Kaunas university of technology Technological systems diagnostics institute Director of KTU Technological systems diagnostics institute prof. V.Volkovas 2001.12.14 “Implementation of directive 94/63/EC “on the control of volatile compound (VOC) emissions resulting from the storage of petrol and its distribution from terminals to service stations” SUMMARY Head of project dr. V.Doroševas KAUNAS * 2001 List of participators 1. Director of KTU Technological systems diagnostics institute, prof., habil. dr. Vitalijus VOLKOVAS 2. Senior associate researcher of KTU Technological systems diagnostics institute, dr. Viktoras DOROŠEVAS 3. Senior associate researcher of KTU Technological systems diagnostics institute, dr. Ramūnas GULBINAS 2 Accomplishing the first stage of contracting study to Ministry of Environment of Lithuanian Republic and implementing common Lithuania and Sweden project about EU directive 94/63/EC “Requirements of reduction of volatile organic compound emission into the ambient air for new installations of petrol storage reloading and distribution from terminals to service stations management”, methodology conception of accordance evaluation of existing terminals and service stations to EU directive requirements were suggested. These main aspects were excluded: technological; structural (constructive); environmental; economical. For methodology implementing appropriate database is required, therefore special questionnaires were made for survey of petrol terminals and service stations. The main in the methodology of suggested technique contents and parameters is installation systems advancement, which are used in petrol terminal or service station. This advancement would be estimated with: 1) technological parameters (quantitative and qualitative characteristic of performance of action or procedure and automation level); 2) structural parameters (characteristic of used installation, nodes and control tools); 3) environmental parameters (VOC emission quantity of and concentration of exhausted vapours from VRU their control and prevention; 4) economical parameters (quantity of collected vapours and recuperated petrol, pollution taxes, installation costs and gained return). As additional characteristic evaluation of geographical state and population density, which would let to forecast the influence of negative impact of VOC to environment. The report is written in pursuance of this information presentation sequence: from theoretical model, which corresponds to requirements of EU directive and LAND 35-2000, discussion, mostly detailing tools for control of VOC emission from petrol, later existing terminals and service stations are analysed and evaluated according to parameters mentioned above. Finally, for evaluation of common situation integrated analysis under all accomplished assessments is made and conclusions are formulated. The main purpose of European Union directive 94/63/EC is to reduce VOC emission in all systems of store and distribution, since these emissions makes a big impact to air pollution, particularly in the cities. So the main environmental attitude is to eliminate VOC from human environment. Tools for implementing this purpose are available advanced technologies that can signally reduce losses of vaporisation in petrol distribution system and recuperating collected vapours inconsiderably could do this. The aim with the assistance of these tools is: 1) to reduce common annual petrol losses so, that, by filling every storage installation and storing petrol here, they wouldn’t reach planned basic value - 0,01% (by weight) of throughput; 2) to reduce common annual petrol losses so, that, by filling and loading mobile containers in terminals, they wouldn’t reach the planned basic value - 0,005% (by weight) of throughput; 3) average concentration of vapours from recuperating installation, corrected according to attenuation during processing, cannot exceed 35 g/normal volumetric meters (Nm3) in any one hour. Parallel objectives formulated also in regulation LAND 35 –2000 of Lithuanian Republic, just here is signally reduced norm of vapour concentration to 150 mg/Nm3. 3 It will be observed, that achievement of strategic purpose, that is minimisation of petrol losses mostly depends on how is organised and implemented cooperation of national, expert, exploiting and using subjects, grounded on appreciation of environmental priority. As above was mentioned, for reducing VOC emission from petrol in all storage and distribution systems advanced technologies can be rooted. In such case capital investments are required, and they need economical motivation. So economical aspects are topical for terminal, which is in reconstructing or updating phase, particularly if it is scheduled to fund this by taking a loan. If vitality of the project is based on financial calculations, there is better possibility to get the credit from any bank. Therefore terminal owner for assessment of direct economical relevance needs analysis of these main aspects: 1) capital investments and their sponsorship to the project of prospective terminal reconstruction and modernisation. That is the price of installations, piping, communications, works of designing, installation, coordination and launching, various taxes and conditions of loan reception; 2) depreciation and reinvestment. That are characteristics of durability of installations, rapidity of installations depreciation and the demand of reinvestment; 3) running costs. The annual cost of workforce, inflation, electric power, technical service, inspection and control of equipment, installations, devices; 4) revenue. Incomes could be gotten because of reducing petrol losses, selling petrol from VRU, minimisation of pollution taxes and change of recuperated petrol taxation conditions, suppose eliminating excise duty for it. Of course, revenue can be gained by evaluation of made expenses, formatting the price of petrol selling, that is in account of consumer. The economical national integrated assessment of arrangement of all terminals and services stations existing in Lithuania, according to requirements of EU directive and regulation LAND 35-2000, could be calculated like this: COSTS --- Value of petrol saved Annual VOC emission reductions In detail checked terminals petrol keeping containers inventory and accordance with ES requirements characteristics are showed in 1 table, red colour shows that container unacceptable of ES directive requirements, green – acceptable 4 1 table Construction Stock,unit. 1 13 1 1 2 2 2 4 8 8 1 2 4 7 3 10 Type Characteristic AB”Mazeikiu nafta” Tanks above ground, Fixed roof with pontoon, which vertical cylindrical acceptable to ES requirements