Proposal for a Council Directive amending Directive 88/609/EEC on the limitation of emissions of certain pollutants into the air from large combustion plants
Date: 1998-07-08
Institutions: European Commission
Subjects: air quality, chemical process, environmental protection, pollution control measures, technological change

COMMISSION OF THE EUROPEAN COMMUNITIES 

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Brussels, 08.07.1998 
COM(1998) 415 final 

98/0225 (SYN) 

Proposal for a 
COUNCIL DIRECTIVE 

amending Directive 88/609/EEC on the limitation of emissions of 
certain pollutants into the air from large combustion plants 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

1. 

INTRODUCTION 

2.  OBJECTIVES 

3.  LEGAL BASIS AND MAIN ELEMENTS OF THE PROPOSAL 

4.  SUBSIDIARITY  AND PROPORTIONALITY 

5.  CONSISTENCY  WITH OTHER COMMUNITY  POLICIES 

5.1. 

Integrated Pollution Prevention and Control 

5.2.  Waste management 

5.3.  Energy efficiency  and renewable energy 

6.  POSITION OF STAKEHOLDERS 

7.  ECONOMIC ASSESSMENT 

7.1.  Estimation of costs 

7.2.  Quantification  of benefits 

.. 

7.3.  Cost effectiveness  analysis 

7.4. 

Impact of the Proposal on Business as a whole 

7.5. 

Impact of the Proposal on SMEs 

8.  CONCLUSIONS 

3 

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6 

7 

7 

8 

8 

9 

10 

10 

11 

13 

13 

14 

14 

9.  CONTENTS OF THE PROPOSAL 

:.... 15 

ANNEX 

10.  THE CURRENT SITUATION  IN TillsEU 

10.1.  Legislation in the Member States 

10.2.  Inventory of Emissions 

2 

20 

20 

20 

20 

EXPLANATORY  MEMORANDUM 

1. 

INTRODUCTION 

On  24  November  1988,  Council  Directive  88/609/EEC  on  the  limitation  of 
emissions  of  certain  pollutants  into  the  air  from  large  combustion  plants  (LCPs) 
was adopted. 

This Directive  - known  as the LCP Directive  - made a valuable  contribution to the 
reduction  of  air pollution  in the  Community.  However,  in the present  context,  two 
new  challenges  have  to  be  taken  into  account:  the  increasing  importance  of 
combating  acidification  and  ground-level  ozone, as part of an overall  action  against 
air pollution, and technical progress in the large combustion plant sector. 

Combating acidification and ground-level ozone 

In March  1997 the  Commission  adopted  a  Communication  to  the  Council  and  the 
European  Parliament  for  a Community  strategy  to  combat  acidification  in  response 
to a request from  the Council inviting the Commission to set interim targets towards 
the ultimate objective of no exceedance of critical loads1. 

The  Communication  includes  as  one  element  in  the  strategy  the  revision  of 
Council Directive  88/609/EEC. The reason  for this is that large combustion  plants -
i.e.  those  with  a  thermal  input  of  50  MW  or  more  -  account  for  63%  of 
sulphur dioxide (SO2) emissions and 21% of nitrogen oxides (NOx) emissions in the 
EU2.  Furthermore,  analysis  has  shown  that  reducing  emissions  from  new 
large combustion  plants  on  an  EU-wide  basis  is  a  cost-effective  part  of  the 
Acidification  Strategy3. 

Since  NOx  is  also  a  precursor  for  the  formation  of  ground-level  ozone  -  together 
with  volatile  organic  compounds,  VOC  -  the  relatively  large  share  of  total  NOx 
emissions  from  LCPs  indicates  the  importance  of  controlling  their  emissions  also 
with regard to this problem. 

Further  reductions  in  emissions  from  existing  large  combustion  plants  will  be 
covered  by  the  Directive  on  National  Emission  Ceilings  to  be  proposed  by 
the Commission. 

Technical progress in the large combustion plant sector 

Technical progress in the LCP sector can be divided into two categories: 

• 

advances in techniques for reducing emissions from  traditional boilers; 

•  growth towards technical maturity of gas turbine technology. 

COM(97) 88 final, 12.3.1997. 
Source: COR1NAIR 1990. 
NASA (1997) Cost-effective  control  of acidification  and  ground-level  ozone.  Second  interim  report to 
the European Commission, DG XI. 

3 

3 

With  regard  to  SO2 reduction  from  traditional  boilers,  Flue  Gas  Desulphurisation 
(FGD) systems have improved considerably over the last decade, notably in terms of 
the  SO2 removal  efficiency  and  reliability  of  operation  at  lower  cost,  so  that  they 
now  have  a  minimal  effect  on  power  plant  operation.  The  most  commonly  used 
technique  is wet scrubbing, in particular  lime/limestone  wet scrubbing, with a share 
of about 90% of total FGD capacity in Germany4 and 75% world-wide. 

technique  being 

With  regard to NOx reduction  from  traditional boilers, the construction  of  so-called 
"deNOx"  facilities  has  become  widespread  in  electrical  power  plants  firing  hard 
coal. NOx  emissions  from  electric  power  plants  in the territory  of the  former  West 
Germany  dropped  from  750  kt  in  1984  to  190  kt  in  1992,  the  most  frequently 
applied 
the  Selective  Catalytic  Reduction  (SCR)  process. 
Meanwhile, worldwide  operating  experience  in  primary  measures  such  as  low NOx 
burners,  which  aim  to  reduce  NOx  formation  at  flame  level  by  acting  on  the 
combustion  parameters,  has  been  gained.  Virtually  all  new  combustion  plants  now 
incorporate  primary measures  since these  combustion  methods  for  minimising NOx 
can be included  at the design  stage at relatively  low cost. Complementary  reduction 
can then be achieved by secondary measures such as SCR. 

With  regards  to  gas  turbine,  the  rapid  increase  in  their  use  as  basic  units  of 
electricity  production  since  the  early  1990s  has  started  to  modify  considerably  the 
electricity production  sector. 

