EXECUTIVE SUMMARY

PROJECT TITLE

Supplementary EIA for the Proposed Waste Oil Recycling Plant at Lot No. 4, Jalan Gebeng 1/5, Kawasan Perindustrian Gebeng, Kuantan, Pahang Darul Makmur.

PROJECT PROPONENT

Urban Environmental Industries Sdn. Bhd. (673993-U) Lot 4 Jalan Gebeng 1/5, Kawasan Perindustrian Gebeng, 26080 Kuantan, Pahang. Tel.: 09-580 1288 Fax: 09-580 1285 Email: urban88@streamyx.com

Attn.: Mr. Andrew Tan

EIA CONSULTANT

Hexamatics Envirorich Sdn. Bhd. (732810-M) Unit 27A-5, Block E1, Jalan PJU 1/42, Dataran Prima, 47301 Petaling Jaya, Selangor Tel.: 03-7804 7770 Fax: 03-7804 7702

Attn.: Mr. Kumar Annavoo

I.

INTRODUCTION

The Proposed Project involves recycling of various grades of scheduled waste/used oil such as engine oil, hydraulic oil and lubricants at a capacity of 24,000 kg/day. The Proposed Project is initiated by Urban Environmental Industries Sdn. Bhd. (hereinafter referred to as UEISB), and located at Lot No. 4, Jalan Gebeng

1/5, Kawasan Perindustrian Gebeng, Kuantan, Pahang Darul Makmur. The

proposed Project Site is geographically located at a latitude of 3o58 N to 3o59 N and a longitude of 103o22 E to 103o24 E occupying a land area of approximately 4,660 m2 (1.15 ac). The Proposed industrial lot is located within Industrial Area of Gebeng (i.e., No. 4, Jalan Jalan Gebeng 1/5, Gebeng Industrial Estate (GIE) Phase I). The proposed site comes under the jurisdiction of Majlis Perbandaran Kuantan.

The Proposed Plant is aims to provide a scheduled oil waste management solution by means of having proper handling, transparent and accountable documentation, safe transportation, systematic collection and storage of scheduled waste, and finally, efficient and effective recovery of the scheduled waste. In line with the commitment of the Government of Malaysia to reduce waste volume and improve waste management practices, Urban Environmental Industries Sdn. Bhd. seeks to propose a scheduled waste recovery plant at Industrial Area of Gebeng, Kuantan (medium/heavy industrial area). It is anticipated that the proposed plant shall enable the organization to receive and treat the scheduled waste in the immediate future and thus reducing the overall volume of final disposal for these waste products.

Figure 1: General Location of the Proposed Project Site

II.

CURRENT ENVIRONMENTAL SETTING

A.

Physical Environment

i)

Morphological Features of the Project Site

The Project Site which is within the Gebeng Industrial Estate (GIE) Phase 1 is located on a flat land which was identified as grassland in the topography plan. The Project site is located approximately 2.5 3 km from the coastal area as shown in Figure 5.1.

ii)

Streamflow Pattern

GIE is provided with a properly designed storm water drain network. These storm water channels receive rainwater run-off from general areas (roads, landscape areas, etc.) and also all treated effluent discharges from the existing industrial facilities within GIE.

Rain water run-off from the existing plant flows into the on-site drainage channels and discharges into the PKNP storm water which runs adjacent to the eastern boundary of plant. This drain ultimately discharges into Sg Tonggok about 1.5 km to the east. Sg Tonggok in turn discharges into Sg Balok.

iii)

Geology and Soil

Referring to the Geological Map of Malaysia, published by the Geological Survey Department of Malaysia (1985), the geological unit of the proposed site and their surrounding area in particular is of the Quaternary Age. This formation is made up of marine and continental deposits. The formation consists of clay, silt, sand peat with minor gravel. The major soil type found in this area is mainly Peat Series. The soils within the Project site derived from the weathering of basalt and granite. Soils consist of mainly peat in association with silt and clay with fine sandy materials in admixture.