Tanks above ground, Fixed roof with pontoon, which vertical cylindrical unacceptable to ES requirements UAB”Ave-Matrox” Tanks above ground, Fixed roof with pontoon, which vertical cylindrical acceptable to ES requirements Tanks above ground Fixed roof with pontoon, which vertical cylindrical acceptable to ES requirements Tanks above ground, Fixed roof with pontoon, which vertical cylindrical acceptable to ES requirements Tanks above ground, Fixed roof with pontoon, which vertical cylindrical unacceptable to ES requirements Tanks above ground, Fixed roof with pontoon, which vertical cylindrical unacceptable to ES requirements Underground One side,partly acceptable ES horizontal requirements Underground One side,partly acceptable ES horizontal requirements Underground One side,partly acceptable ES horizontal requirements UAB”Lietuva Statoil” Tanks above ground, Fixed roof with pontoon, which vertical cylindrical acceptable to ES requirements UAB”Lukoil Kedainiai” Tanks above ground, Fixed roof with pontoon, which vertical cylindrical acceptable to ES requirements Tanks above ground, Fixed roof with pontoon, which vertical cylindrical acceptable to ES requirements VĮ”Subaciaus kuro baze” Tanks above ground, Fixed roof with pontoon, which vertical cylindrical unacceptable to ES requirements Tanks above ground, Fixed roof with pontoon, which vertical cylindrical ė unacceptable to ES requirements Tanks above ground, Fixed roof with pontoon, which vertical cylindrical unacceptable to ES requirements Common capacity of examined terminal tanks is 310680 m3 and tanks comparative diagram is showed in Fig.1 . 5 45% 49% 3% 2% 1% AB"Mažeikių nafta" UAB"Ave-Matrox" UAB"Lietuvos Statoil" UAB"Lukoil Kėdainiai" VĮ"Subačiaus kuro bazė" Fig.1. Comparative analysis of capacity of terminal tanks 160000 140000 120000 100000 80000 60000 40000 acceptable EU directive VĮ"Subačiaus kuro bazė" UAB"Lukoil Kėdainiai" UAB"Lietuvos Statoil" UAB"AveMatrox" 0 AB"Mažeikių nafta" 20000 unacceptable EU directive Fig.2. Comparative analysis of terminal tanks capacity accordance to directives of EU Comparative analysis of terminal container capacity accordance to directives of ES is showed in Fig. 2. Only “UAB “Lukoil Kedainiai” and AB”Lietuvos Statoil” containers meet the requirements of ES directive. VĮ”Subaciaus kuro baze” all containers don’t meet the requirements of ES directive, though in this moment they are not exploitable practically. So suitable containers total capacity is 28480 m3, it is only 9,17% from total all containers capacity value. Analysis of represented fulfilled terminal questionnaire and generalized data are showed in tables 2 and 3. Red color shows that characteristic or procedure falls short of ES requirements, green - fulfils. 6 UAB”Lukoil Kėdainiai” 200 200 Possible Possible L Lietuvos Statoil AB”Juodeikių nafta AB ”Mažeikių nafta” Parameter VĮ”Subačiaus kuro bazė UAB”Ave-Matrox” 2 table Supply of petrol: Rail-way Pipe line Productivity of supplying, m3/h 101 200 360 Unloading of petrol: Rail-way Petrol tank trucks Loading technology: Bottom Possible Top-loading Average productivity, m3/h A-80; AI-92, AI-95 2500 A-98 400 Vapour recovery unit (VRU) no 253 70 / 60 90 90 no no no no 360 no As we see, dominate petrol supply to terminals by rail trucks and petrol tank trucks implement its exportation to service stations. Advanced technology of petrol tank trucks (bottom-loading) realisable only in terminals of UAB”Lietuvos Statoil”, that is we can state that only 6 – 7% of petrol, loaded in all terminals are filled in such way. When filling petrol to rail tanks the situation is even worse because the technology of bottom loading is not realisable at all. Besides, there is no any installation of recuperation of petrol vapours. Generalized data of technological function of terminal containers is showed in 4 table (red – inadequate , yellow – partly adequate, green – adequate). 7 VĮ”Subačiaus kuro bazė UAB”Lukoil Kėdainiai” UAB”Ave-Matrox” UAB”Lietuvos Statoil” Devices AB “Mažeikių nafta” Table 3 Automate container detector system (ACM) ACD consists of: Level sensor Temperature sensor Computer with software ACM is certificated petrol vapour monitoring (PVM) PVM is certificated control devices of pipe leakage In the event of 95% fill container capacity condition there is loading control valve There is a container overfill detection Including visual sound There is a spherical valve for limit of petrol vapour anti-corrosive container protection internal external anti-corrosive protection of pipe Statistical analysis system of terminal inventory (TISA) TISA system is certificated Other protection devices : ISO 9002 ISO14001 Minimal level detection Container colour 13% 87% 13% 87% 13% 87% As we see from the Table 3, action of technological behaviour of tanks in any terminal does not fully correspond to any attitude of EU directive. The best situation is in UAB “Lietuvos Statoil” terminal then “UAB”Lukoil Kėdainiai” goes and finally “UAB “Ave Matrox”. 8 So, after implementing research in terminals also the points of main expenses were developed, associated with implementing of attitudes and requirements of EU directive. This can be grouped like this: 1. New technologies and installations: 1) Rooting of vapour recuperation installations, their connection to technological system of terminal and running costs; 2) Rooting of bottom filling technologies to petrol tank trucks, their connection to terminals technological system and running costs; 3) Rooting of new petrol tank trucks, fitted to bottom loading; 4) Rooting and validation of automated tank measuring systems; 5) Rooting and validation of terminal statistical inventory system. 2. Existing installations: 1) Reconstruction of storage installations: installation of seal rings and pontoons or change of existing non-effective pontoons with new, adequate to requirements of EU directive, rooting of control devices and connection to terminal technological system; 2) Reconstruction of petrol filling technology of rail tanks; 3) Reconstruction of petrol loading technology of rail tanks in terminals; 4) Reconstruction of rail tanks. Expenses for all first point and second’s first point procedures, that is implementation of new technology and installations and existing containers reconstruction we can calculate and evaluate according to different producers suggestions, but implementation of these procedures ensure only 23,7% total throughput decreasing of petrol damages up to the mark. Second’s point second, third and fourth points procedures involve 76,3% petrol total throughput and to calculate expenses is very complicated task, because it depends from chosen degree of reconstruction in these