward ............................................................................................................... 66

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Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

List of Contents

6 Collective KIA Strategy on Water Reuse ......................................................................... 67


6.1 Introduction and Sustainability Case........................................................................... 67
6.2 Current Status of Water Consumption and Disposal in KIA....................................... 67
6.3 Detailed Water Mapping and Synergy Identification.................................................. 68
6.4 KIA Workshop on Water Synergies ............................................................................ 70
6.5 Way Forward ............................................................................................................... 72
7 Collective KIA Strategy on Energy Recovery .................................................................. 73
7.1 Introduction and Sustainability Case........................................................................... 73
7.2 Energy Recovery ......................................................................................................... 73
7.3 Current Status of Energy Consumption and Releases in KIA..................................... 74
7.4 KIA Energy Survey ..................................................................................................... 76
7.5 KIA Workshop on Energy Management and Recovery .............................................. 80
7.6 Scoping Study on Energy Recovery from Flue Gases................................................. 82
7.7 Way Forward ............................................................................................................... 92
8 Comprehensive Assessment of Synergy Opportunities ................................................... 93
8.1 Introduction ................................................................................................................. 93
8.2 Synergy Screening Tool .............................................................................................. 93
8.3 Results of Synergy Screening Tool ............................................................................. 95
8.4 Way Forward ............................................................................................................... 99
9 Development of KIA Sustainability Roadmap ............................................................... 101
9.1 Overview ................................................................................................................... 101
9.2 Introduction to Sustainability Indicators ................................................................... 101
9.3 International Review of Regional Sustainability Indicators...................................... 102
9.4 KIA Sustainability Roadmap..................................................................................... 105
9.5 Benchmarking of the KIA ......................................................................................... 109
9.6 Way Forward ............................................................................................................. 110
10 Conclusions and Project Outlook .................................................................................... 111
10.1 Conclusions ............................................................................................................... 111
10.2 Project Achievements ................................................................................................ 112
10.3 Project Outlook.......................................................................................................... 113
10.4 Closing Remarks........................................................................................................ 116
References ................................................................................................................................... 117

LIST OF APPENDICES

Appendix 1: Project Achievements Compared to Objectives................................................ 123


Appendix 2: Full List of Current By-Product Synergies in KIA ........................................... 127
Appendix 3: Full List of Current Utility Synergies in KIA ................................................... 129
Appendix 4: Synergy Screening Tool Results for the KIA (Update June 2008) ................... 131
Appendix 5: Project Publications and Reports....................................................................... 142

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Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

List of Abbreviations

LIST OF ABBREVIATIONS

Abbreviation Description
ARC Australian Research Council
BOD Biological oxygen demand
CCC Conventional combined cycle
CCD Coal combustion products
CECP Centre of Excellence in Cleaner Production
COD Chemical oxygen demand
CSRP Centre for Sustainable Resource Processing
GJ Giga Joule (1 GJ = 1,000 MJ)
HEX Heat exchanger
IE Industrial ecology
KC Kalina cycle
KIA Kwinana Industrial Area
KIC Kwinana Industries Council
kWh Kilowatt hour
KWRP Kwinana Water Reclamation Plant
MJ Mega Joule (1 MJ = 1,000 KJ)
MWh Megawatt hour
NPV Net Present Value
ORC Organic Rankine cycle
SDOOL Sepia Depression Ocean Outlet Landline
TDS Total dissolved solids
TJ Tera Joule (1 TJ = 1,000 GJ)
TSS Total suspended solids
WA Westerns Australia
WHB Waste heat boiler
WWTP Wastewater treatment plant

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Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

Chapter 1: Introduction

1 INTRODUCTION

1.1 Overview

The research project ‘Capturing Regional Synergies in the Kwinana Industrial Area’
(hereafter referred to as the Kwinana Synergies Project) has been initiated to support the
further development and implementation of profitable exchanges of by-products, water,
energy, and services between industrial operations in the Kwinana Industrial Area (KIA)
(such exchanges are further referred to as ‘regional synergies’). The project assists the
industries in Kwinana to achieve greater efficiencies in energy, water and materials
consumption and reductions in waste and emission generation. The project provides practical
support to the companies in the Kwinana region, to develop, evaluate and implement synergy
opportunities, and communicate the gains in the overall eco-efficiency of the area. Even
though earlier initiatives were taken within the framework of the establishment of the Centre
for Sustainable Resource Processing (CSRP), the project formally commenced in March
2004.

This status report provides a summary of the findings and progress made in the period from
April 2004 to June 2008 of the Kwinana Synergies Project. The research is being conducted
by Curtin University of Technology (a core participant in the CSRP) through its Centre of
Excellence in Cleaner Production (CECP) in close collaboration with the Kwinana Industries
Council (KIC, an associate participant of CSRP). The report builds upon the 2005, 2006, and
2007 status reports of the Kwinana Synergies Project (Van Beers et al. 2005a; Van Beers
2006a, 2007).

The report is structured as follows:


ƒ Chapter 1 provides the background for the regional synergies research in the KIA. It
provides a brief introduction to the area, to the regional synergies concept and its practical
evolution in Kwinana. It also summarises aims and objectives of the current research
project, and its interrelatedness with other regional synergies research.
ƒ Chapter 2 presents an overview of the existing by-product and utility synergies in the
KIA, including an assessment of their sustainability benefits and synergy drivers and
barriers.
ƒ Chapter 3 outlines the methodology used to identify and evaluate new synergy
opportunities in the KIA.
ƒ Chapter 4 summarises the assistance provided by the CSRP Kwinana Synergies Project to
the Kwinana industries on the feasibility assessments of promising synergy opportunities,
including a scoping study on synergy opportunities around the proposed hydrogen power
plant in the KIA.
ƒ Chapters 5 to 7 report on the foundation research undertaken for the development of
collective KIA strategies for inorganic by-products, water, and energy synergies,
respectively.
ƒ Chapter 8 presents the results of a comprehensive assessment on the sustainability benefits
and ease of implementation for all identified regional synergy opportunities in the KIA.
ƒ Chapter 9 presents on the work to develop a sustainability roadmap for the KIA to guide
strategic decision making at the KIC.
ƒ Chapter 10 contains the interim conclusions on the basis of the current status of the
project and provides an outlook for the year 2008/09.

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Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

Chapter 1: Introduction

1.2 Kwinana Industrial Area

Western Australia is the largest, but most sparsely populated State in Australia. The State has
rich natural resource endowments, including - but not limited to - iron ore, bauxite, gold,
nickel, mineral sands, natural gas, oil and coal. Agriculture, mining and mineral processing
and manufacturing all provide employment, development opportunities and wealth. Heavy
process industry is concentrated in a few industrial areas, of which Kwinana is by far the
largest and most diverse. The Kwinana Industrial Area is located 40 km south of the capital
city of Perth on the shores of Cockburn Sound.

KIA’s many features make it a world-class industrial area. Its deep-water port is capable of
handling bulk cargo, a 30-minute freeway-drive links Kwinana to Perth's central business
district and Kwinana is linked via road and rail to the Fremantle container port and the
Eastern States of Australia. Kwinana is strategically placed for export markets, having direct
shipping access to South East Asia. About 4,800 people work in the area’s core industries,
and many more in related sectors and service jobs. The total economic output of the area
exceeds A$15 billion annually (SKM 2007). With its concentration of industries and close
proximity to the coast, the KIA plays a very important role in the economy of Western
Australia, and in the local community. KIA has long been recognised as a cornerstone of
Western Australia’s economy.

The KIA is dominated by heavy process industries (see Table 1.1). These include (SKM
2002): 2,000 kt/yr alumina refinery (Alcoa), 70 kt/yr nickel refinery (Kwinana Nickel
Refinery), 105 kt/yr titanium dioxide pigment plant (Tiwest), 850 kt/yr lime and cement kilns
(Cockburn Cement), 135,000 barrels/day oil refinery (BP), and 800 kt/yr pig iron plant
(HIsmelt). These are complemented with a variety of chemical producers, including CSBP
(ammonia, ammonia nitrate, cyanide, chlor-alkali and fertiliser plants), Coogee Chemicals
(inorganic chemicals), Nufarm (herbicides and other agricultural chemicals), Nufarm Coogee
(chlor-alkali plant), Bayer (agricultural chemicals), Chemeq (veterinary products), and Ciba
and Nalco (water treatment and process chemicals). Moreover, there are important utility
operations, including two power stations (900 MW coal/oil gas fired, and 240 MW gas fired,
both Verve Energy), two cogeneration plants (respectively 116 MW (Kwinana Cogeneration
Plant) and 40 MW (Verve Energy)), two air separation plants (Air Liquide and BOC Gases), a
grain handling and export terminal (CBH), port facilities (Fremantle Port Authority). The
Water Corporation operates water and wastewater treatment plants, and recently
commissioned a seawater desalination plant in Kwinana to provide potable water for the Perth
Metropolitan Area. There is considerable integration between these industries in the area. A
number of companies produce essential raw materials for the manufacturing and refining
processes or other nearby enterprises. A map with the location of the main process industries
in the KIA is provided in Figure 1.1.

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Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

Chapter 1: Introduction

Table 1.1: Current Core Process, Utility and Support Industries in the KIA
Company name Main products Company name Main products
Minerals processing and metals production
Alcoa World Alumina Alumina HIsmelt* Pig iron
Australia*
Australian Fused White fused alumina and Tiwest Pigment Plant Titanium dioxide pigments
Materials* fused zirconia Kwinana*
Bradken Mining Casting, mining and mine Nickel West / Kwinana Nickel metal
development services Nickel Refinery (KNR)*
Doral Specialty High purity zirconia powders
Chemicals*
(Petro-)chemical and chemical products
Bayer CropScience* Agricultural chemicals Nalco Australia* Water treatment and process
chemicals
BP Refinery (Kwinana)* Petroleum products Nufarm Australia* Agricultural chemicals
Chemeq* Antimicrobial drugs for Nufarm Coogee* Chlorine, caustic soda,
disease control in animal sodium hypochlorite, and
production hydrochloric acid
Ciba Specialty Flocculants, dispersants, Summit Fertilisers* Fertilisers
Chemicals* coagulants
Coogee Chemicals* Inorganic chemicals, tank United Farmers Cooperative Fertilisers
terminal Company*
CSBP* Fertilisers, ammonia, Wesfarmers LPG* LPG
ammonium nitrate, sodium
cyanide, chlorine, industrial
chemicals
Utility industries
Air Liquide WA* Industrial gases Water Corporation* Water supply and treatment
BOC Gases Australia* Industrial gases Verve Energy Cockburn Electrical energy
Power Station*
Kwinana Cogeneration Electrical and thermal energy Verve Energy Kwinana Electrical energy
Plant (BP Cogen)* Power Station*
Others (manufacturing, transport and service providers)
BHP Steel Logistics* Transport and freight Industrial Galvanisers Metal coating and finishing
logistics Corporation by hot dip galvanising
BGC Cement Cements, lime and blended Madco Group Repair and maintenance of
cements rotable equipment
Boral Concrete Concrete products One Steel Market Mills* Patio tubing
CBI Constructors* Fabrication and equipment Shinagawa Thermal Refractory materials
warehouse Ceramics*
Cockburn Cement* Lime, cement Terminals West* Supplier and storage of
petroleum products
Co-operative Bulk Grain storage, ship loading Total Corrosion Control Metal corrosion control
Handling*
ELI Ecologic* Soil decontamination Tyco Water* Steel pipe
Fremantle Port Authority* Shipping and bulk port Wesfarmers Kleenheat Gas* Distributor of LPG
facilities
* Member of the Kwinana Industries Council

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Chapter 1: Introduction

WESTERN
AUSTRALIA

1.5 km
Cement & lime
producer
Kwinana

3 km
INDIAN OCEAN

COCKBURN SOUND
(sensitive marine environment)

Alumina refinery
Gas fired power station
Coal fired power station
Seawater
desalination plant Cement mill
Patio tubing company

Steel pipe producer Thermal ceramics producer

Pig iron plant Specialty chemical producer

Industrial gas producer


Cogeneration plant
Water reclamation plant Producer of LPG

Oil refinery
Agricultural chemical producer
10.5 km

Titanium dioxide
pigment producer Industrial gas producer

Chlor alkali plant Agricultural chemical producer

Shipping & bulk


transport facility
Industrial chemical producer
Industrial chemical &
fertiliser producer

Nickel refinery Fertiliser producer

Grain storage &


handling facility Zirconia powder producer

Pharmaceutical
producer
Fused alumina & zirconia producer

4 km
Figure 1.1: Location of Companies in the Kwinana Industrial Area

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Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

Chapter 1: Introduction

1.3 Regional Synergy and Industrial Ecology Concepts1

The notion of regional resource synergies is rooted in Industrial Ecology. Industrial Ecology
is both ‘industrial’ and ‘ecological’ (Lifset and Graedel 2002). It is industrial in that it focuses
on product design and manufacturing processes. Industry is therefore viewed as the primary
agent for environmental improvement, as it possesses the technological expertise,
management capability and financial and other resources necessary for successful execution
of environmentally informed design of products and processes. Industrial Ecology is
ecological in at least two senses. Firstly, it looks to non-human ‘natural’ systems as models
for industrial activity. Mature ecosystems are extremely effective in recycling of resources
and therefore promoted as exemplary models for effective recycling in industry and society.
Secondly, Industrial Ecology places industry – or technological activity – in the context of the
larger ecosystems that support it. This focuses Industrial Ecology on examining the sources of
resources used in industrial activity and the sinks that absorb and detoxify the wastes
discharged by society.

Industrial Symbiosis is perhaps the best-known application of Industrial Ecology principles. It


deals with the exchange of by-products, energy, and process wastes among closely situated
firms. Because of the many links between the firms an industrial area is transformed into an
‘industrial ecosystem’ or ‘Industrial Symbiosis’. Chertow defines: “Industrial symbiosis
engages traditionally separate industries in a collective approach to competitive advantage
involving physical exchange of materials, energy, water, and/or by-products. The keys to
industrial symbiosis are collaboration and the synergistic possibilities offered by geographic
proximity” (Chertow 2000).

Several other terms are used in the literature, including ‘by-product synergy’, ‘by-product
exchange’, ‘eco-industrial park’, ‘eco-industrial network’ or ‘industrial ecosystem’ (Bossilkov
et al. 2005). Depending on the system boundaries, specifics of the project, its management
umbrella, or even the geographical location, the above expressions may vary but generally
they are used interchangeably. Regardless of the specific terminology in use, these initiatives
have one thing in common: their implementation aims at “creating a system for trading
material, energy, and water by-products among companies, usually within a park,
neighbourhood, or region” (Lowe 2001). In this report, the term ‘regional synergies’ is used
to refer to exchanges of by-products, water and energy between industrial operations,
including shared infrastructure and utilities. These generally exclude traditional supply
synergies where a supplier of chemicals, water or energy co-locates with its principal
customer to realise a business opportunity that is not driven by environmental or sustainable
development considerations (and hence regarded as ‘business-as-usual’).

1.4 Historic Developments in Kwinana

The KIA has been Western Australia’s most significant heavy industrial region for 50 years.
KIA was established in the 1950’s following a special Act of Parliament, which secured an
area of about 120 square kilometres to accommodate the development of major resource
processing industries in Western Australia. This sparked the beginning of the State’s first
major industrial complex. The BP oil refinery commenced production in 1954, followed soon

1
For extensive discussion and review of concepts, see CSRP 3A1 status report (Bossilkov et al. 2005)
Http://www.csrp.com.au.

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Chapter 1: Introduction

by a steel rolling mill in 1956 (now closed down), an alumina refinery in 1964, a blast furnace
(now closed down) and ammonia, nitrate, fertiliser plants in the late 1960’s, a power station
and a nickel refinery in 1970, and a bulk grain terminal in 1976. Manufacturing peaked at
around 46% of total State primary, mining and manufacturing production in 1963-64, before
the iron ore boom in the north of the State reduced its relative importance (DTF 2004). In the
early 1990’s further development took place with the establishment of agricultural chemicals
sites, two chlor-alkali plants, cyanide production plants, LPG extraction plant, a second air
separation plant and a titanium dioxide pigment plant. The KIA continued to grow with the
new import/export terminal in 1992, oil and chemical storage and tanker facilities and a direct
reduction iron making process development facility in 1993, fused zirconia works, flocculant
plant and cogeneration plants in 1996-97 and further extensions of various industries,
predominantly inorganic chemicals, as well as the recent construction of a commercial scale
direct iron making plant and a combined cycle gas-fired power station (DTF 2004).

In 1991 the core industries in the area established the KIC. Its original purpose was to
organise the required air and water monitoring collectively for the industries in the area, in
response to increased government and community pressure to manage industrial hazards and
air- and watersheds, and protect the sensitive marine environment in the adjacent Cockburn
Sound. The Council now addresses a broad range of issues common to Kwinana’s major
industries and seeks to foster positive interactions between member companies and between
industry and the broader community. 14 major industries are currently full members of the
Council, and 27 other industries (predominantly medium sized operations and service
providers) are associate members.

Following the successful development and start up of two cogeneration plants in 1997 and
1999, the KIC initiated exploration into further opportunities for regional resource synergies.
Regional economic impact studies were conducted which included an analysis of the principal
material and energy flows within the area and also assessed the level of industrial integration.
The most recent study has been completed earlier this year (SKM 2007) and used the findings
of a similar study undertaken earlier (Dames & Moore 1990; SKM 2002) to compare and
illustrate the growing complexity of industrial interrelation over a ten-year period. As part of
its findings this study revealed that between 1990 and 2005, the number of core process
industries in Kwinana increased from 13 to 21, and the number of existing interactions
increased from 27 to 145 (including 91 between core process industries and 54 with service
and infrastructure industries). Each interaction represented either transfer of product(s) or
commercial cooperation. There may be several products traded for each interaction.

In response to the Economic Impact Study (SKM 2002), the KIC initiated the Kwinana
Industries Synergies Project (Taylor 2002). The project was designed to improve the
economic and environmental outcomes of industry by: converting by-products currently going
to waste into value added products; reducing the generation of wastes; reducing greenhouse
gases by improved energy efficiencies; reducing use of fresh water; reuse of treated
wastewater; and reducing water discharges into Cockburn Sound. Opportunities are pursued
in four areas: inorganic process residues (including fly ash, bauxite residue, gypsum, etc.);
non process waste (in particular support for the collection and recycling of dry recyclables
(packaging, office, canteen wastes)); energy and greenhouse gas emissions (capture and
utilisation of low grade heat, and improvement of the exchange of energy efficiency practices
between the Kwinana companies) and water conservation.

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Chapter 1: Introduction

1.5 Regional Synergies Research Strategy

In addition to documenting current industry interactions, the 2001 Kwinana Economic Impact
Study (SKM 2002) also identified potential future synergies. Many more opportunities could
in principle exist, but have not yet been pursued due to perceived technical and contractual
complexity, their doubtful business case under current economic, market and regulatory
conditions, and generally high pressure on the available management and engineering
resources within companies (Van Berkel and Altham 2004). Despite there being a strong
desire to achieve more regional synergies, it had also become clear that without dedicated
support this would be at best a slow process.

In close consultation with the KIC, its members and other industry bodies, Curtin University
of Technology designed an integrated research strategy to support the realisation of further
synergies in Kwinana as well as in other heavy industrial areas. This research is being
implemented in collaboration with the Universities of Queensland and University of Pretoria
(South Africa) and funding support from the CSRP, the Australian Research Council (ARC)
and KIC, and comprises the following elements (illustrated in Figure 1.2):

ƒ Regional Case Studies: Practical support is provided for the identification and evaluation
of potential synergies in heavy industrial areas and is funded by the CSRP. Current case
study areas are Kwinana (reported here) and Rustenburg (South Africa), and efforts focus
on initiating case study research in Geelong (Victoria, Australia) and Whyalla (South
Australia). Each case study includes collection and assessment of material, energy, water
and other resource input and output data by company, generation and screening of
synergies, and development of business cases for the implementation of techno-
economically feasible synergies.

ƒ Research on Engineering Tools and Technologies: The CSRP supports this research
component. It is aimed at developing an engineering and technology platform for the
identification, evaluation and implementation of synergy projects through the
development of a Regional Synergy Toolkit (Bossilkov and van Berkel 2005), including
the assessment of technological needs for regional synergy projects (Harris et al. 2006),
and their subsequent application in the KIA and other resource processing intensive areas.

ƒ Research on Enabling Mechanisms: This research is supported by the ARC (through its
Linkage Program), KIC, Alcoa, BP, and CSBP. It addresses the organisational challenges
faced for the greater realisation of regional synergies in heavy industrial areas by creating
the right incentives and mechanisms for industries to start to collaborate and find ways to
better share the risks and benefits associated with the development of synergy
opportunities (CECP 2007). This research is designed to learn from national and
international best practices to develop and pilot test: (1) facilitating structures that
encourage collaboration among industries operating in the same industrial area; (2)
operational arrangements (or business models) that enable commitment of necessary
resources for implementation of synergy projects; and (3) evaluation tools that quantify
the environmental, social and economic benefits of industrial ecology opportunities
(Kurup et al. 2005).

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Chapter 1: Introduction

ENGINEERING AND TECHNOLOGY ENABLING MECHANISMS


Review and Promote
Best Practice

Rustenburg

Gladstone
Assess Resource
Develop and Pilot Inputs and
Assess and
Test Regional Eco- Outputs Improve
Kwinana
Assess Resource
Efficiency Inputs and Facilitating
Opportunity
Outputs
Assess Resource Structures
Assessment Inputs and Develop and
Screen Synergy
Methodology Outputs Opportunities
Develop and
Screen Synergy Design and
Develop and
Opportunities
Implement
Screen Synergy Develop and Operational
Implement
Opportunities Business Plans Arrangements
Develop and
Implement
Conduct Develop and
Business Plans
Technology Implement
Assessments for Business Plans Develop and
Synergy Apply TBL
Technologies Evaluation Tools

Research on synergy Research on synergy


project design process development

Supported by the Cooperative Research Centre for Supported by the Australian


Sustainable Resource Processing (CSRP) Research Council (ARC)

Figure 1.2: Regional Synergies Research Strategy

1.6 CSRP Kwinana Synergies Project

The CSRP Kwinana Synergies Project was set up to provide hands-on support to the
companies in the Kwinana region, to develop, evaluate and implement synergy opportunities.
It is expected that the realisation of synergy opportunities would reduce the environmental
impact of the KIA while enhancing business performance and meeting community
expectations. The project provides one of the case studies for the regional synergies research
(as illustrated in Figure 1.2). Figure 1.3 provides a summary of the project objectives, tasks,
deliverables, and performance indicators.

The Kwinana Synergies Project is being implemented by Curtin University of Technology


through its CECP, funded by the CSRP. Dick van Beers is the principal researcher and project
leader with support from team members at CECP. Dick’s role is taken over by Karin
Schianetz from July 2008. Industry participants in the project are the KIC, Alcoa, Nickel
West (BHP Billiton), Rio Tinto, and the Western Australian Government. Chris Oughton
(KIC) and Philip Bangerter (Hatch) are the industry champions.

Progress in the Kwinana Synergies Project is reported monthly to the KIC Eco-Efficiency
Committee. This committee comprises representatives of core operating companies in KIA,
including CSBP, Alcoa, Tiwest, Verve Energy, Water Corporation, Kwinana Nickel Refinery.
and Coogee Chemicals. The Eco-Efficiency Committee is currently chaired by Dr. David
Cooling (Alcoa). Additionally, three-monthly industry review meetings are held to garner
strategic direction for the progress from senior sustainability industry managers (David

July 2008 Page 18 of 144


Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

Chapter 1: Introduction

Cooling (Alcoa/KIC), Rod Lukatelich (BP), Genevieve Mannin and Cameron Schuster
(CSBP), Chris Oughton (KIC), and Stevan Green / Mark Neville (CSRP)).

Aim Outcomes
1. New regional resource synergy opportunities identified and
Contribute to sustainable development through greater application
implemented with economic, environmental and social benefits
of regional resource synergies among companies in the KIA, and
2. Greater acceptance of the contribution of regional synergies to
between industry and other sectors
sustainable development by industry, government and community

Objectives Outputs
1. Collect company resource input and output data and synthesise
these into a regional database 1 Database of resource input and output flows in KIA and regional
2. Identify and assess potential resource synergy opportunities eco-efficiency profile
3. Support companies in KIA with evaluation and implementation 2. Comprehensive set of regional synergy opportunities for KIA
of synergy opportunities 3. Preliminary evaluation for priority regional synergy opportunities

Performance Indicators Tasks


1. Accurate assessment of key resource flows in KIA
and developments therein 1. Assess resource and process flows of companies in KIA
2. Synergy opportunities address principal resource flows in KIA 2. Generate and screen potential synergy opportunities in KIA
and broadly reflect industry, government and community priorities 3. Contribute to the preliminary evaluation of priority synergy
3. Realistic ways identified for realisation of feasible synergy opportunities and their business planning
opportunities

Figure 1.3: Summary of Aim, Objectives, Performance Indicators, Outputs, and Outcomes of
the Kwinana Synergies Project

1.6.1 Extension of Kwinana Synergies Project to 2010

With the support of the KIC and the CSRP, the Kwinana Regional Synergies project is being
extended by a further two years (June 2010) to continue the development of regional
synergies in the region and to assist the KIC with the development and implementation of a
KIA Sustainability Roadmap.

The research so far has resulted in a set of priority synergy opportunities on the basis of their
expected business and sustainability cases. Current efforts focus on 18 short-listed one-on-one
priorities (involving two companies) with regard to by-products, water, and energy. To date,
industries have taken ownership of eleven of these synergies, while seven synergies have
medium to high chances of being implemented by industry. One synergy is up for industry
implementation. In addition, the project contributed to the development of collective
strategies for the Kwinana region on the recovery and reuse of inorganic by-products, water,
and energy. Continued research efforts are required to build upon completed foundation work
on these three themes, and industry network and interest that have been established in the first
four years of the project.

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Chapter 1: Introduction

The research objectives of the Kwinana Synergies Project for 2008/09 are to:
1. Realise (or significant progress towards) further new regional synergies in Kwinana as
a result of the project work.
2. Continue support to operating companies and the KIC with the development and
evaluation (including trials) of promising resource synergy opportunities.
3. Identify and assess further synergy opportunities in Kwinana that improve the overall
eco-efficiency of the area.
4. Support KIC with the development and implementation of a KIA Sustainability
Roadmap.
5. Keep collected input/output data for principal materials, energy and water streams for
companies operating in and around Kwinana up-to-date.
6. Promote regional synergy achievements to increase understanding and recognition of
Kwinana’s unique synergistic competitive advantage amongst key stakeholders.
7. Further develop spin-off projects for selected one-on-one company and collective
Kwinana synergy opportunities.

Through the connection with CSRP project ‘Enabling Tools and Technologies for Capturing
Regional Synergies’, the Kwinana Synergies Project also contributes to the development and
trialling of a Regional Synergy Development Toolkit, including the evaluation of synergy
technology needs and opportunities and the documentation of case studies.

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Chapter 2: Current Regional Synergies

2 CURRENT REGIONAL SYNERGIES

2.1 Overview

The existing synergies within the Kwinana Industrial Area (KIA) are quite diverse, but seem
to fall in three principal categories (Bossilkov and Van Berkel 2004; Van Berkel 2003), i.e.:

ƒ Supply chain synergies: featuring local manufacturer and dedicated supplier of principal
reagents for core process industries (e.g. production of ammonia and chlorine for
industrial use).

ƒ By-product synergies: these involve the use of previously disposed by-product (as solid,
liquid, or gas) from one facility by another facility to produce a valuable by-product. By-
product synergies in KIA are quite elaborate with regard to industrial gases and inorganic
process residues (e.g. recovery and on-selling of carbon dioxide and hydrogen).

ƒ Utility synergies: these involve the shared use of utility infrastructure, and mainly evolve
around water and energy (e.g. water recovery and cogeneration).

Even though the supply chain synergies provide the backbone for the industrial integration in
the KIA, these are not further addressed here (2). Such supply synergies are ‘business as
usual’, where a business realises a benefit from co-location with its main customers, a
phenomenon well-known as agglomeration economy (Desrochers 2004). These supply
synergies therefore do not meet the criterion of ‘resource exchange between traditionally
separate industries’ as the distinctive feature of industrial symbiosis (Chertow 2000).

As shown in Table 2.1, the total number of current regional synergies (or industrial
symbiosis) projects already in place in Kwinana is 47 with 32 being by-product synergies and
15 pertaining to the shared use of utility infrastructure. More synergies might exist but these
have not yet been documented. This number is expected to increase as more information on
industrial collaboration in the Kwinana area becomes available. Moreover, one synergy
project can involve multiple material, water and/or energy flows. This is, for example, the
case when a by-product is being returned (e.g. in a processed form) to the producer, or
forwarded to another company for further processing. A selection of detailed examples of by-
product and utility synergies is summarised and reviewed in the following sections.

2
In some earlier publications, supply synergies were included in the assessment of the industrial symbiosis achievements in
Kwinana. As they do not meet the criterion of exchange between traditionally separate industries, they have been eliminated
here and this has resulted in lower total numbers of synergies (compared to numbers reported elsewhere by e.g. (Taylor 2002)
and (Van Berkel 2003)

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Chapter 2: Current Regional Synergies

Table 2.1: Total Number of Current By-Product and Utility Synergies in KIA
Synergy type # Projects Flows involved
By-product 32 22 Solid
8 Liquid
9 Gaseous
40 Total
Utility and infrastructure 15 25 Water
11 Energy
36 Total
Total 47

Figures 2.1 and 2.2 include flow charts with all accounted by-product and utility synergies
between the member companies of the KIC. These Figures only contain the synergies among
KIC member companies (total of 32 synergy projects) and exclude synergies with non-KIC
members (total of 15 synergy projects). These synergies are, however, included in the full
lists of existing by-product and utility synergies in Appendices 2 and 3 to this report.

The diversity and maturity of existing synergies is quite remarkable, both in absolute terms, as
well as in comparison to often-cited international examples (eg. Kalundborg (Denmark),
Forth Valley (UK), Rotterdam (Netherlands), etc). A number of factors are quite unique to
Kwinana and these have without doubt contributed to regional synergy development in
Kwinana. These include: the diverse blend of the key processing and manufacturing industries
that primarily produce for international markets, and have limited local competition; the
relative isolation from other major industrial centres in Eastern Australia; the vicinity to Perth
as a major metropolitan centre; the gradual urban encroachment around the industrial area;
and the growing recognition for the recreational significance of Cockburn Sound on which
shore the KIA is located. Key industries in the area as well as the KIC have made it a strategic
priority to further develop resource synergies in Kwinana. This commitment is strongly
supported by the consolidated research program on the application of industrial symbiosis in
heavy industrial areas, of which this project is part (see also Section 1.5).

The dynamic nature of industry development in the area, however, means that some of current
synergies might cease to exist in the future as businesses improve their own processes
(through eco-efficiency and eco-innovation) or decide to relocate. Vice versa, new
opportunities will emerge with the establishment of new industries in the area, as has been so
vividly illustrated with the recent establishment of a commercial scale HIsmelt direct
reduction iron making plant.

The following subsections provide some highly illustrative examples of by-product and utility
synergies in KIA.