iv)

Landuse

The land at the north and east of the GIE comprises areas of forest, grassland and isolated coconut plantations. Tentera Laut Diraja Malaysia (TLDM) Naval

Communication Centre is located towards the coastline in Padang Hangus, about 3 km east of the existing plant. The Kuantan-Terengganu road runs along the southern boundary of the existing plant before turning northeast towards the coastline. This road then runs in a north-northwesterly direction along the coastline. Linear coastal settlements are located along this road with a distance of approximately 5.5 km to the northeast of the recycling plant. Plantations (e.g. rubber and coconut) and isolated coastal villages (e.g. Kg Berahi and Kg Seberang Teluk) are located along the Kuantan-Terengganu coastal Road (Federal Route 2). The land to the west of GIE is undeveloped and primarily comprises of an area earmarked for development of the Chenor Small and Medium Industrial (SMI) Area and the Baluk Forest Reserve.

v)

Water Quality

Two (2) water samples were collected to represents baseline water quality of the Project Site and the surrounding area. Sampling point S1 and S2 is representing as upstream and downstream of Sg. Tonggok respectively.

The water sample was collected and analyzed by DSM accredited laboratory. The analyzed data will be used as baseline data of the Project Site prior to the implementation of the Proposed Project. The discussion of the water quality data will be made in accordance to its three major characteristics i.e., physical, biological and chemical components. The results will be compared with the Class IIB standards (Proposed Interim National Water Quality Standards. The laboratory result showed that all the parameters (except E. Coli) are within the Class IIB standards.

vii)

Air Quality

Baseline ambient air quality were measured (i.e., 24 hours) within the Plant. The sampling sites A1 and A2 were located at the upwind and downwind of the Project Site. The air quality is considered satisfactory as all the parameters were within the Malaysian Air Quality Guidelines recommended limits.

viii)

Noise Quality

Baseline noise levels were measured (i.e., 24 hours) at the Proposed Project Site. The sampling sites N1 is at open space along the factory boundary, near guard house and N2 is at open space along the factory boundary, near process area. As such, noise quality at N1 and N2 shall represent the baseline noise level. The noise levels (Leq) measured at N1 for the day time and night time were observed to be within 70 dB(A) and 60 dB(A) respectively as stated in Schedule 1 of the Planning Guidelines for Environmental Noise Limits and Control by DOE. For N1, noise recorded was exceeded from the limit due to frequent of vehicles pass by at night time.

B.

Biological Environment

The proposed Project Site is located within GIE, which is a developed area with factories, industrial lots and infrastructure facilities. No significant biological ecosystem exists within the project area. The surrounding empty lots of the Proposed Plant were observed with secondary vegetation dominated by Acacia trees along with some woody plants.

C.

Socio-economic Environment

The residential and community areas in the vicinity of the GIE are located near the coastline to the south and the southwest of the existing plant and proposed Plant. The proposed Plant will increase the job opportunities to the nearest resident.

Figure 2: Proposed Plant and Surrounding Area

III.

PROJECT DESCRIPTION

The Proposed Expansion involves a new process route for the recovery of base

oil from the spent lubricant. It was developed to offer a higher efficiency and
exhibits lower energy consumption while preserving the process simplicity with minimal number of unit operation. Its original features include an integrated process of extraction, acceleration flocculation, centrifuged filtration, solvent recovery and short-path distillation. The composite solvent extraction increases the recovery of product by completely dissolving the base oil while at the same time expelling the impurities. Its ambient temperature extraction operation and zero-waste

production gives added advantages over the existing method used. The proposed
project invention provides an innovation solution towards industrial waste handling and pollution prevention.

The scheduled waste send to the plant will be handled and accepted in relations to the established waste acceptance criteria by the proposed plant. Refer to Table 1 below for the Waste Acceptance Criteria.