procedures. Three versions are available: 1) Reconstruction of JSC “Mažeikių nafta” terminal petrol filling technology to rail tanks, filling technology in other terminals and of tank construction (full reconstruction); 2) Reconstruction of JSC “Mažeikių nafta” terminal technology of petrol filling to rail tanks and spilling in other terminals, only construction does not change (reconstruction of terminals) 3) Only JSC “Mažeikių nafta” terminal technology of petrol filling to rail tanks is changing, tank construction and technology of petrol spilling in other terminal does not change. (reconstruction of JSC “Mazeikiu nafta” terminal). If the second and the third version is associated with technical and economical problems, then the first also requires political decision and appropriate actions in third parts, by the same token it is a region of ex USSR. Integrated financial demands of terminal reconstruction In Table 4 is presented integrated quantity of direct financial demands of reconstruction of all Lithuania terminals according to requirements of EU directive and LAND 35 –2000. 9 Terminal AB"Mažeikių nafta" Table 4 Demand of direct Quantity of possible financial investments, Lt annual revenue, Lt Max Min Min Max 49370000 40170000 339670 706719 UAB"Juodeikių nafta" 6690600 3069600 190507 396370 UAB"Lukoil Kėdainiai" 2511000 2511000 81411 168743 UAB"Ave-Matrox" 2728000 2728000 81163 168743 UAB"Lietuvos Statoil" 1590000 1590000 103027 213546 VĮ"Subačiaus kuro bazė" 6601000 4726000 0 0 69 490600 54 794600 795778 1 654121 TOTAL: Thus, for implementing attitudes of EU directives and LAND 35-2000 in working terminals during 2002-2003 years, requires from 54,8 mln Lt to 69,5 mln Lt of direct financial investments. In the other hand, real expenses may be larger, because indirect financial expenses will be added. Analysis and assessment of existing service stations accordance to requirements of EU directive In the first stage of the work, considering to attitudes of EU directive and LAND 352000, we divided all 626 service stations into 5 groups: 1) Service stations with petrol throughput is above 1000 m3/year; 2) Service stations not in the city with petrol throughput is above 500 m3/year; 3) Service stations in the city, with petrol throughput is above 100 m3/year; 4) Service station not in the city, with petrol throughput is under 500 m3/year; 5) Service stations in the city, with petrol throughput under 100 m3/year; We will analyse only four groups, because the fifth group does not exist. Also, for accordance assessment of existing service stations to requirements of EU directive, special questionnaires were made and sent to all service stations. The number of service stations of the first group in the common number of service stations makes about 31% and annual petrol throughput in them reaches 64% of all petrol throughput in service stations. It is determined that about 84% of this group accord to attitudes of EU directive and regulation LAND 35-2000. The number of service stations of the second group makes about 7,3% of the common number of service stations and annual petrol throughput in them reaches 5,7% of all petrol throughput in service stations. It is determined that about 52% of this group accord to attitudes of EU directive and regulation LAND 35-2000. The number of service stations of the third group makes about 40,2% of the common number of service stations and annual petrol throughput in them reaches 23% of all petrol throughput in service stations. It is determined that about 31% of this group accord to attitudes of EU directive and regulation LAND 35-2000. 10 The number of service stations of the fourth group makes about 21,4% of the common number of service stations and annual petrol throughput in them reaches 6,8% of all petrol throughput in service stations. It is determined that about 26,9% of this group accord to attitudes of EU directive and regulation LAND 35-2000. But exceptions may be applied for the service station of these group accordingly to EU directive item 4. So, as we see, particular exemptions can be easily applied to 134 service stations where petrol annual throughput makes 54,4% of common throughput of service station in districts, which on the average makes 70841 m3/year. Total petrol throughput of service stations in districts makes 12,5% of petrol throughput of all service stations. General situation in the first, second and the third groups, that is, in the groups where implementation of EU directive is required is presented in the Fig. 3 number of service station 300 250 200 150 100 50 0 I group II group acceptable III group unacceptable Fig.3 Evaluation of the service stations state which need EU directive implementation Service stations which need EU directive management (I, II ir III group) and which technical level doesn’t meet requirements of EU directives reconstruction is essential – from new tanks to petrol accounting system, especially for petrol tanks and magistral pipes hermetic and vapour assembling. But there is no much time for that. From the other side, many tank trucks are not acceptable for assemble VOC, and promotion reduce petrol damages in reality. So, as alternative case, possible petrol throughput limitation and reducing in some II group service stations not in the cities until less than 500 m3/year, making possibility to accept EU directives and LAND 35-2000 reduces. From the other side petrol in need in districts can satisfy 4 group service stations, transfer such service station from IV to II group. Obviously that III group not suitable services stations can be compensated by larger capabilities of the 1 group service stations. So for calculation of financial demands we can make such possible cases: 1) theoretical, when all services stations which need ES directive and implementation of LAND 35-2000 attitudes; 2) limited, when a part of non-city service station reduce their petrol throughput; 3) covered, when inadequate city service stations are not permitted to sell petrol, and in adequate service stations the throughput of petrol increases; 4) combined, when the 2) and the 3) versions are joined. Performed calculations of direct financial investments are given in the Table 10. 