The  following  forecasts  for  the  installation  of  new  electricity  production  units 
containing combustion appliances5 serve to demonstrate this development within the 
EU 15: 

Between  1996-2000  Between 2000-2010 

Coal, lignite or liquid fuel  25 GW(thermal input)  30 GW(thermal input) 

Natural  gas 

70  GW(thermal  input) 

150  GW(thermal  input) 

NB:  the conventional thermal capacity for electricity generation was estimated at 

700 GW(thermal input) in 1995. 

This  relatively  recent  growth  can  be  seen  as the  result  of  a combination  of  several 
factors. These include: 

• 

• 

the  development  of  the  infrastructure  for  the  production  and  distribution  of 
natural gas; 

the advantages of using  natural  gas  in terms  of both  ease  of exploitation  and 
environmental  protection, the specific emission factor  for CO2 being less than 
half that of coal; 

• 

the technical maturity now reached by gas turbine technology; and 

In the territory of former  West Germany,  1992  figures. 

4 
5  Deduced  from  Eurelectric  &  Unipede  EURPROG  report  Î997,  Programmes  $nd  Prospects  for  the 

European  Electricity  Sector. 

• 

the wide variety of possible combinations  for  organising installations  in such 
a way as to optimise the overall efficiency  in fuel  use, in particular by means 
of Combined Heat and Power generation (CHP). 

It  should  also  be  kept  in  mind  that  the  forthcoming  liberalisation  of the  electricity 
market6  will  create  a new  competitive  environment  which  is  likely  to  increase  the 
significance  of the above factors. 

2.  OBJECTIVES 

The  proposed  amendment  of  Directive  88/609/EEC  seeks  to  integrate  into  the 
original  Directive  the  technical  progress  achieved  in  the  LCP  sector  over  the  last 
15 years. This will serve: 

• 

• 

to  contribute  to  achieving  acidification  targets  in  accordance  with  the 
Commission Acidification  Strategy of  1997 and in a cost-effective  way; 

to  further  reduce  health  risks,  in  particular  those  related  to  small  suspended 
particles  as well  as those  related  to  the  formation  of  tropospheric  ozone  for 
which  nitrogen  dioxide  (NO2)  is  an  important  precursor.  The  reduced 
emissions  resulting  from  the  proposed  amendment  will  contribute  to  the 
achievement  of air quality targets for  SO2, NOx, particulates  and ozone to be 
established  pursuant  to  Council  Directive  96/62/EC  on  ambient  air  quality 
assessment and management7. 

3.  LEGAL BASIS AND MAIN ELEMENTS OF THE PROPOSAL 

Since  the  proposed  amendment  seeks  to  protect  and  improve  the  quality  of  the 
environment  as well  as to protect  human  health, the legal  basis  for  the  Proposal  is 
Article  130s(l) of the Treaty. 

The central elements of this revision concern 

• 

• 

the updating of the emission limit values applicable to combustion plants put 
into operation after  [1/1 /2000] ; and 

the extension of the scope to include gas turbines. 

The other new aspects of the Proposal include: 

• 

the  updating  of  the  scope  of  fuels  covered,  notably  by  clarifying  the 
relationship  with  the  Directives  dealing  with  waste  incineration  and  by 
addressing the use of biomass as a source of energy; 

• 

the promotion of the development of combined heat and power generation; 

Council  Directive  96/92/EC  concerning  common 
19 December  1996. 
Commission  Proposal  COM(97)  500  final  for  a Council  Directive  relating  to  limit  values  for  sulphur 
dioxide, oxides  of nitrogen,  particulate  matter  and  lead  in ambient  air.  A  further  Proposal  concerning 
inter alia levels of tropospheric ozone  is under preparation  by the Commission services. 

internal  electricity  market, 

rules  for 

the 

• 

• 

• 

the updating of provisions concerning abnormal operating conditions; 

the  reinforcement  of  provisions  concerning  monitoring  of  emissions 
(including 
installations)  and  compliance  with 
limit values; 

from  existing 

those 

the updating of provisions concerning the annual emissions inventory for SO2 
and  NOx  to  include  data  from  both  new  and  existing  installations  on  an 
individual  basis and to include  data concerning  energy consumption  in order 
to provide information  on trends in emission factors. 

It  can  be  seen  from  the  above  that  the  proposed  amendment  constitutes  an 
improvement  and  updating  of  the  provisions  of  Directive  88/609/EEC,  mostly 
relating  to  new  installations.  For  this  reason  an  in-depth  analysis  of  alternative, 
market-based  instruments  has  not  been  carried  out  at  this  stage.  Such  measures 
could  be envisaged  at a later  stage, once more  experience  has  been  gained,  notably 
in the context of the Kyoto protocol on climate change. 

4.  SUBSIDIARITY AND  PROPORTIONALITY 

The  pollution  caused  by  large  combustion  plants  is  of  a  transboundary  nature. 
Acidifying  pollutants  and  ozone  precursors  can  be  carried  over  distances  of 
hundreds  or  thousands  of  kilometres  before  being  deposited  in  the  environment  in 
the  form  of "acid  rain" or  leading to ground-level  ozone  episodes.  Thus, emissions 
of  acidifying  pollutants  and  ozone  precursors  generated  in  one  Member  State  can 
contribute  to  environmental  degradation  in  other  Member  States.  It  is  therefore 
necessary  to  introduce  legislation  setting  the  same  minimum  requirements  for  the 
whole  of  the  Community  rather  than  leaving  it  to  the  initiative  of  individual 
Member States. 

Apart from  Directive  88/609/EEC, several  Community  legislative  measures  relating 
wholly or partially to acidifying  pollutants and ozone precursors are already in place. 
These include Council Directives 70/220/EEC and 88/77/EEC relating to the control 
of  emissions  from  vehicles,  Directive  94/63/EC  on  VOC  recovery  from  petrol 
storage  and  distribution,  Directive  84/360/EEC  on  the  combating  of  air  pollution 
from  industrial plants, Directive 93/12/EEC relating to the sulphur content of certain 
liquid  fuels,  Directive  96/61/EC  on  integrated  pollution  prevention  and  control 
(IPPC), and Directive 96/62/EC on ambient air quality assessment  and management. 
By  improving  the  provisions  relating  to  large  combustion  plants  the  proposed 
amendment  will  contribute  to  the  completion  of  the  legislative  framework 
concerning  acidifying  pollution  and  ozone  precursors.  It  will  be  complemented  by 
the proposal  for  a Directive  on national  emission  ceilings due to be put  forward  by 
the Commission by the end of  1998 or early  1999. 