Table 1: Waste Oil Acceptance Criteria

Parameter Free Water Content (%) Flash Point Pour Point Viscosity

Range <2% 150oC Min (ASTM D92) -30oC Max (ASTM D97) NA (ASTM D 445)

Note:*For more than 2% (but less than 10%) water content, the waste must go through the oil-water separation tank prior to the FEMD process.

The process is outlined as follows: A total capacity of 600 MT/month of scheduled waste/used oil is expected to be recovered by UEISB production. (a) (b) The adopted closed loop recycling process is undertaken in two (2) interconnected stages, namely: Dewatering process by employing Thin Film Evaporator (TFE); and Base oil recovery by employing Molecule Still Evaporator (MSE).
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Dewatering Process by Employing Thin Film Evaporator (TFE)

The waste oil is pumped up to raw material tank and stores in a raw material preparation tank for conditioning purpose. The raw material is then conveyed by the feeding pumps into the Thin Film Evaporator (TFE) through the pre-heater. The temperature for the feedstock should be well conditioned at about 100oC. The feedstock is let down from TFE which is equipped with a light vacuum, then goes through the water repelling process. Vapour rises up and is condensed by the water chiller at the heat exchanger. The chilled water is the waste water that is stored to the storage bank through the waste reception vessel. The light oil mixture from the TFE flows down the storage vessel and is pumped out by the cargo pumps for the next core process. The feedstock which has more than 2% of free water content is pre-treated by Water Rejection/CFI process prior to feeding into the raw material tank for the TFE process.

Base Oil Recovery by Employing Molecule Still Evaporator (MSE)

The heavy condensate (oil mixture) from the TFE process is conveyed by the cargo pumps to the molecule distillation through the pre-heater. The raw material from TFE is then being kept coated on the contact surface of the MSE based on the properties of the raw material. The range temperature of MSE process is from 200oC to 300oC heat is required to give enough temperature for the evaporation process of the oil mixture. The evaporated oil vapour is condensed by the MSE jacket using the coolant at the temperature between 5oC to 10oC. The coolant from the cold trap removes the latent heat of the oil vapour and condenses the base oil before it is conveyed to the light condensate storage tank. The base oil farmed is pumped out as finished product by cargo pumps to the finishes product storage tank.

The residual oil sludge containing heavy metals, oxidized substances, etc. is formed due to working temperature differences, and is collected at the heavy condensate storage tank prior to pumping out from the cargo pumps to the oil sludge storage tank.

Figure 3: The Base Oil Recovery Process from Spent Lubricant.

Spent Lubricant
Recycled Solvent

Spent Extraction

Filtration

Solvent Recovery

Fresh Composite Sludge Solvent Re-refine Base Oil Short-Path Distillation

Sludge

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IV.

ENVIRONMENTAL CONSIDERATIONS

The potential impacts of the proposed development generally occur during the implementation of the project and its recommended mitigation measures are tabulated in Table 2.

Activities inherent in the pre-construction phase are rather localized and are not expected to generate any significant detrimental impacts.

During the construction phase, transportation of construction machineries, large plant structures and plant equipment to the proposed site may impose some impacts and risks on settlement areas. The structure construction is not expected to result in significant erosion problems, except for the increase in the level of ambient suspended particulates during dry periods and increase in noise levels. On-site construction workers may be exposed to health and safety problems.

During the operation and maintenance phase, gaseous emission, noise intrusion, scheduled wastes spillage and the manufacturing processes itself may create negative impacts and risks to the nearby residents and the workers at the plant itself. Therefore, proper measures such as waste minimization concept and other designs/equipment have been incorporated into the plant to counter these impacts.

V.

QUANTITATIVE RISK ASSESSMENT (QRA)

This QRA study is a part of a Preliminary EIA study that was commissioned by Urban Environmental Industries Sdn Bhd to fulfill the legal requirements of the Department of Environment (DOE), Malaysia. This study was undertaken for the construction of an off-site waste recovery plant. Hence, the necessesity to comply with Section 34A of the Environment Quality Act, 1974 (Amended) 2000, and the Environment Impact Assessment (EIA) Order, 1987, where, this industry is classified as a Prescribed Activity, under Order 18(a) (ii). This study has also taken into consideration the Department of Environments EIA Guidelines and the EIA Guidelines for Risk Assessment, 2004.