11 Table 10 Case and price, Lt Purpose of expenses I II III IV Tanks 18982000 16276000 10456000 7750000 Piping 5850000 4530000 4110000 2790000 Dispensers 39500000 32900000 22100000 15500000 Control systems 6350000 5360000 2850000 1860000 Accounting systems 6120000 5460000 1745000 1085000 76 802000 64 526000 41 261000 28 985000 TOTAL: We see, that implementation of only third case would require almost twice as less financial investments. However we cannot forget that it is only direct financial investments and these values would increase significantly, though proportionally, by adding indirect financial expenses associated with tariffs of designing, constructional, installation, taxes and other services. Reducing of petrol losses and selling recuperated petrol can gain return incomes directly. Indirectly incomes can be gained by minimising pollution tax and by changed taxation conditions to recuperated petrol (if excise duty or value-added tax is eliminated). We made three cases to compare: 1) existing, without petrol recuperating; 2) theoretical, where all quantity could be recuperated after implementing the I case, that is, total VOC would be transported by petrol tank trucks; 3) possible, when petrol throughput reduces, suppose 20%, because of the implementation of the II, III or IV cases the quantity of VOC, transported by petrol tank trucks would reduce respectively. Calculations are presented in the Table 11. Table 11 Case Parameter Existing Theoretical Possible Petrol throughput, t/year 395625 395625 316500 Recuperated petrol, t/year 0 593,44 474,75 1650 1650 1650 13 13 13 1250 1250 1250 Petrol selling price, Lt/t Pollution tax, Lt/t Sum of excise duty, Lt/t 12 Sum of value-added tax, Lt/t Revenue of recuperated petrol, Lt Revenue from decrease of pollution tax, Lt Revenue from elimination of excise for recuperated petrol, Lt Revenue from elimination of value added tax for recuperated petrol, Lt Sum of possible revenues, Lt 520 520 520 0 979172 783337 0 7715 6172 0 741800 593440 0 308589 246871 0 2037276 1629820 As we see, by comparing rate of possible revenue to quantity of possible investments, the most attractive is the IV case. Integrated financial demands for reconstruction of existing terminals and service stations Integrated value of direct financial demands of reconstruction of all existing Lithuanian terminals and service stations according to requirements of EU directive and LAND 352000 is presented in the Table 12 Table 12 Demand of direct financial Value of possible annual investment, Lt revenue, Lt Object Max Min Min Max Terminals 69 490600 54 794600 795778 1654121 Service stations 76 802000 28 985000 783337 1629820 146 2926000 83 644600 1 579115 3 283941 TOTAL: Thus, implementing attitudes of EU directives and LAND 35-2000 in working terminals and service stations during 2002-2003 years requires obtaining and assimilating from 54,8 mln Lt to 69,5 mln Lt of direct financial investments. In the other hand, real expenses may be larger, because indirect financial expenses would be added. Conclusions Executing common Lithuanian and Sweden project about EU directive 94/63/EC “Requirements of reduction of volatile organic compound emission into the ambient air for new installations of petrol storage reloading and distribution from terminals to service stations management” we can make conclusions: 1) Evaluation methodology conception of existing terminals and service stations meeting ES requirements served the purpose, in which technological, constructional environmental and economics aspects were excluded. Used methodology showed the complexity of 13 problem and variable of factor influence to main ES directive aim implementation- VOC elimination from human environment. Achieving this aim will depend on national cooperation between experts and consumers. 2) Situation analysis of main terminals, where petrol throughput is 93% of total petrol throughput in country terminals, showed: There are no terminals, which fully meet requirements of EU directive 94/63/EC. The most ready are JSC “Lietuva Statoil”. JSC ”Lukoil Kėdainiai” and JSC ”AveMatrox”; If total terminals capabilities are sufficient, then their technological level is inadequate and reconstruction is essential. Only in JSC ”Lietuva Statoil” terminal is using modern truck tanker bottom loading technology and petrol throughput is 2,26% of total throughput there. In other terminals rail way tanks and truck tanks is top loading, so 97.74% of total throughput in petrol terminals; If truck tanker bottom loading technology implementation will require only financial investments and time, then today implementation of rail ways tanks bottom loading is not possible, because: 1) There are no rail way tanks with bottom loading technology 2) There are no needed unloading installation in other terminals, it is impossible to do vapour balancing, and for that there is a need of changing construction of all operating rail way tanks 3) 52% total throughput of petrol terminals (70% SC “Mažeikių nafta” terminal petrol throughput) is petrol export to past Soviet Union republics and there are 1) and 2) factors also. 1) 2) 3) 3. Examining 69 tanks, which total capacity is 310680m3 only 12 meet EU requirements and their capacity is 28480 m3, it is only 9.17 % from total capacity of all tanks. From other side PE “Subaciaus kuro bazė” all unsatisfactory tanks are not used 2 years already. So, really 49 tanks are exploited, and only 12 from them are suitably installed; there are no petrol vapour recovery units (VRU) in terminals. According to that over 90 % of used petrol in Lithuania is with (MTBE) additives, so it is purposeful to use emission membrane procedure in VRU. According to research in JSC “Mazeikių nafta” terminal, which throughput is 74,5% of total petrol throughput in terminals we can see: really only petrol vapour collection in procedure of direct loading is possible and VOC amount depends on operation time and petrol vapour intensive. Although during loading vapour collection will be used, but during unloading it is impossible, because consumers don’t have suitable installation and rail tank is not applied for this too. It is important that 70% users – past SU republics, where EU directives are not applied. Left in rail way tank and gathered to terminal VOC amount is very low and according to statistic analysis, average concentration will not increase 43 g/m3 Accomplished analysis let to establish essential structure components of terminals reconstruction. It showed that expense are relateds to VRU, tanker truck bottom loading technology, automated tanks detection systems, terminals inventory statistical evaluation systems and monitoring, storage installations implementation or reconstruction. They can be calculated and evaluated according to variable suggestions of producers, but implementation of these procedures lets to control only 23,7% of total petrol throughput losses reduction to regulated level. Petrol loading to rail tanks and unloading from them in terminals technology reconstruction is 76,3% of total petrol throughput. Calculation of expenses is very complex task, and it depends on chosen reconstruction level in these procedures. In reality there are tree cases: 14 1) Reconstruction of JSC “Mažeikių nafta” terminal petrol loading to rail way tanks technology, unloading in other terminals technology and tanks construction (full construction); 2) Reconstruction of JSC “Mažeikių nafta” terminal petrol loading to rail way tanks technology, unloading in other terminals technology, not changed only tanks construction (construction of terminals); 3) Reconstruction of JSC “Mažeikių nafta” terminal petrol loading to rail way tanks technology, not changed unloading in other terminals technology and tanks construction (reconstruction of JSC “Mažeikių nafta” terminal); The third and the second cases are related to technical and financial problems, but the first case requires additional political decision and adequate actions in third countries, past SU region. 