July 2008 Page 22 of 144


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Chapter 2: Current Regional Synergies

METHYL DIETHYL AMINE


CARBON DIOXIDE

CARBON AUSTRALIAN BAYER CROP BHP STEEL


AIR LIQUIDE ALCOA WORLD BOC GASES HYDROGEN
DIOXIDE FUSED SCIENCES LOGISTICS BP REFINERY
ALUMINA
OXYGEN NITROGEN MATERIALS
CARBON DIOXIDE

AGRICULTURAL TRANSPORT & FREIGHT OXYGEN NITROGEN


ARGON OIL PRODUCTS
ALUMINA FUSED ALUMINA HYDROGEN
CARBON DIOXIDE CHEMICALS LOGISTICS

CARBON DIOXIDE
FUSED ZIRCON

CARBON DIOXIDE SULPHUR

SPENT RCU CATALYSTS


HYDROGEN

CBI CIBA CO-OPERATIVE


CHEMEQ COCKBURN COOGEE
HYDROGEN

BRAMBLES WA CONSTRUCT. SPECIALTY BULK


CEMENT CHEMICALS
DRUGS FOR DISEASE
CHEMICALS HANDLING
MOBILE CRANES HIRE FABRICATION & CONTROL IN COMMERCIAL
INORGANIC CHEMICALS
EQUIPMENT WAREHOUSE ANIMAL PRODUCTION CEMENT & LIME LIME TANK TERMINALLING
GRAIN STORAGE
FLOCCULANT SHIP LOADING
KILN
CARBON DIOXIDE

DUST

3-5% AMMONIUM CHLORIDE SOLUTION

HYDROCHLORIC ACID
CSBP
DORAL KWINANA FREMANTLE
HISMELT NALCO
FERTILIZERS
SPECIALTY COGENERATION ELI ECOLOGIC PORT
AMMONIA
CORPORATION AUSTRALIA
AMMONIUM NITRATE CHEMICALS PLANT AUTHORITY
SODIUM CYANIDE SOIL DECONTAMINATION WATER TREATMENT &
CHLOR-ALKALI PIG IRON

BAUXITE RESIDUE
HIGH PURITY ZIRCONIA SHIPPING & BULK PORT PROCESS CHEMICALS
ELECTRICITY
CHLORINE & POWDERS INSTALLATIONS
CAUSTIC SODA
CARBON DIOXIDE
GYPSUM
LIME KILN DUST

NUFARM NUFARM ONE STEEL SHINAGAWA TERMINALS TIWEST


SUMMIT
AUSTRALIA COOGEE MARKET MILLS THERMAL WEST PIGMENT
FERTILISERS
CHLOR-ALKALI CERAMICS PLANT
AGRICULTURAL CHLORINE & FERTILISERS SUPPLIER & STORAGE OF
CHEMICALS CAUSTIC SODA PATIO TUBING PETROLEUM PRODUCTS
REFRACTORIES TITANIUM DIOXIDE

80% SULPHURIC ACID


98% SULPHURIC ACID
AMMONIUM SULPHATE

UNITED KG WATER WESFARMERS WESFARMERS VERVE ENERGY


UNITED
TYCO WATER CORPORATION KLEENHEAT LPG COGENERATION
HYDROGEN

FARMERS
STEEL PIPES
FACILITIES MANAGEMENT
WATER SUPPLY &
GAS PLANT
ENGINEERING &
FERTILISERS TREATMENT PROPANE BUTANE
CONSTRUCTION LPG ELECTRICITY

AMMONIUM SULPHATE

VERVE ENERGY VERVE ENERGY KWINANA


HYDROGEN
COCKBURN KWINANA NICKEL
SULPHUR
STATION STATION REFINERY
HYDROGEN (BACK-UP SUPPLY)
ELECTRICITY ELECTRICITY CARBON DIOXIDE
NICKEL

Figure 2.1: Existing By-Product Synergies between KIC Member Companies

July 2008 Page 23 of 144


Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

Chapter 2: Current Regional Synergies

SEA COOLING WATER


ELECTRICITY

AUSTRALIAN BAYER CROP BHP STEEL


AIR LIQUIDE ALCOA WORLD BOC GASES
FUSED SCIENCES LOGISTICS BP REFINERY
ALUMINA
OXYGEN NITROGEN MATERIALS
AGRICULTURAL TRANSPORT & FREIGHT OXYGEN NITROGEN
ARGON FUSED ALUMINA OIL PRODUCTS
ALUMINA CHEMICALS LOGISTICS HYDROGEN
CARBON DIOXIDE FUSED ZIRCON

FUEL GAS (COGEN)


STEAM COGEN
ELECTRICITY (COGEN)
WASTEWATER (COGEN)

CBI CIBA CO-OPERATIVE


CHEMEQ COCKBURN COOGEE
BRAMBLES WA CONSTRUCT. SPECIALTY BULK
CEMENT CHEMICALS
DRUGS FOR DISEASE
CHEMICALS HANDLING
MOBILE CRANES HIRE FABRICATION & CONTROL IN COMMERCIAL INORGANIC CHEMICALS
EQUIPMENT WAREHOUSE ANIMAL PRODUCTION CEMENT & LIME GRAIN STORAGE
FLOCCULANT TANK TERMINALLING
SHIP LOADING

WASTEWATER
STEAM
WASTEWATER
BORE WATER
CSBP
DORAL KWINANA FREMANTLE
HISMELT NALCO
FERTILIZERS
SPECIALTY COGENERATION ELI ECOLOGIC PORT
AMMONIA
CORPORATION AUSTRALIA
AMMONIUM NITRATE CHEMICALS PLANT AUTHORITY
SODIUM CYANIDE SOIL DECONTAMINATION WATER TREATMENT &
CHLOR-ALKALI SHIPPING & BULK PORT PIG IRON PROCESS CHEMICALS
HIGH PURITY ZIRCONIA ELECTRICITY
CHLORINE & POWDERS INSTALLATIONS
CAUSTIC SODA

ELECTRICITY
SCHEME WATER
DEMIN WATER

STEAM
WASTEWATER

NUFARM NUFARM ONE STEEL SHINAGAWA TERMINALS TIWEST


SUMMIT
AUSTRALIA COOGEE MARKET MILLS THERMAL WEST PIGMENT
FERTILISERS
CHLOR-ALKALI CERAMICS PLANT
AGRICULTURAL CHLORINE & SUPPLIER & STORAGE OF
FERTILISERS

ELECTRICITY (COGEN)
CHEMICALS CAUSTIC SODA PATIO TUBING

RO WATER (COGEN)
REFRACTORIES PETROLEUM PRODUCTS TITANIUM DIOXIDE

STEAM (COGEN)
AIR (COGEN)
WATER FROM KWINANA WATER RECLAMATION PLANT SCHEME WASTE
WATER FROM KWINANA WATER RECLAMATION PLANT WATER WATER
WATER FROM KWINANA WATER RECLAMATION PLANT

UNITED KG WATER WESFARMERS WESFARMERS VERVE ENERGY


UNITED CONDENSATE
TYCO WATER CORPORATION KLEENHEAT WATER LPG COGENERATION
FARMERS
STEEL PIPES
FACILITIES MANAGEMENT
WATER SUPPLY &
GAS PLANT
ENGINEERING &
FERTILISERS TREATMENT PROPANE BUTANE
CONSTRUCTION LPG ELECTRICITY

WATER FROM KWINANA WATER RECLAMATION PLANT


RECYCLED WATER FROM KWINANA WASTEWATER TREATMENT PLANT (VIA GROUNDWATER) WATER FROM KWINANA WATER RECLAMATION PLANT

VERVE ENERGY VERVE ENERGY KWINANA


COCKBURN DEMIN KWINANA NICKEL
WATER REFINERY
STATION STATION
ELECTRICITY ELECTRICITY NICKEL
BOILER
BLOWDOWN

Figure 2.2: Existing Utility Synergies between KIC Member Companies

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2.2 Examples of By-Product Synergies

Pigment plant supplying hydrochloric acid to chemical manufacturer to produce ammonium


chloride

Dilute hydrochloric acid is generated from scrubbing the gas stream from the chlorination
step in the titanium dioxide pigment plant at Tiwest. The acid was previously neutralised in
the waste treatment plant. Two initiatives were realised during 1997 to recover the
hydrochloric acid: (1) as acid for sale and (2) for production of ammonium chloride to be used
at the synthetic rutile production operation. By-product hydrochloric acid is now transferred
to neighbouring Coogee Chemicals, which converts it to ammonium chloride and tankers it
for use to Tiwest’s synthetic rutile plant some 75 kilometers from the Kwinana refinery. The
cost of the ammonium chloride to Tiwest is significantly cheaper than that previously
imported (DEH 2001a).

Chemical plant supplying food grade carbon dioxide to utility gas provider

Since 1990 Air Liquide purifies and compresses process CO2 received from CSBP (from its
ammonia plant) and other industrial facilities in the KIA to a standard that it can be used as
food grade CO2 for soft–drinks and beer. CO2 is also used for other uses such as in dry ice and
water treatment, often at much lower price. This initiative reduces the emissions of carbon
dioxide to atmosphere, while also avoiding energy use that would otherwise be required to
produce CO2 from air.

Chemical plant supplying gypsum for residue area amelioration at alumina refinery

CSBP produced gypsum, calcium sulphate, as a by-product of the manufacture of phosphoric


acid. This material was stockpiled at one of the CSBP’s sites during the 1980s. Even though
this practice has ended long ago, there remains a stockpile of some 1.3 million tonnes of
gypsum. CSBP has extensively reviewed reuse options for this material including the use in
plasterboard, sale to farmers, and use in soil amendment. During this research process, it was
determined that the material could be utilised by Alcoa’s Kwinana alumina refinery to assist
in plant growth and soil stability in its residue areas. Alcoa takes this material on an ongoing
basis, approximately 10,000 tonnes each year.

Oil refinery providing hydrogen for city bus trial

In a 2004 gas synergy, an industrial gas producer and supplier (BOC Gases) receives excess
refinery gas from the BP oil refinery, to separate, clean and pressurise hydrogen for the
hydrogen bus trial in Perth. Perth is the only city in the southern hemisphere to be involved in
this trial with three hydrogen fuel cell buses. The hydrogen used in the trial is produced by BP
as a by-product from its oil refinery in Kwinana and piped to the BOC Gases facility site next
door where it is purified and pressurised. The compressed hydrogen is then trucked to the bus
depot and off-loaded to the refuelling facility, from which the hydrogen fuel cell buses are
refuelled.

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Chemical plant supplying carbon dioxide for residue neutralisation at alumina refinery

Alcoa’s Kwinana alumina refinery is about to start using process carbon dioxide (CO2) to
reduce the alkalinity of its bauxite residue, thus reducing environmental risks and significant
ongoing management related to bauxite residue storage areas while also leaving options open
for additional processing of the residue into other useful products at a future stage. The
residue carbonation process was identified after many years of research into reuse potential
and modification of the bauxite residue by mixing it with other industrial by-products or
residues. The Kwinana refinery will tap into a consistent and concentrated source of process-
CO2 from a nearby ammonia plant, resulting in greenhouse gas benefit equal to 70,000 tonnes
CO2-eq per year and generation of a more benign waste that provides alternative reuse
opportunities (Alcoa 2005).

Emerging by-product synergies around HIsmelt Pig Iron Plant

The HIsmelt plant is the first commercial scale application of direct smelting technology
which allows for simpler and more flexible iron making, avoiding coke ovens and sinter
plants required for the standard blast furnace production route. The environmental benefits
will be 20% reduction of CO2, 40% reduction of NOx and 90% reduction of SOx. Upon
completion of commissioning (which began in November 2004) and successful commercial
operation the plant will be able to source a number of inputs locally in the Kwinana area, such
as lime, lime kiln dust and treated wastewater, and provide outputs with potential for reuse in
the KIA, such as slag and gypsum. The HIsmelt Process will utilise the WA reserves of iron
ore fines, which are currently not suitable for blast furnace feed due to their high phosphorous
content (HIsmelt 2002).

2.3 Examples of Utility Synergies

Reuse of recycled effluent from Kwinana Waste Water Treatment Plant (WTTP) at the
alumina refinery

Treated wastewater from Kwinana wastewater treatment plant is infiltrated into groundwater
upstream from Alcoa groundwater extraction bores. The bores supply water for Alcoa's
process water circuit for the Kwinana alumina refinery. Thus the discharge from Kwinana
WWTP is indirectly reused by Alcoa and is estimated at 1.1 GL per annum.

Cogeneration plant at oil refinery

The Kwinana Cogeneration Plant (116 MW capacity) is located on land of the BP Kwinana
oil refinery, and produces all process steam for the refinery, and generates electricity for BP
as well as the grid. The cogeneration plant is fired with natural gas supplemented with excess
refinery gas. The cogeneration plant built in 1996 took the place of the BP steam boilers
which were in need of replacement at the time. Total benefit has been estimated as a reduction
of about 170,000 tonnes of carbon dioxide emissions per annum. This synergy allowed BP to
decommission its old inefficient boilers, estimated to have saved the refinery in the vicinity of
A$ 15 million in capital expenditure while ensuring a cost competitive reliable source of
steam and electricity for their refinery. Moreover the refinery has achieved greater process
efficiencies as a result of the greater and more flexible availability of high-pressure steam

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from the cogeneration facility. The cogeneration plant discharges its wastewater to BP’s
wastewater treatment facility.

Cogeneration plant at titanium dioxide pigment plant

Built in 1999, the second cogeneration facility (40 MWh), owned by the State’s energy
company Verve Energy, provides superheated steam for process needs at the Tiwest Pigment
Plant. Tiwest has the ability to “island”, taking electricity directly from the cogeneration
plant. For the majority of the time, however, the cogeneration plant feeds the grid with Tiwest
drawing power from the grid.

Chemical plant supplying water to pigment plant

Tiwest established its pigment plant in the KIA after the groundwater allocation for the area
had already been licensed to the existing industries. Their process requires a significant
amount of potable water, which for a drought-affected Western Australia, is not the most
sustainable option. In addition to vigorous water efficiency achievements, Tiwest now
supplements potable water intake with 1.4 GL per year of CSBP groundwater supplies,
allocated by the State’s authorities.

Artificial wetland treatment at chemical plant

In 2004 CSBP chemicals and fertiliser operations built an innovative nutrient stripping
wetland to further reduce its nitrogen discharges to the adjacent Cockburn Sound. The “pilot”
wetland was constructed on land leased from BP refinery. The wetland is planted with sedges
and incorporates a number of biological processes that will reduce the level of nitrogen in
CSBP’s effluent stream. If the pilot is a success over a two-year trial period three more cells
will be constructed. Some of the BP’s effluent is also released into the wetland and it is found
to provide additional benefits by supplementing the carbon loading provided by plant organic
matter.

Kwinana Water Reclamation Plant

The Kwinana Water Reclamation Plant (KWRP) is a joint initiative of the Water Corporation
and Kwinana industries to achieve the double benefit of greater overall water efficiency and
reduced process water discharges into Cockburn Sound. A micro filtration/reverse osmosis
unit has been built (at a cost of A$ 25 million), which takes secondary treated effluent from
the nearby Woodman Point wastewater treatment facility to produce a low TDS (Total
Dissolved Solids) water supply. This water will be used by CSBP, Tiwest, Kwinana
Cogeneration Plant, BP and HIsmelt to replace potable water (6 GL/year, about 2-3% of the
total potable water use in the drought-affected Perth metropolitan area). The low TDS will
enable the process plants to cut their chemicals’ use in cooling towers and other process
applications, thereby reducing metal loads in their effluents. In exchange for taking water
from the KWRP, the industries will be able to discharge their treated effluents into the deep
ocean outfall through the Water Corporation pipeline, thereby eliminating the current
discharges of treated process water into the sensitive Cockburn Sound (Water Corporation
2003).

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2.4 Sustainability Benefits of Regional Synergies

For a synergy to be successful all involved parties must benefit in one way or another. In fact,
it is unlikely that a synergy would be implemented unless all involved parties at least perceive
some business benefit (direct or indirect). For all synergy examples presented in this report
there are both tangible operating benefits as well as less tangible, such as reputation,
environment or community benefits. To illustrate this, Table 2.2 presents a summary of the
commercial, environmental, and community benefits for some existing synergies in Kwinana.

Table 2.2: Illustrative Benefits of Regional Synergies


Synergy Commercial Environmental and
benefits community benefits
CSBP gypsum re-use at Alcoa ƒ Reduced costs to manage ƒ Reduction of stockpiled gypsum
residue area gypsum stockpile (long-term) onsite at chemical plant
ƒ Lower cost gypsum source for ƒ Increased soil stability and plant
alumina refinery growth at Alcoa residue area
Air Liquide utilising by-product ƒ Costs savings for industrial gas ƒ Proportion of CO2 emissions from
CO2 from Kwinana industries company to produce food grade industries are no longer emitted to
CO2 from otherwise emitted the atmosphere
CO2 emissions ƒ Avoidance of energy use that
would otherwise be required to
produce CO2 from air
2 Cogeneration facilities ƒ Increased energy efficiency ƒ Reduced greenhouse gas
(BP, Tiwest) ƒ Reliable source of electricity emissions
and superheated steam ƒ Increased energy efficiency
ƒ Sales of electricity and steam ƒ Employment
from cogeneration plant
Kwinana Water Reclamation ƒ Water security for industry ƒ Potable water conservation
Plant (KWRP)* users ƒ Redirection of discharges of
ƒ Availability of high-grade water treated industrial effluent from
for industry coastal zone into deep ocean
ƒ Water quality improvement in
sensitive coastal zone
* A more comprehensive assessment of the triple bottom line impacts of these regional synergies is available
from (Kurup et al. 2005).

As illustrated in Table 2.2, the types of benefits can vary greatly and often go well beyond the
conventional business case benefits. Security of water and energy supply, increased energy
efficiency, lower operational costs for energy use, and reduced storage costs for the inorganic
by-products are key benefits from the synergies presented here. In addition, all of these
synergies had environmental and community benefits. These case studies exemplify that the
benefits from regional synergies are not just commercial but also strategic, leading to reduced
exposure to risk and improved reputation. The critical factor in initiating a regional synergy is
for all the involved parties to appreciate fully the range of benefits, both direct and indirect,
that will result from its implementation (Corder et al. 2006).

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2.5 Drivers, Barriers, and Triggers for Regional Synergies

Valuable lessons can be learned from regional synergy experiences in Kwinana. Table 2.3
includes a selection of the main drivers, barriers, and triggers for these synergy developments.
Although not all drivers, barriers, and trigger events listed in Table 2.3 can be discussed in
detail, some specific examples from Kwinana are provided below to illustrate each of the
main categories referred to in the table (Van Beers et al. 2007).

Table 2.3: Drivers, Barriers, and Triggers for Regional Synergies (Van Beers et al. 2007)
Category Drivers Barriers Triggers
Economics ƒ Increased revenue ƒ Relatively low price for ƒ Secure availability
through lower utility resources and access to vital
operational costs ƒ Relatively low costs for process resources
ƒ Reduced risks and waste disposal
liability
Information ƒ Local industry ƒ Confidentiality and ƒ Local and regional
availability organisation commercial issues studies
ƒ Staff mobility
Corporate citizenship ƒ Corporate sustainability ƒ Core business focus ƒ Industry champion
and business strategy focus
ƒ Community engagement and perception
Region-specific ƒ New company entering ƒ Distance between ƒ Major new project
issues industrial area companies developments
ƒ Geographic isolation
Regulation ƒ Existing environmental ƒ Existing environmental ƒ New pollutant
regulations regulations (intensive targeted regulations
ƒ (e.g. air and water approval procedure for (e.g. carbon tax and
quality requirements and by-product reuse) mandatory energy
reporting) ƒ Existing water and audits)
energy utility
regulations
Technical issues ƒ Research and technology ƒ Availability of ƒ Major brownfield
developments (reliable) recovery development
ƒ Technical obsolescence technologies
of existing process
equipment

Economics

ƒ Operational costs and revenue as a synergy driver: Most synergies make good business
sense, through a combination of lower input costs, lower operational costs and/or
increased revenues. The recovery and reuse of hydrochloric acid at the Tiwest pigment
plant meets all three. Dilute hydrochloric acid is generated from scrubbing the gas stream
from the chlorination step in the titanium dioxide pigment plant. The acid was previously
neutralised in the waste treatment plant. In 1997 Tiwest installed a second scrubber to be
able to run the first scrubber at higher acid concentrations, while maintaining the second
scrubber at lower concentrations to maintain emissions standards. The hydrochloric acid
from the first scrubber has become a valuable by-product. It is sold on to Coogee
Chemicals to produce ammonium chloride which it then tankers for use to Tiwest’s

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synthetic rutile plant some 75 km from the Kwinana plant. The cost of the ammonium
chloride to the synthetic rutile plant is significantly cheaper than that previously imported,
while wastewater costs have been reduced and revenues increased at the pigment plant
(DEH 2001).

ƒ Resource scarcity as an economic trigger: A number of utility synergies have come to


fruition because of concerns for continued access to a vital resource for running the
business. The Kwinana Water Reclamation Plant was build to accommodate the
establishment of HIsmelt which could not get access to another source of process water.

Information availability

ƒ Local and regional studies as a synergy trigger: While a number of synergies were already
happening in Kwinana it took an external study to review and document regional resource
flows and synergy opportunities to trigger broader industry interest and commitment for
industrial symbiosis. In Kwinana, the regional economic impact study (SKM 2002) was
coordinated by the KIC and financially supported by the Commonwealth and State
government. It revealed the exponential growth in the industry integration in the area over
the 1990s, and suggested many more exchanges would in principle be possible. The
discussions in the project steering group for this study led to the direct realisation of some
synergies, such as for example the reuse of waste gypsum from CSBP by the Alcoa
bauxite residue operation.

ƒ Staff mobility as a synergy driver: Mobility of staff between neighbouring operations in


Kwinana has contributed to a greater awareness of industrial operations, and their
associated process inputs and outputs, which has contributed significantly to identifying
synergy opportunities.

Corporate citizenship and business strategy

ƒ Community engagement and corporate citizenship focus as a synergy driver: The KIA is
increasingly subjected to urban encroachment and the resulting higher community
expectations, with regard to environmental and safety performance, and overall amenity.
The KIA is located on the shore of the Cockburn Sound, a sensitive marine environment
and recreational area for local residents. The opportunity to transfer the discharge of
treated process wastewater from the coastal area into the deep ocean outlet as part of the
Kwinana Water Reclamation Plant (KWRP) was therefore an important consideration for
CSBP, Tiwest, BP and Kwinana Cogeneration Plant to purchase the higher cost water
from KWRP. Moreover the CSBP chemical and fertiliser plant built in 2004 an innovative
nutrient stripping wetland to further reduce the nitrogen discharges to the adjacent
Cockburn Sound. The “pilot” wetland was constructed on land leased from the BP
refinery. Some of BP’s effluent is also released into the wetland, which provides
additional benefits by supplementing the carbon loading provided by the plant organic
matter.

ƒ Core business focus as a synergy barrier: The emphasis of site personnel is to devote their
efforts to core business activities resulting in potential missed synergy opportunities
unless there is an overwhelming commercial benefit. This is recognised by various site

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personnel who see one of the main aims of the regional synergies research is to identify
and progress synergy opportunities, which are unrelated to core business.

Region-specific issues

ƒ Major capital projects as a synergy driver and trigger: This can include new operations or
significant capacity expansion projects in existing operations. In Kwinana, two new
industrial facilities have been built and commissioned in 2004 (Kwinana Water
Reclamation Plant and HIsmelt direct reduction iron making plant). The HIsmelt plant is
able to source a number of inputs locally in the Kwinana area, such as lime, lime kiln dust
and treated wastewater and provide outputs with potential for reuse in Kwinana, such as
slag and gypsum. HIsmelt triggered the undertaking of the Kwinana Water Reclamation
Plant (KWRP) as the groundwater allocation for the area had already been licensed to the
existing industries and there was limited availability of catchment (potable) water in Perth
Metro.

ƒ Distance between companies as a synergy barrier: Although the KIA is relatively


compact, the distances still pose a challenge with regard to the recovery and reuse of by-
products, water, and energy. This is particularly the case when a low value resource from
a Kwinana company is used outside the boundaries of the KIA, for example the use of
inorganic by-products for building and construction. The challenge is to keep the required
transportation distances to a minimum. It does not make good business sense to consider a
reuse where the low-value resources needs to be transported over large distances (>50 or
100 km).

Regulation

ƒ Environmental regulations as a synergy barrier: Some Kwinana companies are


experiencing obstacles in getting governmental approvals for the use of alternative fuels
and raw materials. Although some by-product synergies appear techno-economical
feasible and have a positive sustainability impact (e.g. alternative fuels in cement kilns,
and use of bauxite residue for soil conditioning), their practical implementation have been
halted by uncertainties in the legislative framework, in particular with regard to the final
responsibility for approved reuse options, and community concern. Additionally, if a by-
product is classified as a controlled waste (for example fly ash), strict transportation
procedures and requirements apply.

ƒ New pollutant targeted regulations as a synergy trigger: Business drivers for energy
conservation are changing rapidly, through for example the introduction of mandatory
energy opportunity assessments (and their public disclosure) for large users (> 0.5 PJ/yr)
in 2007, climate change policies and potentially carbon taxes. It is anticipated that these
developments will result in improved energy efficiency and enhanced energy recovery at
Kwinana operations, possibly through energy utility synergies.

Technical issues

ƒ Technical obsolescence of existing process equipment as a synergy driver: The Kwinana


Cogeneration Plant is located on land of the BP oil refinery, and produces all process
steam for the refinery, and generates electricity for BP as well as the grid. The

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cogeneration plant built in 1996, took the place of the BP steam boilers that were in need
of replacement at the time. This synergy allowed BP to decommission its old inefficient
boilers, estimated to have saved the refinery in the vicinity of A$ 15 million in capital
expenditure while ensuring a cost competitive reliable source of steam and electricity for
their refinery.

ƒ Major brownfield expansion as a synergy trigger: In Kwinana, a major new industrial


development that further enhances regional synergies in the region is the world’s first
commercial direct reduction iron making plant (HIsmelt). Upon completion of
commissioning (which began in November 2004) and successful commercial operation
the plant will be able to source a number of inputs locally such as lime, lime kiln dust and
treated wastewater and provide outputs with potential for local reuse, such as slag and
gypsum.

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Chapter 3: Methodology

3 METHODOLOGY

3.1 Overview

Figure 3.1 provides an overview of the step-by-step approach used to develop and evaluate
new regional synergy opportunities in the Kwinana Industrial Area (KIA). This approach was
compiled by merging common elements of synergy project development (as documented in
(Bossilkov et al. 2005)) into an overall framework generally used for the implementation of
cleaner production in companies (van Berkel 2002). Each phase within the approach is
discussed separately in the following sections.

Obtain management commitment and


Planning and organisation funding, organise project team and industry
participation, allocate tasks and
responsibilities and planning.
Project team and
company involvement
Compile resource input/output database, and
Preliminary assessment generate potential synergy opportunities from
input/output matches, brainstorming sessions
with company staff, and literature.
Input/Output database and
register of opportunities
Select icon synergy opportunities with high
Assessment potential success rate based on project
scope, work done elsewhere, practicability,
and possible contribution to sustainability.
Short-list of opportunities
with good business case
Conduct detailed techno-economic,
Feasibility studies environmental, social feasibility study and
business risk assessment for synergy
opportunities with good business case.
Feasible synergy projects

Realise feasible synergy projects, including


Implementation &
detailed engineering, business planning,
continuation construction and ongoing operation.

Figure 3.1: Methodology for Identification and Evaluation of New Regional Synergies in KIA

This approach is a conventional step-by-step methodology, and proved to be resource


intensive. The Kwinana Synergies Project catalyses and benefits from the tool development
and technology assessments that are currently taking place in CSRP project ‘Enabling Tools
and Technologies for Capturing Regional Synergies’. This project is developing a Regional
Synergy Development Toolkit that guides a more customised and focused way to identify
feasible synergy opportunities than the traditional methodology used so far (Bossilkov and
van Berkel 2005).

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3.2 Planning and Organisation Phase

In close consultation with the KIC, its members and other industry bodies, Curtin University
of Technology has designed the research strategy for the Kwinana Synergies Project.

Recruitment of companies into the project focused initially on the member companies of the
KIC (41 businesses) but was later extended to include other significant businesses (15) in the
wider Kwinana area. All companies were visited by the project team to introduce the
Kwinana Synergies Project, commence the data collection and set up confidentiality
agreements to enable release of company data on their materials, energy and water
consumption and discharges. The achieved participation level is extremely high for the KIC
members (30 agreed to participate, among the seven companies not participating in the project
are five service and transport firms with no fixed manufacturing operations in the area). It
turned out to be more difficult to engage the non-KIC members (only six confirmed
participation so far). There is now general agreement that the principal flows have been well
documented, after 35 companies provided their baseline data. The progress on the recruitment
and data collection is illustrated in Table 3.1.

Table 3.1: Industry Participation in the Kwinana Synergies Project


Situation in June 2008 # Total
KIC members
Total (full and associate) 41
Selected for participation 32
Agreed to participate 30
Provided baseline input and output data 30
Non-KIC members
Selected for participation 25
Visited so far 15
Agreed to participate 6
Provided baseline input and output data 5

3.3 Preliminary Assessment Phase

3.3.1 Kwinana Input & Output Database

Standardised data collection sheets were developed to gather the necessary information in the
most efficient and effective way for both the participating companies and the project team.
The data collection sheets were customised for each company upon the findings of the first
introductory visit. A customised database (referred to as Kwinana Input/Output Database) was
created in Microsoft Access to store, manage and manipulate the company data provided. A
main switchboard is at the heart of the database, and allows the research team to swiftly
activate the different features of the database (Figure 3.2). All data provided by the companies
have been entered in the database in uniform data entry forms (Figure 3.3). The database
enables the automatic matching of input and output flows (Figure 3.4), and also allows
searching on specific flows by material name (e.g. hydrochloric acid, LPG) and chemical
formula (e.g. H2SO4, Cu). Another useful feature is the generation of summary reports (both

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at the company and regional level) on water, energy, process and non-process inputs and
outputs (Figure 3.5). Overall, the database proved to be a valuable tool that provides the
project team with a platform for storing and processing company information and a search
engine to further enhance the identification of regional synergies in the Kwinana area.
Although the database has been developed for the Kwinana case study, it can readily be
applied to other industrial regions as well.

Figure 3.2: Main Switchboard of Kwinana Input/Output Database

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Figure 3.3: Example of Data Entry Form in Kwinana Input & Output Database

Figure 3.4: Example of Input/Output Match Report in Kwinana Input/Output Database

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Figure 3.5: Example of Company Input/Output Report in Kwinana Input/Output Database

3.3.2 Identifying New Synergy Opportunities

The search for potential new synergies was started in tandem with the baseline data
collection, as discussed above. Potential synergies are being identified through four activities:
the Kwinana Input/Output Database; review of earlier reports on synergy opportunities in
Kwinana (in particular the KIA economic impact studies (SKM 2002, 2007); one-on-one
discussions with company representatives; and focused opportunity identification workshops.
Five half-day workshops have been jointly organised by the CSRP and KIC so far, two on
energy, two on water, and one on inorganic by-products. The overall objective of these
workshops was respectively to discuss the status quo of energy consumption, water
consumption, and the generation of inorganic by-products in Kwinana. In addition, the
workshops sought to identify opportunities for further enhancement of regional eco-efficiency
and synergies. Details on these workshops are provided in the respective chapters on the
development of collective KIA strategies on inorganic by-product, and water and energy
synergies.