Action  at  Community  level  is  further  embedded  in  a  framework  of  broader 
the  1979  UN-ECE  Convention  on 
international  activities,  notably  within 
Long-Range Transboundary Air Pollution (CLRTAP). 

In  accordance  with  the  principle  of  subsidiarity  the  proposed  amendment  leaves 
Member States the possibility: 

• 

• 

to introduce stricter standards than those set out in the measure; 

to  allow  industry  to  opt  for  the  best  available  techniques  in  the  context  of 
local conditions. 

It  is,  however,  essential  that  the  measures  adopted  are  sufficiently  strict  to  ensure 
adequate  protection  of  the  environment  and  that  they  are  the  same  throughout  the 
Community.  The  measures  contained 
the  proposed  amendment  are 
complementary  to  the  "Best  Available  Techniques"  approach  established  by  the 
IPPC  Directive  96/61/EC  and  are  based  on  a  careful  consideration  of  the  costs  as 
well as the benefits of the action. 

in 

It is important to note in this respect that: 

• 

• 

since the revised emission limit values will apply only to new installations the 
cost burden of the proposed measures will be modest; 

as  well  as  helping  to  reduce  acidification  and  ground-level  ozone  the 
proposed  measures  will  contribute  to  the  achievement  of  air  quality  targets. 
They will also lead to reductions in eutrophication and corrosion of buildings 
and monuments, to which long-range transport of NOx and SO2 contributes. 

5.  CONSISTENCY WITH OTHER COMMUNITY  POLICIES 

5.1.  Integrated Pollution Prevention and Control 

The  prevention  and  control  of  pollution  from  large  industrial  sources  is 
governed  by  Council  Directive  96/61/EC  on  Integrated  Pollution  Prevention 
and Control (IPPC). The IPPC Directive contains provisions for the permitting 
of  industrial 
installations  based  on  an  integrated  assessment  of  their 
environmental  performance.  Combustion  installations  with  a  rated  thermal 
input exceeding 50 MW are included within the scope of the Directive. 

In  addition  to  the  permitting  requirements,  the  IPPC  Directive  requires 
emission limit values to be set at Community level in cases where the need  for 
such action has been identified8.  In the absence  of such Community  emission 
limit values, relevant  emission  limit values  contained  in  existing  Community 
legislation  are  to  be  applied  as  minimum  emission  limit  values  for  IPPC 
installations.  These  Community  emission  limits  provide  a  safeguard  against 
over-flexible  interpretation  of the IPPC Directive. 

In  view  of  the  urgency  of  updating  the  emission  limit  values  for  new 
legal  requirement 
installations  in  Directive  88/609/EEC/EEC,  and  the 
contained  in  the  Directive  to  do  so,  revised  values  have  been  based  on 
currently  available  techniques  considered  best  for  the  minimisation  of 
atmospheric  emissions  of  SO2, NOx  and  dust.  Full  consistency  between  the 
IPPC approach and the current proposed amendment of Directive  88/609/EEC 
has been achieved  by taking care that the revised emission  limit values do not 
hinder the overall environmental performance  of the installations. 

8  Council  Directive 96/61/EC, Article  18(1). 

5.2.  Waste management 

At  present  there  are  three  measures  dealing  with  the  incineration  of 
waste: Directives  89/369/EEC  and  89/429/EEC 
for  municipal  waste 
(corresponding to new or existing installations respectively) and 94/67/EC for 
hazardous waste. 

Directive  94/67/EC  also  deals  with  cases  where  an  installation  not  primarily 
intended  for  the  incineration  of  hazardous  waste  is  supplied  with  hazardous 
waste (co-incineration). This includes any large combustion  installation  using 
such waste as substitute  fuel. 

The  current  Directive  88/609/EEC  excludes  from  the  definition  of  fuels 
domestic refuse  and toxic and hazardous waste. In order to avoid any overlap 
with  the  existing  legislation  on  waste  this  exclusion  now  refers  directly  to 
Council Directives 89/369/EEC, 89/429/EEC and 94/67/EC. 

5.3.  Energy efficiency  and renewable energy 

The  European  Union  has  a  general  policy  of  promoting  energy  efficiency  in 
the  context  of  commitments  resulting  from  the  Kyoto  Protocol  on  the 
reduction of greenhouse gas emissions. 

Several  measures  in line with this policy are in progress at Community  level. 
Among  them,  is  a  strategy9  recently  published  by  the  Commission  for  the 
promotion of combined  heat and power  (CHP), also known  as  co-generation, 
which can convert up to 85-90% of the energy content of the fuel,  instead of a 
mere 35-50% in conventional  installations. Such increased fuel  efficiency  will 
contribute to a reduction in CO2 emissions as well as energy resource savings. 

The  Commission  Communication  draws  attention  to  the  various  barriers  to 
the  development  of  CHP.  The  proposed  amendment  will  contribute  to  the 
dismantling of some of these barriers by requiring that this option is explored 
whenever a new installation is designed. This is consistent with the  objectives 
and requirements of Directive 85/337/EEC as amended by Directive 97/11/EC 
on the  assessment  of the  effects  of certain  public  and  private  projects  on the 
environment,  and  in  particular  with  the  requirement  to  include  in  the 
information  to  be  provided  by  the  developer  to  the  competent  authority  the 
main  alternatives  studied  by  the  developer  and  an  indication  of  the  main 
reasons of the proposed choice. 

Recovery  of  energy  from  biomass  represents  as  well  one  other  means  of 
implementing  sustainability,  since  it  has  the  double  benefit  of  exploiting 
an important  renewable  energy  resource  and  contributing  to  a  reduction  in 
CO2 exceedance. 

In  the  new  Member  States  -  Austria,  Finland  and  Sweden  -  this  renewable 
source  currently  accounts  for  12%,  23%  and  18%  respectively  of  primary 
energy supply. 

COM(97)514  final  "A  Community  strategy  to  promote  CHP  and 
its development". 

to  dismantle  barriers  to 

8 

According to the Commission  White Paper "Energy for the future,  renewable 
sources of energy"10 the overall volume of the solid vegetable biomass market 
is estimated  at 57 Million tonnes oil equivalent  (Mtoe) in 2010, the  projected 
feedstocks  mainly being energy crops and woody residues.  32 Mtoe could go 
to  power  generation  in  co-firing  plants  in  combination  with  coal  and  in 
combined heat and power installations. 