4.Analised alternative cases of terminal reconstruction showed: 1) Implementation of EU directives and LAND 35-2000 regulation in working terminals during 2002-2003 require to get and to assimilate from 54.8 to 69.5 millions Lt. Direct financial investments. 2) In reality expenses will be larger, because indirect financial expenses will join. 3) Possible minimal total profit yearly revenue because of recovered petrol selling, waste tax decreasing, excise and value added tax canceling for recovered petrol will be 1,45% of minimal direct investments, and maximal - 2,38% of maximal direct financial investments 4) Analysis of possible incomes factors showed that: incomes for recovered petrol can be 48% of total possible revenue incomes for waste tax decreasing can be 0,38% of total possible revenue. It shows present not effective influence of this factor to VOC management process. incomes for excise tax canceling for recovered petrol can be 36,1% of total possible revenue incomes for value added tax canceling for recovered petrol can be 15,1% of total possible revenue 5) Suggested alternative reconstruction cases in terminals “Mažeikių nafta”, “Juodeikių nafta” and “Subaciaus kuro bazė” will let to save 5% - 25% of direct investments. 6. Total throughput in 626 service stations is about 23% of total petrol throughput in country terminals, according to EU directives and LAND 35-2000 regulation, they are classified to 5 groups: 1) Service stations, which petrol throughput is over 1000 m3/year; 2) Service stations not in the towns, which petrol throughput is over 500 m3/year; 3) Service stations in the towns, which petrol throughput is over 100 m3/year; 4) Service stations not in the towns, which petrol throughput is under 500 m3/year; 5) Service stations in the towns, which petrol throughput is under 100 m3/year; Analysis of situation showed, that: The first group service stations number in total service stations amount is about 31% and their petrol throughput is 64 % of total throughput. Established that 84% of service stations in this group meet the requirements of EU directive and LAND 35-2000 regulation; The second group service stations number in total service stations amount is about 7,3% and their petrol throughput is 5,7 % of total throughput. Established that 52% of service stations in this group meet the requirements of EU directive and LAND 352000 regulation; The third group service stations number in total service stations amount is about 40,2% and their petrol throughput is 23% of total throughput. Established that 31% of service 15 stations in this group meet the requirements of EU directive and LAND 35-2000 regulation; The fourth group service stations number in total service stations amount is about 21,4% and their petrol throughput is 64,8% of total throughput. Established that 26,9% of service stations in this group meet the requirements of EU directive and LAND 352000 regulation. But to service stations of these group according to the requirements of EU directive 4 point and LAND 35-2000 regulation sub-point 27.2 can be applied exceptions; There are not service stations of the fifth group 6. Analysis of alternative cases of terminal reconstruction showed: 1) Implementation of EU directives and LAND 35-2000 regulation in working the first, second and third groups service stations during 2002-2003 require to get and to assimilate from 29 to 76.8 millions Lt. direct financial investments. 2) In reality expenses will be larger, because indirect financial expenses will join. 3) Possible minimal total profit yearly revenue because of recovered petrol selling, waste tax decreasing, excise and value added tax elimination for recovered petrol will be 2,7% of minimal direct investments, and maximal - 2,1% of maximal direct financial investments 7. Really implementation of EU directives and LAND 35-2000 regulation in working terminals and service stations during 2002-2003 require to get and to assimilate from 83,6 to 146,3 millions Lt. direct financial investments. Established reconstruction will make assumptions to manage VOC emission from petrol and to decrease their amount until 47%. 16 1. Petrol terminals After performing full assessment of accordance to EU directives of petrol terminals, including JSC “Klaipėdos nafta” terminal, presented in the 1st Appendix of this study, it is determined, that: only JSC “Klaipėdos nafta” terminal which only this year began to operate can be considered fully meet attitudes of EU directive 94/63/EC and with condition that stand of petrol tanks bottom loading will be implemented. The most ready among other terminals is JSC “Lietuva Statoil”, JSC “Lukoil Kėdainiai” ir JSC “AveMatrox”; if total terminals capability is sufficient, then their technological level is insufficient and reconstruction is required. Only in JSC “Lietuva Statoil” modern truck tanker bottom loading technology is used, and it’s petrol throughput makes 2.26% of total annual throughput in petrol terminals. In other terminals rail way tanks and truck tanks are top loading, that is 97.74% of total annual throughput in petrol terminals; If truck tanker bottom loading technology implementation will require only financial investments and time, today implementation of rail ways tanks bottom loading is not possible, because: 1) There are no railway tanks with bottom loading technology; 2) There is no needed unloading installation in other terminals, so it is impossible to do vapour balancing, and for that there is a need of changing construction of all operating railway tanks; 3) 52% of total throughput of petrol terminals (70% SC “Mažeikių nafta” terminal petrol throughput) is petrol export to past Soviet Union republics and there 1) and 2) factors also exists. Examining 74 tanks, which total capacity is 355680m3 only 17 meet EU directives requirements and their capacity is 73480 