By June 2008, the number of identified potential synergy projects had exceeded 120
opportunities. Table 3.2 lists those potential synergy projects by source. This list includes the
opportunities identified and documented in recent studies (e.g. (SKM 2007; Van Beers and
Biswas 2007).

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Table 3.2: Number of Potential Synergies by Source (update June 2008)


Category # Total
By-product: 46
Kwinana Input & Output Database 17
KIA Economic Impact Studies (SKM 2002, 2007) 10
1
Kwinana Input & Output Database + KIA Economic Impact Studies 4
Suggested by companies 13
Literature 2
KIA inorganic by-product workshop(s) N.A.
Energy: 38
Kwinana Input & Output Database 2
KIA Economic Impact Studies (SKM 2002, 2007) 3
Suggested by companies 0
Literature 0
KIA energy workshop(s) 10
KIA flue gas study 23
Water: 32
Kwinana Input & Output Database 0
KIA Economic Impact Studies (SKM 2002, 2007) 4
Suggested by companies 24
Literature 0
KIA water workshop(s) 4
Shared infrastructure: 11
Kwinana Input & Output Database 0
KIA Economic Impact Studies (SKM 2002, 2007) 5
Suggested by companies 2
Literature 4
Total 127
1) Number of synergies identified by both sources

3.4 Assessment Phase

3.4.1 Screening of New Synergy Opportunities

Obviously not all identified synergies are feasible or would provide significant benefits to the
companies or the region.

In the first year of the CSRP Kwinana Synergies Project (2004), a preliminary screening
exercise was conducted to eliminate those synergies that could readily be identified as
unfeasible or without significant benefits. Since then, a more comprehensive and rigorous
screening tool has been designed as part of the CSRP Project ‘Enabling Tools and
Technologies for Capturing Regional Synergies’. This ‘Synergy Screening Tool’ has been
designed to provide guidance in assessing the potential contribution to sustainability of each

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identified synergy opportunity and assessing the ease of its implementation (Bossilkov and
van Berkel 2005). The Synergy Screening Tool has been applied to all identified synergy
opportunities in Kwinana to assist the KIC, companies, and also the Kwinana Synergies
Project with strategic guidance on which synergies (not) to select for feasibility assessments.

A detailed description of the Synergy Screening Tool and its results for the KIA is provided in
Chapter 8 ‘Comprehensive Assessment of Synergy Opportunities’.

The synergy opportunities that appear to have significant sustainability benefits and that are
relatively easy to implement (compared to the other synergy opportunities at least) are listed
in Table 3.3. It is also valuable to consider which by-product, water, and energy synergies
from all identified opportunities appear to be the easiest to implement (regardless of their
sustainability benefits) and which ones have the highest sustainability benefits (regardless of
the ease of implementation). This kind of information can also be derived from the tool
application.

Table 3.3: Priority Synergy Opportunities (Update June 2008)


Priority By-Product Synergy Opportunities – Preliminary Findings
Reuse wooden pallets from Kwinana companies Reuse of silica/zircon sand from Tiwest
Reuse of hydrochloric acid from Tiwest Reuse of zirconia process waste from Doral
Reuse waste tyres by Naval Base Concrete Reuse of gypsum from Coogee Chemicals
Priority Water Synergy Opportunities – Preliminary Findings
Reuse as process / washing water at Cockburn Cement Reuse as cooling water at BP
Reuse as process water at Nickel West Reuse as fly ash slurry water at power station
Reuse as 200 TDS water at Tiwest Reuse as RO feedwater at power station
Reuse of industrial effluents in Kwinana Treatment of hydrocarbon contained groundwater
(collective KIA project) from BP in CSBP wetland cells
Priority Energy Synergy Opportunities – Preliminary Findings
Reuse of off-gases from BP Hismelt supplying preheated working liquid
(produced from flue gases) to neighbouring industries
Tiwest supplying preheated working liquid (produced Alcoa supplying steam (produced from flue gases) to
from flue gases) to Nufarm Coogee or Wesfarmers LPG Verve Energy or BGC Cement
Tiwest supplying steam (produced from flue gases) to Hismelt supplying steam (produced from flue gases)
Nufarm Coogee or Wesfarmers LPG to Kwinana Cogen or Wesfarmers LPG
Priority Infrastructure & Service Synergy Opportunities – Preliminary Findings
Joint Venture Air Liquide / BOC for industry support Shared marketing in Kwinana
Shared storage of liquid fertiliser Shared transportation in Kwinana

3.5 Feasibility Assessments

In order to streamline the limited resources of the research team and company representatives
and to be able to advance the work in a meaningful manner, the CSRP Kwinana Synergies
Project is focusing on selected tasks to further develop regional synergies in the KIA.

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Chapter 3: Methodology

The main focus of the Kwinana Synergies Project is currently on:

ƒ Industry assistance to selected synergy opportunities (Chapter 4):


By-products 1. Recovery and reuse of export waste product
2. Value creation from organic waste
3. Value creation from wooden pallets
4. Reuse of by-products by composting company
5. Reuse of liquid ammonium sulphate
6. Recovery and reuse of sodium sulphate
7. Reuse of catalysts
8. Reuse of graphite electrodes
9. Recovery and reuse of zirconia process waste
10. Recovery and reuse of grain waste
Water 11. Treatment of oily wastewater
12. Reuse of treated effluent as process water
13. Reuse of treated effluent for dust suppression / washdown
14. Reuse of evaporation pond water
15. Alternative water sources for pigment plant
16. Supply of demineralised water
Energy 17. Energy recovery opportunities from flue gases
18. Value creation from waste oil

ƒ Research assistance to a synergy scoping study for the proposed hydrogen power plant
(Chapter 4): Hydrogen Energy (joint venture of BP Alternative Energy and Rio Tinto)
have been working on plans to establish an integrated gasification combined cycle (IGCC)
plant in Kwinana that would be fully integrated with carbon capture and storage. Such a
plant would provide significant opportunities for establishing new supply chain, by-
product, and utility synergies with the existing Kwinana industries. This would result in
business and sustainability benefits for the companies involved and the Kwinana region as
a whole. A scoping study has been completed through the CSRP Regional Synergies
Program to explore and evaluate the regional synergy opportunities emerging from the
proposed hydrogen power plant.

ƒ Foundation research on a collective KIA strategy for inorganic by-products reuse (Chapter
5): There are large volumes of inorganic by-products in the KIA, from past operations
(e.g. gypsum) and current operations (e.g. bauxite residue, kiln dusts, fly ash, iron making
slag). The foundation research has been completed and included a baseline assessment of
current practices, industry research needs, and development of collective KIA research
strategy. The work resulted in a spin-off project ‘Kwinana Industrial Inorganic By-
Products Reuse’. This project reviews and evaluates the business case of promising
synergy opportunities for inorganic by-products in order to pave the way forward for the
implementation of up to three iconic and feasible recovery projects with anticipated
significant triple bottom line benefits.

ƒ Foundation research on a collective KIA strategy for water reuse (Chapter 6): The 10
major water consuming companies use more than 30 gigaliters of water per year. Baseline
assessments of water inputs and outputs have been conducted for these Kwinana
companies, including brainstorming sessions with company staff on opportunities for
reuses of water between industrial operations, joint water treatment, and joint storage of

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Chapter 3: Methodology

water. Current research efforts focus on providing industry assistance to progress the one-
on-one synergies short-listed at the KIA Water Synergies Workshop (November 2005),
and scoping ways forward for the further development of four collective KIA water
synergies. These collective synergies include the reuse of treated effluents as separate
streams or as an aggregated source, reuse of boiler blowdown from power generation, and
the further development of the Kwinana Water Reclamation Plant (assessed by the Water
Corporation).

ƒ Foundation research on collective KIA strategy for energy recovery (Chapter 7): The
discharge of waste heat is a significant source of energy loss in many Kwinana operations
using hot processes, utilities and/or process equipment. The major energy consuming
industries in KIA consume a total of about 95 PJ/yr of “virgin” energy sources. A KIA
Energy Survey of the major energy consuming companies was carried out, followed-up by
a KIA Energy Workshop (May 2006). A scoping study was delivered on energy recovery
from flue gases in the KIA. It revealed that the total energy release from Kwinana flue
gases is estimated at approximate 6,300 TJ/yr, with up to 3,000 TJ/yr over 300 oC. The
scoping report presents a set of promising recovery opportunities, covering both on-site
(eco-efficiency) and collaborative (regional synergies) options. Through discussions with
the KIC, it became clear that a business case exists for bringing in external expertise to
further develop promising energy recovery opportunities. A promising area of research is
an assessment of business and sustainability case for an evaporative water treatment
system utilising recovered energy from KIA flue gases.

3.6 Implementation & Continuation Phase

A critical factor in the Kwinana Synergies Project is the actual implementation of new
synergies by the industries. The responsibility and outreach of the CSRP research team can
only go as far as developing initial proxy business plans for implementation. Eventually it is
up to the companies to decide whether and how to pursue synergy opportunities that appear to
be feasible. The success of the Kwinana Synergies Project should therefore be determined by
the number of feasible synergies identified and developed with input from the Kwinana
Synergies Project, not on the numbers of synergy opportunities converted to operating
projects. To date, industries have taken ownership of eleven synergy opportunities, while
seven synergies have medium to high chances of being implemented by industry. One
synergy is currently up for industry implementation.

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Chapter 4: Feasibility Work on Selected Synergy Opportunities

4 FEASIBILITY WORK ON SELECTED SYNERGY OPPORTUNITIES

4.1 Overview

The overall objective of the Kwinana Synergies Project is to provide hands-on support to the
Kwinana companies to develop, evaluate and implement regional resource synergy
opportunities. In addition to the foundation research on collective KIA strategies for recovery
and reuse of inorganic by-products, water and energy, the Kwinana Synergies Project assists
industries with the development of short-listed one-on-one synergy opportunities (i.e.
involving two companies).

The type and level of research assistance to the one-on-one synergies depends entirely on the
specific research needs of the involved industries. There is no one-size-fits-all approach for
the development of regional synergies. In summary, the project’s contribution to the
development of selected synergies comprises the following elements:
ƒ Facilitation between involved companies
ƒ Detailed assessment of the by-product stream with regard to volumes and composition
ƒ Assessment and selection of potential uses and potential combinations thereof
ƒ Evaluation of pre-processing and source treatment needs
ƒ Concept design for the synergy project (technology and infrastructure)
ƒ Preliminary assessment of economic, technical, environmental, and social feasibility
ƒ Assistance in detailed business planning for implementation

If it becomes clear that it is not worthwhile to pursue a selected potential synergy any further,
then other more promising synergy opportunities will be investigated. The results of the trial
application of the Synergy Screening Tool assist with the strategic guidance on which other
synergy opportunities to select for feasibility assessments (see Chapter 8).

4.2 Selection of Synergies for Feasibility Assessments

By the end of 2006, the Kwinana Synergies Project was progressing 10 synergies with the
Kwinana industries. The extended end date of the project (June ‘10) allows for the selection
of additional synergy opportunities for (pre-)feasibility assessments.

Early in 2007, a set of promising synergy opportunities were proposed to the KIC which are
likely to be achievable and have significant sustainability benefits, for consideration by KIC
and its member companies. This exercise built upon a comprehensive assessment of synergy
opportunities in which a Synergy Screening Tool, developed as part of a parallel CSRP
research project3, was applied to all identified (over 120) synergy opportunities in Kwinana
(see Chapter 8).

In the report with the proposed synergies delivered to the KIC, it was made clear that criteria
for the selection of new synergy opportunities for feasibility assessments include:
ƒ The synergy must have potential to be achievable and have significant sustainability
benefits.
ƒ Involved industries must be willing to work together with the Kwinana Synergies Project
team to progress the synergy.

3
CSRP 3A1 Project ‘Enabling Tools and Technologies for Capturing Regional Synergies’

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Chapter 4: Feasibility Work on Selected Synergy Opportunities

The KIC Eco-Efficiency and Environmental Planning Committees (with representatives from
the major Kwinana industries) selected the following synergies for (pre-)feasibility
assessments:
ƒ Collective KIA project on value creation from wooden pallets
ƒ Collective KIA project on value creation from waste oil
ƒ Collective KIA project on value creation from organic waste
ƒ Reuse of evaporation pond water from a port facility

The Kwinana Synergies Project is working closely with the involved industries to progress
these new synergies. The progress made so far on these synergies is discussed in the next
section.

4.3 Progress on Selected Synergy Opportunities

Table 4.1 summarises the progress and the industry assistance that was provided with regard
to the selected synergy opportunities. The table shows that current project efforts focus on 18
short-listed priorities with regard to by-products, water, and energy. Full details on the
development of the synergies opportunities can not be provided due to confidentiality issues.
It is clear from Table 4.1 that various projects are in the pipeline and significant progress has
been made towards the further development of these synergies. An example of a synergy that
is up for implementation includes the treatment of oily wastewater from the Kwinana Nickel
Refinery by the BP Refinery. A synergy with promising prospects for implementation as a
long-term option is the supply of treated effluent from CSBP to the Kwinana Nickel Refinery
(5 years away). There is a commitment from the industries, KIC, and the CSRP to implement
further regional synergies and thereby enhance the sustainability of the KIA.

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Chapter 4: Feasibility Work on Selected Synergy Opportunities

Table 4.1: Progress Summary of Selected Synergy Opportunities (as per 30 June 2008)
# Synergy Issue Potential Reuse Application Input from Way Forward and
Kwinana Synergies Project Comments
By-Products
1 Recovery and An animal export waste product A number of reuse options are available The Kwinana Synergies Project The development of this synergy is
reuse of export is generated by the port facility. for the animal export waste, including identified a range of reuse options for ongoing. The port facility is
waste product The company seeks to find feed into an aerobic digester, consideration by the port facility. exploring the suggested reuses
alternative reuses for this waste. conversion into reusable fuels, and land options.
applications.
2 Value creation Various types of solid and liquid There is an opportunity to establish a This synergy has been identified It was decided not to further pursue
from organic organic wastes are currently collective KIA anaerobic digester plant, through the Kwinana Synergies this opportunity at this point in
waste being produced by a number of feeding from high volume organic Project. A scoping study into the time, because of relatively high
Kwinana industries. Higher wastes of selected Kwinana companies. feasibility of a joint anaerobic investment costs involved, saturated
value reuse applications may be This plant would produce a biogas and digester was carried out through the market for soil conditioners, and
possible for these waste streams. a high quality biosludge for sale. Kwinana Synergies Project. unsecured long-term supply of
organic wastes. The anaerobic
digester will be a “plan B” for the
grain handling facility when
market/disposal conditions change
and installation of ethanol plant
does not go ahead.
3 Value creation Wooden pallets are common There is an opportunity to establish a The Kwinana Synergies Project is Based on inventory of available
from wooden waste products produced by collective KIA project on the reuse of exploring the business case for a waste pallets in Kwinana, a business
pallets most Kwinana companies. A wooden pallets. Potential reuse collective KIA project on the reuse of proposition will made by a
higher value reuse application applications include reprocessing wooden pallets in close collaboration composting company to have these
may be possible for this common (mulch), pallet repair, chipboard with an interested composting pallets collected and reused (in
waste stream. manufacturing, and alternative fuel. company. collaboration with KIC and
Kwinana Synergies Project).
4 Reuse of by- A innovative composting The composting company can facilitate The Kwinana Synergies is facilitating There is no low-hanging fruit
products by company is interested to work the reuse of available organic and discussions between the composting opportunity for the reuse of the
composting with selected Kwinana industries inorganic by-products in various ways company and relevant Kwinana selected by-products (fly ash,
company on the reuse of their by-products (e.g. composting, shredding, collection industries. cement dust, desalination sludge).
(e.g. fly ash, cement dust, and transport). Discussions between Kwinana
desalination sludge). Synergies Project, composting
company and Kwinana industries
are ongoing.

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# Synergy Issue Potential Reuse Application Input from Way Forward and
Kwinana Synergies Project Comments
5 Reuse of liquid Liquid ammonium sulphate is a The liquid ammonium sulphate could The Kwinana Synergies Project Nickel refinery and fertiliser plant
ammonium by-product from the nickel potentially be used in liquid form by facilitated the initial development of have taken ownership of this
sulphate refinery in Kwinana. The current user of the material (fertiliser this synergy with the nickel refinery synergy. An internal feasibility
ammonium sulphate is currently plant). The removal of water from the and the fertiliser plant (e.g. what is study showed that the benefits do
crystallised and supplied to a liquid ammonium sulphate is an energy the business case, quality issues, and not justify the required capital
fertiliser manufacturer. intensive process, and most fertilisers quantity requirements). expenditures.
are being applied in liquid form
anyway.
6 Recovery and By-product sodium sulphate Recovered sodium sulphate can A preliminary market assessment Company decided not to pursue this
reuse of sodium from an industrial operation is potentially be used in detergent report was provided to the company synergy opportunity due to other
sulphate currently treated with lime to industry (filler), textile industry which also included a potential company projects which will result
produce gypsum for disposal as (processing aid), glass industry (fining separation route for the sodium in elimination or significant
solid waste. and fluxing agent), paper industry sulphate (van Beers et al. 2005c). reduction of the sodium sulphate
(kraft paper manufacturing), and other produced.
sectors (e.g. energy, building,
ceramics).
7 Reuse of The oil refinery produces spent The catalysts could potentially be Industry facilitation on quality issues The synergy opportunity is not
catalysts for phosphoric acid catalysts. The reused by a nearby fertiliser plant in was provided by the Kwinana feasible at the moment because of
higher value catalysts are currently leached their super phosphate plant. Synergies Project. associated odour issues. The
application out and used as a compost chemical plant will revisit the
addition. There may be higher synergy opportunity if a planned
value uses for the catalysts. modification of a business unit is
going ahead.
8 Reuse of A Kwinana company The spent electrodes have potential to The Kwinana Synergies project No (Kwinana) company was found
graphite occasionally produces a batch of be reused as a flux material (e.g. pig provided assistance to find a which could use the graphite
electrodes spent graphite electrodes from iron making), raw material (e.g. cement potential local user of the graphite electrodes as an alternative raw
their electronic arc furnace manufacturing) or as a reductant (e.g. electrodes. Six local industries were material in their processes.
(EAF). silicon smelter). initially approached.

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# Synergy Issue Potential Reuse Application Input from Way Forward and
Kwinana Synergies Project Comments
9 Recovery and A process waste high in There is potential to recover and reuse Identification of this synergy The zirconia waste is not being
reuse of zirconia zirconia is being generated the zirconia as a low grade refractory opportunity was done within produced anymore. This part of the
process waste by a producer of zirconia material. framework of Kwinana Synergies operations has been decommissioned
powders. Project. due to market developments.
10 Recovery and Grain wastes are generated With an anaerobic digestion system, A pre-feasibility report on waste-to- There was a renewed interest from
reuse of grain by a grain handling facility. there is potential to convert the grain energy recovery of waste grain and the company into the proposed
waste The waste grains are waste and other organic wastes into a grain dust was provided to the grain anaerobic digestion system, possibly
currently being used as a biogas that can be sold or converted handling facility (van Beers et al. as part of a collective KIA project
composting material. into electricity for on-site use. The 2005b). This report introduces the with other Kwinana industries (see
digester will also produce a biosludge concept of anaerobic digestion and synergy #2).
that is a high quality soil conditioner outlines the business opportunities of
due to its high nutrient content. this technology for the company.
Water
11 Treatment of oily A mineral processing plant There is an opportunity to have oily The synergy to have the oily After ongoing discussions and
wastewater produces an effluent stream wastewater from Kwinana industries wastewater from a minerals analysis of the oily wastewater, this
that has a small fraction of treated at the oil refinery. The refinery processing plant treated at the oil synergy is being implemented by the
hydrocarbons. The water wastewater treatment plant is refinery was identified as part of the minerals processing plant and the oil
treatment plant is not especially designed to target foundation research on water of the refinery. The two companies are
designed to treat hydrocarbons. The oily wastewater Kwinana Synergies Project (see working on the operational
hydrocarbons so this effluent could be trucked to the oil refinery if Chapter 6), and the project is arrangements (e.g. contracts).
is currently disposed as the quantities involved are not very facilitating the synergy development In addition, a chemical plant is
waste at high costs. high. with the two involved companies. dealing with oil refinery directly to
There is potential to find a All major Kwinana industries were have their oily wastewater treated.
treatment solution for oily contacted to assess their needs to This synergy was not identified as
wastewater streams from have their oily wastewater treated. part of Kwinana Synergies Project.
other Kwinana industries.
12 Reuse of treated The nickel refinery needs an The alternative water source will be This synergy was identified as part of Effluent quality of the fertiliser plant
effluent as process alternative water source in used as process water. The treated the foundation research on water of meets the process requirements of the
water the near future to effluent from a neighbouring the Kwinana Synergies Project (see nickel refinery. This synergy is
accommodate for their fertiliser/chemical plant meets quality Chapter 6), and the project facilitated considered by the nickel refinery as a
increased water needs due to requirements of the nickel refinery. the synergy development with the long-term water resource option
anticipated production two involved companies. (about 5 years away, after completion
expansion. of ground water recovery program).

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# Synergy Issue Potential Reuse Application Input from Way Forward and
Kwinana Synergies Project Comments
13 Reuse of treated A jetty terminal in Kwinana Both dust suppression and washdown are The Kwinana Synergies Project The facilitation and development
effluent for dust needs water for dust applications that do not require high provided assistance in the facilitation of this synergy is ongoing. There
suppression and suppression and wash down. quality water. The jetty terminal can and development of this synergy. is an interest from the two
washdown potentially use a treated effluent stream involved companies to move
from a neighbouring industry instead of forward. The port facility is
using (more expensive) potable water. submitting a proposal to the oil
refinery.
14 Reuse of A port facility seeks reuse A number of reuse options are available The Kwinana Synergies Project The evaporation pond water from
evaporation pond options for its contained for the evaporation pond water, including identified a range of reuse options, the port facility could possibly go
water evaporation pond which is feed into fertiliser production and and providing further assistance to to a nearby chemical plant for
high in nutrient levels. treatment at other Kwinana companies. the development of the synergy. reuse in their process. However,
this option has been put on hold for
the moment due to business
priorities and operational
arrangements. Port facility
continues its efforts to find viable
reuse options, also with other
Kwinana industries.
15 Alternative water A pigment plan wants to The pigment plants can use alternative The Kwinana Synergies Project The pigment plant is considering
sources for secure alternative water water for a variety of process identified alternative water sources the alternative water sources
pigment plant sources for the expansion of applications (depending on available for consideration by the pigment available and is in contact with
their production facilities. water quality and quantity). plant. The alternative water sources relevant Kwinana industries.
were identified as part of the
foundation research on water of the
Kwinana Synergies Project (see
Chapter 6).
16 Supply of A Kwinana company has The demineralised water is a very high This synergy was identified as part of Discussions between the two
demineralised excess capacity in its quality water (TDS < 50 mg/L), and can the foundation research on water of companies have taken place.
water demineralisation plant and be used for a wide range of industrial the Kwinana Synergies Project (see Conclusion is that there is no
can potentially supply a processes. There is interest from a Chapter 6). match between required and
neighbouring industry with Kwinana company in this demin water. available demineralised water.
demin water.

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# Synergy Issue Potential Reuse Application Input from Way Forward and
Kwinana Synergies Project Comments
Energy
17 Energy recovery The discharge of waste heat Potential reuse applications include A scoping study into energy recovery Through the KIC Eco-Efficiency
from Kwinana flue is a significant source of steam production, generation of from Kwinana flue gases was Committee, discussions are being
gases energy loss in Kwinana. KIC hot/chilled process water and air, space completed as part of the Kwinana held how to capitalise on these
and its members selected heating, and electricity generation. Synergies Project (see Chapter 7). valuable research outcomes.
flue gases as a priority area The project is facilitating Another promising avenue is an
for exploring energy engagement between Kwinana assessment into the utilisation of
recovery opportunities. industries and external expert the flue gases energy to produce
organisations to capitalise on results alternative water resources. There
of scoping study. is industry interest to develop such
study into a CSRP spin-off project.
18 Value creation Waste oils are common There is an opportunity to establish a The Kwinana Synergies Project There seems to be no business case
from waste oil waste products produced by collective KIA project on the reuse of explored the potential business case for a collective KIA project on the
most Kwinana companies. A waste oil. Potential reuse applications of a collective KIA project on the reuse of waste oil. One Kwinana
higher value reuse include alternative fuel, mould oil, reuse of waste oil. company could use waste oil in
application may be possible hydraulic oil, bitumen based products, their process (as alternative fuel),
for this common waste additive in manufactured products, or re- but the quantities available in the
stream. refined base oil. KIA are not sufficient.
A lube to lube oil facility is being
planned; this facility will take up
all waste oil available in the Perth
metro. Thus there is no guaranteed
long-term supply of waste oil to
Kwinana industries.

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Table 4.2 gives a summary of the current status, industry ownership, and likely success rates
of the synergy opportunities progressed as part of the CSRP Kwinana Synergies Project. It
shows that the current status of the selected synergies varies greatly, some synergies are at
their early development stages while others are being considered by the industries or awaiting
governmental approval. The progress made depends on the period when assessments were
started, industry priorities, and challenges involved to develop or implement the synergy.
Industry has taken ownership of eleven synergies, meaning that they are now responsible for
further progressing the synergy. The project team is monitoring the progress of these
synergies and provides research assistance to the industries where required. An example of a
synergy that is up for implementation is the treatment of oily wastewater from the Kwinana
Nickel Refinery by the BP Refinery. A synergy with promising prospects for implementation
as a long-term option is the supply of treated effluent from CSBP to the Kwinana Nickel
Refinery (about 5 years away). Although the likely success rate is difficult to estimate, it
appears that a further six synergies have high or medium chances of being implemented by
industry. The challenge for the project to get as many as possible synergies implemented (so-
called demonstration projects). There is a commitment from the industries, KIC, and the
CSRP to implement further regional synergies and thereby enhance the sustainability of the
KIA.

Table 4.2: Evaluation of Selected Synergy Opportunities (as per 30 June 2008)
# Synergy Current Industry Likely
Phase / Status Ownership Success Rate
By-products
1 Recovery and reuse of export waste Assessing reuse options Medium
product
2 Value creation from organic waste Completed scoping study X Low
3 Value creation from wooden pallets Business proposition Medium / high
being prepared
4 Reuse of by-products by composting Ongoing industry X Medium
company discussions and
assessment reuse options
5 Reuse of liquid ammonium sulphate Completed X Low
feasibility study
6 Recovery and reuse of sodium sulphate Completed market Low
assessment study
7 Reuse of catalysts Catalyst analysed and Low
potential reuse assessed
8 Reuse of graphite electrodes Completed market Low
assessment
9 Recovery and reuse of zirconia waste Zirconia waste is not X N/A
produced anymore
10 Recovery and reuse of grain waste Completed scoping study X Low
Water
11 Treatment of oily wastewater Finalising contractual X Being
arrangements implemented
12 Reuse of treated effluent as process water Being considered as X Medium
long-term option

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# Synergy Current Industry Likely


Phase / Status Ownership Success Rate
13 Reuse of treated effluent for dust Proposal being developed X High
suppression / washdown
14 Reuse of evaporation pond water Ongoing industry X Medium
discussions
15 Alternative water sources for pigment plant Ongoing industry X Medium
discussions
16 Supply of demineralised water No quality and quantity X Low
match between available
and required water
Energy
17 Energy recovery from flue gases Engagement with external (X) Medium / high
export organisations
18 Value creation from waste oil Reuse options assessed (X) Low

4.4 Sustainability Benefits of Selected Synergy Opportunities

The expected commercial, environmental, and community benefits of the synergies


progressed as part of the Kwinana Synergies Project are presented in Table 4.3. These
potential synergies, if implemented, can provide a range of sustainability benefits to the
companies involved, the region as a whole, and the local community. The table shows that the
benefits go beyond the traditional business benefits such as return-on-investment. The full
range of benefits needs to be communicated clearly to the stakeholders (industries,
government, community) involved in the synergy development process.

Table 4.3: Sustainability Benefits of Selected Synergy Opportunities


# Synergy Commercial Benefits Environmental &
Community Benefits
By-products
1 Recovery and reuse of ƒ Savings in disposal costs ƒ Improved resource efficiency
export waste product ƒ Diversion from landfill

2 Value creation from ƒ Savings in disposal costs ƒ Improved energy efficiency


organic waste (energy ƒ Revenue from sale of ƒ Diversion from landfill
production) produced energy and organic ƒ Reduced greenhouse gas emissions
residue ƒ Employment
ƒ Positive image of KIA
ƒ Platform for further collaborative
initiatives on organic waste
3 Value creation from ƒ Reduced landfill costs ƒ Diversion from landfill
wooden pallets ƒ Revenue from sale of pallets ƒ Employment
ƒ Positive image of KIA
ƒ Platform for further collaborative
initiatives on general industrial waste
4 Reuse of by-products by ƒ Possible savings in disposal ƒ Diversion from landfill
composting company costs ƒ Improved resource efficiency
5 Reuse of liquid ƒ Savings on energy costs ƒ Improved energy efficiency

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# Synergy Commercial Benefits Environmental &


Community Benefits
ammonium sulphate ƒ Reduced greenhouse gas emissions

6 Recovery and reuse of ƒ Revenue from sale of ƒ Improved effluent quality


sodium sulphate recovered sodium sulphate ƒ Improved resource efficiency
ƒ Savings in disposal costs ƒ Diversion from landfill
ƒ Savings on wastewater ƒ Positive company image
treatment costs
ƒ Savings on transportation
costs
7 Reuse of catalysts ƒ Savings in disposal costs ƒ Improved resource efficiency
ƒ Low cost raw materials for ƒ Diversion from landfill
user company
8 Reuse of graphite ƒ Savings in disposal costs ƒ Improved resource efficiency
electrodes ƒ Revenue from sale of ƒ Diversion from landfill
electrodes
9 Recovery and reuse of ƒ Savings in disposal costs ƒ Improved resource efficiency
zirconia waste ƒ Revenue from sale of zirconia ƒ Diversion from landfill
content
10 Recovery and reuse of ƒ Savings in disposal costs ƒ Improved energy efficiency
grain waste (energy ƒ Revenue from sale of ƒ Diversion from landfill
production) produced energy and organic ƒ Reduced greenhouse gas emissions
residue ƒ Employment
ƒ Positive company image
Water
11 Treatment of oily ƒ Reduced water treatment and ƒ Improved quality of process water
wastewater disposal costs
ƒ Improved process control
12 Reuse of treated effluent ƒ Reduced disposal costs ƒ Improved water efficiency
as process water ƒ Low cost water source for ƒ Less water discharged to environment
user company ƒ Positive company image
13 Reuse of treated effluent ƒ Low cost water source for ƒ Improved water efficiency
for dust suppression / user company ƒ Less water discharged to environment
washdown ƒ Reduced disposal costs ƒ Positive company image
14 Reuse of evaporation ƒ Reduced disposal costs ƒ Improved resource efficiency
pond water ƒ Low cost raw materials for ƒ Diversion from landfill
user company
15 Alternative water sources ƒ Low cost water source for ƒ Improved water efficiency
for pigment plant user company ƒ Less water discharged to environment
ƒ Positive company image
16 Supply of demineralised ƒ Improved process control ƒ Improved water efficiency
water ƒ Revenue from sale of
demineralised water
Energy
17 Energy recovery from ƒ Savings in energy costs ƒ Improved energy efficiency
flue gases ƒ Improved energy security ƒ Reduced greenhouse gas emissions
ƒ Employment

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# Synergy Commercial Benefits Environmental &


Community Benefits
18 Value creation from ƒ Reduced disposal costs ƒ Diversion from landfill
waste oil ƒ Revenue from sale of waste ƒ Employment
oil ƒ Positive image of KIA
ƒ Platform for further collaborative
initiatives on general industrial waste

4.5 Success Factors for Synergies

A recent review of international case-studies being conducted as part of the ARC regional
synergies research project (van Berkel 2006) came to the conclusion that the realisation of
successful synergies is dependent on three main aspects: proven technology, convincing
business case, and license to operate (see Figure 4.1). For a synergy to be successful all
involved parties must benefit in one way or another. In fact, it is unlikely that a synergy
would be implemented unless all involved parties at least perceive some business benefit
(direct or indirect). When developing synergy opportunities for the KIA, it is most important
to maintain a focus on these three key success factors.