For this reason, it has been decided to consider biomass explicitely as a fuel in 
order to provide fair requirements for this type of fuel. 

6. 

POSITION OF STAKEHOLDERS 

Extensive consultation  has taken place with the principal stakeholders concerned by 
the  proposed  amendement,  namely  the  Member  States,  industry  and  business 
organisations and environmental Non Governmental Organisations (NGOs)11. 

Industrial interests were represented by: 

UNICE; 

• 

• 

• 

• 

EURELECTRIC for the electricity supply industry; 

COGEN Europe for the promotion of cogeneration; 

EUROPIA for the petroleum industry; 

CECSO for the solid fuel  industry; 

•  MARCOGAZ for the natural gas industry; 

• 

European  gas  turbine  manufacturers  and  associations  (EGT,  Rolls  Royce, 
VDMA, EUMIGT). 

These  consultations  revealed  a  general  support  for  the  Proposal  and  focused 
primarily on the emission limit values for new installations and on definitions. 

On  the  emission  limit  values, the  stakeholders  were  divided  as  to  the  stringency. 
Special  emphasis  was  put  on  the  need  for  a  fair  burden  sharing  between 
installations using different  types of fuel. 

On the definitions, discussions mainly concerned the issue of waste and biomass. A 
majority  of the stakeholders, in particular the Nordic countries, supported  by EEB, 
were in favour of excluding waste while including biomass in the definition  of  fuels 
in order to promote the use of renewable energy sources. 

10 

ii 

White Paper for a Community Strategy and Action Plan COM(97) 599 final (26/11/97) - Annex II. 1. 
Represented by European Environmental  Bureau (EEB). 

7. 

ECONOMIC ASSESSMENT 

The  expected  costs  and  benefits  of the proposed  amendment  have  been  calculated 
over  the  period  2000-2010.  It  should  be  emphasised  that  a  large  majority  of  the 
costs  of the proposed  amendment  form  part  of those  of the  Acidification  Strategy 
adopted  by  the  Commission  in  1997,  and  therefore  do  not  represent  additional 
costs. 

Figures presented  below correspond to a benefit  to cost ratio greater than seven  for 
boilers and greater than 26 for gas turbines. Since a large majority  of the  quantified 
benefits  relate  to  mortality,  these  ratios  are  approximately  proportional  to  the 
Value of  Statistical  Life  used  in  the  benefits  calculation12.  By  contrast  they  are 
largely insensitive to the discount rate used to calculate Net Present Values (NPV). 

It should be noted that both the costs and the benefits  indicated below are generally 
overestimated  to  the  extent  that  some  Member  States  already  have  national 
provisions  stricter  than  those  of  Directive  88/609/EEC,  however  this  does  not 
significantly  affect  the benefit to cost ratio. 

7.1.  Estimation of costs 

The  expected  costs  have  been  calculated  by  estimating  both  the  projected 
capacity of installations  to be commissioned  during this period  and  the extra 
costs per unit of capacity as a result of the proposed  amendment. 

Projections  of the capacity of boilers to be commissioned  between  2000 and 
2010 are from  Eurelectric13 and gas turbines from  a European  manufacturer14. 
These  suggest  30  GW(thermal input) of  new  boiler  capacity  for  the  electricity 
generation  industry  with  nearly  none  in  other  industrial  sectors  and  a 
150 GW(thermal  input)  increase  in  gas  turbine  capacity.  The  gas  turbine 
capacity  can  be  divided  roughly  by  attributing  one  third  to  electricity 
generation  and  two  thirds  to  other  industrial  sectors.  This  is  consistent  with 
current Commission energy projections and other EC policy on the promotion 
of combined heat and power. 

With  regard  to  the  extra  costs  per  unit,  data  have  been  drawn  from 
preparatory  work15  and  supplemented  by  further  data  from  gas  turbine 
manufacturers.  The calculation  has been  based  on a comparison  between  the 
emission  limit values (ELVs) contained  in the current  Directive  88/609/EEC 
and ELVs in this Proposal. 

12  A figure of ECU 3 million has been used here - see footnote 23. 
13  Eurelectric  &  Unipede  EURPROG  report  1997,  Programmes  and  Prospects  for  the  European 

Electricity Sector. 
14  European Gas Turbines. 
15  ERM  ( i 996)  Revision  of  the  EC  Emission  Limit  Values  for  New  Large  Combustion  Installations 

>50 MW(thermal)) - known as "ERM LCP BAT study". 

10 

The total extra cost of the measures to reduce  S02, NOx and total  suspended 
particulates  (TSP)  from  boilers  is estimated  to  be  ECU 800 million'6  for  the 
period  2000-2010.  The  total  cost  of  measures  to  reduce  NOx  from  gas 
turbines is estimated at ECU  1  200 million for the same ten-year period. 

7.2.  Quantification  of benefits 

Using  the  same  basis  of  calculation  as  for  costs,  the  proposed  amendment 
is expected  to  lead  to  the  following  emission  reductions  over  the  period 
2000-2010: 

• 

• 

• 

1  000 kT of S02 from boilers; 

4 000  kT  of  NOx,  of  which  500  kT  from  boilers  and  3 500  kT  from 
gas turbines; 

100 kT of TSP. 

The expected  benefits  associated  with  these  reductions  relate  to  the  harmful 
impact  on  the  environment  and  on  human  health  caused  by  the  release  of 
these pollutants from  large combustion plants. 

There  are  several  adverse  effects  on  human  health  resulting  from  SO2, NOx 
and TSP pollution.  The main  impact  is on the  respiratory  function,  which  is 
affected  by all the pollutants. In addition, SO2 is directly toxic, NOx  increases 
reactivity  with  other  allergens,  while  exposure  to  TSP  has  been  shown  to 
increase mortality and morbidity, even at low levels17. 

Crops are also degraded by the presence of excess SO2 and NOx, although in 
small  amounts both  are beneficial  to plant  development.  However,  at  higher 
concentrations plant function  can be impaired  and notable damage  sustained, 
resulting in reductions in crop yield and ecosystem amenity. 