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VI.

ENVIRONMENTAL MANAGEMENT PLAN (EMP) FRAMEWORK

The EMP is proposed as a means to ensure that the proposed mitigation measures are implemented effectively to render the anticipated impacts to acceptable levels. On-site management plan during the construction phase which includes various schedules and supervision for good on-site practices; planning of schedules and plans would include work schedules, site drainage and stormwater management plans, maintenance program of pollution control structures and heavy vehicles/machinery, on-site pollution measures and on-site traffic management schemes; On-site management plan during the operational phase would be mainly the service and maintenance scheme for the proposed plant; Water, air and noise quality monitoring programs to evaluate the effectiveness of the mitigation measures, which are implemented, to further improve where necessary. A framework of Emergency Response Plan (ERP) also attached in this Chapter 8.

VII.

CONCLUSION

Under the Environmental Quality (Scheduled Wastes) Regulations 2005, all scheduled wastes must be treated within a prescribed premise. In line with the current ongoing efforts to conserve precious natural resources and preserve the environment, recovery facilities that provide environmentally positive solutions and which are also sound economic investments should be encouraged especially in the areas of scheduled chemicals wastes management, recovery and disposal.

The objective of this proposed project focuses solely on chemicals wastes recovery activities. Its operations will not create a significant adverse effect to the neighborhood and environment if the Proponent adheres to all regulatory requirements and complies with the conditions stipulated by the relevant authorities. The proposed facility will be operated in accordance with established and recognized standards.

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Table 2: Identified Significant Environmental Impacts and Recommended Mitigation Measures

Project Activities A. Pre-Construction Activities 1. Documentation 2. Site investigation No significant impacts. The proposed plant at existing industrial area, no major impacts are expected; Beneficial impacts through employment opportunities for those involve in preparation works. No mitigation measures require. Potentially Significant Environmental Impacts Proposed Mitigation Measures

B. Site Clearing and Construction

Works
1. Site Clearing Activities No significant loss of flora and fauna species due to the existing landuse (i.e., cleared land with shrubs and weeds). Minimal biomass is expected due to no big trees observed at the proposed site. Dust and exhaust emission; Noise generation due to piling and machineries on-site. Constant wetting of ground and covering the transported raw material with canvas sheet; Lorries carrying raw material should be covered with tarpaulin or canvas sheet; Proper maintenance of diesel engines on-site; Construction works to be carried out during day time only. Constant wetting of road and covering the transported raw material with canvas sheet; Lorries carrying raw material should be covered with tarpaulin or canvas sheet; Strictly no open burning of cleared biomass.

2. Construction Activities

3. Transporting large structures and plant equipment.

Dust and exhaust emission;

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Project Activities

Potentially Significant Environmental Impacts Traffic impedance on carrying capacity roads; Accident risk; Noise disturbance. Oil and grease contamination due to possible leakages from site vehicles, machinery and skid/diesel tank. Dust and particulate emissions from working area; Traffic, dust, exhaust emissions.

Proposed Mitigation Measures Control speed of lorries and erect proper road signs; Good maintenance of vehicles. Contain schedule waste (i.e. lubricating/fuel oils) and dispose off to Kualiti Alam. Ensure proper transfer practice from diesel tank to vehicle/machines. Wet works areas and use of buffer strips; Control speeds, maintain vehicles, wet surfaces, spray roads. Provide for adequate solid waste collection and disposal; Dispose appropriately and routinely to nearest approved dumpsite. Training and administration, use local labour where possible; Road safety measures; Compliance with Occupational Safety and Health Act (OSHA).