Process, equipment and/or


infrastructure that collects and treats
the resource stream to a level that it
meets specific technical and market
requirements

Compelling evidence that


(financial and other)
business benefits outweigh Technology Government endorsement
the project costs and risks
and/or approval for project
and applications of the
recovered resource, and
stakeholder consent that
project contributes to
Successful sustainable development
synergy projects without compromising
ecological integrity and
community well-being
Business
License to
Case
Operate

Figure 4.1: Success Factors for Regional Resource Synergies (van Berkel 2006)

4.6 Synergy Scoping Study around Hydrogen Power Plant

4.6.1 Overview
The CSRP was approached by Hydrogen Energy (joint venture of BP Alternative Energy and
Rio Tinto) to explore the regional synergy opportunities related to a hydrogen power plant to
be built in the KIA. A CSRP project was set up to conduct a scoping study that would result
in pre-feasibility assessments for the top ranking synergy opportunities. These could then be
the basis for detailed feasibility assessments and possible implementation by Hydrogen
Energy and involved Kwinana industries.

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The project ‘Hydrogen Energy Industrial Synergy Opportunity Investigation started in May
2007 and was completed in March 2008. The study was conducted by the CECP at Curtin
University, through the CSRP, in close consultation with Hydrogen Energy, Kwinana
industries and the KIC. This project ran in conjunction with the CSRP Kwinana Synergies
Project.

4.6.2 Hydrogen Power Plant4

The Kwinana hydrogen project would be Hydrogen Energy’s third planned industrial-scale
project that would generate much needed electricity whilst reducing greenhouse gas emissions
by capturing carbon dioxide and storing it safely and permanently. Provided the necessary
government policy and investment decisions are put in place, it was anticipated that the plant
could be in operation by 2014.

The Kwinana project would convert coal into hydrogen, a clean-burning gas, and carbon
dioxide. The hydrogen gas would be used to fuel a power station capable of providing the
Western Australian grid with 500 MW of electricity (about 15% of the demand of south west
Western Australia,). At the same time, about 4 million tonnes of carbon dioxide per year
would be captured, transported and permanently and securely stored in a deep underground
saline formation.

Coal is now consistently the world’s fastest-growing fuel for power. Global consumption is
rising, especially in developing countries as China and India. This makes demonstrating
carbon capture and storage for coal especially important in the attempt to reduce greenhouse
gas emissions.

The KIA would be an ideal location for a hydrogen project of this type. The availability of a
suitable site immediately adjacent to BP’s refinery, Rio Tinto’s HIsmelt plant and other
industrial operations which may benefit from its output would provide synergies and potential
additional revenue streams that greatly assist the commercial viability of the project.
Increasing power demand, combined with population and industrial growth in the Perth area
also provides an attractive market for new power generation.

4.6.3 Approach

The approach taken by the scoping study is presented in Figure 4.2. The first stage of the
study included the identification and prioritisation of preliminary synergy opportunities
around the proposed hydrogen power plant. These included supply chain, by-product, and
energy/water utility synergies. The aim of the first stage was to identify practical and
innovative opportunities that would improve the overall eco-efficiency of the hydrogen power
plant and the Kwinana region. The most promising synergy opportunities were subjected to
detailed assessments to qualify and quantify the anticipated sustainability benefits and
achievability (e.g. transportation, stakeholder engagement). Stage 3 involved the
consolidation of the results from the detailed assessment and the necessary follow-up on
specific issues of interest.

4
Extracted from: (Hydrogen Energy 2007a) and (Hydrogen Energy 2007b)

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Figure 4.2: Approach of Synergy Scoping Study around Proposed Hydrogen Power Plant

As part of the CSRP Project ‘Enabling Tools and Technologies for Capturing Regional
Synergies’, a customised and targeted toolkit has been designed to identify and evaluate
synergy opportunities and associated technologies. This toolkit was applied to the synergy
scoping study to (1) deliver detailed listing of possible synergies based on available industry
data for water, energy, by-products, and emissions, and (2) to prioritise identified synergies
based on estimated sustainability benefits and ease of implementation.

The application of the developed toolkit was performed prior the practical hands-on support
to the industries involved (as provided as part of the CSRP Kwinana Synergies Project). This
two-way approach benefited the scoping study in a number of ways:
ƒ Application of less-resource intensive tools to identify and evaluate synergy opportunities.
ƒ Utilisation of a broad industry network and set of contacts in Kwinana.
ƒ Building upon extensive practical experience with synergy development with regard to
water, energy, (in)organic by-products.
ƒ Utilisation of input/output data collected from Kwinana industries for extensive range of
materials and emissions.

4.6.4 Summary Results

This was the first time a new major industry coming into the Kwinana area has been evaluated
for synergy opportunities. This allowed the testing of the tools and approaches developed by
the CSRP Regional Synergies Program. It was anticipated that this research could lead to
several synergies in the KIA, benefiting the hydrogen project, Kwinana industries and the
region as a whole.

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Stage 1 of the project has confirmed the great potential for new synergies emerging from the
proposed Hydrogen Energy Plant in Kwinana. This is evidenced by this project being able to
identify over 20 by-product, utility and supply chain synergy opportunities involving
Hydrogen Energy and numerous Kwinana industries. Some illustrative synergy opportunities
emerging from the hydrogen power plant could be:
ƒ The geosequestration of carbon dioxide from other Kwinana industries by Hydrogen
Energy, or the use of pure carbon dioxide from the hydrogen plant by Kwinana industries.
ƒ Supply chain synergies around utility gases (e.g. nitrogen, oxygen).
ƒ Energy utility synergies around steam and hydrogen.
ƒ The use of alternative water sources by the Hydrogen Energy plant.
ƒ The use of alternative carbon sources by the Hydrogen Energy plant.
ƒ The use of Hydrogen Energy’s slag for construction applications.

As part of the Stage 2 of the project detailed assessments were conducted to explore short-
listed synergy opportunities in detail. These results provide the basis for Hydrogen Energy to
evaluate and secure critical resources (process and cooling water) and market demand for the
Hydrogen Energy project (green steam) and developing regional synergies with the Kwinana
industries.

4.7 Way Forward

The (pre-)feasibility assessments on 18 synergy opportunities are ongoing. It must be stated


that the development of synergies from identification, preliminary evaluation, detailed
assessments to implementation is a time consuming process. It involves multiple parties
working together to achieve a common goal. It is believed that all “low hanging fruit” has
been captured when it comes to the realisation of regional synergy opportunities. It is now the
challenge for the CSRP, Kwinana industries, and the KIC to develop further synergy
opportunities. These synergies will only come to fruition through dedicated research and
hands-on support to the industries to meet their research needs.

Unfortunately, it has recently become clear that the proposed Hydrogen Energy plant in
Kwinana can not go ahead due to the presence of gas chimneys in the geological underground
sink for the carbon dioxide. However, the synergy scoping provided a trial case for
application of the CSRP Synergy Toolkit developed as part of the CSRP project on synergy
tools and technologies (see Section 1.5). The approach and lessons learnt from the scoping
study could be applied to other new industries in the KIA or possibly other Hydrogen Energy
projects elsewhere in the world.

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Chapter 5: Collective KIA Strategy on Inorganic By-Products Reuse

5 COLLECTIVE KIA STRATEGY ON INORGANIC BY-PRODUCTS REUSE

5.1 Introduction and Sustainability Case

There are significant volumes of inorganic process by-products in the Kwinana area, from
current operations as well as being stockpiled from past operations (e.g. bauxite residue, fly
ash, kiln dusts, gypsum, and iron making slags). Their utilisation as valuable by-products will
significantly reduce liabilities associated with current management and storage practices, and
will therefore make a significant contribution to the sustainability of the Kwinana Industrial
Area (KIA). The opportunity exists to replace virgin materials with recovered inorganic by-
products from industrial operations in Kwinana, either directly or after beneficiation to
improve properties, in construction and engineering, sustainable agriculture, minerals and
metals production and other applications. Although recovery opportunities have to some
extent been evaluated for each of the main inorganic by-product streams, their realisation has
not yet materialised on a significant scale, due to doubtful business cases (as a result of
limited understanding of the materials opportunities and value propositions).

Additionally community and government support for their widespread implementation is not
yet forthcoming. There is a (mis)perception that by-products are by definition wastes (and
therefore contaminated), rather than valuable alternative raw materials with similar
characteristics as traditional resources. The current regulatory framework is oriented to
support the established raw materials industries, and not so much to enable the reuse of
available by-products in different industry sectors (Harris 2007). There is an identified need
for advocates within the government to promote and encourage the uptake of these inorganic
by-product synergies.

Through the CSRP and the KIC, a coordinated approach is taken that targets the realisation of
a few iconic and short-term recovery opportunities that have a good business and
sustainability case. This chapter presents an overview of the foundation research on a
collective KIA strategy for recovery and reuse of inorganic by-products, including an
overview of the CSRP project ‘Kwinana Industrial Inorganic By-Product Reuse’ which
started early in 2007.

5.2 Current Status of Inorganic By-Products Recovery and Reuse in KIA

Table 5.1 lists the main inorganic by-products being produced and stored in the KIA,
including a short introduction to their properties. A brief overview of the current status of the
recovery and reuse of these by-products is provided in the following paragraphs.

Table 5.1: Main Inorganic By-Products Produced in KIA


Inorganic By-Products Short introduction
Red sand High coarse fraction from bauxite residue that can be considered as a fine to
medium-grained sand. Red Sand has a nominal particle size of +100 micron and is
physically little different to crushed bauxite from which it is derived. In Alcoa’s
Western Australian refineries, Red Sand constitutes up to half of the residue going
to impoundment areas.
Red mud (Alkaloam) Fine fraction from bauxite residue with nominal particle size (<150 micron). It is
silt to clay sized material. Alkaloam is often referred to as red mud.

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Inorganic By-Products Short introduction


Red lime Red lime is a by-product of the refining process. It consists of a combination of
calcium carbonate, hydro-calumite and tri-calcium aluminate. This material has a
high acid neutralising value, and has a fine particle size.
Lime kiln dust Lime kiln dust (LKD) is partially calcined dust made by decrepitation of calcined
and non-calcined shellsand in the lime burning process, and is collected in an
electrostatic precipitator. The LKD is extremely fine. It is almost pure calcium and
magnesium carbonate and oxides.
Cement kiln dust Cement kiln dust (CKD) is the dust collected in the electrostatic precipitator of the
cement clinker kilns. The CKD is highly variable in composition. Major
compounds include calcium oxide, calcium carbonate, potassium oxide, and silica.
Gypsum (Phospho)gypsum was produced as a by-product from phosphoric acid production.
Production and disposal ceased in 1986, but significant quantities of gypsum are
still stored on-site.
Iron making slag Slag is a by-product from the Smelt Reduction Vessel (SRV) that is the core of the
HIsmelt technology. The slag is formed from the impurities in the iron ore
(gangue) and coal (ash), which are fluxed using lime and dolomite.
Fly ash Fly ash is the most significant by-product generated from the combustion of coal.
Fly ash is composed of the fine-grained, powdery particulate material that remains
suspended in the exhaust gas during the combustion of coal. The ash is collected
by electrostatic precipitators through the stacks of the plant. Fly ash is also
referred to as ‘precipitator ash’.
Bottom ash Bottom ash is also a by-product from the combustion of coal, but is significantly
less than fly ash. The bottom ash is a coarse-grained, granular, sand-like material
that falls to the bottom of a dry-bottom boiler during the combustion of coal.

5.2.1 Bauxite Residue

Bauxite residue is a high volume material resulting from alumina refining, and is stored in
large secure impoundments close to the refining operations. These bauxite residues are red
mud / Alkaloam (± 6,000 tonnes/day), red sand (± 6,000 tonnes/day), and red lime (± 300
tonnes/day). Alcoa has been working toward enhanced sustainable residue management for
some years. This work has seen a transition from a traditional wet disposal practice to a dry
stacking process which has increased the volume of residue that can be stored within a given
footprint and significantly reduced the potential for impacts on the surrounding environment.
Research is also continuing to look for ways to modify the residue through neutralisation,
further lessening the potential for environmental impacts from residue storage activities.
However, the ultimate aim in terms of sustainability of residue management is to identify
beneficial uses for the residue, reducing the volume to be stored. The move to dry stacking
was a critical step along the pathway toward reuse, as it produces a readily accessible deposit
of material at a relatively low cost. Neutralisation of the residue is seen as a similar step along
the same pathway, as the hazard associated with the residue (the high pH of the residual
liquor) will be removed. Alcoa continues to support a diversity of research initiatives into
potentially beneficial uses of residue (Cooling and Jamieson 2004).

5.2.2 Cement and Lime Kiln Dusts

Lime kiln dust (LKD) is produced of which some is sold while the rest is stockpiled on-site.
The stockpile of LKD is a remediated site covered with vegetation. Cockburn Cement aims to
reduce the amount of LKD being landfilled down to zero, and only produce LKD to meet

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customer demand. The company has developed a process to return this material to the kiln
and convert it to product. Current markets for material include acidic stack gas scrubbing,
road stabilisation, and soil treatment. The company also produces approximately 15,000 tpa
of cement kiln dust (CKD). It is unlikely that the company will be able to eliminate the
production of CKD. However, the company may be able to reduce the production of CKD
following commissioning of a new electrostatic precipitator. There are opportunities to
consider reuse applications of CKD (Davis 2005).

5.2.3 Gypsum

(Phospho)gypsum was produced as a by-product from phosphoric acid production by CSBP.


Production and disposal ceased in 1986, but the gypsum (about 1.3 million tonnes) is still
stockpiled on-site (Wellard Road). Some gypsum is utilised by Alcoa’s alumina refineries to
assist in plant growth and soil stability in its residue areas. Alcoa takes this material on an
ongoing basis, approximately 10,000 tonnes each year. In addition, CSBP is working with
Manna Enterprises to blend gypsum with lime kiln dust for reuse as soil conditioner. This is a
long-term project and enables the site to be remediated in about two decades. Success factors
for this project are transparency and effective management (Spears 2005).

5.2.4 Iron Making Slag

At full production, the HIsmelt plant in Kwinana will produce about 230,000 tonnes per
annum of pig iron slag. This slag will be “air-cooled”; however, options for granulating the
slag are also being considered. The slag is regarded as a valuable by-product. The slag
composition will be of consistent quality once HIsmelt is fully commercially operational.
Options for the utilisation of the slag include soil treatment, acid water neutralisation, cement
substitute, alumina production, and construction materials (eg. filler, aggregate). The
University of Western Australia (UWA) provided a preliminary assessment of HIsmelt slag
for soil treatment applications which indicated that there was potential for use in WA. The
examination of slag did not indicate any adverse environmental issues. HIsmelt is looking at
options for optimising the slag properties for soil applications (e.g. removal of prill and
possible neutralisation). Importantly, there is a long history of the utilisation of iron and
steelmaking slags in soil treatment applications around the world (Europe, North and South
America) (Evans 2005).

5.2.5 Fly and Bottom Ash

The fly and bottom ash from the coal-fired power plant in Kwinana are stockpiled and
managed separately at Perron Quarry. Some fly ash is currently used for brick manufacturing;
this application recovers the equivalent of about half of the annual fly ash production. In the
past, the University of WA conducted research on the reuse of fly ash as soil conditioner on
turf farms. Road building materials and concrete additives are applications with a good
potential to consume large quantities of fly and bottom ash. To date, these initiatives have not
resulted in a commercial use for the ash due to technical, environmental, and/or commercial
difficulties along with regulatory obstacles (KIC 2004).

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5.3 KIA Workshop on Inorganic By-Products

A KIA Inorganic By-Products Workshop to scope ways forward for realising the inorganic
by-product recovery opportunities was held within the framework of the Kwinana Synergies
Project in May 2005, hosted by the KIC. 22 representatives from industry, government and
research providers participated in the workshop. Industry and government interest to enhance
the recovery and use of inorganic by-products was demonstrated by the strong representation
from the main producers of inorganic by-products in the area (Alcoa, CSBP, Cockburn
Cement, HIsmelt and Verve Energy), as well as other companies (Tiwest, BP, Nickel West)
and the environmental and local government authorities (Department of Environment, EPA
and the Town of Kwinana).

5.3.1 Workshop Structure

The objectives of the KIA Inorganic By-Products Workshop were:


ƒ To share past and ongoing initiatives on reuse of key inorganic residue streams in
Kwinana.
ƒ To develop a shared vision, objectives and timeline regarding reuse of inorganic residues
from Kwinana industries.
ƒ To define a program of research and work to support the realisation of this vision and
objectives within an agreed timeframe.
ƒ Agree on the best way to organise and resource the program.

The structure of the workshop discussion session is presented in Figure 5.1. It shows how this
workshop fits in with the focus areas of the KIC Eco-Efficiency Committee. The discussion
session was divided into two main components. The purpose of the first part was to discuss
the potential of a shared vision and quantitative targets for the recovery and reuse of inorganic
by-products in Kwinana. The second part was to discuss the potential for a collaborative
research strategy to support the realisation of a shared vision and targets for Kwinana.

Focus areas of
KIC Eco-efficiency Committee

Process Energy & Water Non-process


inorganic by- greenhouse consumption & by-products
products emissions impacts

Shared vision and aims Discussion session


Necessary actions Part I:

Strategy and idea

Research structure
Discussion session
Objective and deliverables Part II:
Potential participants

Organisation and way forward


Figure 5.1: Structure Workshop Discussions on Inorganic By-Products

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5.3.2 Workshop Outcomes

Overall, there was consensus amongst the workshop participants that a collaborative approach
to the recovery and reuse of inorganic by-products in Kwinana would be a positive
development. Collaboration should be established between the major producers of inorganic
by-products, state and local government, research providers, and the community.

In summary, the workshop outcomes were:


ƒ An overview of past and ongoing initiatives on the reuse of key inorganic by-product
streams in Kwinana.
ƒ Identified need for exploring ways to set up a governance structure to facilitate and
support governmental decision making on inorganic by-products reuse and stimulate
positive interactions between industry, government and the community.
ƒ Consensus on a collaborative approach to further enhance the recovery and reuse of
inorganic by-products in Kwinana, and an inventory of the necessary activities to move
forward on such collaborative approach for inorganic by-products recovery and reuse in
Kwinana.
ƒ A set of short/medium term milestones that need to be achieved to make further progress
on the recovery and reuse of inorganic by-products.

A more detailed discussion on the two main outcomes of the KIA Inorganic By-Products
Workshop, the establishment of a governance structure and development of potential
collaborative research, is included below.

Governance Structure

The Kwinana companies are experiencing similar obstacles in getting governmental approvals
and community support for the recovery and reuse of inorganic by-products. The current
regulatory framework does not enable or encourage industries to implement regional
synergies. A collaborative approach involving industry, government, community, and
research providers would likely result in achieving the full potential of reusing inorganic by-
products. There is a need to broaden the communication strategies of the companies, and
move beyond the environmental agenda into a sustainability agenda. Government and the
community should be made more aware of the past achievements and the benefits from the
recovery and reuse of by-products. In order to get support from the community and the
government for new recovery and reuse projects, research needs to be conducted by
independent bodies, such as the CSRP or CSIRO. It is important to create a push-pull strategy
by having CSRP working at arms length in collaboration with industry and the community.

Representatives from the Department of Environment (DoE) and the Town of Kwinana stated
that the government is generally supportive of the diversion of by-products from landfill into
useful applications. Both the DoE and the Town of Kwinana are willing to work together with
the KIC and the companies in a more collaborative manner on inorganic by-product recovery
and thereby moving away from the current approval/disapproval approach. The focus for the
way forward should be on building trust through a transparent and accountable process of
identifying and evaluating recovery and reuse options, assessing their environmental and
health risks, and ongoing monitoring, as specific recovery options move from bench to pilot
scale and full application. This should result in best practice guidelines which upon their
application should give industry, government and the community at large confidence that

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recovery and reuse of any particular by-product is achieved without compromising the
environment or community health.

Having recognised the need for a transparent, trustworthy and accountable process to develop
and evaluate recovery projects, the workshop discussion focused on a governance structure
that would be able to command independence, thoroughness and authority, and to sponsor and
champion the realisation of the recovery and reuse options. There was consensus that it would
be worth exploring whether and how a ‘Sponsor’ Group (or Steering Committee) could be
established to provide legitimacy to the process. Such Sponsor Group would bring together
high level executives from government and industry, and be supported by an operational
group comprising industry technical staff and independent researchers, in charge of evaluating
the recovery and reuse projects, and community with various stakeholders. Overall, the
workshop provided a guideline to progress towards a more collaborative relationship between
government, industry and the community.

Collaborative Research

The KIA Inorganic By-Products Workshop also aimed to define a program of research to
support the realisation of inorganic by-product recovery projects. The workshop identified the
need to focus on and deliver ‘icon projects’ of by-product recovery with a strong
sustainability case and collaborative benefits for industry, government and community. It is
acknowledged that various companies have already identified applications for their inorganic
by-products, and made progress towards achieving their minimisation, recovery and reuse. In
principle, priority should be given to the reduction of by-products generation before
considering their recovery and reuse.

The suggestion made at the workshop was to review and evaluate some 15 synergy
opportunities for inorganic by-product recovery in the KIA. This could then pave the way for
the implementation of up to three iconic and feasible recovery projects with anticipated
significant triple bottom line benefits. The project should build upon the research work
already undertaken by individual Kwinana companies and other institutions on the recovery
and reuse opportunities for individual by-product streams.

As a starting point, it was proposed at the workshop to prepare a baseline assessment for
enhancement of recovery and reuse of inorganic by-products in Kwinana. This would
summarise past initiatives, business opportunities, and ways to address issues with regard to
government and community acceptance.

5.4 CSRP Project ‘Kwinana Industrial Inorganic By-Product Reuse’

5.4.1 Project Overview

The kick-off workshop on inorganic by-products (see Section 5.3) proposed to advance
inorganic by-product recovery in a targeted and collaborative manner. In 2007, the CSRP
project ‘Kwinana Industrial Inorganic By-Product Reuse’ started in close cooperation with the
KIC and the involved Kwinana industries. The overall aim of the project is to develop a
number (up to three) of ‘icon’ recovery opportunities for inorganic by-products which have a
good business case as well as significant sustainability benefits.

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The by-products investigated as part of this project at this stage include bauxite residue
(Alcoa) and gypsum (CSBP). There is potential to incorporate other by-products streams in
this project at a later stage, such iron making slag (HIsmelt) and foundry sand from nearby
steel foundry company. The project builds upon the research work already undertaken on the
recovery and reuse opportunities for individual by-product streams.

The priority is on the evaluation of short-term and high-volume reuse applications for local
markets. This is the most effective approach to move forward, rather than spending significant
amounts of time and efforts on low-volume reuses which have limited potential for
implementation in the near future. There is an opportunity for the project to link into future
construction developments in Kwinana and the wider Perth metropolitan area. A specific
example is the port development in Kwinana which could potentially use significant amounts
of inorganic by-products available locally. The project will initially focus on the synergy
opportunities presented in Figure 5.2.

1ST PRIORITY 2ND PRIORITY


Short-term opportunities KWINANA Medium-term opportunities
High volume / low value INDUSTRIES Higher value / Lower volume

Kwinana Bauxite residue Bauxite residue Building &


products Alumina refining
Marine Port products construction
Development

Agriculture
Development
Hope Valley and Gypsum Chemical Gypsum
Wattleup light manufacturing
industrial areas Minerals and
metal production
(value recovery)

Other Kwinana
Other local industries
Inorganic Inorganic Other
developments (e.g. pig iron
by-products by-products applications
making, steel
foundry)

No or limited Possibly more


beneficiation beneficiation

Figure 5.2: Focus Areas of CSRP Project on Inorganic By-Products Reuse

5.4.2 Industry Discussions

To assess company interests and review the industry research needs, the KIC and CSRP
Kwinana Synergies Project held meetings with relevant Kwinana industries that are major
producers and/or potential users of inorganic by-products5. These industry meetings (van
Beers et al. 2006) found that there is an overall consensus and commitment amongst the
Kwinana industries on the project structure and main tasks of the CSRP project ‘Kwinana
Industrial Inorganic By-Product Reuse’.

5
These include: CSBP, Verve Energy, Alcoa, Cockburn Cement, HIsmelt, Department of Agriculture, Fly Ash
Australia (Boral), and BGC Cement.

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Chapter 5: Collective KIA Strategy on Inorganic By-Products Reuse

A number of important issues need to be taken into account when formulating a collaborative
industry approach to recover and reuse inorganic by-products in Kwinana. These include
confidentiality, commercial issues, stakeholder engagement (i.e. community and
government), and legislative issues. These issues are summarised below:

ƒ Stakeholder engagement: Community perception on health and safety issues regarding the
reuse of inorganic by-products is an important issue, and should not be underestimated.
Early involvement from the community is strongly recommended. The same applies for
government involvement and commitment. Extensive stakeholder engagement will be
required to enhance recovery and reuse of inorganic by-products in Kwinana.

ƒ Legislative issues: The business case for any reuse project will be heavily influenced by
the governmental waste classification system. If a by-product is classified into a higher
waste category (controlled waste), there are restrictions in reuse applications and strict
regulations for storage, transportation, and monitoring. In addition, the legislative
approval process will be more comprehensive for these controlled wastes. There is merit
in focusing on by-products that are classified in waste categories with no, or limited,
restrictions for reuse, storage, and storage.

ƒ Commercial issues: Careful consideration should be given to commercial issues regarding


the reuse of inorganic products. There may be competing reuse applications for available
inorganic by-products in Kwinana. Various Kwinana companies may be able to provide
similar alternative raw material for the same reuse applications. This is particularly the
case for building and construction materials.

ƒ Confidentiality issues: Confidentiality agreements between the involved companies and


the research providers (e.g. CSRP) need to be in place to further scope the required
research work. Specific research questions will follow from negotiations between the
involved companies. Dealing with these issues will take time. However, there is potential
for significant sustainability benefits if a collaborative research project is successful.

5.4.3 Progress to Date

To date the CSRP Kwinana Inorganic By-Product Reuse Project completed a market
assessment for inorganic by-products in Kwinana and a review of national and international
regulatory frameworks for inorganic by-product reuse, including discussions with
governmental departments on the need to develop reuse guidelines. A summary of the results
is provided below.

Market Assessment

The assessment of available quantities (left column in Table 5.2) shows that a total of
approximately 2.7 million tonnes per year of inorganic by-products are being produced by the
Kwinana industries. Furthermore, an estimated 80 million tonnes of these materials are
stockpiled from past operations on designated sites in and around the KIA (Bossilkov and
Lund 2008b). These materials are available for reuse (with or without further processing) if
the associated barriers can be overcome and their drivers be enhanced.

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The potential customers for the promising synergy opportunities fall into three main
categories: infrastructure and construction, minerals and metals production, and other (e.g.
agriculture and soil treatment). The initial market assessment carried out as part of the
collaborative approach revealed that the local building sector has the largest potential to be a
sink for high volumes of inorganic by-products (e.g. direct reuse as a clean fill or concrete
aggregate).

Table 5.2 (right column) presents the results of a detailed market assessment for the building
and construction sector in the vicinity of Kwinana (within 20 km radius). It shows that a
staggering total of 40 million tonnes of clean fill and 10 million tonnes of construction
materials are required for upcoming construction projects locally in the next 25 years. There
is already a shortage of raw materials to meet this increasing demand. The market analysis
clearly shows that the resource needs for these future construction projects can easily be met
by some of the inorganic by-products available in the KIA.

Table 5.2:Supply and Potential Local Demand for Inorganic By-Products in Kwinana
(Bossilkov and Lund 2008b)
Inorganic by-products Future construction projects
in Kwinana in Kwinana / Perth region
Type Quantity Project Quantity
Fly ash 25 ktpa + James Point (stage 1) 300 kt sand
stockpile 3,700 kt materials
Red sand 2,200 ktpa + Fremantle Outer 7,000-22,400 kt fill
Mt stockpile Harbour (option 1) 3,600-4,000 kt materials
Red lime 110 ktpa + Amarillo Satellite City 0-10,000 kt fill
Mt stockpile (residential) 1,000 kt road materials
Iron making slag 225 kpta Wungong Urban Water 16,500 kt fill
(residential) 400 kt road materials
Phospho gypsum 1.3 Mt stockpile Latitude 32 (Hope Unknown
Valley Wattleup)
Flue gas de- Unknown More than 10 other projects planned
sulphurisation (FGD ) within Peel region (5 to 20 years)
gypsum
Construction rubble Mt stockpile
Cement kiln dust 15 ktpa +
Mt stockpile
Bottom ash 4.5 ktpa + Total estimated required quantities
Mt stockpile over 25 year period:
Foundry sand 15 ktpa Clean fill > 40,000 kt
Lime kiln dust 100 ktpa + Construction materials >10,000 kt
Mt stockpile (mix)

Review of National and International Regulatory Frameworks

The most significant potential application for the large scale utilisation of the inorganic
residues is in infrastructure, residential and commercial developments (Bossilkov and Lund
2008b). The review therefore focused on their application to engineering projects.

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Agricultural or other applications were not a focus of this review, due to their relatively large
spread resulting high transportation costs.
Australian utilisation experience is limited to a small number of inorganic by-products.
Although by-products such as fly ash, iron and steel slag and some recycled road materials
have been reused in some applications, methods for evaluation the engineering and
environmental suitability of these materials have not been formally developed. Some state
agencies (e.g. NSW Road Transport Authority and VicRoads in Victoria) have adopted
specifications for facilitating the potential for using the recycled materials, but the absence of
definitive methods of evaluation and specific criteria for determining the suitability of using
these have limited the reuse of many other inorganic residues currently being stockpiled
around Australia. The acceptance of some inorganic by-products for reuse (e.g. iron and steel
slags, fly ash) could be contributed to the existence of industry associations for these
materials with primary objectives to conduct research and technology transfer on behalf of
their members and to assist in developing market opportunities for the use of these materials
for all stakeholders (Bossilkov and Lund 2008a).
The review of international experiences revealed that the reuse of inorganic by-products is
more diverse and common practice internationally. This is contributed mainly to the existence
and continuous development of regulatory frameworks in USA, various European countries
and the European Union (EU) as a whole, promoting and facilitating the reuse of the
mentioned inorganic by-products in roadworks and generally in the construction industry
(Bossilkov and Lund 2008a).