Building  materials  are  damaged  by  SO2 and  NOx  and  discoloured  by  TSP. 
Both  S02  and  NOx,  hasten  weathering  because  of  their  acidity,  while  TSP 
"soils" buildings, necessitating cleaning in many cases. 

Monetary valuation of these impacts has been carried out in the context of the 
ExternE18  projects,  taking  into  account  only  the  damage  to  human  health, 
materials  and  crops.  Damage  to  other  kinds  of  receptors  such  as  forests, 
fisheries  and  natural  ecosystems  have  been  excluded  since  the  estimation  of 
damage to these is subject  to an unacceptable level of uncertainty. 

16  This  represents  a  present  value,  which  is  the  sum  of  the  discounted  capital  and  operating  costs  of 
measures  to  reduce  emissions.  Discounting  is  a  procedure  to  create  a  value  to  make  costs  occurring 
over time comparable. A discount rate of 8% has been selected, all costs are given  In  1995 prices. 
17  The  mechanism  by  which  particulate  matter  affects  health  is  not  presently  known.  The  most  recent 
research  suggests  that  it  is  the  smaller  particles  (such  as  those  from  primary  combustion  sources  and 
secondary particulate matters) which are most strongly  linked to health  effects. 
ExternE  project  (Accounting  framework  of  external  costs  of  fuel  cycles)  JOULE  programme  EC 
DG XI). 

18 

' 

11 

Approximately  99%  of  the  quantified  benefits19  arising  from  the  proposed 
amendment  are  related  to  human  health  effects20  - of  which  the  largest  part 
is mortality  -  with  the  remainder  representing  reductions  in  damage  to 
crops and building  materials. The table below presents the breakdown  of the 
quantified  benefits  by category for boilers and gas turbines, estimated  for the 
ten-year period. 

Breakdown  of the quantified benefits from reducing emissions from  boilers and 
gas turbines over the period 2000-2010 

Benefit  Category 

Boilers 
(ECU million) 

Gas  Turbines 
(ECU million) 

Crops 

Materials 

Acute Morbidity 

Chronic Morbidity 

Acute Mortality 
Chronic Mortality21 

Total 

-1 

40 

270 

15 

1  300 

4 700 

6 324 

150 

1  400 

70 

6 500 

24 000 

32 120 

The benefits from boilers are aggregated for each benefit category for S02, NOx and TSP. 

The benefits from gas turbines are related only to NOx reductions. 

c  A  negative  sign  represents  a  damage  rather  than  a  benefit  as  presented  elsewhere  in 

this table. 

The  net  benefit22'23  from  the  reductions  in  emissions  is  estimated  at 
ECU 6 000  million  for  boilers  and  ECU 32 000  million  for  gas  turbines.  It 
should be noted that it is not necessary to include the least certain elements of 
the benefit  evaluation  -  in  particular  those  related  to  mortality  -  in order  to 
justify  the  costs  of  the  proposed  amendment  for  the  same  ten-year  period 
(ECU 800 million for boilers and ECU  1  200 million for gas turbines). 

Benefits  also accrue to countries that have no costs of abatement, as there are 
reductions  in transboundary  pollution  with  a resulting  downward  impact  on 
local  concentrations  which  are detrimental  to health,  crops  and  materials. In 
addition, the monetary benefits  for non-EU countries are not included in these 
estimates.  In  the  case  of  Member  States  in  the  border  regions  failure  to 

19 

20 

21 

22 

The term "quantifiable benefit" is used to mean a benefit to which a monetary value can be attached. 
ERM (1997) Revision of the Council Directive 88/609/EEC of 24 November  1988 on the Limitation of 
Certain  Pollutants into the Air from Large Combustion Plant: Cost Benefit Analysis of this Revision. 
Chronic  mortality  refers  to  the  increased  risk  of  death  associated  with  an  exposure  to  a  particular 
environmental  stress over a long  period;  long term exposure  to-coal  dust results  in some  instances in 
respiratory diseases later in life. 
These  values  are calculated  as a Net  Present  Value  (NPV)  over  ten years, which  is deemed to be the 
lifetime of the proposed amendment  although benefits  will continue to accrue. 
ECU 3 million  (1995  prices) has been  used  to represent  the value of a statistical  life  for  both acute and 
chronic effects  on human health. 

12 

include  these  benefits  will  result  in  an  underestimation  of  the  total  benefit 
from emission reductions from the power plants in that Member State. 

7.3.  Cost effectiveness  analysis 

As part  of the preparatory  work undertaken  for  the proposed  amendment,  an 
assessment  of Best Available Techniques  (BAT) has been  completed24.  This 
assessment,  based  on  a definition  for  BAT  consistent  with  IPPC,  includes  a 
cost  effectiveness  analysis calculated  in terms of cost per tonne  of  pollutant, 
in  the  context  of  progressing  from  unabated  operation  to  compliance  with 
emission levels consistent with BAT. 

The  values  given  below  are  calculated  in  the  context  of  progressing  from 
compliance with the existing ELVs to compliance with the ELVs contained in 
the proposed  amendment. 

For  S02,  the  estimated  values  lie  within  the  range  ECU 400-800  per  tonne 
removed  for  the  larger  plants.  For  smaller  plants  they  may  be  in  the  range 
ECU  1  000-2 000  per  tonne  where  abatement  equipment  is  used,  although 
the alternative  of  using  low  sulphur  coal  is  likely  to  cost  less  than 
ECU  1  000 per tonne not emitted. 

For TSP, the figure  is of the order of ECU  1  000 per tonne removed, although 
it may vary from zero to 2 000 depending on each specific case. 

For  NOx,  costs  are  estimated  at  less  than  ECU 500  per  tonne  not 
emitted where the  proposed  ELVs  can  be  achieved  using  primary  measures, 
as will  be  the  case  for  most  installations.  Where  primary  measures  need  to 
be complemented  by  flue  gas  denitrification,  costs  may  be  as  high  as 
ECU  1  500-2 000 per tonne removed. 

