Alexandria Refinery Green Project

Environmental and Social Summary

Categorised B (2014 ESP). The Project is part of a Programme of investments to improve environmental performance of the Alexandria refinery and produce better quality (Euro 5) diesel. The Project includes energy and resource efficiency investments leading to a reduction in greenhouse gas emissions, better quality wastewater, reduced water demand through recycling, vapour recovery and significantly reduce seawater use for cooling. Independent environmental and social due diligence (ESDD) is currently ongoing and is considering the potential E&S risks and impacts of the Project and overall Programme, the E&S benefits, alignment of the refinery with EU standards (EU Best Available Techniques - BAT) and the PRs and the capacity of the Company to implement the Programme and operate the refinery in line with the PRs.

The investment Programme has been designed in line with BAT EU BAT for sector. Early due diligence findings indicate the Project and Programme are expected to result in substantial improvements. Sulphur reduction both at the refinery and through the use of better quality diesel is a key benefit, as is reduced water demand and improved wastewater treatment. Overall GHG emissions (scope 1 and 2) are expected to be slightly less than current emissions, and less than a future scenario with the import of Euro 5 diesel. Impacts associated with the implementation of the Project are expected to be limited and readily addressed as works are expected to take place within the refinery boundaries using experienced contractors. Key considerations will include the management of occupation health and safety and labour management. Specific management plans will need to be put in place with refinery oversight. In addition to the Programme and the Bank's Project, due diligence has identified some areas to align the overall refinery with EU BAT. This includes in relation to storage tanks and associated secondary containment, emissions and emission monitoring. The Project includes the installation of a continuous emissions monitoring system (CEMS) and a burner management system. Once the systems are in place, the refinery will need to review its emissions against EU BAT emission limits and where reductions are need implement the necessary abatement measures. The new vapour recovery unit will result in reduced flaring. The refinery is also being reviewed in terms of occupation and industrial safety provisions, specifically the EU Seveso III Directive and the ATEX Directive. The due diligence has identified some areas for improvement including implementing the recommendations of existing quantitative risk assessments (QRAs) as well as updating the QRAs to consider the Programme and some additional scenarios. This may require updates to emergency preparedness and response plans. Some other occupational health and safety improvements have also been identified. The due diligence includes the development of a Non-Technical Summary (NTS) and a Stakeholder Engagement Plan (SEP). These will be made available in English and in Arabic. To meet Seveso III requirements the refinery will need to engage with stakeholders on industrial safety risks associated with the refinery. This is important considering the location of the refinery in an urban area.

An E&S action plan will agreed with the Company before Board to align the refinery with the Bank's requirements.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

All Recent Projects

Finished Projects