5.5 Way Forward

The CSRP Kwinana Inorganic Project so far has shown that significant potential exist for the
establishment of large scale reuses of inorganic by-products for building and construction
projects in the Perth Metropolitan Area. There are currently insufficient mechanisms (e.g.
reuse guidelines) in place in Western Australia for the abundantly available inorganic by-
products to meet the growing demand for already scarce building materials.
The regulatory framework and standards being applied in other countries (e.g. USA, The
Netherlands, France, Sweden, Denmark, Germany) encourage, and in some cases even
enforce, the reuse of inorganic by-products. This is not yet the case in (Western) Australia
where current legislation prevents or delays the implementation of such reuses. When
developing reuse standards and guidelines for Australia, it is important to build upon and
learn from relevant international frameworks, possibly customised according to the local
situation (Bossilkov and Lund 2008a).
In the short term, the most immediate policy support requirement to foster further synergies is
the development of standards and guidelines for reuse. These could be customised depending
on the particular by-product material and reuse conditions. This would enable the safe reuse
of materials and assist companies in showing that they have met the required regulatory
standards, which are deemed scientifically safe (Harris 2007).
Discussions on stage 2 of the CSRP Kwinana Inorganic By-Product Reuse Project are
currently taking place. It is anticipated that stage 2 will have a strong focus on the
development and implementation of governmental reuse guidelines, detailed life cycle
sustainability assessments, and evaluation of required beneficiation and testing.

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Chapter 6: Collective KIA Strategy on Water Reuse

6 COLLECTIVE KIA STRATEGY ON WATER REUSE

6.1 Introduction and Sustainability Case

Water consumption and effluent disposal by Kwinana businesses are key environmental
issues addressed by the KIC. Over the past two decades significant progress has been made
towards the improvement of water consumption and disposal in Kwinana, both at company
level (e.g. on-site water efficiency assessments at various KIC member companies) and at
regional level (e.g. Kwinana Water Reclamation Plant). Individual Kwinana companies had
achieved major water savings prior to engaging in water synergies, e.g. Tiwest Pigment Plant,
CSBP, and BP Refinery (DEH 2001a, 2001b; WASIG 2005). Due to declining levels of
groundwater and stored water in Perth Metropolitan dams, fresh water will be a more scarce
resource over the next decades and the cost of water is likely to increase over time. Runoff
into dams has reduced by 40-50 percent since 1975 due to decreased rainfall. The State Water
Strategy includes a water re-use target of 20% by 2012 (GoWA 2003). The government will
require major water users to demonstrate responsible use of water by setting up and
implementing water resource management plans. Hence there is an urgent need to further
investigate the opportunities for enhancement of water efficiency and reduced effluent
disposal due to declining water supplies in the future, increasing external pressure from
government and other stakeholders, and anticipated expansion plans for Kwinana.

This chapter provides an overview of the foundation research and development of collective
strategies for water synergies in the KIA that has been undertaken since the start of the
Kwinana Synergies Project.

6.2 Current Status of Water Consumption and Disposal in KIA6

Figure 6.1 gives the total input and output water quantities in yr. 2004 of the KIC member
companies as documented in the CSRP Kwinana Input & Output Database. The 30 KIC
member companies in the CSRP Kwinana Input & Output Database consume more than 35
gigalitres of fresh water per year. Scheme (potable) and bore water represent about 18% and
39%, respectively, of the fresh water input. External sources (neighbouring industrial
operations) account for about 7% of the total fresh water inputs. About 24% of the water
outputs are evaporative losses, and an additional 23% of the total water output is unaccounted
for due to evaporation, use in product, lack of monitoring, and data inaccuracy. These values
indicate that there might be significant scope for condensate recovery and other measures to
reduce water losses to the environment, and also for enhancing water monitoring in the KIA.

6
Extracted from: (van Beers and van Berkel 2005)

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ACCUMULATED WATER INPUTS ACCUMULATED WATER OUTPUTS


INTO KIC MEMBER COMPANIES FROM KIC MEMBER COMPANIES

8,882 Accounted evaporation losses

8,722 Unaccounted (product, evaporation, not metered, data inaccuracy)

8,626 Disposed process water

Scheme water 6,810 422 Disposed through WWTP other company

Bore water 14,947 SUM KIC MEMBER 323 Disposed boiler blowdown water
COMPANIES (#30)
IN KIA INPUT & OUTPUT DATABASE 1,240 Disposed cooling tower blowdown
Unspecified / various 13,442

(eg. KWRP, on-site 3,182 Disposed washing water


storage ponds, from raw
materials, rainfall run-off) Internal
recycling 4,225 Disposed unspecified / various

Unit = megalitres per year


2,184 External (re-)use & recycling
(Water synergies)

Figure 6.1: Water Input & Output Diagram for KIC Members7

6.3 Detailed Water Mapping and Synergy Identification

An initial KIA Water Workshop was held at the KIC in December 2004 to discuss the current
status of water consumption and disposal in the Kwinana region (van Beers and van Berkel
2004). The industry participants in the workshop recommended to do a detailed assessment of
the quantities and qualities of the water inputs and outputs for the major water consuming
industries. In addition, the workshop participants indicated that there is merit in improving
knowledge sharing amongst Kwinana industries on water related issues (eg. best practice
examples, water efficiency guidelines, available water saving technologies). Following up on
this workshop, the Kwinana Synergies Project conducted a baseline assessment of the water
inputs and outputs for the 10 major water consuming companies in Kwinana, including
brainstorming sessions with company staff on what could be done to further develop water
utility synergies in the area. The identification of water synergies focused on three key areas:
(1) exchanges of water between industrial operations, (2) joint treatment of water, and (3)
joint industry storage of water. This work resulted in a comprehensive set of 25 water synergy
opportunities for the KIA. A summary of the identified water synergies is provided in Table
6.1. Due to confidentiality issues, full details of the identified synergy opportunities cannot be

7
Notes on Figure 6.1:
ƒ Presented data are sums of provided input/output data from KIC member companies
participating in the Kwinana Synergies Project (30 companies). Although efforts were made to
derive to a complete dataset (e.g. review NPI reports, cross-check input/output data with
supplying/receiving company), we cannot claim completeness.
ƒ Data above does not include seawater, only fresh water.
ƒ Data above includes HIsmelt data (stage 1).
ƒ Water Corporation data are not included as this will result in misleading indicators for water.
This is because Water Corporation facilities supply and treat large volumes of domestic water
from outside the Kwinana Industrial Area.

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presented here. The identified opportunities cover a wide range of reuses; none were
identified for joint storage of water.

Table 6.1: Summary of Water Synergy Opportunities in Kwinana


Water Synergy Opportunity # Comments
Identified
Water exchanges between industries1
ƒ External reuse of effluent as process water 7 Quality requirements (eg. TDS, pH, metals)
for process water vary greatly amongst
industries
ƒ External reuse of effluent as washing water 2 Careful consideration must be given to quality
issues as washing / cooling water is
discharged into sensitive marine environment
ƒ External reuse of effluent as cooling water 4
ƒ External reuse of effluent as reverse 2 Community perception against the use of
osmosis feedwater industrial water as input to desalination plant
to produce dinking water
ƒ External use of demineralised water 2 High quality water source
ƒ External use of bore water 1 Synergy is related to allocation of bore water
quantities to individual industries, this is
outside scope of this project
Joint treatment of water
ƒ Effluent treatment at other company 3 Some Kwinana companies have excess
treatment capacity, and could potentially treat
other companies’ effluent
ƒ Joint treatment and supply facility 4 Aims at zero discharge of industrial effluents
in Kwinana (treatment and reuse of all
effluents)
Joint storage of water
None identified 0
Total 25
1) Effluent refers to the wide range of wastewater types available in Kwinana (eg. boiler blowdown, cooling
tower blowdown, treated industrial and municipal effluent, reverse osmosis concentrate, etc.)

For the majority of the identified synergy opportunities, there are numerous options to
connect the water sources (companies that discharge water in various quantities and qualities)
and water sinks (companies that could potentially use other company’s water output). To
accommodate these variations, the identified water synergies were mapped in so-called
source/sink diagrams (framework with fictional example provided in Figure 6.2). A
source/sink diagram was constructed for each of the 25 identified synergy opportunities. This
diagram incorporates the basic information that affects the feasibility of any water synergy
project such as available and required water quantities and qualities, possible water treatment
technologies, and distance between the two companies. Based on this information, all water
synergy connections were separately rated on quality match, quantity/distance ratio, and the
potential to be an icon project. A rating system for this evaluation was applied using a scale
from 1 (“not so good”) to 4 (“best”); the total rating is the sum of the three individual ratings.
This priority ranking exercise assisted the Kwinana industries in the decision making on
which potential water synergies to take forward for more detailed feasibility assessments.

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Potential water sources Quality Potential


Potential water sink
issues technologies1

Power plant 100 ML/yr pH Ne 12 km


Chemical plant
Cooling tower TDS Ev / IE / RO
pH 8; TDS 8,000 mg/L; Quantity/ Process water
blowdown COD AnD/Aer/OP
TSS 1,000 mg/L distance ratio = 8.3
COD 2,000 mg/L Volume
requirements:
200 ML/yr

40 ML/yr - - 0.8 km Quality


Steel producer requirements:
- -
Boiler blowdown pH 6.5
pH 6; TDS 2,500 mg/L; Quantity/
- -
TSS 250 mg/L; distance ratio = 50 TDS 2,500 mg/L
COD 1,000 mg/L TSS 1,000 mg/L
If italic: Estimated typical quality of water stream COD 1,000 mg/L
(no company data is available or provided)

750 ML/yr pH Ne
Fertiliser plant 1.3 km
Treated effluent COD AnD/Aer/OP
pH 9; TDS 850 mg/L; Quantity/
TSS 25 mg/L; - -
distance ratio = 577
COD 6,000 mg/L

1) Water treatment acronyms used in this source/sink diagram:


Aer = Aeration Ne = Neutralisation
AnD = Anaerobic digestion OP = Oxidation Pond
Ev = Evaporation RO = Reverse Osmosis
IE = Ion Exchange

Figure 6.2: Fictive Example of Water Synergy Source / Sink Diagram

6.4 KIA Workshop on Water Synergies

A second KIA Water Synergy Workshop was organised in October 2005 to bring together the
largest water consuming industries in Kwinana to review and consolidate the findings of the
detailed water input/output mapping (van Beers and van Berkel 2005). The half-day
workshop was jointly organised by the CSRP Kwinana Synergies Project and the KIC. 16
representatives from major water consuming Kwinana companies, Water Corporation, KIC
and the CSRP participated in the workshop. The participants appreciated the workshop
initiative and outcomes, as was reflected in the constructive discussions during the workshop
session and the willingness of Kwinana industries and the Water Corporation to participate.
Prior to the workshop, a scoping report on the identified and prioritised water synergy
opportunities was sent to all workshop participants.

6.4.1 Workshop Structure

The overall aim of the KIA Water Synergies Workshop was to review the potential water
synergy opportunities and identify those opportunities that are most likely to be feasible on
the basis of currently available information.

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The structure of the workshop discussion session is presented in Figure 6.3. The discussion
session was divided into two main components. The purpose of the first part was to screen the
water synergy opportunities based on likely achievability and business / sustainability
benefits, and get overall industry feedback. The second part of the workshop session was to
discuss the further development of selected water synergies, including outstanding issues, and
ways to improve and combine synergies.

Focus areas of
KIC Eco-efficiency Committee

Process inorganic Energy & Water Non-process


by-products greenhouse consumption by-products
emissions & impacts

Business and sustainability benefits Screening of 25 Discussion session


identified water Part I:
Achievability synergy opportunities

Sources Develop collaborative Discussion session


Quantities and qualities opportunities Part II:

Potential users and applications


Treatment options
Issues
Figure 6.3: Structure Workshop Discussions on Water Synergy Opportunities

6.4.2 Workshop Outcomes

The workshop resulted in a shortlist of 11 one-on-one water synergy opportunities (direct


between two companies) recommended for further consideration by the companies involved.
In addition, nine synergies should also be considered as part of collective water synergy
projects between multiple companies. These were grouped into four integrated water projects
for Kwinana:

ƒ Reuse of treated industrial effluents as separate streams: The discharge of treated


industrial effluents is a significant source of water loss in the KIA. There is scope to
assess how these industrial effluents streams could be reused (with or without treatment)
by the various industries and thereby improve the overall water efficiency in the area.

ƒ Reuse of water from the ocean outlet landline: The Sepia Depression Ocean Outlet
Landline (SDOOL) discharges municipal and industrial treated effluents approximately
four kilometers offshore, reducing water discharges into Cockburn Sound (a sensitive
marine environment). There is merit in pursuing a collective Kwinana effort to further
reuse this aggregated water flow, with water treatment according to the specific
requirements of the Kwinana industries and utilising existing infrastructure (eg. pipeline,
water treatment plants) as much as possible.

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ƒ Further development of the Kwinana Water Reclamation Plant (KWRP): The KWRP is
briefly described earlier in this paper. The existing plant is designed to facilitate extension
of the current capacity of 17 ML/day to 22 ML/day. When this plant has reached its
maximum design capacity, there is scope to construct a second reclamation plant. The
further development of the KWRP is being assessed by the Water Corporation.

ƒ Reuse of boiler blowdown from power generation: Relatively large volumes of boiler
blowdown are generated from power generation in Kwinana (two major power stations
and two cogeneration plants are located in the area). These boiler blowdown qualities are
potentially well suited for reuse as a cooling or process water by other Kwinana
industries.

6.5 Way Forward

Current research efforts focus on providing industry assistance in order to progress the 18
short-listed synergies, including six water utility synergies (see Chapter 4). In addition,
possible ways forward for the further development of the four collective water synergy
opportunities are being explored in order to come up with actionable work plans for in-depth
consideration by the Kwinana companies and the KIC. Critical to the success of the work is
liaison with key water consuming companies to achieve their participation in a collaborative
approach to water synergies and alternative water sources. The proposed supportive research
work should tap into the needs of the involved industries (e.g. triple bottom line assessments,
facilitation between water producing and consuming companies). In recent discussions with
the KIC and its members, it became clear that a promising area of research is an assessment of
business and sustainability case for an evaporative water treatment system utilising recovered
energy from KIA flue gases.

In parallel with the Kwinana Synergies Project, the KIC initiated a KIA Water Planning Study
that identified sustainable options for water supply, water reuse and wastewater discharge for
a 15 year horizon. This study built upon the success of a collaborative Kwinana water study in
1997 (Waterlink) and significant changes in the industry water use environment over recent
years, This study has been completed in 2006 by a consultancy firm on behalf of the KIC
(KIC 2007). While this study has a long-term planning perspective, the Kwinana Synergies
Project has a strong focus on the development of regional (water) synergies on the short and
medium term. The assessment of the water inputs and outputs for the major water consuming
industries in Kwinana, conducted as part of the Kwinana Synergies Project, was utilised as
industry baseline data by the KIA Water Planning Study.

The efforts to secure a sustainable water use on the short/medium term (e.g. water efficiency
and regional synergies) and long-term (such as the KIA Water Planning Study) show that a
diversity of solutions are being explored, evaluated and, if found feasible, implemented by the
Kwinana industries.

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Chapter 7: Collective KIA Strategy on Energy Recovery

7 COLLECTIVE KIA STRATEGY ON ENERGY RECOVERY

7.1 Introduction and Sustainability Case

The KIC and its members recognise that energy consumption and energy releases from
industrial operations are key environmental issues. Progress has been made towards the
improvement of energy efficiency and recovery in the KIA, both at the company level (e.g.
on-site energy efficiency assessments at numerous Kwinana industries) and also through
regional synergies (two cogeneration facilities in Kwinana). However, there remains a need
to further investigate the opportunities for enhancement of energy efficiency and recovery due
to increasing external pressure from government and other stakeholders (mandatory energy
opportunity assessments for large industrial users (>0.5 PJ/yr)), climate change policies, and
potentially carbon taxes. There are also developments with regard to (low grade) energy
recovery technologies and process intensification and integration concepts that provide
greater and more diverse technical opportunities for energy recovery.

The further improvement of energy recovery and efficiency and the reduction of greenhouse
gas emissions is a key focus area of the KIC Eco-Efficiency Committee and the CSRP
Kwinana Synergies Project. This chapter presents an update on the foundation research and
development of collective KIA strategy for enhancing energy efficiency and energy utility
synergies.

7.2 Energy Recovery8

The foundation research, conducted as part of the Kwinana Synergies Project, on energy
recovery mainly focuses on the management and utilisation of medium- and low-grade heat as
it is anticipated that, to a significant extent, many Kwinana operations have already assessed
and utilised the opportunities for the recovery and reuse of high-grade heat. A simplified
diagram of the key components of a typical low/medium-grade energy recovery system is
provided in Figure 7.1. Core components are the energy source (e.g. hot process water) and
the energy recovery equipment/technology, which improves the quality and useability of the
energy contained in the low/medium grade energy source, so that it becomes available as
suitable energy for another application (e.g. low pressure steams, heating or cooling, or
electricity). The system performance is affected by each core component and can be enhanced
by pre-conditioning or process modifications to release the low/medium-grade energy in a
more usable form, efficiency of the energy recovery equipment and its match with suitable
applications for the recovered energy. Moreover, performance can be further enhanced
through storage and transmission, which typically involves the use of Phase Change Materials
(PCM). Examples of energy recovery equipment include heat exchangers, heat pipes, heat
pumps, heat transformers, and thermo/pyro-electrics. Sometimes the energy rejected from the
energy recovery equipment, such as thermodynamic cycles or other direct electricity
conversion technologies, could be used as low-grade energy sources. This is shown in the
Figure below as a recycling flow from the energy recovery equipment to the energy source.

8
Extracted from: (Narayanaswamy and van Berkel 2005)

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Storage and transmission


(Phase Change Materials)

Sources of Conversion of Uses (sinks) of


process energy process energy recovered energy
Heat pumps
Heat transformers Steam generation
Flue gas Heat exchangers Hot process water
Hot water Economiser (flue gas stack) Hot process air
Hot air Energy Condensate recovery Energy Chilled process water
Chilled water recovery Heat recovery boiler recovery Chilled process air
Chilled air Organic Rankine Cycle Space cooling & heating
Steam Kalina Cycle Electricity
Hot product Thermo-photovoltaics Mechanical processes
Thermal pyro-electrics Motor vehicles
Other recovery technology Other applications

Exhaust of process energy Energy input

Figure 7.1: Components of Energy Recovery System (Narayanaswamy & van Berkel, 2004)

7.3 Current Status of Energy Consumption and Releases in KIA9

Figure 7.2 gives the total estimated energy consumption and energy releases of Kwinana
industries, as documented in the KIA Energy Survey (see Section 7.4). The major energy
consuming industries in KIA consume about 95 PJ/yr of “virgin” energy sources in their
processes. Gas is the most significant energy source in Kwinana (about 75% of total energy
consumption), followed by coal (18%). Priority for energy efficiency and recovery should
therefore be given to these two energy sources. Total energy release to atmosphere is
estimated at approximately 21 PJ/yr; this represents 22% of the total energy consumption.
This total energy release is likely to be higher because not all energy releases are accounted
for in the KIA Energy Survey. This indicates that there may be significant opportunities for
process energy recovery and other measures to reduce the energy releases to the atmosphere.

9
Extracted from: (van Beers 2006b)

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Hot air Hot water Unaccounted


Flue gas 1,050 TJth/yr 5,250 TJth/yr Steam energy losses
5,800 TJth/yr 7,750 TJth/yr

Electricity 2,000 TJe/yr

Coal 17,200 TJth/yr


TOTAL KWINANA INDUSTRIES
Participating in KIA energy recovery survey Hot product 1,550 TJth/yr

Gas 71,550 TJth/yr

Internal reuse
within company
Other 5,100 TJth/yr
External reuse
(Mainly raw materials) by other company

Figure 7.2: Energy Use and Release Diagram for KIA10

A summary of the energy use applications categorised by energy source is provided in Figure
7.3. The Figure illustrates that steam generation from gas is the most energy intensive
application of Kwinana industries (about 23 PJ/yr). Various other energy applications using
gas and coal (including smelting, drying, and heating of process liquids in furnaces) are also
substantial energy uses (total of 28 PJ/yr). Secondary to these applications, generation of hot
process air, electricity generation and mechanical processes are also significant in terms of
total energy consumption. Not so significant energy applications appear to be generation of
hot or chilled process water, chilled process air, space cooling/heating, and transportation.

10
Notes on Figure 7.2:
ƒ Presented data are sums of energy data as provided by the 14 KIC member companies
participating in the KIA energy recovery survey. Although significant effort was made to derive
a complete dataset, we cannot claim completeness. It is not a full energy balance for the KIA.
ƒ Data above includes HIsmelt based on stage 1 production quantities.
ƒ Verve Energy data are not included because this will result in double counting.

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Energy applications vs resource use

30,000
Energy applications:
25,000 1. Steam generation
Energy use (TJ/yr)

2. Generation of hot process water


20,000 3. Generation of hot process air
4. Generation of chilled process water
15,000 5. Generation of chilled process air
6. Space cooling and heating
10,000 7. Electricity generation
8. Mechanical processes
5,000 9. Motor vehicles
10. Other
11. Unknown
0
1 2 3 4 5 6 7 8 9 10 11

Energy application

Electricity Coal Gas Other Total thermal n = 14 companies

Figure 7.3: Energy Applications versus Resource Use in KIA

7.4 KIA Energy Survey11

A first KIA Energy Workshop was held at the KIC in August 2003 to discuss and evolve
steps toward promotion and implementation of economically viable energy exchange
opportunities among companies in the Kwinana area. This workshop identified the need for
more detailed quantitative and qualitative analysis of company energy uses and releases, and
increased knowledge sharing of best practice and experience in energy efficiency and
management. Following up on this workshop outcome, the Kwinana Synergies Project has
carried out a survey amongst 14 major energy consuming companies in KIA on energy
management issues and recovery opportunities. The survey resulted in a set of energy
management and recovery opportunities; these are discussed in the following subsections.

7.4.1 Energy Management Issues in KIA

From an energy management perspective, the KIA Energy Survey had the following main
outcomes:
ƒ Current achievements: Over the past years, Kwinana industries made progress towards
improvement of energy efficiency and recovery. Current energy recovery achievements
are mainly related to generation of steam, hot process air, and electricity.
ƒ Perceived opportunities: Most Kwinana industries perceive opportunity areas for energy
recovery in steam generation and various other applications (e.g. cogeneration facility,
heating process liquids).
ƒ Company incentives: Company incentives for process energy recovery are mainly related
to return on investment and total energy costs to the company. Governmental regulations
do not yet seem to be a major incentive for energy recovery in industry.
ƒ Company barriers: Low return on investment and high investment costs appear to be the
major barrier for Kwinana industries. Other important barriers for implementing energy

11
Extracted from: (van Beers 2006b)

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efficiency projects include low costs of energy (per unit), time investment, staff shortage,
process control, and lack of knowledge on available energy recovery technologies (e.g.
from flue gases, cooling towers, hot water).
ƒ Industry information needs: Kwinana industries are mainly interested in information
related to available technologies for energy recovery, including their financial and
operational performance. There is also an interest on the environmental improvements
(such as reduction in GHG emissions) that could be achieved through energy recovery.
ƒ Interest in public case-study: Four companies have an interest in documenting the
company's experience with energy recovery in a public case-study. These case-studies
could be published on a website (e.g. KIC, Curtin University, CSRP) or in print (e.g. KIC
brochure).
ƒ Interest in on-site energy assessments: Five Kwinana industries have a potential interest in
detailed on-site assessments by energy experts to identify and evaluate process energy
recovery opportunities (industry decision on this will depend on the costs involved).
ƒ Perceived importance of energy recovery: Most companies perceive on-site eco-efficiency
to be of higher importance than regional synergies to achieve further improvements in
energy recovery. This means that opportunities for eco-efficiency should first be explored
before investigating energy synergy opportunities.

7.4.2 Energy Recovery Opportunities in KIA

Energy Release versus Outlet Temperature

The feasibility of any energy recovery project is firstly determined by the temperature of the
energy releases, and secondly by the total amount of recoverable energy. Figure 7.4 plots
these two parameters for the identified energy releases from Kwinana industries. Since most
energy releases have total energy contents less than 600 TJ/yr and temperatures less than
700oC, the data are re-plotted in Figure 7.5 with reduced scales to allow more detailed
analysis of the energy releases. For both Figures, high priority energy releases for energy
recovery are those with higher temperatures and higher total energy contents. Low priority
energy releases are the ones in the lower temperature ranges and low total energy contents. It
must be noted that information on the temperature and total energy content are not (yet)
available for all energy releases. However, it is clear from the Figures that energy recovery
from flue gases and hot water are the most attractive. Also, there are a few energy releases in
Kwinana that have very high total energy contents, but are in the lower temperature ranges
(e.g. cooling water, evaporative losses, and hot products). Energy recovery from these energy
releases will be more challenging and less attractive in terms of economic feasibility. The
information presented here feeds into the priority assessment for energy recovery
opportunities in KIA.

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Energy release vs outlet temperature in KIA


(Full scales) Highest
priority
1100
1000
900
Outlet temperature (degr.C)

800
n = 14 companies
700
600
Flue / off gases
500 Hot water
400 Chilled water
Hot air
300
Chilled air
200 Steam
100 Product

0
Lower 0 300 600 900 1200 1500 1800 2100 2400 2700 3000
priority
Energy release (TJ/yr)
o
Standard Temp 25 C
Figure 7.4: Energy Release versus Outlet Temperature (Full TJ/yr Scale)12

Energy release vs outlet temperature in KIA


(Reduced scales) Highest
700 priority

600
Outlet temperature (degr.C)

500
n = 14 companies

400
Flue / off gases
300 Hot water
Chilled water
200 Hot air
Chilled air
Steam
100
Product

0
Lower 0 200 400 600
priority
Energy release (TJ/yr)
o
Standard Temp 25 C

Figure 7.5: Energy Release versus Outlet Temperature (Reduced TJ/yr Scale)

12
If the temperature or heat content of a specific energy release is not known, then the unknown value is plotted
on the respective X or Y axis (value = zero).

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Energy carrier versus energy release

Another importance factor in the identification of energy recovery projects, both for
individual companies and the KIA as a whole, is to know which energy releases (e.g. flue gas,
water, air, products) are responsible for the largest energy releases. This information is
included in Figure 7.6. It shows that most energy is lost via steam (up to 8 PJ/yr), hot water
(over 5 PJ/yr), and flue gases (up to 6 PJ/yr). The main focus for energy recovery through
eco-efficiency and regional synergies in the KIA should therefore be on these three energy
carriers. From an overall Kwinana perspective, there seems to be limited potential for energy
recovery from hot air. This study did not identify significant energy releases from chilled
water and air.

Energy carrier vs total energy releases in KIA

9,000

8,000
Total energy release (TJ/yr)

7,000
Standard Temp 25oC

6,000

5,000

4,000

3,000

2,000

1,000

0
Flue gas Hot water Hot air Chilled Chilled air Steam Product
water

Energy carrier n = 14 companies

Figure 7.6: Energy Carrier versus Energy Release

Prioritised Energy Recovery Opportunities

A central aim of the KIA Energy Survey was to collect and present relevant data that assist
Kwinana industries in improving recovery. In order to facilitate decision making on which
energy projects to take forward, all energy releases were prioritised based on their
temperature (oC) and their total energy content (TJ/yr). Table 7.1 provides the applied rating
system for this prioritisation.

Table 7.1: Ratings for Prioritising Potential Energy Recovery Opportunities


Temperature Energy content
o
Short-term opportunity > 300 C High energy content (H) > 500 TJ/yr
o
Medium-term opportunity 100 to 300 C Medium energy content (M) 100 to 500 TJ/yr
o
Long term opportunity < 100 C Low energy content (L) < 100 TJ/yr

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Short-term energy recovery opportunities are energy releases in the higher temperature
ranges, preferably with high or medium energy contents (TJ/yr). Due to confidentiality issues,
detailed information on the prioritised energy releases from the Kwinana industries cannot be
included in this report. The feasibility of any recovery project will depend on finding a
suitable reuse application for the energy release within the company, or alternatively a nearby
industry. For most cases, there are several applications that could potentially use the energy
release.

7.5 KIA Workshop on Energy Management and Recovery

A second KIA Energy Workshop was held at the KIC in May 2006 to bring together the
Kwinana industries to review and consolidate the identified potential energy management and
recovery opportunities and to agree on the best possible combinations thereof. The workshop
was jointly organised by the KIC and the CSRP as part of Kwinana Synergies Project. 15
representatives from seven major energy consuming Kwinana industries, Water Corporation,
KIC, and Curtin/CSRP participated in the workshop, and provided their valuable insights on
energy management issues and energy recovery in the KIA. Prior to the workshop, a scoping
report on process energy recovery in KIA was distributed amongst the participating Kwinana
industries.

7.5.1 Workshop Structure

The specific workshop objectives were to:


ƒ Share results from the KIA Energy Survey conducted by the CSRP Kwinana Synergies
Project amongst the workshop participants.
ƒ Review the achievability, benefits, and business cases of potential energy management
and recovery opportunities for the KIA, and discuss how these ideas might be combined
and integrated.
ƒ Select those opportunities with the best business / sustainability case and agree on the best
way forward.

The structure of the workshop discussion is presented in Figure 7.7. It shows how this
workshop fits in with the focus areas of the KIC Eco-Efficiency Committee. As shown in
Figure 7.7, the discussion session was divided into three parts. The purpose of Part I was to
review the energy management issues identified (e.g. incentives, barriers, industry
information needs). Part II was a technical session to review identified energy recovery
opportunities on expected business case and achievability. The aim of Part III was to further
develop short-listed energy management and recovery opportunities into a few selected
collaborative projects with a good business case and energy savings potential.

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Focus areas of
KIC Eco-efficiency Committee

Process inorganic Energy & Water Non-process


by-products greenhouse consumption & by-products
emissions impacts

Energy Common ground/interest


Discussion session
Part I: management Possible ways forward
issues
Flue gases, steam, water, air, products
Discussion session Technical
Short/Medium/Long-term opportunities
Part II: session
Energy efficiency vs recovery
Develop
Discussion session
collaborative
Part III:
opportunities

Figure 7.7: Structure Workshop Discussions on Energy Recovery

7.5.2 Workshop Outcomes

The KIA Energy Workshop succeeded in raising awareness amongst the Kwinana industries
about the status of energy consumption and releases in the KIA, energy management issues
and energy recovery opportunities. In addition, the achievability, business and sustainability
benefits of energy management and recovery opportunities were reviewed and there is now a
consolidated way forward for collaborative KIA opportunities on energy management and
recovery.