Since  gas  turbines  are  not  yet  regulated  at  Community  level,  costs  are 
estimated  on  the  basis  of  a  complete  abatement  by  means  of  combustion 
measures in order to comply with the proposed  ELVs. They  are estimated  to 
be  between  ECU 200  and  400  per  tonne  of  NOx  not  emitted,  depending  on 
the size of the turbine. 

7.4.  Impact of the Proposal on Business as a whole 

The  proposed  amendment  only  affects  new  plants  to  be  commissioned  after 
2000. Of the above estimated ECU 2 billion cost of the modification  over the 
period  2001-2010,  approximately  ECU  1.2  billion  will  be, borne .,by. the 
electricity supply industry and ECU 0.8 billion  by other industrial sectors. 

For the other industrial  sectors there are a few key energy-intensive  industries 
that  are  likely  to  bear  a  large  part  of  the  cost.  These  include  petro-chemical 
industry,  ferrous  and  non-ferrous  metal  production  and  processing,  pulp and 
paper  as  well  as  some  agricultural  product  processing.  In  many  cases  it  is 
likely  that  the  extra  costs  will  be  offset  by  the  benefits  provided  by  the 

24  BR M LCP BAT study - see footnote  15. 

13 

development of CHP techniques. It is therefore  highly likely that no cost will 
be passed on to the consumers of the products. 

For  the  electricity  supply  industry  the  proposed  amendment  may  affect  the 
costs  of  electricity  generation.  However,  since  most  new  plants  will  be  gas 
turbines,  it  is  unlikely  that  the  costs  of  generation  from  new  plants  will 
increase  by  more  than  a  few  percent  on  average.  Assuming  that  extra  costs 
are  passed  on  fully  and  equally  to  all  final  consumers  the  average  price 
increase will be very low (less than  0.5%). In practice the price increase will 
depend on elements such as demand elasticities, market liberalization and the 
actual cost structures and supply curves. 

7.5. 

Impact of the Proposal on SMEs 

The  number  of  SMEs  in  the  energy-intensive  industrial  sectors  and  the 
electricity supply industry - such as independent power producers - is likely to 
be small. The proposed amendment  is therefore  expected to have only a minor 
impact on SMEs throughout the Community. 

It is difficult  to  determine  the precise  nature  of  indirect  impacts  on  SMEs as 
consumers.  It  is  possible  that  SMEs  will  see  some  increase  in  production 
costs, but they are likely to be very modest. 

Employment  may  also  be  affected  by  the  revised  Directive,  although 
the extent  is  likely  to  be  very  limited  and  neutral  since  reductions  in 
employment  caused  by  increased  costs  are  likely  to  be  offset  by  the  extra 
employment  generated  by  the  manufacture,  installation  and  operation  of 
abatement  equipment25. 

8. 

CONCLUSIONS 

the 
The  proposed  amendment  constitutes  an 
implementation  of  the  Community  strategy  to  combat  acidification  and  in  the 
context  of  actions  to  reduce  the  concentrations  of  ground-level  ozone  in 
the Community. 

important  element  both 

in 

The proposed new emission limit values, made possible by technical  developments 
in the  large  combustion  plant  sector,  are particularly  timely  in view of the current 
growth  of  gas  turbine  technology,  and  will  provide  a  benchmark  for  future 
permitting  of  existing  LCPs.  The  Acidification  Strategy  provides  that  these 
measures  will  be  supplemented  in  the  future  by  the  setting  of  national  emission 
ceilings for S02, NOx, NH3 and VOCs. 

The main elements of the proposed amendment include: 

• 

revised  emission  limit  values  which  take  account  of  the  technical  progress 
achieved over the last  15 years; 

25  This  point  is  demonstrated  by  Klaassen  in  "Macroeconomic  impacts  of  an  EEC  policy  to  control 

air pollution" August  1992. 

14 

a  widening  of  the  scope  of  Directive  88/609/EEC  in  order  to  include  gas 
turbines in view of the important role this technology will play in the  future; 

the promotion  of  combined  heat  and  power  generation  in  order  to  bring  the 
existing  Directive  88/609/EEC  into  line  with  recent  developments  in 
Community policy on sustainable development; 

• 

the  improvement  of  existing  monitoring  provisions,  in  line  with  current 
progress  in this field and the need  for  a better  insight  into  current  emissions 
from  industrial plants. 

The economic evaluation  shows that the extra costs induced  by these  modifications 
are  unlikely  to  have  a  significant  impact  on  business,  while  the  benefits  both  in 
terms  of  resource  management  and  emission  of  pollutants  are  likely  to  outweight 
the costs. In the vast majority  of cases the cost  of these measures  will  remain  less 
than ECU  1  000 per tonne of pollutant removed. 

9.  CONTENTS OF THE PROPOSAL 

Article  1, point (l)(a)  widens the  scope  of the  definition  to cover  the  case where 
the reduction of sulphur content in the waste gases can be achieved by means other 
than  abatement  in  a  process  especially  designed  for  this  purpose.  Thus,  the 
reduction  of  SO2  emissions  can  be  achieved  by  installing  a  boiler  using  the 
fluidised  bed  combustion  technique  which,  although  not  specifically  designed  for 
this purpose, nevertheless increases the desulphurisation efficiency  from  sorbent. 

Article  1, point  (l)(b)  updates  the  fuel  exclusion  and  provides  a  clear  borderline 
with the waste incineration Directives. 

Article  1,  point  (l)(c)  includes  (i)  and  (ii)  gas  turbines  within  the  scope  of  the 
LCP Directive. 

All  gas turbines  used  on offshore  oil  exploration  platforms  are  excluded  from  the 
scope  in  view  of  the  very  special  conditions  under  which  such  equipment  is 
operated.  In  particular,  the  fuel  gas  used  is  subject  to  large  variations  in  its 
composition  and  consequently 
in  calorific  value,  which  makes  abatement 
techniques used in land-based  gas turbines unsuitable. In addition, the operation of 
gas  turbines  under  these  conditions  requires  simple  systems  without  the  need  for 
specialist  personnel.  Furthermore,  since  the  currently-installed  off-shore  power  in 
EU  represents  1.5% of  installed  power  generation  capacity  in  EU,  and  since  the 
major  growth  in  the  use  of  off-shore  platforms  has  already  occurred,  emissions 
from  this source are not likely to increase  further. 