m3, that is only 20.65 % of total capacity of all tanks. From the other side all unsatisfactory tanks of PE “Subaciaus kuro bazė”, which comparative weight is 42.17% (150 000 m3) have not been used 2 years already. So, today 54 tanks are exploited, and only 17 of them are suitably installed; there are no petrol vapour recovery units (VRU) in terminals, except JSC “Klaipedos nafta”, where VRU and vapour burning unit (VBU) exist by the railway tanks filling trestle, but they are not functioning, because tank trucks and railway tanks are not filled there. Considering that above 90% of used petrol in Lithuania is with metiltetrbutileter (MTBE) additives, it is purposeful to use procedure of separation with membrane. According to that over 90 % of used petrol in Lithuania is with (MTBE) additives, so it is purposeful to use emission membrane procedure in VRU. Furthermore, according to research in JSC “Mazeikių nafta” terminal, which throughput is 74,5% of total petrol throughput in terminals we can see that: 1) really only petrol vapour collection in procedure of direct loading is possible and VOC amount depends on operation time and petrol vaporisation intensity; 2) Although during loading vapour collection will be used, but during unloading it is impossible, because consumers don’t have suitable installation and rail tank is not applied for this too. Even in JSC “Klaipedos nafta” terminal rail trestle where 17 vapour recovery unit exist, at best VOC can be only burned by VBU. It is also important that 70% users are past SU republics, where EU directives attitudes are not scheduled. 3) Left in rail way tank and gathered to terminal VOC amount is very low and according to statistic analysis, average concentration will not exceed 43 g/m3. Accomplished analysis let to establish essential structure components of terminals reconstruction. It showed that expenses are related to VRU, tanker truck bottom loading technology, automated tanks detection systems, terminals inventory statistical evaluation systems and monitoring, storage installations implementation or reconstruction. They can be calculated and evaluated according to various suggestions of producers, but implementation of these procedures lets to control only 23,7% of total petrol throughput losses reduction to regulated level. Petrol loading to rail tanks and unloading from them in terminals technology reconstruction is 76,3% of total petrol throughput. Calculation of expenses is very complex task, and it depends on chosen reconstruction level in these procedures. Generally there are four cases: 4) Reconstruction of JSC “Mažeikių nafta” terminal petrol loading to rail way tanks technology, unloading technology in all other terminals (including terminals through which petrol export is performed) and construction of all rail tanks. (full reconstruction of terminals and rail tanks); 5) Reconstruction of JSC “Mažeikių nafta” terminal petrol loading to rail way tanks technology, unloading technology in all other terminals, without changing rail tanks construction and export is performed only through JSC “Klaipedos nafta” terminal, that is by ships (full terminal reconstruction and minimisation of petrol export by rail) 6) Reconstruction of JSC “Mažeikių nafta” terminal petrol loading to rail tanks loading technology, unloading technology in other terminals, without changing rail tanks construction (terminals reconstruction); 7) Reconstruction of JSC “Mažeikių nafta” terminal petrol loading to rail way tanks technology, without changing rail tanks construction and unloading technology in other terminals (reconstruction of JSC “Mažeikių nafta” terminal); If the third, the second and the fourth cases are related to technical, financial and internal problems, the first case requires additional political decision and adequate actions in third countries, past SU region. 1.1. Terminals reconstruction program Considering to above presented conclusions and existing working conditions of all petrol terminals we prepared the program of all petrol terminals reconstruction wich can be implemented by one of four possible cases: 1 case Implementation of new technologies and installations: Implementation of vapour recovery units, their connection to terminal technological system; 18 Implementation of tank trucks bottom loading technologies, their connection to terminal technological system; Implementation of new tank trucks, fitted to bottom loading; Implementation and validation of automated tanks measuring systems; Implementation of piping tightness control and petrol vapour monitoring tools; Implementation and validation of terminal inventory statistical assessment systems. Reconstruction of existing installations: Reconstruction of stationery tanks: installation of seal rings and pontoons or change of existing inefficient pontoons to new, adequate to EU directive requirements, implementation of control tools and connection to terminal technological system; Reconstruction of rail tanks loading technology; Reconstruction of rail tanks unloading technologies in all terminals (including terminals through which petrol export is performed); Reconstruction of all rail tanks. 2 case Implementation of new technologies and installations: Implementation of vapour recovery units, their connection to terminal technological system; Implementation of tank trucks bottom loading technologies, their connection to terminal technological system; Implementation of new tank trucks, fitted to bottom loading; Implementation and validation of automated tanks measuring systems; Implementation of piping tightness control and petrol vapour monitoring tools; Implementation and validation of terminal inventory statistical assessment systems. Reconstruction of existing terminals: Reconstruction of stationery tanks: installation of seal rings and pontoons or change of existing inefficient pontoons to new, adequate to EU directive requirements, implementation of control tools and connection to terminal technological system; Reconstruction of rail tanks loading technology; Reconstruction of rail tanks unloading technologies only in Lithuania terminals; Reconstruction of all rail tanks. Reconstruction of petrol supply technologies: Expand possibilities of petrol supply using ships. To supply exported petrol only by ships through JSC Klaipedos nafta” terminal; Minimize number of rail tanks used in Lithuanian internal market, by eliminating from petrol supply technological process excess number of rail tanks; 19 3 case Implementation of new technologies and installations: Implementation of vapour recovery units, their connection to terminal technological system; Implementation of tank trucks bottom loading