There was general consensus amongst the workshop participants on the following
short/medium term tasks:
Energy management issues:
ƒ Develop case-studies on energy efficiency and recovery in the KIA to promote past and
current achievements amongst KIC members and external stakeholders (e.g. community
and government).
ƒ Share experiences amongst KIC members on building the business and sustainability case for
proposed energy efficiency projects, and on how to communicate these to senior management.
ƒ Meet industry information needs on energy efficiency and recovery.
ƒ Share information on approaches and methodologies for on-site energy assessments
amongst KIC members.
ƒ Consider negotiating an agreement with an engineering company to conduct the energy
opportunity assessments for a group of interested KIC members.
Energy recovery:
ƒ At this stage collaborative KIA efforts on energy recovery should focus on flue gases, and not
so much on steam losses, hot water, hot products, or hot air. This is due to limited potential for
these latter releases in terms of temperatures (oC) and total energy content (TJ/yr).

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ƒ Map the available flue gases (location, temperature, and energy content) in the Kwinana
strip with the aim of assessing the potential feasibility of collaborative KIA projects on
flue gas recovery (e.g. joint industry cogeneration plant).
ƒ Further develop draft CSRP project proposal ‘Process Energy Recovery from Minerals
Processing Operations’.

7.6 Scoping Study on Energy Recovery from Flue Gases

Following up on the KIA Energy Workshop, a targeted approach was developed as part of the
CSRP Kwinana Synergies Project to identify and evaluate the business case of energy
recovery opportunities from flue gases, including preliminary technical, economic (Net
Present Values), and environmental assessments (CO2 mitigation). The approach has been
applied to the KIA, based on the information provided by participating KIC members. The
result is a set of evaluated energy recovery opportunities, covering both on-site (eco-
efficiency) and collaborative (regional synergies) options. The following subsections describe
the methodology and recommendations from this scoping study, including possible areas for
further research.

7.6.1 Methodology

Figure 7.8 shows approach taken by the CSRP Kwinana Synergies Project to arrive at
potentially feasible energy recovery opportunities for the KIA. As part of the approach,
potential recovery opportunities have been identified and undergone a preliminary technical,
economic, and environmental assessment. Each step within the approach is discussed
separately below.

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STEPS METHOD
COLLECTION

Data collection based on:


DATA

- Energy uses and discharges


1) Conduct industry energy survey
- Energy type, application, heat content, temperature

Collected energy
data
Workshop based on:
2) Hold opportunity identification - Selected major energy consuming companies
workshop - Results from industry energy survey

Focus area (flue gases)

3) Define clusters of closely Clustering based on:


located industries - Location and proximity of industries
OPTION DEVELOPMENT

Clustered flue gases


Prioritisation based on:
4) Select priority flue gases (and - Temperature of flue gases
combinations thereof) - Heat content of flue gases

Prioritised flue gases


Options considered:
5) Select location(s) of energy - Recovery technology located close to largest flue gas emitter
recovery equipment - Recovery technology between two flue gas emitters (companies)

Selected location(s) energy


recovery technologies

6) Select appropriate energy Selection based on:


recovery technologies (and - Capacity of energy recovery technologies
combinations thereof) - Input/output media of energy recovery technologies

Selected energy recovery


technologies
ASSESSMENT ASSESSMENT
TECHNICAL

Assessment based on:


- Estimated efficiencies for energy recovery technologies
7) Conduct technical assessments
- Temperatures and heat contents of flue gases
- Distances
Technically promising
options
ECONOMIC

Assessment based on:


8) Conduct economic - Estimated costs proxy indicators for capital and operational costs
assessments - $ value of recovered energy

Technically & economically


promising options
ENVIRONMENTAL

Assessment based on:


ASSESSMENT

9) Conduct environmental - Emission factors for electricity generation and fuel combustion
assessments - GHG mitigation potential

Technically, economically, &


environmentally promising
options

Figure 7.8: Approach to Scoping Study on Energy Recovery from Kwinana Flue Gases

Step 1: Define clusters of closely located industries

One of the main variables that affects the feasibility of energy recovery is the distance
between the point of emission and the recovery technology. This is particularly in the case of
collaborative recovery opportunities (regional synergies) where energy is transported from
one company to another or to a central collection point. Collaborative energy recovery
opportunities may exist between two or more industries in close proximity, rather than
between companies located far from each other. For this reason, the KIA is divided into seven

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clusters of industries (see Figure 7.9). Collaborative opportunities are assessed within each
cluster, but not between industries located in different clusters. The available flue gases and
the distances between the companies in each cluster were mapped using a standardised
framework (see Figure 7.10).

Alumina refinery

Gas fired power station


Coal fired power station
Cluster 1
Seawater
desalination plant Cement mill

Patio tubing company

Steel pipe producer Thermal ceramics producer

Pig iron plant Cluster 2


Specialty chemical producer

Cluster 3
Industrial gas producer
Cogeneration plant

Water reclmation plant Producer of LPG

Cluster 4
Oil refinery
Agricultural chemical producer

10.5 km
Titanium dioxide
pigment producer Industrial gas producer

Chlor alkali plant Cluster 5


Fertiliser producer

Shipping & bulk


transport facility

Industrial chemical producer


Industrial chemical
& fertiliser producer

Cluster 6
Nickel refinery Fertiliser producer

Grain storage &


handling facility Cluster 7 Zirconia powder producer

Pharmaceutical
producer

Fused alumina & zirconia producer

4 km

Figure 7.9: Defined Clusters in the Kwinana Industrial Area

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Stack 1 Stack 2
? oC ? oC
? TJ/yr ? TJ/yr
Cluster X
Accounted
Fossil fuels
energy releases S
H tea
in cluster X: wa ot m
te
El
H icity
? TJ/yr r

ot
e c tr

ai
r COMPANY A
Stack 1 Stack 1 Stack 2 Stack 3
? oC ? oC ? oC ? oC
? TJ/yr ? TJ/yr ? TJ/yr ? TJ/yr
km

0 .7
0.8

Fossil fuels km Fossil fuels


St
ea t y
m ici
c tr
H ter
El

wa ty
ot

Ele
ec
tric
i

0.2 k
m COMPANY D
1.0 k
COMPANY B m

COMPANY C
i ty
air
tric

Steam
Hot
c
Ele

Fossil fuels

Figure 7.10: Framework of Flue Gas Cluster – Fictional Example

Step 2: Select priority flue gases

The feasibility of any energy recovery project is primarily determined by the temperature of
the energy releases, and secondarily by the total amount of recoverable energy (in terms of
TJ/yr). All flue gases from participating Kwinana industries have been prioritised, on the
basis of their temperature (oC) and their energy content (TJ/yr). High priority flue gases for
energy recovery are those with higher temperatures (>300oC) and higher energy contents
(>500 TJ/yr).

Step 3: Select location of energy recovery equipment

Within each cluster, there may be different pathways for reusing energy between the
industries. The challenge is to keep the required transportation distances to a minimum. It
does not make good business sense to consider collaborative energy recovery options where
energy needs to be transported over large distances.
For collaborative energy recovery opportunities, two locations are considered for the energy
recovery equipment:
ƒ Located close to the largest flue gas emitter
ƒ Located between the two (or more) industries

For on-site energy recovery opportunities, it is assumed that the energy recovery equipment
can be located in the immediate surrounding of the flue gas emission. It is acknowledged that,
due to large sized land areas of some of the Kwinana industries, the targeted application/use
of the recovered energy may not be nearby. In these instances, energy transportation will
need to be considered as well. Energy transportation up to 500 metre of preheated working
liquid (from heat exchangers) has been included in the on-site assessments for each company.

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Further customised calculations can be conducted by the CSRP Kwinana Synergies Project on
request.

Step 4: Select appropriate energy technologies

A selection of energy recovery technologies is considered as part of this study. The selection
is based on the capacity (MW) of available technologies and the ability to utilise energy from
flue gases. Based on these criteria, heat exchanger, waste heat boiler, economiser, Kalina
cycle, Organic Rankine cycle and conventional combined cycle are considered.

Some other alternative technologies (such as thermo-photovoltaics and thermal pyro-electrics)


are not assessed here, because these are still in their development stage and therefore not yet
commercially attractive. In addition, their capacities are not yet sufficient to recover a
significant fraction of the energy embedded in the flue gases in Kwinana.

The technical viability of insulated piping has been assessed to transport energy from the
point of energy release (e.g. flue gas stack) to its targeted reuse application. Hot liquid has
been considered as a medium for energy transportation because of the lower energy losses
compared to hot air (Dartnall 2006). Heat pipes and phase change materials were not selected
for this work because these technologies are not suitable commercially for transportation of
significant energy quantities over large distances (100 metres or more) (Transterm 2006).

Step 5: Conduct technical assessments

The next step is to assess the technical potential of energy recovery options. The estimated
efficiency of the technology is multiplied by the energy content of the flue gases for
determining the energy recovered. Utilising the specific heat, estimated input temperature and
energy content and flow rate, the outlet temperature can be determined. The aim is to
determine which options could result in significant energy savings. The preliminary technical
assessments include both best-case scenarios (using favourable estimates on technology
efficiencies) and worst-case scenarios (using less favourable efficiency estimates).

A standardised framework was used to conduct the preliminary technical assessments for all
identified on-site and collaborative recovery opportunities (see Figure 7.11).

Hot air Energy recovery Working liquid Energy transportation Working liquid
technology
Distance ? km
Company A ? o
C Capacity ? MW Best-case Best-case Company C
Flue gas stack 1 ? oC Transport loss ? oC
? TJ/yr Heat transfer area ? TJ/yr Best-case ? loss/100m ? TJ/yr
Total ? m2 Worst-case ? loss/100m
# units ? Worst-case Worst-case
Company A ? o
C Per unit ? m2 ? oC ? oC
Flue gas stack 2 ? TJ/yr ? TJ/yr
? TJ/yr Flow rate working liquid
Estimated ? kg/s

Company B ? o
C Recovery efficiency
Flue gas stack 1 Best-case ?
? TJ/yr Worst-case ?

Figure 7.11: Framework of Technology Assessments

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Step 6: Conduct economic assessments

The methods of net present value (NPV) is used to assess the economic feasibility of
technically promising recovery opportunities in both best-case scenarios (using favourable
cost estimates) and worst-case scenarios (using less favourable cost estimates). If NPV is
positive, the recovery options are economically viable. Options with highest NPV values and
shortest payback periods are regarded as most financially viable. The energy saving is the $
value of the recovered energy that would otherwise be produced from fossil fuels.

The preliminary economic assessments are based on the following assumptions:


ƒ Cost proxy indicators (e.g. A$/MW capacity) for selected energy recovery technologies
extracted from available literature
ƒ Discount (interest) rate: 10%
ƒ Life time technology: 15 years
ƒ Fossil fuel costs: A$5/GJ
ƒ Electricity price: A$12/MWh
ƒ Efficiency current equipment: 60%

Step 7: Conduct preliminary environmental assessments

In line with the current debate on climate change and increasing awareness that emissions of
greenhouse gases need to be controlled, the mitigation of carbon dioxide (in tonnes/yr) was
estimated as part of the environmental assessments.

The options for energy recovery from Kwinana flue gases cover both thermal applications
(e.g. heat exchangers, waste heat boilers) and electric applications (e.g. conventional
combined cycle, Kalina and Organic Rankine cycle).

For the purpose of this study, it is assumed that the thermal applications substitute energy use
in gas fired boilers. Therefore, the CO2 mitigation from thermal applications is estimated from
the avoided energy use that would otherwise be required to fire a natural gas boiler with an
emission factor of 55 tonnes CO2/TJ (AGO 2005).

The CO2 mitigation potential for electric applications has been estimated as the avoided
energy use for electricity generation in a power plant. Electricity in Western Australia is
generated from gas (about 60%) and coal (about 37%) (Riwoe et al. 2006). Therefore, the
weighted average of the emission factors for a natural gas power plant (52.5 tonnes CO2/TJ)
and a coal fired power plant (93.8 tonnes CO2/TJ) was applied in this study (AGO 2005).

7.6.2 Data Sources

The business case evaluation of identified energy recovery opportunities in Kwinana is


conducted according to the methodology as discussed above. The estimated technical
(efficiencies), economic data (cost proxy indicators in A$/MW capacity) were derived from
available literature, including underlying assumptions and formulas.

The input data for the method application were derived from participating Kwinana industries
(temperatures, heat content, and flow rates of flue gases), literature (e.g. efficiency of waste
heat boilers and economisers) and from empirical models (e.g. capital costs of heat

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exchangers). Informed estimates were made if no reliable datasets were available (e.g. Kalina
and Organic Rankine cycles). Due to confidentiality issues, individual company data can not
be presented in this report.

The Kalina and Organic Rankine cycles are emerging promising technologies which are
expected to become more economically attractive in the near future. The lack of available
data on the costs of these technologies influenced the recommendations regarding these
technologies.

Overall, we anticipate that the level of detail of the work presented is sufficient to provide
preliminary guidance for engineering decision making by the Kwinana industries on which
energy recovery opportunities to select for detailed feasibility assessments. It is acknowledged
that actual costs are highly dependent on the resource characteristics (i.e. flow rates,
temperature, composition flue gas, operating hours, regulatory requirements). Depending on
the desired way forward of the industries, research efforts may focus on refining the data
collected and applied so far.

7.6.3 Recommendations

Based on the conducted business case evaluations (summarised in the previous section),
recommendations are presented in Table 7.2 for possible follow-up on the identified recovery
opportunities. Due to confidentiality reasons, full details of the business case evaluations can
not be presented in this report.

The recommendations are categorised as:


Technically and economically promising in both best-case and
1st priority: worst-case scenarios.
nd
2 priority: Technically and economically promising in best-case scenario,
but not in worst-case scenario.
No follow-up required: Not technically or economically promising in best case-scenario.

Technically promising: a) Recovered energy is more than 50 TJ/yr (5 MW), and


b) Inlet temperature into energy recovery equipment is more
than 100 oC
Economically promising: a) Net present value is positive.

Table 7.2: Summary of Recommended Energy Recovery Opportunities


Priority Energy recovery opportunity
On-site energy recovery
1st priority AFM – Waste heat boiler producing steam
Alcoa – Waste heat boiler producing steam
BP – Heat exchanger(s) preheating working liquid
BP – Heat exchanger(s) preheating working liquid + 500 metre energy transportation
BP – Waste heat boiler producing steam
BP – Economiser preheating boiler feed water
BP – Organic Rankine cycle producing electricity & thermal energy
BP – Conventional combined cycle producing electricity & thermal energy

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Priority Energy recovery opportunity


CCL – Heat exchanger(s) preheating working liquid
CCL – Heat exchanger(s) preheating working liquid + 500 metre energy transportation
CCL – Waste heat boiler producing steam
CCL – Economiser preheating boiler feed water
CCL – Conventional combined cycle producing electricity & thermal energy
CSBP – Heat exchanger(s) preheating working liquid
CSBP – Heat exchanger(s) preheating working liquid + 500 metre energy transportation
CSBP – Waste heat boiler producing steam
CSBP – Economiser preheating boiler feed water
Hismelt – Heat exchanger(s) preheating working liquid
Hismelt – Heat exchanger(s) preheating working liquid + 500 metre energy transportation
Hismelt – Waste heat boiler producing steam
Hismelt – Economiser preheating boiler feed water
Hismelt – Organic Rankine cycle producing electricity & thermal energy
Hismelt – Conventional combined cycle producing electricity & thermal energy
Kwinana Cogen – Waste heat boiler producing steam
Kwinana Cogen – Economiser preheating boiler feed water
KNR – Heat exchanger(s) preheating working liquid
KNR – Heat exchanger(s) preheating working liquid + 500 metre energy transportation
KNR – Waste heat boiler producing steam
KNR – Economiser preheating boiler feed water
KNR – Organic Rankine cycle producing electricity & thermal energy
KNR – Conventional combined cycle producing electricity & thermal energy
Tiwest – Heat exchanger(s) preheating working liquid
Tiwest – Heat exchanger(s) preheating working liquid + 500 metre energy transportation
Tiwest – Waste heat boiler producing steam
Tiwest – Economiser preheating boiler feed water
Tiwest – Organic Rankine cycle producing electricity & thermal energy
Tiwest – Conventional combined cycle producing electricity & thermal energy
Wesfarmers LPG – Heat exchanger(s) preheating working liquid
Wesfarmers LPG – Heat exchanger(s) preheating working liquid + 500 metre energy
transportation
Wesfarmers LPG – Waste heat boiler producing steam
Wesfarmers LPG – Economiser preheating boiler feed water
Wesfarmers LPG – Organic Rankine cycle producing electricity & thermal energy
Wesfarmers LPG – Conventional combined cycle producing electricity & thermal energy
nd
2 priority Alcoa – Heat exchanger(s) preheating working liquid
Alcoa – Economiser preheating boiler feed water
Kwinana Cogen – Heat exchanger(s) preheating working liquid

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Priority Energy recovery opportunity


Collaborative energy recovery
1st priority Cluster 1: Alcoa supplying steam to Verve Energy or BGC Cement - using waste heat boiler
Cluster 2: Hismelt supplying preheated working liquid to Tyco Water, One Steel, Shinagawa, or
Ciba – using heat exchangers
Cluster 2: Hismelt supplying steam to Tyco Water, One Steel, Shinagawa, or Ciba – using
waste heat boiler
Cluster 3: Hismelt supplying preheated working liquid to Kwinana Cogen or Wesfarmers LPG
– using heat exchangers
Cluster 3: Hismelt supplying steam to Kwinana Cogen or Wesfarmers LPG – using waste heat
boiler
Cluster 3: Kwinana Cogen supplying steam to Hismelt – using waste heat boiler
Cluster 3: Wesfarmers LPG supplying preheated working liquid to Hismelt – using heat
exchangers
Cluster 3: Wesfarmers LPG supplying steam to Hismelt – using waste heat boiler
Cluster 4: BP supplying preheated working liquid to Tiwest – using heat exchangers
Cluster 4: BP supplying steam to Tiwest – using waste heat boiler
Cluster 4: Tiwest supplying preheated working liquid to Nufarm Coogee or Wesfarmers LPG –
using heat exchangers
Cluster 4: Tiwest supplying steam to Nufarm Coogee or Wesfarmers LPG – using waste heat
boiler
Cluster 4: Organic Rankine cycle producing electricity & thermal energy, utilising pre-heated
working liquid from BP and Tiwest.
Cluster 6: CSBP supplying steam to Coogee Chemicals or FPA Jetty – using waste heat boiler
Cluster 6: KNR supplying preheated working liquid to Coogee Chemicals – using heat
exchangers
Cluster 6: KNR supplying steam to Coogee Chemicals – using waste heat boiler
Cluster 7: KNR supplying preheated working liquid to Doral – using heat exchangers
Cluster 7: KNR supplying steam to Doral – using waste heat boiler
nd
2 priority Cluster 4: Conventional combined cycle producing electricity & thermal energy, utilising pre-
heated working liquid from BP and Tiwest.
Cluster 4: Organic Rankine cycle producing electricity & thermal energy, utilising pre-heated
working liquid from Tiwest and Wesfarmers LPG.
Cluster 4: Conventional combined cycle producing electricity & thermal energy, utilising pre-
heated working liquid from Tiwest and Wesfarmers LPG.
Cluster 6: CSBP supplying preheated working liquid to Coogee Chemicals – using heat
exchangers
Cluster 6: Conventional combined cycle producing electricity & thermal energy, utilising pre-
heated working liquid from CSBP and KNR.

The following statements apply to the recommended energy recovery opportunities:


ƒ The underlying calculations are based on the estimated efficiencies and cost proxy
indicators for selected energy recovery technologies extracted from available literature.
ƒ Individual flue gas stacks may not be located in very close proximity because of the large
sized areas of some of the Kwinana industries. If this is the case, the flue gas energy (in
the form of a pre-heated working liquid) needs to be transported to a centralised energy

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Chapter 7: Collective KIA Strategy on Energy Recovery

recovery technology (e.g. waste heat boiler or economiser) resulting in energy losses. Hot
liquid is the preferred medium for energy transportation because of the lower energy
losses compared to flue gases (hot air). The effect of the diffused location of individual
flue gas stacks on the feasibility of the proposed energy recovery options have not (yet)
been incorporated in this report. If desired, such an exercise can easily be conducted if this
type of information is made available.
ƒ Lack of detailed data on the specific costs of the energy recovery technologies have
influenced the recommendations presented here. Actual costs are highly dependent on the
resource characteristics (i.e. flow rates, temperature, composition flue gas). It is
recommended to involve engineering companies to refine the calculations presented in
this chapter. If desired, this is could be part of the follow-up research activities.
ƒ It is acknowledged that recovery options should be tailored to the energy needs of the
Kwinana industries. For example, if a company does not need steam for their production
process there is no business case for installing a waste heat boiler to produce the steam or
another Kwinana company to supply this type of energy. It is noted that electricity is one
of the easiest means of transporting energy across long distances, and also one of the
easiest to trade between different organisations. Therefore, both thermal and electricity
generation options are assessed as part of this study.

7.6.4 Effect of possible carbon taxes

In line with the current debate on climate change and increasing awareness that emissions of
greenhouse gases need to be controlled, carbon dioxide mitigation has been assessed as part
of this scoping study. The most effective or appropriate level of carbon taxes to be introduced
in (Western) Australia is still being debated. For the purpose of this study, the effect of three
levels of carbon taxes have been assessed, namely 5, 25, and 50 A$/ton CO2. The results of
this exercise show clearly that options which are not attractive under current market
conditions will become economically viable with the introduction of carbon taxes. The
options, which were already feasible without carbon taxes, will have even higher Net Present
Values.

7.6.5 Possible Areas for Further Research

The scoping study report (delivered to KIC and participating KIC members) includes the
results of the foundation work on energy recovery from KIA flue gases. Based on specific
interests of the KIC and its members, additional research can be conducted in various areas.

Possible areas of follow-up work could include:


1. Facilitation of a (third) KIA Energy Workshop to determine which recommended options
have significant business and sustainability benefits and are achievable. For selected
collaborative energy projects, an action plan can then be prepared in close collaboration
with the involved companies and the KIC to further progress these.
2. Detailed feasibility assessments of promising on-site and collaborative energy recovery
options, including the evaluation of sustainability benefits and development of potential
business models and operational arrangements.
3. Sensitivity analysis on the results presented in this report, including the impact of carbon
trading, government subsidies and rebates, and updated efficiency and cost-proxy
indicators.

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4. Stakeholder engagement (e.g. technology providers, industries, government, and


community) to firm up the results and to find ways to overcome possible barriers that may
prevent the implementation of promising energy recovery opportunities. This stakeholder
exercise can include working together with the Department of Industry and Resources to
encourage new industries into the KIA to use the alternative energy sources produced
from flue gases.

7.7 Way Forward

Through the KIC Eco-Efficiency Committee, discussions are being held how to capitalise on
these valuable research outcomes. It has became clear that a business case exists for bringing
in external expertise to further develop promising energy recovery opportunities with the
KIC, its members, and the CSRP. Dealing with energy issues is a key focus area of the KIC,
and therefore this initiative has the full support of the KIC. Each participating Kwinana
industry has granted restricted permission for the disclosure use of its energy release data to
selected expert organisations. The Kwinana Synergies Project is now facilitating the
engagement between Kwinana industries and external expert organisations to build upon the
results of the flue gas scoping study.

A promising area of research is an assessment of business and sustainability case for an


evaporative water treatment system utilising recovered energy from KIA flue gases. An initial
review revealed that very significant amounts of fresh water could be produced from the KIA
flue gases (e.g. through multi-effect distillation). With support from KIC and selected
members efforts a detailed scoping study is considered that will include pre-feasibility
assessments for selected desalination options and sustainability impact assessments.

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Chapter 8: Comprehensive Assessment of Synergy Opportunities

8 COMPREHENSIVE ASSESSMENT OF SYNERGY OPPORTUNITIES

8.1 Introduction

As part of the parallel CSRP Project ‘Enabling Tools and Technologies for Capturing
Regional Synergies’, a Synergy Screening Tool has been designed to provide guidance in the
process of assessing the potential contribution to sustainability for identified synergy
opportunities as well as assessing the ease of its implementation (Bossilkov and van Berkel
2005). The Synergy Screening Tool has been applied to all of the identified synergy
opportunities in the KIA in order to assist the KIC, Kwinana industries, and also the Kwinana
Synergies Project with strategic guidance on which synergies (not) to select for feasibility
assessments.

This chapter gives an explanation of the developed Synergy Screening Tool, and outlines the
results from its application in Kwinana (van Beers and Bossilkov 2006).

8.2 Synergy Screening Tool

The Synergy Screening Tool assesses the sustainability benefits (theme 1) and ease of
implementation (theme 2) of the identified regional synergy opportunities in heavy industrial
areas. The tool is developed in MS-Access and applies a subjective scoring system for the set
a related questions within the two themes. Both themes are discussed in detail in the following
paragraphs. Multiplying the benefit and ease of implementation scoring results in a total
priority scoring.

8.2.1 Assessment of Sustainability Benefits

The assessment of the benefits within the Synergy Screening Tool is in line with the Seven
Questions to Sustainability framework and methodology developed by Mining, Minerals, and
Sustainable Development (IISD 2002).

In order to meet the purpose of the Synergy Screening Tool, the Seven Questions to
Sustainability (IISD 2002) were modified to:
1. Engagement: Potentially affected communities will be identified and given an opportunity
for engagement to ensure that their legal, institutional and cultural characteristics are not
compromised.
2. People: The project will contribute to people’s well-being and the social/cultural integrity
of their community in terms of job creation and worker/population health, safety and well-
being.
3. Environment: The project will improve resource efficiency (materials, energy, water) and
reduce environmental emissions (land, water, air).
4. Economy: The project will have a positive contribution to the long-term viability of the
local, regional and national economy and/or will have a positive effect on the company’s
financial health in terms of reduction of company’s environmental costs (such as disposal
costs, purchase costs, fees, permits, licenses, environmental management costs, insurance
premiums, waste handling and storage etc) and enhancement of company’s operational
efficiency.
5. Traditional and non-market activities: The project will respect traditional cultural,
recreational, indigenous values in terms of (1) contribution to improve life style; (2)

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contribution to the long-term viability of the region; and (3) maintaining traditional
cultural attributes as designated by the local community.
6. Institutional arrangements and governance: The project builds upon and where possible,
enhances existing institutional arrangements, including collaborative networks of industry,
government and community.
7. Synthesis and continuous learning: The project will strengthen the platform for further
regional synergy opportunities in the region.

Each question is rated based on its answer:


1. Definitely not true (1 point)
2. Unknown, unlikely, or not applicable (3 points)
3. True (9 points)
Higher scores indicate higher potential sustainability benefits of the synergy opportunities.
The total benefit score is the average of all seven sustainability questions as listed above.

8.2.2 Assessment of Ease of Implementation

The assessment of the ease of implementation covers technical difficulty, project costs,
regulatory approvals and community acceptance. The scoring for this second theme follows
the same principle as the assessment of sustainable benefits, but then with different questions
and scorings (see Table 8.1). The higher scores suggest easier implementation of the synergy
projects. The total scoring for ease of implementation is the average of the four questions.

Table 8.1: Assessment of Ease of Implementation


Technical Difficulty Answer / Scoring
Technical difficulty of project implementation in terms of: Low (9 points)
- Need for processing treatment Medium or unknown (3 points)
- Technology requirements High (1 point)
- Distance (especially for water, gases, and energy)
Quantity availability / demand is expected to be:
Regulatory Approval Answer / Scoring
Expectations applicable approvals (permits, licenses, etc) to be Low (1 points)
granted by the relevant regulatory authorities are: Medium (3 points)
High (9 point)
Community Acceptance Answer / Scoring
Expectations of the project acceptance by the local community Low (1 points)
and/or other stakeholders are: Medium (3 points)
High (9 point)
Project Economy Answer / Scoring
The project costs are expected to be: Low (9 points)
Medium (3 points)
High (1 point)

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Chapter 8: Comprehensive Assessment of Synergy Opportunities

8.3 Results of Synergy Screening Tool

This section discusses the results of the trial application of the Synergy Screening Tool to the
full list of identified synergy opportunities for the KIA. This list of synergy opportunities has
been updated based on recent studies (e.g. (SKM 2007; Van Beers and Biswas 2007).

The research team made expert judgements for the priority scorings of potential sustainability
benefits and ease of implementation based on experience and the currently available
information. The reader should refer to the detailed Synergy Screening Tool results provided
in Appendix 4 of this report, when reviewing the discussions in the following sections.

8.3.1 By-Product Synergy Opportunities

Table 8.2 presents the ten by-product synergy opportunities with the highest total scoring.
These synergies appear to have significant sustainability benefits and have a high ease of
implementation (compared to the other synergy opportunities at least).

It is also valuable to consider which by-product synergies from all of the identified
opportunities appear to be the easiest to implement (regardless of their sustainability benefits)
and which ones have the highest sustainability benefits (regardless of the ease of
implementation). This information can also be derived from Table 8.2.

Table 8.2: Priority By-Product Synergy Opportunities (Update June 2008)


# Synergy Opportunity Scoring Comments
Total Bene- Ease
fits Implem.
1 Collective Kwinana Project to reuse 57.9 6.4 9.0
wooden pallets
2 Tiwest Pigment Plant supplying 57.9 6.4 9.0 Issue is low concentration of
hydrochloric acid to Nufarm Coogee, hydrochloric acid
Doral, CSBP, or other KIA companies
3 Naval Base Concrete receiving waste 48.2 6.4 7.5 Company is interested to use
tyres and other secondary materials tyres as raw material for their
concrete production process
4 Tiwest Pigment Plant supplying 41 .8 5.6 7.5
silica/zircon sand to Tyco Water, AFM,
or other (KIA) company
5 Reuse of gypsum from Coogee 38.6 6.4 6.0
Chemicals by Cockburn Cement

6 Doral Specialty Chemicals supplying 38.6 6.4 6.0 Feasibility currently being
zirconia process waste to AFM or other conducted by involved
(KIA) company companies
7 Cockburn Cement supplying cement kiln 38.6 6.4 6.0
dust to other (KIA) company
8 BGC Cement receiving secondary 36.6 8.1 4.5
materials from other (KIA) companies as
input to thermalite product
9 Tiwest Pigment Plant recovering and 33.4 5.6 6.0 Kwinana Synergies Project

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# Synergy Opportunity Scoring Comments


Total Bene- Ease
fits Implem.
supplying sodium sulphate to (KIA) provided mark assessment
company report for this synergy
10 Alcoa separating red sand fractions for 32.8 7.3 4.5 Synergy will be incorporated
reuse by other (KIA) companies into upcoming CSRP Kwinana
Inorganic By-Product Project

8.3.2 Water Utility Synergy Opportunities

The 12 water synergy opportunities with the highest total scoring are presented in Table 8.3.
These synergies appear to have significant sustainability benefits and are relatively easy to
implement (compared to the other synergy opportunities at least). The scoring of the benefits
and ease of implementation are included to assess which synergies appear to be the easiest to
implement (regardless of their sustainability benefits) and which ones have the highest
sustainability benefits (regardless of the ease of implementation).