Article  1,  point  (l)(d)  introduces  definitions  of  gas  turbine  and  biomass.  The 
purpose of the definition  of biomass  is to  allow  specific  ELVs appropriate  for  this 
type of fuel. 

Article  1, points (2) and (3) respectively delete the provisions of Articles 3(4) and 
4(2) in Directive 88/609/EEC which are no longer relevant. 

15 

Article  1,  point  (4)  excludes  new  plants  subject  to  the  updated  ELVs  from  the 
derogation  for  new  plants  operating  less  than  2 200  hours  a  year,  since  it  is  no 
longer considered to be justified  for such plants. 

Article  1, point (5) deletes Article 7 in Directive  88/609/EEC  since it is no longer 
considered  relevant.  It is replaced  by a new provision  which  seeks  to promote  the 
combined  generation  of  heat  and  power  from  the  same  installation,  as  this  is  a 
technique which clearly outperforms production from separate installations in terms 
of energy conversion  efficiency. 

Article  1, point  (6)(a)  seeks  to  improve  the  current  provisions  of  Article  8(1) of 
Directive 88/609/EEC concerning procedures relating to malfunction  or breakdown 
of the abatement equipment. 

Since  it  is  no  longer  considered  realistic  for  the  competent  authority  to  decide  in 
real  time  on  the  action  to  be  taken,  the  new  provision  requires  the  competent 
authority  to  define  the  principles  governing  such  action  at  the  time  the  permit  is 
issued  in  function  of each  individual  installation.  The  competent  authority  should, 
however, always be informed,  at least a posteriori, of any event of this type. 

In  addition,  the  maximum  time  allowed  for  the  operator  to  repair  the  installation 
before  completely  stopping  production  is  fixed  at  24  hours.  An  annual  120-hour 
limit  defines  the  framework  within  which  the  competent  authority  can  grant  an 
exemption  in the  event  of  an  incident  occurring  during  periods  when  it  would  be 
particularly undesirable to stop production. 

Article  1,  point  (6)(b)  deletes  the  current  provision  of  Article  8(2)  concerning 
the event  of  a  serious  shortage  of  low-sulphur  fuel.  Since  the  Commission  has 
never received  any  information  on  such  a  case,  this  provision  is  deemed  no 
longer relevant. 

Article  1,  point  (6)(c)  seeks  to  improve  the  current  wording  "short  period"  in 
Article  8(3), because  it  is too  vague. The  limit  of ten days  during  any  one year  is 
considered  appropriate  to  deal  with  technical  incidents  (occurring  on  pipelines, 
for example)  as  well  as  with  cases  of  interruption  of  supplies  envisaged  in 
commercial gas sale clauses. 

Article 1, point (6)(d) is related to the deletion of Article 8(2). 

Article 1, point (7) updates the provisions for  refineries. 

The value of 400 mg/Nm3, proposed as a mean value for the new combustion plants 
for  which  a  licence  is  granted  after  the  mentioned  date  within  a  refinery, 
corresponds  to the  value  that  would  normally  apply  to  new  installations  in  which 
there  is a blend  of gaseous and  liquid  fuels.  This value  leaves  sufficient  flexibility 
for the operator to pursue a wide variety of options. 

Article  1,  point  (8)  deletes  the  current  paragraphs  2  and  3  of  Article  13  in 
conjunction  with  the  new  provisions  of  Annex  IX.A  which  now  provides  the 
general updating related to emission monitoring techniques. 

16 

Article  1,  point  (9)  introduces  a  new  paragraph  4  in  Article  15  concerning 
compliance  with  the  new  emission  limit  values  given  in  Annexes  III  to  VII. 
It specifies  that  they  must  be  respected  with  regard  to  their  daily  mean  value. 
Hourly averages  may  exceed  the  limit  values, but  must  always  be  less than  twice 
the limit value. 

These provisions  are  simple  and  avoid  long  delays  in  obtaining  or  calculating  the 
results.  They  are  considered  preferable  to  the  current  concepts  based  on  the 
compliance with a monthly mean value and the examination  of all 48 hourly mean 
values  over  a  calendar  year.  Although  stricter,  the  proposed  modifications  are 
nevertheless  coherent  with the values fixed in Annexes  III to VII in terms of their 
industrial  feasibility. 

Article  1, point  (10)  deletes the provision  concerning  the  regular  comparisons  of 
the  programmes  set  out  in  1990  for  the  progressive  reduction  of  emissions  from 
existing plants. This provision is considered no longer relevant. 

The Annex, points (1) to (6) introduces new ELVs. 

In  setting  the  proposed  ELVs,  a  number  of  considerations  have  been  taken  into 
account. These include: 

The state of the art 

Two  separate  reports  have  been  produced  examining  the  state  of  the  art  and the 
implications  of  a  BAT  approach  to  establishing  Emission  Limit  Values:  one  for 
boilers26 and an other for gas turbines27. 

EL Vs as minimum requirements 

Care  has  been  taken  to  ensure  that  ELVs  are  consistent  with  their  function  of 
minimum requirement  at Community level, leaving room for competent  authorities 
to apply more stringent ELVs if necessary in accordance with the provisions of the 
IPPC Directive 96/61/EC. As an example, NOx ELVs for gas turbines are based on 
the current state of the primary reduction technique known as "Dry Low Emission", 
taking  into  account  the  difference  between  a  benchmark-test  performance  and 
industrial performances  over the operating  life of the installation. A further  level of 
reduction is possible with end-of-pipe treatment (SCR), although as a general rule it 
does not appear to be cost  effective. 

A range of techniques 

The  proposed  ELVs  make  it  possible,  for  each  plant  size,  to  choose  a  solution 
between a range of different  available techniques not entailing excessive cost. 

In  general,  there  is  a  wider  range  of  techniques  for  NOx  reduction  than  for  SO2 
reduction,  due  to  the  number  of  package  site-specific  techniques  using  various 
primary measures complemented by end-of-pipe abatement where needed. 

26  ERM LCP BAT study - see footnote  15. 
27  Byrne O'Cleirigh (1997) Limiting the Emissions of Pollutants into the Air from  Gas Turbines. 

17 

For  SO2, the use of low sulphur  fuel  provides  an alternative  method  of  complying 
with emission limit values for new plants, especially for those with a thermal input 
not exceeding 300 MW. 