technologies, their connection to terminal technological system; Implementation of new tank trucks, fitted to bottom loading; Implementation and validation of automated tanks measuring systems; Implementation of piping tightness control and petrol vapour monitoring tools; Implementation and validation of terminal inventory statistical assessment systems. Reconstruction of existing terminals: Reconstruction of stationery tanks: installation of seal rings and pontoons or change of existing inefficient pontoons to new, adequate to EU directive requirements, implementation of control tools and connection to terminal technological system; Reconstruction of rail tanks loading technology; Reconstruction of rail tanks unloading technologies only in Lithuania terminals; 4 case Implementation of new technologies and installations: Implementation of vapour recovery units, their connection to terminal technological system; Implementation of tank trucks bottom loading technologies, their connection to terminal technological system; Implementation of new tank trucks, fitted to bottom loading; Implementation and validation of automated tanks measuring systems; Implementation of piping tightness control and petrol vapour monitoring tools; Implementation and validation of terminal inventory statistical assessment systems. Reconstruction of existing terminals: Reconstruction of stationery tanks: installation of seal rings and pontoons or change of existing inefficient pontoons to new, adequate to EU directive requirements, implementation of control tools and connection to terminal technological system; Reconstruction of rail tanks loading technology; Size of terminals reconstruction program and quantitative differences between possible cases provided in the Table 13 20 Nr. 1. 2. Reconstruction object and goal Installation of the first stage of terminal VRU for implementation of EU directive attitude (VOC rate 10-35 g/m3) Installation of terminal VRU second stage to implement LAND 35-2000 attitude (LOJ rate 150 mg/m3) Table 13 Case and number of objects 1 2 3 4 6 6 6 6 6 6 6 6 3. Reconstruction of terminal tanks 4 4 4 4 4. Implementation of automated terminal tanks measuring systems 4 4 4 4 5. Reconstruction of JSC “Mazeikiu nafta” rail trestle 1 1 1 1 6. Minimisation of rail tanks park 7. Reconstruction of rail tanks 8. Reconstruction of terminal rail tanks unloading stands 4 8 4 9. Implementation of terminal tank trucks bottom loading stands 5 5 5 5 10. Reconstruction of terminal tank trucks top loading stands 4 4 4 4 11. Implementation of terminal piping tightness control tools 7 7 7 7 12. Implementation of terminal petrol vapours monitoring tools 7 7 7 7 13. Implementation of terminal inventory statistical analysis system 6 6 6 6 250 1715 21 1.2. Evaluation of costs and outcomes of petrol terminals reconstruction Evaluation of direct financial investments needed to petrol terminal reconstruction illustrates Figures 4 – 7. 1 case thousands LT 50000 40000 30000 20000 10000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 12 13 Table cost position Min. Max. Figure 4. Distribution of reconstruction costs in the first case thousands LT 2 case 40000 35000 30000 25000 20000 15000 10000 5000 0 1 2 3 4 5 6 7 8 9 10 11 Table cost position Min. Max. Figure 5. Distribution of reconstruction costs in the second case 22 3 case Thousands LT 40000 30000 20000 10000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Table cost position Min. Max. Figure 6. Distribution of reconstruction costs in the third case 4 case Thousands LT 40000 30000 20000 10000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Table cost position Min. Max. Figure 7. Distribution of reconstruction costs in the fourth case As we see in Figures 4 – 7, most direct investments requires reconstruction of JSC “Mazeikiu nafta” terminal rail trestle which is essential in all cases. While estimating it is required to remember that real costs in every case would increase because of indirect financial investments, related with implementation of specific tool. The first case is more theoretic because of current economical and political conditions its practical realisation is impossible. The integrated assessment of arrangement of all terminals and services stations existing in Lithuania, according to requirements of EU directive and regulation LAND 35-2000, could be calculated in mathematical form: EV TI SB IS (1) 23 here EV – rate of investments economical assessment effectiveness Lt/t; TI – direct financial costs, Lt; SB – annual quantity of saved petrol, Lt; IS – annual VOC emission reduction, t. Values of EV investments economical assessment effectiveness rate EV (minimal – maximal) in cases would be: First case, thousands Lt/t 36,14 44,46 Second case, thousands Lt/t 33,35 33,73 Third case, thousands Lt/t 67,33 68,25 Fourth case, thousands Lt/t 134,27 205,45 24 2. Petrol service stations Total petrol throughput makes about 23% of total petrol throughput in state terminals and considering to EU directive and regulation LAND 35-2000 attitudes they are brought under 5 groups: 6) Service stations with petrol throughput above 1000 m3/year; 7) Service stations not in the city with petrol throughput above 500 m3/year; 8) Service stations in the city, with petrol throughput above 100 m3/year; 9) Service station not in the city, with petrol throughput under 500 m3/year; 10) Service stations in the city, with petrol throughput under 100 m3/year; After performing full analysis of petrol service stations working and assessment of accordance to EU directive 94/63/EC and LAND 35 – 2000 requirements it is determined that: The number of service stations of the first group in the common number of service stations makes about 31% and annual petrol throughput in them reaches 64% of general petrol throughput in service stations. It is determined that about 84% of this group accord to attitudes of EU directive and regulation LAND 352000; The number of service stations of the second group makes about 7,3% of the common number of service stations and annual petrol throughput in them reaches 5,7% of all petrol throughput in service stations. It is determined that about 52% of this group accord to attitudes of EU directive and regulation LAND 35-2000. The number of service stations of the third group makes about 40,2% of the common number of service stations and annual petrol throughput in them reaches 23% of general petrol throughput in service stations. It is determined that about 31% of this group accord to attitudes of EU directive and regulation LAND 352000; The number of service stations of the fourth group makes about 21,4% of the common number of service stations and annual petrol throughput in