Table 8.3: Priority Water Synergy Opportunities (Update June 2008)


# Synergy Opportunity Scoring Comments
Total Bene- Ease
fits Implem.
1 Use of Water Corporation wastewater at 54.6 7.3 7.5 Being assessed by involved
Cockburn Cement as process water companies
cement manufacturing
2 Use of Water Corporation wastewater at 54.6 7.3 7.5 Being assessed by involved
Cockburn Cement as washing water companies
quicklime manufacturing
3 Use of other company’s wastewater at 48.9 8.1 6.0 CSBP treated effluent may be
KNR as process water suitable for reuse by KNR
4 Use of other company’s wastewater at 44.8 8.1 5.5 Opportunity for Kwinana
Tiwest Pigment Plant as 200 TDS water Cogen to supply demin water
to Tiwest.
5 Use of other company’s wastewater at BP 43.7 7.3 6.0 Synergy could be pursued as
as cooling water collective KIA project with
multiple sources and sinks
6 Use of other company’s wastewater at 43.7 7.3 6.0 Synergy could be integrated
Kwinana Power Station as fly ash slurry into collective KIA project
water
7 Use of other company’s wastewater at 43.7 7.3 6.0 Very difficult synergy in terms
Kwinana Power Station as RO feedwater of quality requirements and
ground water extraction issues
8 Treatment of hydrocarbon contained 41.8 5.6 7.5
groundwater from BP in CSBP wetlands
cells
9 Reuse of industrial effluents in KIA 40.7 8.1 5.0 TBL evaluation on various
(collective Kwinana Project) scenarios is possible spin-off
CSRP project
10 Reuse of water from Sepia Depression 40.7 8.1 5.0 TBL evaluation on various

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# Synergy Opportunity Scoring Comments


Total Bene- Ease
fits Implem.
Ocean Outlet Landline (SDOOL) scenarios is possible spin-off
CSRP project
11 Further development of Kwinana 40.7 8.1 5.0 Water Corp is assessing this as
Reclamation Plant (KWRP) part of KIA Water Planning
Study
12 Kwinana Cogeneration Plant supplying 38.6 6.4 6.0 Being assessed by involved
demin water to other company companies

8.3.3 Energy Utility Synergy Opportunities

Table 8.4 shows the 14 energy synergy opportunities with the highest total scoring, including
the separate scoring for sustainability benefits and ease of implementation. The synergies
listed in this table appear to have significant sustainability benefits and are relatively easy to
implement (compared to the other energy synergy opportunities at least). The total scores in
the table below are significantly lower than those for by-product and water synergies,
implying that energy synergy opportunities are less attractive in terms of achievability and
sustainability benefits.

The results from the scoping study on energy recovery from Kwinana flue gases (described in
Section 7.6) have been incorporated in the table below.

Table 8.4: Priority Energy Synergy Opportunities (Update June 2008)


# Synergy Opportunity Scoring Comments
Total Bene- Ease
fits Implem.
1 BP supplying process off-gases to other 40.1 7.3 5.5 To be assessed as part of
KIA companies collective KIA off-gas project?
2 Tiwest supplying preheated working 38.6 6.4 6.0 Result KIA flue gas study
liquid to Nufarm Coogee or Wesfarmers
LPG – energy recovery from flue gases
3 Tiwest supplying steam to Nufarm 38.6 6.4 6.0 Result KIA flue gas study
Coogee or Wesfarmers LPG – energy
recovery from flue gases
4 Hismelt supplying preheated working 38.6 6.4 6.0 Result KIA flue gas study
liquid to neighbouring companies –
energy recovery from flue gases
5 Alcoa supplying steam to Verve Energy 38.6 6.4 6.0 Result KIA flue gas study
and BGC Cement – energy recovery from
flue gases
6 Hismelt supplying steam to neighbouring 38.6 6.4 6.0 Result KIA flue gas study
companies – energy recovery from flue
gases
7 Kwinana Cogen supplying steam to 38.6 6.4 6.0 Result KIA flue gas study
surrounding companies – energy recovery
from flue gases
8 Wesfarmers LPG supplying steam to 38.6 6.4 6.0 Result KIA flue gas study

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# Synergy Opportunity Scoring Comments


Total Bene- Ease
fits Implem.
Hismelt – energy recovery from flue
gases
9 BP supplying preheated working liquid to 38.6 6.4 6.0 Result KIA flue gas study
Tiwest – energy recovery from flue gases
10 BP supplying steam to Tiwest – energy 38.6 6.4 6.0 Result KIA flue gas study
recovery from flue gases
11 CSBP supplying preheated working 38.6 6.4 6.0 Result KIA flue gas study
liquid to Coogee Chemicals – energy
recovery from flue gases
12 KNR supplying steam or preheated 38.6 6.4 6.0 Result KIA flue gas study
working liquid to Doral or Coogee
Chemicals – energy recovery from flue
gases
13 CSBP supplying steam to Coogee 38.6 6.4 6.0 Result KIA flue gas study
Chemicals or FPA Jetty – energy
recovery from flue gases
14 Wesfarmers LPG supplying preheated 38.6 6.4 6.0 Result KIA flue gas study
working liquid to Hismelt – energy
recovery from flue gases

8.3.4 Shared Infrastructure & Service Synergy Opportunities

The 10 shared infrastructure & service synergy opportunities with the highest total scoring are
presented in Table 8.5.

Table 8.5: Priority Infrastructure & Service Synergy Opportunities (June 2008)
# Synergy Opportunity Scoring Comments
Total Bene- Ease
fits Implem.
1 Joint Venture between Air Liquide and 43.7 7.3 6.0 Could assessed as part of
BOC Gases for intra-industry support collective KIA project on
industrial utility gas network
reticulation system
2 Shared storage of liquid fertiliser 35.4 4.7 7.5
3 Shared marketing in KIA (eg. joint 34.7 3.9 9.0
promotions, advertising, accessing markets)
4 Shared transportation in KIA (eg. vehicle 34.7 3.9 9.0
maintenance, alternative packaging)
5 Shared buying in KIA 34.7 3.9 9.0
6 Shared human resources in KIA (eg. 34.7 3.9 9.0
maintenance staff, training, contractors)
7 Centralised treatment facility for off 31.5 9.0 3.5 Could be assessed as part of
gases (eg. SOx, metal compounds) collective KIA off-gas project
8 Possible joint peaking power plant BP 25.7 6.4 4.0
and Kwinana Cogen – opportunity for BP
to assist with butane in summer

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# Synergy Opportunity Scoring Comments


Total Bene- Ease
fits Implem.
9 Cement companies supplying cement in 2 21.2 3.9 5.5
bag types: biodegradable (mixing in
process) and non-biodegradable (long-
term storage)
10 Joint manufacture of acrylonitrile between 8.4 5.6 1.5
CSBP, BP, and Ciba Specialty Chemicals

8.4 Way Forward

As part of the extension of CSRP Kwinana Synergies Project to 2010, new synergy
opportunities will be selected for feasibility assessments. The results of the Synergy
Screening Tool outlined in this chapter will be used to assist the KIC, the Kwinana industries,
and the CSRP Kwinana Synergies Project with strategic guidance on which synergies (not) to
select for detailed (pre-)feasibility assessments. If it becomes clear that it is not worthwhile to
pursue a selected potential synergy any further, then other more promising synergy
opportunities will be investigated.

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Chapter 9: Development of KIA Sustainability Roadmap

9 DEVELOPMENT OF KIA SUSTAINABILITY ROADMAP

9.1 Overview

As with elsewhere in Australia, the Kwinana Industrial Area (KIA) is facing sustainability
challenges on various fronts, such as increasing water and energy scarcity, climate change, an
aging workforce, and growing community expectations. Given the ever increasing
sustainability pressures, there is strong desire to address sustainability challenges in the KIA,
through a pro-active and collaborative industry approach.

Through the Kwinana Synergies Project, a sustainability roadmap is being developed to assist
the KIC and its industry members with strategic decision making on the long-term
sustainability of the KIA. This is work in progress and this chapter reports on the results to
date.

The broad aims of the KIA Sustainability Roadmap are to:


1. Guide KIC with strategic decision making on the long-term sustainability of the KIA
(“what the future could look like and how do we get there.”). KIC could do this by
setting inspirational targets for priority areas where KIC has an influence and can
make a positive impact.
2. Provide the basis for stakeholder discussions on sustainable development of the KIA,
including emerging issues and possible future directions.
3. Scope sustainable development initiatives (e.g. research projects, scoping and
feasibility studies) for the KIA which would assist the KIC and its members in
achieving its aspirational targets.
4. Provide a historical perspective on the past milestones achieved by the KIC and its
members. This could be done through the documentation of specific KIA case-studies
and other events.
5. Benchmark the sustainability performance of the KIA with other industrial regions
and industry sectors in Australia and internationally.

9.2 Introduction to Sustainability Indicators

The goal of sustainable development is to “meet the needs of the present without
compromising the ability of future generations to meet their own needs” (WCED 1987). All
key forces in society, organisations of all kinds have an important role to play in achieving
this goal.

Measuring progress from the implementation of sustainability initiatives has turned out to be
complicated and often disputable. General management theory and practice stresses the point
that sustainability (like other concepts such as Eco-Efficiency) can only be managed if its
results are being measured.

Sustainability indicators can assist in the actual assessment, management, monitoring and
reporting of the performance of an organisation in relation to its sustainable development
goals. It is argued that tailor made indicator sets, addressing specific stakeholder concerns and
supporting the organisations’ strategies, are more likely to contribute to sound decision
processes than approaches which prioritise reporting against generic ‘off the shelf’ indicators
(MMSD 2002).

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There is not yet a uniform and internationally accepted definition of sustainability indicators.
The ISO 14000 series defines an environmental indicator as “a specific expression that
provides information about an organisation’s environmental performance, efforts to influence
that performance, or the condition of the environment” (ISO 1999).

Despite the apparent vagueness of the term, indicators have been widely used for monitoring
and assessment of numerous environmental impacts of operations, and are increasingly used
in social and economic arenas. To date, the most important criteria that define useful
indicators are the capacity to simplify, quantify, analyse and communicate otherwise complex
and complicated information, and the ability to make particular aspects of a complex situation
stand out and thus reduce the level of uncertainty in the formulation of strategies, decisions or
actions.

9.2.1 Global Reporting Initiative

The Global Reporting Initiative (GRI) has pioneered the development of the world’s most
widely used sustainability reporting framework and is committed to its continuous
improvement and application worldwide. This framework sets out the principles and
indicators that organisations can use to measure and report their economic, environmental,
and social performance. The GRI guidelines were used as a basis for the development of a set
of KIA sustainability indicators.

Sustainability reports based on the GRI framework can be used to benchmark organisational
performance with respect to laws, norms, codes, performance standards and voluntary
initiatives; demonstrate organisational commitment to sustainable development; and compare
organisational performance over time. The GRI reporting framework is developed and
continuously improved through a consensus-seeking process with participants drawn globally
from business, civil society, labour, and professional institutions.

The Global Reporting Initiative refers to the 30,000 strong multi-stakeholder network that
collaborates to advance sustainability reporting. To date more than 1000 organisations
including many of the worlds leading brands, have declared their voluntary adoption of the
Guidelines worldwide. Consequently the G3 Guidelines have become the de facto global
standard for reporting.

The website of the GRI is: http://www.globalreporting.org.

9.3 International Review of Regional Sustainability Indicators

Similarly to a production facility consisting of various processes and each process comprising
of many units that can be assessed independently regarding their inputs and outputs, an
industrial ecosystem (or area) can be viewed as a group of individual components.
Sustainability indicators are traditionally developed for individual industries. Although some
work and research has been conducted internationally, the development of regional
sustainability indicators is a relatively new field of research and practice.

Table 9.1 shows the preliminary results of a literature review on regional sustainability
indicators being used internationally. The table shows that the application of regional

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indicators is still restricted to a limited of international regions. It also reveals that the set of
indicators for each region is unique. The indicators are developed based on the specific needs
and circumstances in the industrial regions (as they should be). The same principle applies for
the regional sustainability indicators for the KIA. From the review it is evident that there is no
international uniform standard yet for the development of regional sustainability indicators.

Table 9.1: Summary of International Review of Regional Sustainability Indicators


Indicator Category Indicator Type
Generic / Canada (NRTEE 2001)
Core energy intensity ƒ Fossil energy [kWh/kg]
ƒ Non-fossil [kWh/kg]
ƒ Process energy [kWh/kg]
ƒ Inherent [kWh/kg]
ƒ Transportation energy [kWh]
ƒ Energy generated [kWh/kg]
Core waste intensity ƒ Core waste intensity = Total material (direct + indirect) entering the
project boundary – material that ends up in the product and co-product /
Unit of production or service delivery [kg/t]
Water intensity ƒ Core water intensity = Water taken in / unit of production or service
delivery [m3/t]
Complementary ƒ Complementary energy [kWh/kg]
ƒ Intensity indicators
o Complementary waste intensity indicator = waste utilised / total
waste output x 100 [%]
o Complementary water intensity indicator = water taken in / unit of
service delivery [m3/no.]
o Life cycle Energy intensity indicator
o Transportation energy intensity indicator
o Water discharge intensity indicator
Canada (Casavant 2006)
Production / financial ƒ 4 indicators - Details not yet in the public domain
Energy ƒ 14 indicators - Details not yet in the public domain
Materials ƒ 7 indicators - Details not yet in the public domain
Water systems ƒ 8 indicators - Details not yet in the public domain
Land use and transportation ƒ 13 indicators - Details not yet in the public domain
Corporate & city governance ƒ 11 indicators - Details not yet in the public domain
Eco-Industrial networking ƒ 10 indicators - Details not yet in the public domain
Community integration ƒ 5 indicators - Details not yet in the public domain
Kymenlaakso, Finland (Mickwitz et al. 2005)
Climate change ƒ Stratospheric ozone depletion [relative value]
ƒ Tropospheric ozone formation [relative value]
Environmental ƒ Acidification - [SO2, NOx, NH3]
ƒ Eutrophication - Biological Oxygen Demand [BOD value]
ƒ Oxygen depletion in waters [BOD + NH4 level]
ƒ Environmental accidents [no.]
ƒ Ecotoxicity - number of dioxins, furans, heavy metals [ppm]

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Indicator Category Indicator Type


ƒ Contaminated soils and sediments [ppm]
ƒ Impacts on biodiversity [number found]
ƒ Depletion of non-renewable resources [value]
Social ƒ Local air quality contaminates [ppm]
ƒ Noise [DB]
ƒ Smell
ƒ Depletion of landscape and cultural environment [relative value]
ƒ Depletion of recreation possibilities [relative value]
Gladstone (Roberts and Wadley n.d.)
Environmental ƒ Air Quality: NO2, SO2, PM10, CO2
ƒ Energy consumption: electricity, oil, gas [kWh]
ƒ Water quality and consumption: BOD, megalitres, sediment, algae
ƒ Bio-diversity and landscape: Quality, Species loss, land clearing, tree
planting
ƒ Waste and recycling: [tonnage of landfill + tonnage recycled]
Economic ƒ Industry and infrastructure: development, investment, new businesses,
start-ups [$]
ƒ Employment and the economy: employment, wages, household income
[type, no., $]
ƒ Agri-business (grazing, horticulture and forestry): value of crops,
livestock, stocking rates, carbon sinks [type, no., $]
ƒ Building and planning: building approvals, plan applications [no., type]
ƒ Tourism and hospitality: visitor arrivals, expenditure, nights [no., type,
$]
Social ƒ Health and welfare: death rates, health indicators, drugs
ƒ Education and training qualifications, high school retention
ƒ Population and culture population: growth, mix, structure
ƒ Crime and disorder: crime rates, traffic offences
ƒ Families: divorce rates, welfare dependency
Generic (UNCTD 2004)
Water ƒ Water received and its Source [m3]
ƒ Kinds of water Use [no.]
ƒ Commercial water Use [m3]
ƒ Industrial water Use [m3]
ƒ Water use for Mining [m3]
ƒ Releases of water [m3]
ƒ Return flow [m3]
ƒ Water consumption [m3]
Energy ƒ Energy use [MJ/m3 or MJ/t]
ƒ Purchase and sale of energy [$]
ƒ Forms and sources of energy [types]
Global warming ƒ Global warming gases [kg of CO2 eq per year]
ƒ Global warming potential
ƒ Global warming contribution
ƒ Energy- and transport-related global warming gases
[t(gas eq. CO2)/kwh]
ƒ Global warming gases related to other industrial processes

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Indicator Category Indicator Type


[t(gas eq CO2)/kwh]
ƒ Carbon offset and sequestration based on cleaner development
mechanism [value]
ƒ Renewable energy
ƒ Ozone-depleting substances, potentials and contributions [t(gas eq
CO2)/kwh]
Waste ƒ Treatment of waste [Gt]
ƒ Quality of waste [value/Gt]
ƒ Classification of waste [segregation]
ƒ Waste treatment technology [text]
ƒ Waste to energy schemes [text and what]
ƒ Waste generated
ƒ Waste to be controlled
ƒ Hazardous characteristics
China (Duan and et al 2006)
Economic development ƒ Added industrial value per capita [Yen/cap]
ƒ Growth rate of added industrial value [%]
Material reduction and recycle ƒ Energy consumption per added industrial value [SCE/105Yen]
ƒ Freshwater consumption per added industrial value [m3/105Yen]
ƒ Industrial wastewater generation per added industrial value
[tonnes/105Yen]
ƒ Solid waste generation per added industrial value [tonnes/105Yen]
ƒ Industrial water reuse ratio [%]
ƒ Solid waste integrated use ratio [%]
ƒ Middle water reuse ratio [%]
Pollution control ƒ COD emission per added industrial value [kg/105Yen]
ƒ SO2 emission per added industrial value [kg/105Yen]
ƒ Disposal rate of dangerous solid waste [%]
ƒ Concentrated treatment rate of domestic wastewater [%]
ƒ Safely treatment of domestic rubbish [%]
ƒ Waste collection system [available]
ƒ Concentrated facilities for waste treatment and disposal [available]
ƒ Environmental management systems [available]
Administration and ƒ Information platform establishment degree [%]
management ƒ Environmental report release [no./year]
ƒ Public satisfaction degree on local environmental quality [%]
ƒ Public awareness degree on eco-industrial development [%]

9.4 KIA Sustainability Roadmap

A draft framework of the KIA Sustainability Roadmap is presented in Figure 9.1, consisting
of a KIA Case-Studies Matrix and KIC Sustainability Management Matrix. The figure
illustrates how the sustainability indicators can help to measure past and current performance
of the KIA and to set aspirational targets. The KIA Case-Study Matrix could be used to
document significant past events and initiatives that have led to the KIA sustainability
performance of the present. The KIC Sustainability Management Matrix will assist the KIC
with formulating action plans for selected priority areas to achieve the aspirational targets.

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The efforts so far have focused on the development of the roadmap framework (as shown in
the figure below) and the development of the KIC Sustainability Management Matrix
(discussed in the next subsection).

KIA SUSTAINABILITY ROADMAP


“Where are we now, where do we want to be, and how do we get there?”
High
Aspirational
performance
targets
KIA sustainability performance

RS
ATO
IC KIC SUSTAINABILITY
IND MANAGEMENT MATRIX

Current KIC action plans for


performance selected priority areas

RS
ATO
IN DIC
KIA CASE-STUDY MATRIX
Past
performance Documentation of
KIA case-studies

Low

Past Present Future

Time
Figure 9.1: KIA Sustainability Roadmap - Possible Framework (Work in Progress)

The main design requirements for the KIA Sustainability Roadmap are:
1. The primary focus of the indicators should be the KIA, not individual industries.
2. The data collection process to quantify the indicators should be streamlined and
integrated with other KIC initiatives (e.g. KIA integrated assessments).
3. The indicators should have enough detail and be practical to guide KIC decision
making. The indicators should not be too exhaustive so that there is risk of losing sight
of the “big picture”.
4. The sustainability roadmap should focus on activities where KIC and the industries (as
a group) can have an influence.
5. It is realised that the development of the indicators and roadmap is a continuing and
evolving exercise. It is therefore recommended to start with an initial set of most
important indicators and extend the set in the future as needed.

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Chapter 9: Development of KIA Sustainability Roadmap

9.4.1 KIC Sustainability Management Matrix

The framework of the KIC Sustainability Management Matrix is presented in Table 9.2. As
shown in the figure, at the heart of the matrix is a set of key performance indicators for each
of nine priority themes (e.g. greenhouse gas emissions, energy, water, process residues,
regional synergies, economic performance, ecological health, community, and workforce).

The KIC Sustainability Management is work in progress. Through the KIC Eco-Efficiency
Committee, the matrix is being populated with relevant indicators, aspirational targets, and
subsequent strategies and action plans to achieve the targets.

The selection of relevant sustainability indicators is subject to the following criteria:


ƒ Measurable (relatively easily and build upon existing data)
ƒ Understandable for internal and external communications
ƒ Influenceable by KIC and its industry members
ƒ Relatively small number of key indicators
ƒ Provide holistic overview of the sustainability performance of the KIA
ƒ Provide the basis for benchmarking KIA with other (inter)national industrial areas

As part of the extension of the CSRP Kwinana Synergies Project, the KIC Sustainability
Management Matrix will be further developed with KIC internal and external stakeholders.
This will include collection of historical industry data to quantify selected sustainability
indicators (historical trend analysis), documentation of Kwinana case-studies, and
engagement with KIC industry members and government and community.

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Sustainability Outcome Sought Primary Performance Indicators Secondary Performance Indicators KIA and KIC KIA and KIC
Focus Area Name (Relative) 5 Year Name (Absolute) Strategies Initiatives
Value 2005 Goal Value 2005 2008/09
1) Greenhouse Carbon neutral
gas emissions KIA
2) Energy World benchmark
in energy
consumption
3) Water Zero process use
scheme water
World benchmark in
water consumption
and recycling
4) Process Zero waste
residues
5) Regional World leading
synergies example in
regional synergy
development
6) Economic Recognised as the
performance premier industrial
estate in Australia
7) Ecological World benchmark
health
8) Community Welcome
neighbour
9) Workforce Sustainable
workforce

Table 9.2: Framework of KIC Sustainability Management Matrix (Work in Progress)

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9.5 Benchmarking of the KIA

One of the objectives of the sustainability roadmap and its indicators is to benchmark the
sustainability performance of the KIA with other industrial regions and industry sectors in
Australia and internationally. The benchmarking exercise is work in progress and will be fully
developed as part of the extension of the Kwinana Synergies Project. Therefore detailed
benchmarking results are not discussed in this status report.

To make all indicators suitable for benchmarking, these need to be normalised with a common
denominator. For benchmarking purposes, the KIC recommended to convert the indicators to a
‘per GDP’ basis based on the following criteria:
ƒ GDP data for other national and international industries is in the public domain (e.g. from
annual company reports).
ƒ Added $ value would be an appropriate economic variable, but this information is not
readily available in the public domain, at least not for industries outside of the KIA.
ƒ Product output is a possible denominator but a clear distinction should be made between
manufactured and traded products. It is expected that the value of traded products fluctuate
heavily over time and can therefore cause misleading indicator results over time.
ƒ Employee as a denominator may result in misleading indicator values because some
companies apply capital intensive processes (with less employees) while other industries are
very labour intensive (particular in developing countries).

As outlined earlier in this chapter, the primary focus of the sustainability roadmap is the KIA, not
individual industries. However, the normalised indicators could provide the basis for
benchmarking the performance of selected industry sectors in the KIA with other
(inter)national sectors. Table 9.3 provides the number of KIC members per industry sector.

Table 9.3: KIC Members by Industry Sector


Industry sector No. of KIC
members
Minerals and metal production 4
Utility – water 2
Utility – energy 5
Utility – gases 2
Chemical 6
Manufacturing 4
Agriculture 5
Engineering 3
Building and construction 2
Trade and services 7

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9.6 Way Forward

The KIA Sustainability Roadmap is work in progress. The work so far focused on the
development of the roadmap framework, review international sustainability indicators, and
development of the KIC Sustainability Management Matrix, including the selection of
indicators relevant to the KIC.

The next steps include setting of five year aspirational targets and formulating subsequent
strategies and action plans to meet these targets. The focus will be on activities where the KIC
has an influence and can make a positive impact. Engagement and discussions with KIA
stakeholders will be an important part of this process. In its final form, the KIA Sustainability
Roadmap will enable ongoing constructive stakeholder discussions (e.g. government and
community) on emerging local issues and possible future directions for the KIA.

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Chapter 10: Conclusions and Project Outlook

10 CONCLUSIONS AND PROJECT OUTLOOK

This chapter presents the overarching conclusions from the CSRP Kwinana Synergies Project
so far and provides an overview of the planned project activities and outputs for year 2008/09.

10.1 Conclusions

This report summarises and reviews the activities and achievements during the four years of
execution of the Kwinana Synergies Project under the auspices of the CSRP and the KIC. The
project continued to gain momentum and provide valuable outcomes over 2007/08. The project
focus has so far been on:
ƒ Collection of the baseline company data and keeping these data up-to-date
ƒ Documentation of existing by-product and utility synergies
ƒ Identification and prioritisation of new synergy opportunities
ƒ Assistance to industries on feasibility assessments for 18 synergy opportunities.
ƒ Completion of foundation research on inorganic by-product, water and energy synergies.
ƒ Assistance to the KIC with the development and implementation of a KIA Sustainability
Roadmap.
ƒ Promotion of regional synergy developments and achievements in Kwinana.
ƒ Development of spin-off synergy projects.

The overarching conclusions from the project to date are as follows:

1. There is widespread enthusiasm and commitment from the industries operating in the
Kwinana Industrial Area (KIA) to achieve greater regional synergies and thereby make a
contribution to sustainable development in the area. This is most profound among the
members of the KIC, but extends to several other companies that have significant
operations in the area. This commitment is reflected in the willingness to participate in the
project, the disclosure of baseline input and output data for operations and participation in
synergy development workshops.

2. The research confirmed the tight collaboration and integration already existing in the KIA,
which has historically evolved in response to perceived business opportunities and
environmental and resource efficiency considerations. The number of existing regional
synergy projects (47 in total) in Kwinana in place go well and truly beyond business as
usual as they involve either exchange of by-products or shared use of water and/or energy
infrastructure and utilities. These current synergy projects are more diverse and more
significant than those reported for other heavy industrial areas. This in turn positions
Kwinana well among the leading edge examples of regional synergy development in
heavy industrial areas (Bossilkov et al. 2005).

3. Many diverse regional synergy opportunities appear still to exist, as evidenced by this
project being able to identify over 120 new potential synergies, mostly in three broad
areas: water, energy, and industrial by-products. Current development efforts focus on 18
promising synergies with regard to by-products (e.g. ammonium sulphate, catalysts,
organic wastes), water (e.g. treated effluents, demineralised water, oily wastewater), and
energy (e.g. waste oil, flue gases). To date, industries have taken ownership of eleven of
these synergies, while seven synergies have medium to high chances of being
implemented by industry. The research also contributed to the development of collective

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strategies for the KIA on the recovery and reuse of inorganic by-products, water, and
energy. These efforts have a more strategic focus.

4. Over the past years significant progress have been made by the industries, research team,
and the KIC to develop regional synergies in the KIA. The substantial economic,
environmental, and social benefits of these synergies need to be effectively communicated
to key stakeholders (e.g. government, community, and other industries) so that existing
barriers can be removed and appropriate policies can be put in place to enable further
development of regional synergies in Kwinana. There is a need for a communication
strategy to be developed by the KIC and the CSRP to promote these achievements and
stakeholder benefits. This issue is to a certain extend addressed by the development of the
KIA Sustainability Roadmap which will provide a platform for stakeholder engagement
and discussion on sustainability issues affecting the KIA.

5. It is recognised by the research, KIC, and the Kwinana industries that current legislation
does not enable or encourage industries to implement (inorganic by-product) synergies.
On the contrary, in several circumstances legislation poses a significant barrier to regional
synergy implementation. As part of the ARC funded Curtin project on synergy enabling
mechanisms, a case-study paper was delivered to address the current regulatory issues
with regard to regional synergies (Harris 2007). This paper draws on practical experiences
in the KIA with support and input from the industries and the CSRP Kwinana Synergies
Project. With this paper, the legislative issues can be effectively communicated to the
stakeholders involved (e.g. Department of Environment and Conservation, Department of
Trade and Industry, community groups).

10.2 Project Achievements

In summary, the Kwinana Synergies Project has so far achieved:

Recruitment ƒ Recruitment of 36 companies to participate in the project.


Existing synergies ƒ Description and mapping of existing synergies in KIA.
Database ƒ Up-to-date database of resource input and output flows for 35
companies.
Synergy opportunities ƒ Development of a comprehensive list of over 120 synergy
opportunities.
ƒ Prioritisation of identified synergy opportunities with regard to
their sustainability contribution and achievability.
ƒ Practical assistance to Kwinana industries on the development
of 18 selected synergies (ongoing).
Collective strategies ƒ Development of collective strategies for the KIA on the
recovery and reuse of inorganic by-products, water, and energy.
Sustainability roadmap ƒ Assistance to the KIC with the development and
implementation of a KIA Sustainability Roadmap
Spin-off projects ƒ Development of two CSRP spin-off projects (reuse of Kwinana
inorganic by-products and a synergy scoping study around the
proposed hydrogen power plant in Kwinana).
Workshops ƒ Organisation and facilitation of five opportunity identification
workshops (on energy, water, and inorganic by-products).
Promotion ƒ Delivery of three journal papers (plus two in submission), 11

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conference publications, and 14 industry reports on regional


synergy development in the KIA.

Specific deliverables of the Kwinana Synergies Project from June ‘07 to June ’08 include:
ƒ Progressing a diverse mix of synergy opportunities with the Kwinana industries resulting
in the implementation of synergies.
ƒ Completion of a scoping study on energy recovery from Kwinana flue gases, including
work with KIC and its members to capitalise on the study findings.
ƒ Development of a KIA Sustainability Roadmap to assist the KIC and its industry members
with strategic decision making on the long-term sustainability of the KIA.
ƒ Update of KIA Input & Output Database and list with synergy opportunities in the KIA.
ƒ Assistance with the completion of the CSRP project ‘Hydrogen Energy Industrial Synergy
Opportunity Investigation’.
ƒ Assistance with the execution of the CSRP project ‘Kwinana Industrial Inorganic By-
Product Reuse’.
ƒ Delivery of three journal papers, one conference paper, and three industry reports to
promote regional synergy development in Kwinana.

10.3 Project Outlook

In 2006, the project end date was extended by two years to June 2008 with support from
CSRP and the KIC. The project is being extended with a further two years to June 2010. This
acknowledges the fact that the project is delivering valuable outcomes for the involved parties
(Kwinana industries, KIC, and CSRP). For the next two years, the project will keep a strong
focus on pushing the implementation of as many as possible synergy opportunities (so-called
demonstration projects), and development of spin-off projects based on specific research
needs of the KIC and its members. The responsibility and outreach of the CSRP research team
can go as far as developing initial proxy business plans for implementation, but it is up to the
companies to decide whether and how to pursue feasible synergy opportunities.