4. Utilization of oil and grease for heavy vehicles

5. Heavy vehicles on-site

6. Solid waste disposal.

Public health, eyesore and odour; Disease vector proliferation; Sanitary problems. Environmental/social conflict, law and order problems; Risks from heavy moving machinery, working from heights and machinery handling; Accidents.

7. Workers activity on-site

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Project Activities C. Operation & Maintenance 1. Transport of Scheduled Waste to Plant

Potentially Significant Environmental Impacts Risk : Leakage and spill from transport vehicles or container and risk of accidents and point source pollution discharging into the nearby waterways. Traffic/Noise/Air Quality: Transit patterns disrupted, noise and congestion created and pedestrian hazards aggravated by heavy trucks transporting raw material and product to/from facility.

Proposed Mitigation Measures

Proper mode of transport with safety features for scheduled waste; Well trained and experienced drivers; Restrict delivery times to low traffic hours; Avoid densely populated areas. Transportation and handling in accordance with the MSDS of the respective chemical. Maintaining the trucks in good condition. Emphasis on pre-trip checks to identify problems that may lead to accidents. Establishment of an ERP framework detailing action required in case of accidents leading to spillages. Stored at the designated tank farms with close observation if leakage occurs. Piping system connecting all processes. Proper SOP (Standard Operating Procedure) in place and understood by the relevant personnel. Regular inspection of these tanks and integrity of the piping system plant maintenance. Training on identification, handling, labeling, storage and spill response

2. Storage and handling of raw material and final products.

Contaminated runoff from storage area; Leak from containing vessels and soil/groundwater contamination;

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Project Activities

Potentially Significant Environmental Impacts

Proposed Mitigation Measures All bunding for raw material/final product/scheduled waste storage areas shall comply with the Guidelines for Scheduled

Waste Storage by DOE.

Routine and periodic preventive maintenance programmes to ensure undesired release from the entire system

3. Recovery Process

Certain measures/concepts will be incorporated in the process flow design to reduce the pollutants. Generation of residual waste from the proposed process.

Waste minimization will be practiced by

the plant which includes reuse of substances. Residual waste will be stored at residual waste storage area prior to disposed at Kualiti Alam Sdn. Bhd.

4. Maintenance and washing activities at the plant.

Water Quality deterioration due to: Contamination of receiving storm drains if proper controls are not in place; Spillage at non-bunded loading/unloading area); areas (i.e.,

Clear defined parallel drainage system between process recovery drains & storm water drains. Non bunded area (loading/unloading) shall be equipped with peripheral drainage system and sump to divert the wash water or spills back to recovery process. The workers should be trained to follow proper procedures to carry out washing activities (contaminated drums and equipments) at designated area only.

Improper washing at non-designated areas may lead to contamination of receiving waterways.

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Project Activities 5. Noise generation

Potentially Significant Environmental Impacts Occupational health implications such as hearing impairment, speech impairment and annoyance.

Proposed Mitigation Measures Incorporate noise attenuation measures in the design of the equipment and factory (control at source); Provide adequate noise attenuation for the workers such as ear mufflers, ear plugs,etc. (control at receiver); Control in Transmission Path; Aspect of storage in accordance to the MSDS; Transportation of scheduled waste by licensed contractors (i.e., Kualiti Alam Sdn. Bhd) for residual waste; Proper storage area in accordance with the Guidelines for Storage of Scheduled Wastes.

6. Scheduled Waste Management Generation of scheduled waste from recovery process; Generation of spent lubrication from process machinery; Improper storage and handling of these scheduled wastes could create danger to the surrounding, workers and groundwater contamination. Workers susceptible to various risk during operation and maintenance; Emergency in case of any accidents.

7. Occupational Safety and Health Management

Comply to OSH Act 1994 (Act 514) and its relevant regulations; Commitment of the UEISB management towards EHS aspects senior

Factories and Machineries Act would be adhered to; Updated safety handbook to enhance work procedures; Proper signboards serving as administrative control; ERP (Emergency Response Plan) to counter emergency occurrences during operations; Training and communication of the above laws and regulations to all relevant personnel.

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