them reaches 6,8% of all petrol throughput in service stations. It is determined that about 26,9% of this group accord to attitudes of EU directive and regulation LAND 35-2000. But exceptions may be applied for the service station of these group accordingly to EU directive item 4 and LAND 35-2000 item point 27.2; Service stations of the fifth group do not exist; Service stations which need EU directive implementation (I, II and III group) and which technical level doesn’t meet requirements of EU directives reconstruction is essential – from new tanks to petrol accounting system, especially for petrol tanks and arterial pipes hermetic and vapour assembling. But there is no much time for that. From the other side, many tank trucks are not acceptable for assemble VOC, and promotion reduce petrol damages in reality. So, as alternative case, possible petrol throughput limitation and reducing in some II group service stations not in the cities until less than 500 m3/year, making possibility to accept EU directives and LAND 35-2000 exemptions. From the other side petrol in need in districts can satisfy 4 group service stations, by transfering such service station from the IV to the II group. Obviously that III group not suitable services stations can be compensated by larger capabilities of the I group service stations. 25 2.1. Petrol service stations’ reconstruction program Considering to above presented conclusions and existing petrol service stations working conditions we prepared reconstruction program of all petrol stations which includes: Implementation of new technologies and installations: Installation of new tanks with integrated fuel quantity accounting system; Implementation of installation of petrol vapour return to tanks their connection to service station’s technological system; Implementation of underground tanks state monitoring systems and groundwater impurity control equipment; Implementation of piping tightness control and petrol vapours monitoring tools; Implementation and validation of service station’s statistical evaluation systems. Reconstruction of existing installations: Modernisation of existing tanks; Modernisation of existing fuel dispensers; Modernisation of existing piping and other communications; This program can be realised by one of these possible four cases: 1 case. All existing service stations, which need implementation of attitudes of EU directive and LAND 35-2000 are reconstructed (100% of VOC emission from annual petrol throughput is recovered). 2 case. Not all existing service stations are reconstructed, but activity of not city existing service stations, which do not meet requirements of EU directive and LAND 35 –2000, is limited, by rationing petrol annual throughput (80% of VOC emission from annual petrol throughput is recovered); 3 case. Unsuitable service stations in cities are closed and in suitable service stations of cities throughput and capabilities of operating are increased (70% of VOC emission from annual petrol throughput is recovered); 4 case. Combined, when 2 and 3 cases are joined unified (50% of VOC emission from annual petrol throughput is recovered). In all cases the same structural components of service stations’ reconstruction plan are essential, differs only quantity and size of financial needs, which are provided in the Table 15. Table 15 Nr. Costs purpose Case and cost, thousands Lt 1 2 3 4 1. Tanks 18982 16276 10456 7750 2. Piping 5850 4530 4110 2790 3. Dispensers 39500 32900 22100 15500 4. Control systems 6350 5360 2850 1860 5. Accounting 6120 5460 1745 1085 systems TOTAL: 76802 64526 41261 28985 26 2.2. Assessment of petrol service stations reconstruction costs and outcomes As we see from the structure of petrol service stations’ reconstruction program (look to the Table 15), purpose of 1, 2 ir 3 costs directly pointed to reduction of petrol losses and VOC returning to the tank, purpose of item 4 costs is to realise service stations’ environmental control functions, and finally, costs of item 5 makes assumptions for management of VOC emission process. Evaluation of direct financial investments, needed for petrol service stations’ reconstruction is illustrated in Figure 8. Analysed possibilities of service stations reconstruction’s alternative cases showed that: 40000 thousands Lt 35000 30000 25000 20000 15000 10000 5000 0 Tanks Piping 1 case 2 case Dispenser 3 case Control systems Accounting systems 4 case Figure 8. Distribution of service stations’ reconstruction costs As we see, implementation of the second and the third case would require the least of financial investments. But it is only direct financial investments and these values will significantly increase, although proportionally, by adding indirect financial costs related with designing, constructing and mounting works, tariffs of taxes and other services. Evaluation of integrated arrangement of all petrol service stations according to attitudes of EU directive and LAND 35-2000 on a country scale will be performed according to already discussed equation (1). Values of effectiveness rate EV of service stations’ reconstruction in cases would be: First case, thousands Lt/t 127,86 Second case, thousands Lt/t 134,37 Third case, thousands Lt/t 97,75 Fourth case, thousands Lt/t 96,11 27 3. Preliminary assessment of petrol terminals and service stations reconstruction outcomes According to executed research for implementing of attitudes of EU directive 94/63/EC and LAND 35-2000 in operating terminals and service stations until 2008 year from 84,9 mln Lt to 201,3 mln Lt of direct investments must be received and assimilated. Really, costs will be larger, because indirect financial costs will be added. Implemented reconstruction would make assumptions to manage VOC emission from petrol and to reduce significantly its quantity by 47% - 84%, dependently on chosen reconstruction cases realisation. Executing petrol terminals and service stations reconstruction according to presented plan of actions for implementation of attitudes of EU directive 94/63/EC and LAND 352000 in existing terminals and service stations until 2008 years from 86,3 mln Lt to 116,8 mln Lt of direct investments must be received and assimilated. Performed reconstructions would make assumptions to manage VOC emission from petrol and significantly reduce their quantity by 67% - 84%, dependently on how much scheme of petrol supply for export will be reoriented, petrol supply by rail will be eliminated or reduced. In any case, a very important element in implementing petrol terminals and service station reconstruction action plans could be elimination value added tax and excise duty for recuperated petrol or increasing of pollution tax. 28