10.3.1 Feasibility Assessments on Selected Synergy Opportunities

(Pre-)feasibility studies for 18 short-listed one-on-one synergies are currently being conducted
with regard to by-products. These synergies will only come to fruition, through dedicated
research and hands-on support to quantify the potential size of each of them and to identify,
screen and package the technologies that could realise them. For the development of the
synergy opportunities, it is important to keep in mind the three success factors for regional
synergies: proven technology, convincing business case, and license to operate (van Berkel
2006). The type and level of research assistance for these synergies depends entirely on the
specific research needs of the industries involved. For the development of the synergy
opportunities, it is important to keep in mind the three success factors for regional synergies:
proven technology, convincing business case, and license to operate (van Berkel 2006). To
date, industries have taken ownership of eleven of these synergies, while seven synergies
have medium to high chances of being implemented by industry. There is a commitment from
the industries, KIC, and the CSRP to implement further regional synergies and thereby
enhance the sustainability of the KIA.

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10.3.2 Synergy Scoping Study for Hydrogen Power Plant

A scoping study to explore and evaluate the regional synergy opportunities of a proposed
Hydrogen Energy plant to be built in the KIA has been completed. The scoping study has
confirmed the great potential for new synergies as over 20 by-product, utility and supply
chain synergy opportunities were identified. As part of the study detailed assessments were
conducted to explore short-listed synergy opportunities in detail. Unfortunately, it has become
clear that the proposed Hydrogen Energy plant in Kwinana can not go ahead due to the
presence of gas chimneys in the geological underground sink for the carbon dioxide.

10.3.3 Development of Inorganic By-Product Synergies

Through the CSRP Kwinana Inorganic By-Products Reuse Project, a coordinated stakeholder
approach is being facilitated and applied in Kwinana that targets the realisation of large
volume reuse opportunities that have both a good business and sustainability case and also
government and community support. The first stage of the project revealed that the inorganic
by-products available in Kwinana could be used to supply the growing demand for already
scarce building and construction materials in Western Australia. Although regulatory
frameworks exist elsewhere (e.g. European Union, USA), one of the main obstacles for the
Kwinana industries is obtaining governmental approvals for the reuse of their inorganic by-
products. As part of the CSRP Kwinana Inorganics Project, discussions with governmental
stakeholders (e.g. WA Department of Planning and Infrastructure, Department of
Environment and Conservation) are being held to assess means for streamlining the regulatory
approval processes so that there is a standardised review process. If implemented, these
means will enable the sustainable reuse of inorganic by-products for specific applications (e.g.
building and construction).

10.3.4 Development of Water Utility Synergies

Current research efforts on the development of water utility synergies focus on providing
industry assistance to progress the one-on-one company synergies short-listed at the KIA
Water Synergies Workshop (November 2005). There is potential to scope ways forward for
the further development of the four collective water synergy opportunities into actionable
work plans for in-depth consideration by the Kwinana companies and the KIC. Critical to the
success of the work is liaison with key water consuming companies to achieve their
participation in a collaborative approach to water synergies and alternative water sources. In
addition, the proposed supportive research work should tap into the needs of the involved
industries (e.g. triple bottom line assessments, facilitation between water producing and
consuming companies).

10.3.5 Development of Energy Utility Synergies

A scoping study was delivered on energy recovery from flue gases in the KIA. It revealed that
the total energy release from Kwinana flue gases is estimated at approximate 6,300 TJ/yr,
with up to 3,000 TJ/yr over 300 oC. The scoping report presents a set of promising recovery
opportunities, covering both on-site (eco-efficiency) and collaborative (regional synergies)
options. Through discussions with the KIC, it became clear that a business case exists for
bringing in external expertise to further develop promising energy recovery opportunities. The
Kwinana Synergies Project is now facilitating the engagement between Kwinana industries

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and external expert organisations to build upon the results of the flue gas scoping study. A
promising area of research is an assessment of business and sustainability case for an
evaporative water treatment system utilising recovered energy from KIA flue gases.

10.3.6 Application of CSRP Regional Synergy Development Toolkit

Regional synergy opportunities in Kwinana are currently being identified, assessed, and
implemented by a step-by-step methodology (adopted from the cleaner production approach)
which proved to be resource intensive. The CSRP Kwinana Synergies Project catalysed and
benefited from the tool development and technology assessments under the umbrella CSRP
project ‘Enabling Tools and Technologies for Capturing Regional Synergies’ (the application
of the Synergy Screening Tool described in Chapter 8 is a good example). The project is
currently finalising the CSRP Regional Synergy Development Toolkit that guides a more
targeted and less resource intensive way to identify and evaluate feasible synergy
opportunities. This umbrella project is also producing a database of technologies to enable
water, energy, and by-product synergies. This technology database will provide valuable
inputs to the Kwinana Synergies Project as well.

10.3.7 Development of KIA Sustainability Roadmap

A sustainability roadmap is being developed to assist the KIC and its industry members with
strategic decision making on the long-term sustainability of the KIA (“what the future could
look like and how do we get there”). The KIA Sustainability Roadmap is work in progress.
The work so far focused on the development of the roadmap framework, review international
sustainability indicators, and development of the KIC Sustainability Management Matrix,
including the selection of indicators relevant to the KIC. The next steps include setting of five
year aspirational targets and formulating subsequent strategies and action plans to meet these
targets. The focus will be on activities where the KIC has an influence and can make a
positive impact. Engagement and discussions with KIA stakeholders will be an important part
of this process. In its final form, the KIA Sustainability Roadmap will enable ongoing
constructive stakeholder discussions (e.g. government and community) on emerging local
issues and possible future directions for the KIA.

10.3.8 Project Publications

A full overview of current project publications is provided in Appendix 5. Three journal


papers (plus two in submission), 11 conference papers, and 14 industry reports on regional
synergy developments in Kwinana have been delivered so far. Various other publications are
in the pipeline or have been submitted to conferences and journals. These will result in
presentations at leading (inter)national conferences and/or publications in peer-reviewed
quality journals. All published papers and presentations are available from the CSRP website
(http://www.csrp.com.au/publications/index.html), or from the website of the Centre of
Excellence in Cleaner Production (www.c4cs.curtin.edu.au/c4cs/c4cspublicationshome.htm).

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10.4 Closing Remarks

This report has summarised the findings and progress from the first five years (April 2004 to
June 2008) of the research project entitled ‘Capturing Regional Synergies in the Kwinana
Industrial Area’ (Kwinana Synergies Project). Overall, the Kwinana Synergies Project is on
schedule to deliver on its planned objectives, deliverables, and outputs. The responsibility and
outreach of the CSRP research team can go as far as developing initial proxy business plans
for implementation, but it is up to the companies to decide whether and how to pursue
feasible synergy opportunities.

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Appendix 1: Project Achievements Compared to Original Objectives

APPENDIX 1: PROJECT ACHIEVEMENTS COMPARED TO OBJECTIVES

This Appendix provides statements and references on how the CSRP Project ‘Capturing
Regional Synergies in the Kwinana Industrial Area’ performed against its original objectives,
performance indicators, and outputs. The statements reflect on the situation as per 30 June
2008.

Statements against Project Objectives

Project Objectives Progress Statements Reference in


Status Report
1 Collect input/output ƒ The principal flows in the KIA have been ƒ Section 3.2 ‘Planning and
data for principal well documented, after 35 companies Organisation Phase’
materials, energy and provided their baseline data with regard to ƒ Section 3.3.1 ‘Kwinana
water streams for the consumption of materials, energy and Input & Output Database’
companies operating water and generation of by-products, wastes
in and around and emissions (to water, air and land).
Kwinana, and ƒ A customised database (referred to as
synthesise these data Kwinana Input/Output Database) was created
into an area wide in Microsoft Access to store, manage and
resource and process manipulate the company data provided.
flow database.
2 Identify and assess ƒ More than 120 new potential synergy ƒ Section 3.3.2 ‘Identifying
further resource opportunities have so far been identified New Synergy
synergy opportunities through four activities: the database of Opportunities’
in the Kwinana area company inputs and outputs; review of ƒ Section 3.4.1 ‘Screening of
that improve the earlier KIA reports; industry discussions; and New Synergy
overall eco-efficiency focused opportunity identification workshops Opportunities’
of the area. on energy, water, and inorganic by-products. ƒ Chapter 8 ‘Comprehensive
ƒ The Synergy Screening Tool (developed as Assessment of Synergy
part of the parallel CSRP 3A1 project) has Opportunities’
been applied to all identified synergy
opportunities to assist the KIC, companies,
and also the CSRP Kwinana Synergies
Project with strategic guidance on which
synergies (not) to select for feasibility
assessments.
3 Support operating ƒ (Pre-)feasibility studies for 18 short-listed ƒ Chapter 4 ‘Feasibility
companies and the one-on-one synergies are being conducted Work on Selected Synergy
KIC with the with regard to by-products, water, and Opportunities’
development and energy. One synergy is being implemented so ƒ Chapter 5 ‘Collective KIA
evaluation (including far, work on development of further Strategy on Inorganic By-
trials) of promising synergies is ongoing. Product Reuse’
resource synergy ƒ The project contributes to the development of ƒ Chapter 6 ‘Collective KIA
opportunities. collective strategies for the Kwinana region Strategy on Water Reuse’
on the recovery and reuse of inorganic by- ƒ Chapter 7 ‘Collective KIA
products, water, and energy. These efforts Strategy on Energy
have a more long-term and strategic focus Recovery’
and are conducted in close cooperation with
the KIC.
4 Support the KIC with ƒ A sustainability roadmap is being developed ƒ Chapter 9 ‘Development of
the development and to assist the KIC and its industry members KIA Sustainability
implementation of a with strategic decision making on the long- Roadmap’
KIA Sustainability term sustainability of the KIA. At the heart of

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Appendix 1: Project Achievements Compared to Original Objectives

Project Objectives Progress Statements Reference in


Status Report
Roadmap the roadmap is a set of key performance
indicators for each of seven priority themes
(e.g. greenhouse gas emissions, energy,
water, economic performance, ecological
health, community, workforce). Aspirational
targets and subsequent strategies are being
developed for those activities where the KIC
has an influence and can make a positive
impact. The roadmap will enable constructive
stakeholder discussions on emerging local
issues and possible future directions for the
KIA.
5 Promote existing ƒ To date, the project produced and delivered ƒ Appendix 5 ‘Project
regional synergies in three journal papers (plus two in submission), Publications and Reports’
Kwinana and their 11 conference papers and 14 industry reports
sustainability benefits on regional synergy development in the KIA.

Statements against Project Performance Indicators

Performance Indicators Progress Statements Reference in


Status Report
1 The project identifies ƒ The project identified more than 120 new ƒ Chapter 3 ‘Methodology’
substantial and potential synergy opportunities. All identified ƒ Chapter 4 ‘Feasibility
achievable synergy synergy opportunities were prioritised to Work on Selected Synergy
opportunities in the assist the KIC, companies, and also the Opportunities’
Kwinana region and Kwinana Synergies Project with strategic ƒ Chapter 5 ‘Collective KIA
contributes to their guidance on which synergies (not) to select Strategy on Inorganic By-
implementation. for feasibility assessments. Product Reuse’
ƒ The project provides hands-on assistance to ƒ Chapter 6 ‘Collective KIA
the Kwinana industries to develop 18 Strategy on Water Reuse’
promising synergy opportunities. The type
ƒ Chapter 7 ‘Collective KIA
and level of research assistance to these
Strategy on Energy
synergies depends entirely on the specific
Recovery’
research needs of the involved industries.
One synergy is being implemented so far and
significant progress has been made towards
the development of further synergies.
ƒ In addition, the project contributes to the
development of collective strategies for the
Kwinana region on the recovery and reuse of
inorganic by-products, water, and energy.
These efforts have a more long-term and
strategic focus and are conducted in close
cooperation with the KIC

2 KIC and its members, ƒ Progress in the Kwinana Synergies Project is Professional referees:
other industry reported monthly to the KIC Eco-Efficiency Chris Oughton, Director KIC
participants and Committee. This committee comprises Ph + 61 (0)8 9437 0161,
government and the representatives of core operating companies Chris.Oughton@cciwa.com
community see the in the KIA.
David Cooling, Chair KIC
project as adding ƒ Three-monthly industry review meetings are Eco-Efficiency Committee
value. held at Curtin University to garner strategic
Ph + 61 (0)8 9410 3195,
direction for the progress from senior

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Appendix 1: Project Achievements Compared to Original Objectives

Performance Indicators Progress Statements Reference in


Status Report
sustainability industry managers (Alcoa, BP, David.Cooling@alcoa.com.au
CSBP, KIC, CSRP).
3 Papers on key ƒ To date, the project produced and delivered ƒ Appendix 5 ‘Project
learnings from the three journal papers (plus two in submission), Publications and Reports’
project are published 11 conference papers and 14 industry reports
in quality journals and on regional synergy development in the KIA.
presented at relevant
fora.

Statements against Project Outputs

Project Outputs Progress Statements Reference in


Status Report
1 An up to date ƒ A customised database (referred to as Kwinana ƒ Section 3.2 ‘Planning
database with Input/Output Database) was created in and Organisation Phase’
resource flows (input Microsoft Access to store, manage and ƒ Section 3.3.1 ‘Kwinana
and outputs) in the manipulate the company data provided. Input & Output
KIA and the process ƒ The principal flows in the KIA have been well Database’
requirements of key documented, after 35 companies provided their
operating plants. baseline data with regard to the consumption of
materials, energy and water and generation of
by-products, wastes and emissions (to water, air
and land).
2 A comprehensive set ƒ The project identified more than 120 new ƒ Section 3.3.2
of regional synergy potential synergy opportunities through four ‘Identifying New
opportunities activities: the database of company inputs and Synergy Opportunities’
available for outputs; review of earlier KIA reports; industry ƒ Section 3.4.1 ‘Screening
consideration and discussions; and focused opportunity of New Synergy
implementation for identification workshops. Opportunities’
KIC and its member ƒ The Synergy Screening Tool (developed as part ƒ Chapter 8
companies. of CSRP 3A1 project) has been applied to all ‘Comprehensive
identified synergy opportunities to assist the Assessment of Synergy
KIC, companies, and also the CSRP Kwinana Opportunities’
Synergies Project with strategic guidance on
which synergies (not) to select for feasibility
assessments.
3 Contribution to the ƒ The project provides hands-on assistance to the ƒ Chapter 4 ‘Feasibility
techno-economic Kwinana industries to develop 18 short-listed Work on Selected
evaluation and synergy opportunities. The type and level of Synergy Opportunities’
business plan research assistance depends entirely on the
development for specific research needs of involved industries.
prioritised synergy One synergy is being implemented and
opportunities in the significant progress has been made towards the
KIA. development of further synergies.
ƒ By-product synergies that are being pursued:
reuse of liquid ammonium sulphate, recovery
and reuse of sodium sulphate, reuse of
catalysts, reuse of graphite electrodes, recovery
and reuse of zirconia process waste, reuse of
grain waste, recovery and reuse of export waste
product, value creation from organic waste,
value creation from wooden pallets, reuse by-

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Appendix 1: Project Achievements Compared to Original Objectives

Project Outputs Progress Statements Reference in


Status Report
products by composting company.
ƒ Water synergies that are being pursued: supply
of demineralised water, reuse of treated effluent
as process water, reuse of treated effluent for
dust suppression / washdown, reuse of
evaporation pond water, treatment of oily
wastewater, alternative water sources for
pigment plant.
ƒ Energy synergies that are being pursued: value
creation from waste oil and energy recovery
from flue gases.
4 A sustainability ƒ A sustainability roadmap is being developed to ƒ Chapter 9 ‘Development
roadmap for the KIA assist the KIC and its industry members with of KIA Sustainability
strategic decision making on the long-term Roadmap’
sustainability of the KIA. At the heart of the
roadmap is a set of key performance indicators
for each of seven priority themes (e.g.
greenhouse gas emissions, energy, water,
economic performance, ecological health,
community, workforce). Aspirational targets
and subsequent strategies are being developed
for those activities where the KIC has an
influence and can make a positive impact. The
KIA Sustainability Roadmap will enable
constructive stakeholder discussions on
emerging local issues and possible future
directions for the KIA.

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Appendix 2: List of Current By-Product Synergies in KIA

APPENDIX 2: FULL LIST OF CURRENT BY-PRODUCT SYNERGIES IN KIA

Ref# Output from Input to Material and application


1 Alcoa World Alumina Ecomax Bauxite residue for sewage effluent
treatment
2 Alcoa World Alumina Worm farm Crib room and canteen food scraps
3 Australian Fused Mineral admixture in high Silica fume
Materials strength and durable concrete
4 Australian Fused Unknown Graphite electrodes
Materials
5 BGC Cement Kwinana / BGC Blokpave Concrete pavers, cylinders, tiles
Canningvale (product testing by-products)
6 BGC Cement Kwinana / BGC Insulation plant Cardboard
Canningvale
7 Mineral processing plant BGC Cement Kwinana / Blast furnace slag
Canningvale
8 BP Refinery Kwinana BOC Gases Hydrogen for CUTE (Clean Urban
Transport for Europe) Bus Project and
others
9 BP Refinery Kwinana Cockburn Cement Recycling of spent RCU catalysts in
cement manufacturing process
10 BP Refinery Kwinana Oackford Organics Phosphorous content of spent CPU
catalysts is leached out at Oakford
Organics and used as compost addition
11 BP Refinery Kwinana Coogee Chemicals Elemental sulphur
Kwinana Nickel Refinery
12 BP Refinery Kwinana Kwinana Nickel Refinery Hydrogen (back-up supply for KNR)
13 Cockburn Cement Tiwest Pigment Plant Lime kiln dust for chlorine removal
Kwinana
HIsmelt Lime kiln dust for sulphur dioxide
removal
14 Cockburn Cement Various companies Lime kiln dust for soil conditioning
15 Griffin Coal Cockburn Cement Overburden of Collie coal pits (shale)
16 Coogee Chemicals Nufarm Coogee Supply and use of 98% sulphuric acid
as drying agent and supply back at 80%
Nufarm Coogee Coogee Chemicals
concentration for on sale in commercial
markets
17 CSBP Air Liquide Conversion of process carbon dioxide
into commercial gases
18 CSBP Air Liquide Conversion of by-product hydrogen
into commercial gases
19 CSBP BOC Gases Conversion of carbon dioxide into
commercial gases
20 CSBP Alcoa World Alumina Carbon dioxide to blend in pipeline
with bauxite residue to sequest carbon
dioxide emissions and neutralise
bauxite residue
21 CSBP Alcoa World Alumina Gypsum stockpiled from closed

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Appendix 2: List of Current By-Product Synergies in KIA

Ref# Output from Input to Material and application


phosphoric acid plant for application in
residue area remediation
22 CSBP BP Refinery Kwinana Methyl diethyl amine (MDEA)
Composting facility
23 Doral Specialty Coogee Chemicals 3-5% solution of ammonium chloride
Chemicals (wastewater stream) as feedstock for
25% NH4Cl production
Iluka 3-5% solution of ammonium chloride
(wastewater stream)
24 Tiwest Pigment Plant Coogee Chemicals Conversion of waste hydrochloric acid
Kwinana from pigment production into
Tiwest Synthetic Rutile Plant ammonium chloride for synthetic rutile
Coogee Chemicals
(Chandala) production

25 Water Corporation Feedcrop farmers Use of biosludge from anaerobic


Woodman Point WWTP digester as soil conditioner
26 Verve Energy Kwinana Greenacre Turf Farm Fly ash for soil amendment
Power Station Fly ash for brick and concrete
Construction industry
production
27 Kwinana Nickel Refinery Air Liquide Conversion of waste carbon dioxide
into commercial gasses
28 Kwinana Nickel Refinery CSBP Hydrogen
29 Kwinana Nickel Refinery BOC Gases Conversion of by-product carbon
dioxide into commercial gasses
30 Kwinana Nickel Refinery CSBP Ammonium sulphate used in fertiliser
production
Summit Fertilisers
31 Kwinana Nickel Refinery Murrin-Murrin nickel mine Process residue
32 Kwinana Nickel Refinery Murrin-Murrin nickel mine Waste sulphur

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Appendix 3: List of Current Utility Synergies in KIA

APPENDIX 3: FULL LIST OF CURRENT UTILITY SYNERGIES IN KIA

Ref# Output from Input to Material


1 Alcoa World Alumina BOC Gases Electricity
2 BP Refinery Kwinana CSBP Wastewater to CSBP wetland cells
3 BP Refinery Kwinana CSBP Sea cooling water
CSBP BP Refinery Kwinana
4 BP Refinery Kwinana Kwinana Cogeneration Plant Excess fuel gas used to fire
cogeneration power plant
Kwinana Cogeneration BP Refinery Kwinana Steam generated by cogeneration
Plant power plant
Kwinana Cogeneration BP Refinery Kwinana Electricity generated by cogeneration
Plant power plant
Kwinana Cogeneration BP Refinery Kwinana Waste water generated by
Plant cogeneration power plant
5 Coogee Chemicals CSBP Process and treated wastewater from
Coogee Chemicals in CSBP
6 CSBP Tiwest Pigment Plant Supply of excess bore water
Kwinana
7 HIsmelt Air Liquide Excess process steam
8 Tiwest Pigment Plant Verve Energy Cogeneration Pressurised air
Kwinana Plant
Tiwest Pigment Plant Verve Energy Cogeneration Reverse osmosis water
Kwinana Plant
Tiwest Pigment Plant Verve Energy Cogeneration Potable water
Kwinana Plant
Verve Energy Cogeneration Tiwest Pigment Plant Electricity generated by cogeneration
Plant Kwinana power plant
Verve Energy Cogeneration Tiwest Pigment Plant Steam generated by cogeneration
Plant Kwinana power plant
Verve Energy Cogeneration Tiwest Pigment Plant Wastewater
Plant Kwinana
9 Tiwest Pigment plant Nufarm Coogee Electricity
Kwinana
Tiwest Pigment Plant Nufarm Coogee Steam
Kwinana
Tiwest Pigment Plant Nufarm Coogee Potable water
Kwinana
Nufarm Coogee Tiwest Pigment Plant Waste water (boiler blowdown +
Kwinana reverse osmosis brine)
1013 Water Corporation Kwinana CSBP High grade industrial processing
Water Reclamation Plant water from Woodman Point
Water Corporation Kwinana BP Refinery Kwinana Wastewater Treatment Plant -
Water Reclamation Plant (planned) Kwinana Water Reclamation Project

13
Infrastructure and facility for KWRP have been completed and KWRP water is being supplied to selected
users. Contractual arrangements between Water Corporation and some KWRP users are still being finalised.

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Appendix 3: List of Current Utility Synergies in KIA

Ref# Output from Input to Material


Water Corporation Kwinana Kwinana Cogeneration Plant
Water Reclamation Plant (planned)
Water Corporation Kwinana HIsmelt
Water Reclamation Plant
Water Corporation Kwinana Tiwest Pigment Plant
Water Reclamation Plant Kwinana
CSBP Water Corporation Kwinana Industrial water being disposed via
Water Reclamation Plant Sepia Depression Ocean Outlet
Water Corporation Kwinana Landline (SDOOL) - Kwinana Water
BP Refinery Kwinana
Reclamation Project
Water Reclamation Plant
(planned)
Kwinana Cogeneration Water Corporation Kwinana
Plant Water Reclamation Plant
(planned)
HIsmelt Water Corporation Kwinana
Water Reclamation Plant
Tiwest Pigment Plant Water Corporation Kwinana
Kwinana (planned) Water Reclamation Plant
11 Water Corporation Kwinana Alcoa World Alumina Recycled water from Kwinana
wastewater treatment plant wastewater treatment plant (via
Others
ground water)
12 Wesfarmers LPG Kleenheat Gas Condensate water
13 Verve Energy Kwinana Verve Energy Cockburn Excess demineralised water from
Power Station Power Station treatment of fly ash pond leachate
14 Verve Energy Kwinana CSBP Reverse osmosis water
Power Station
15 Verve Energy Cockburn Verve Energy Kwinana Power Boiler blowdown water for recycling
Power Station Station

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Appendix 4: Synergy Screening Tool Results for KIA

APPENDIX 4: SYNERGY SCREENING TOOL RESULTS FOR THE KIA (UPDATE JUNE 2008)

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Appendix 4: Synergy Screening Tool Results for KIA

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Appendix 4: Synergy Screening Tool Results for KIA

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Appendix 4: Synergy Screening Tool Results for KIA

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Capturing Regional Synergies in the Kwinana Industrial Area: 2008 Status Report

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Appendix 5: Project Publications and Reports

APPENDIX 5: PROJECT PUBLICATIONS AND REPORTS

Journal papers:

Van Beers D., Bossilkov A., Lund C. (2008). Progressing the Reuse of Inorganic By-
Products: The Case of Kwinana, Western Australia. Resources, Conservation and Recycling,
in submission.

Van Beers D., Biswas W. (2008). A Regional Synergy Approach to Energy Recovery: The
Case of the Kwinana Industrial Area, Western Australia. Energy Conversion and
Management, in press.

van Beers D., Bossilkov A., van Berkel R. (forthcoming). A Regional Synergy Approach to
Advance Sustainable Water Use – A Case Study Using Kwinana (Western Australia).
Australasian Journal of Environmental Management, in press.

Van Beers D., Corder G.D., Bossilkov A., van Berkel R. (2007). Regional Synergies in the
Australian Minerals Industry: Case-Studies and Enabling Tools. Minerals Engineering, vol.
20, no. 9, pp. 830-841.

Van Beers D., Corder G.D., Bossilkov A., van Berkel R., (2007). Industrial Symbiosis in the
Australian Minerals Industry: The Cases of Kwinana and Gladstone. Journal of Industrial
Ecology, vol. 11, no. 1.

Conference papers and presentations:

Van Beers D., Oughton C., Cooling D. (2007). Update on Regional Synergy Development in
the Kwinana Industrial Area. International Conference on Engineering Sustainability, 31
October – 2 November, Perth.

Van Beers D., van Berkel R. (2007). Collaborative Industry Research to Develop Inorganic
By-Product, Water, and Energy Synergies: Experiences and Lessons from Kwinana. 4th
Conference of the International Society for Industrial Ecology (ISIE), 16-19 June, Toronto,
Canada.

Van Beers D., Corder G.D., Bossilkov A., van Berkel R. (2006). Enhancing Water Efficiency
Through Regional Cooperation – The Case of Kwinana. Water in Mining Conference, 14-16
November, Brisbane.

Van Beers D., Corder G.D., Bossilkov A., van Berkel R. (2006). Regional Synergies in the
Australian Minerals Industry: Case-Studies and Enabling Tools. Material, Minerals, and
Metal Ecology Conference (MMME), 14-15 November, Cape Town, South Africa.

Corder G.D., van Beers D., Lay J., van Berkel R. (2006). Benefits and Success Factors of
Regional Resource Synergies in Gladstone and Kwinana. Green Processing Conference, 5-6
June, Newcastle.

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Appendix 5: Project Publications and Reports

Van Beers D., van Berkel R. (2006). Regional Synergy Implementation and Research in
Australia: the Case of Kwinana. 2nd Asia-Pacific Eco-Business Forum in Kawasaki - Urban
and Industrial Symbiosis, 23-25 January, Kawasaki.

Van Berkel R., van Beers D., Bossilkov A. (2005). Regional Resource Synergies for
Sustainable Development: The Case of Kwinana. Materials and Testing 2005 Conference, 30
October - 2 November, Fremantle.

Van Beers D., van Berkel R., Bossilkov A. (2005). Update on Industrial Symbiosis in the
Kwinana Industrial Area. 3rd Conference of the International Society for Industrial Ecology,
12-15 June, Stockholm, Sweden.

Bossilkov A., van Beers D., van Berkel R. (2005). Industrial Symbiosis as an Integrative
Business Practice in the Kwinana Industrial Area: Lessont Learnt and Way Forward. 11th
International Sustainable Development Research Conference, 6-8 June, Helsinki, Finland.

Van Berkel, R. (2005). Industrial Symbiosis for Sustainable Resource Processing: The Cases
of Kwinana and Gladstone. 6th Asia Pacific Roundtable for Sustainable Consumption and
Production, 10-12 October, Melbourne.

Van Berkel R., Bossilkov A. (2004). Industrial Ecology in Practice in Kwinana: Waste
Reduction and Resource Efficiency Through Industry Collaboration. Waste and Recycle 2004
Conference, 21-24 September, Fremantle.

Industry reports:

Van Beers D., Robson S. (2007). Development of Sustainability Indicators and Roadmap for
the Kwinana Industrial Area – Discussion Document for Kwinana Industries Council. Centre
for Sustainable Resource Processing, Perth.

Van Beers D., Biswas W. (2007). Energy Recovery from Flue Gases in the Kwinana
Industrial Area – Preliminary Assessment Report - Confidential. Centre for Sustainable
Resource Processing, Perth.

Van Beers D. (2007). Capturing Regional Synergies in the Kwinana Industrial Area - 2007
Status Report. Centre for Sustainable Resource Processing, Perth.

Van Beers D. (2007). Selection of New Synergy Opportunities for (Pre-)Feasibility


Assessments in the Kwinana Industrial Area – Confidential. Centre for Sustainable Resource
Processing, Perth.

Van Beers D. (2006). Capturing Regional Synergies in the Kwinana Industrial Area - 2006
Status Report. Centre for Sustainable Resource Processing, Perth.

Van Beers D., Narayaswamy V. (2006). Scoping and Workshop Summary Report for Energy
Recovery in the Kwinana Industrial Area (Workshop 31 May) - Confidential. Centre for
Sustainable Resource Processing, Perth.

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Appendix 5: Project Publications and Reports

Van Beers D., Bossilkov A. (2006). Comprehensive Assessment of Regional Synergy


Opportunities in the Kwinana Industrial Area - Confidential. Centre for Sustainable Resource
Processing, Perth.

Van Beers D., van Berkel R., Swetman T. (2006). Collaborative Approach to Enhance
Recovery and Reuse of Inorganic By-products in the Kwinana Industrial Area, Summary
Company Discussions - Confidential. Centre for Sustainable Resource Processing, Perth.

van Beers D. and R. van Berkel (2005). Summary Report of Water Synergies Workshop for
the Kwinana Industrial Area (13-Oct-05) - Confidential. Centre for Sustainable Resource
Processing, Perth.

Van Beers D., Narayaswamy V., van Berkel R. (2005). Water Synergy Scoping Report for the
Kwinana Industrial Area - Confidential. Centre for Sustainable Resource Processing, Perth.

Van Beers D., Bossilkov A., van Berkel R. (2005). Capturing Regional Synergies in the
Kwinana Industrial Area - 2005 Status Report. Centre for Sustainable Resource Processing,
Perth.

Van Beers D., Narayaswamy V., van Berkel R. (2005). Opportunity Scoping Report for the
Anaerobic Digestion of Grain Waste and Dust at CBH - Confidential. Centre for Sustainable
Resource Processing, Perth.

Van Beers D., Narayaswamy V., van Berkel R. (2005). Sodium Sulphate Recovery at Tiwest
Pigment Plant Kwinana: A Preliminary Market Assessment - Confidential. Centre for
Sustainable Resource Processing, Perth.

Van Beers D., van Berkel R. (2005). Recovery and Reuse of Inorganic By-Products in the
Kwinana Industrial Area (Summary Report Workshop 12 May) - Confidential. Centre for
Sustainable Resource Processing, Perth.

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