A fair balance between fuels 

In order to avoid an excessive impact on the market share between competing  fuels, 
care has been taken to balance the reduction burden-sharing between different  types 
of fuels, in particular between solid fuels  and liquid fuels  for  SO2, and between the 
three main categories with regard to NOx reduction. 

Particular  care has been taken to ensure that the emission  limit  values  for  biomass 
are set at a level which allows this type of fuel  to be used without  significant  extra 
cost.  In this  way,  the  amended  Directive  will  enhance  the  competitive  position  of 
biomass compared with traditional fuels.  For NOx, the emission limit values set out 
in  the  proposed  amendment  can  easily  be  achieved  through  the  use  of  currently 
used emission reduction techniques such as "circulating fluidised  bed". For SO2 the 
emission  limit values have been set at a level which does not require the use of any 
abatement  techniques,  given  the  low  sulphur  content  of  biomass.  In  fact,  the  new 
emission  limit  values proposed  for  SO2 have  the effect  of  promoting  the  co-firing 
of biomass with other solid fuels  such as coal, lignite or peat, since the low sulphur 
content of the biomass will  help in complying with the emission  limit values those 
fuels have to reach. 

Specific considerations for  Gas Turbines 

A  number  of  specific  considerations  concerning  gas  turbines  have  been  taken 
into account. 

The  proposed  ELVs  are  applicable  only  to  the  fuels  most  commonly  used  in  gas 
turbines,  namely  natural  gases  and  light  and  medium  distillates,  These  represent 
more  than  95% fuels  used  in  gas  turbines.  For  the  remaining  fuels  the  setting  of 
ELVs is left to the national competent authority. 

As economics dictate that the majority  of gas turbines operate  to maximum  power 
and  efficiency  and  given  that NOx emissions  are  increased  when  operating  at part 
load, the proposed  ELVs will apply only when the installation  is operating at more 
than 70% of its full  capacity. 

An  "efficiency  factor"  has  been  introduced  in  order  to  avoid  a  technically 
unjustified  and unfair  treatment of highly developed gas turbines: gas turbines with 
higher  efficiency  produce  slightly  higher  NOx  emissions  due  to  the  increased 
temperatures.  This  provision  encourages  the  development  of  more  efficient  gas 
turbines without  harming  the environment, since NOx  emissions  per energy output 
remain equal. 

Combined  heat and power plants often  use the possibility to increase power output 
and  flexibility  by  water  or  steam  injection,  which  contributes  to  the  economic 
viability  of  the  installation.  Since  water  or  steam  injection  does  not  achieve  the 
same reduction  of NOx  emissions  as the "Dry Low  Emission" technique  and  since 
the overall  benefit  of CHP to the environment  is well established  - due to the better 
use of energy input - a less stringent ELV has been set for these installations. 

Gas turbines driving compressors are used in natural gas supply systems. In contrast 
to other gas turbine installations, such a stand-alone apparatus operates most of the 
time  on  part-load  and  has  a  lot  of  starts  and  stops.  It  also  requires  a  very  high 
reliability  and  availability.  For  these  reasons  currently-applied  NOx  reduction 
techniques cannot be used as successfully.  Since the number of such cases is small, 
a less stringent ELV is also proposed for this specific case. 

To avoid misunderstanding,  a definition  of natural  gas is suggested,  as weH as the 
ISO conditions when referring to the operating performances of gas turbines. 

Point (7)(a) of the Annex introduces modifications  in Annex IX. A which seek to: 

• 

• 

extend  the  requirements  relating  to  continuous  monitoring  of  pollutants: by 
lowering  from  300  MW(thermal)  to  100  MW  (thermal  input)  the  relevant 
capacity  threshold  concerning  new  plants and  by extending  the obligation  to 
existing plants with a capacity of more than  300 MW (thermal input), except  in 
the  case  of  a  plant  near  the  end  of  its  life  (less  than  10 000  hours  of 
further  operation); 

the  provisions  concerning 

update 
of measurements 
(European Committee for Standardization) on this issue. 

the  methodology  and 
carried  out  by 

line  with  work 

in 

the  quality 
the  CEN 

Point (7)(b) of the Annex  introduces modifications  in Annex  IX.B which  seek to 
improve knowledge of the total emissions from  large combustion  plants, since this 
will provide the necessary basis for future  decisions on how to deal effectively  with 
the problem of  acidification. 

The  relevant  current  provisions  of  Directive  88/609/EEC  are  a  step  in  the  right 
direction  but  have  certain  limitations.  The  experience  gained  and  the  means 
available  today  make  it  possible  to  improve  significantly  the  quality  of  the 
the  national 
inventories  without 
administrations,  as  long  as  sufficient  care  is  taken  to  ensure  coherence  with  data 
acquisitions already carried out under CORINAIR. 

increased  workload 

implying  an 

for 

The  new  provisions  of  Annex  IX.B  thus  constitute  a  valuable  improvement, 
especially  because  they  associate  estimates  of  the  energy  consumed  by  the 
installation concerned with the annual SO2 and NOx emission figures. This makes it 
possible to characterise each installation in terms of its emissions per unit of energy 
consumption  (expressed  in  g/GJ).  This  is  a  particularly  significant  parameter  for 
determining the environmental  performance  of a combustion  plant. 

Point  (7)(c)  of  the  Annex  introduces  the  year  2003  as  the  last  year  for  which 
the determination  of  the  total  annual  emissions  of  existing  plants  alone  is 
requested - in order to check  compliance  against  the  figures  laid  down  in Annex  I, 
column  3,  of  the  Directive  88/609/EEC  -  having  in  mind  that  this  year  is  also 
proposed  in the  modified  Annex  IX.B to  be the  starting  year  for  a  comprehensive 
inventory of all large combustion plants. 

19 

10.  THE CURRENT SITUATION IN THE EU 

10.1.  Legislation in the Member States 

Boilers 

ANNEX 

Currently  all  Member  States  have  regulations  controlling  emissions  of  SO2, 
NOx  and  TSP  from  large  combustion  plants.  Most  of  these  regulations  have 
been  enacted  to  implement  the  Directive  88/609/EEC.  Member  State 
regulations  define  emission  limit  values  which  vary  according  to  the  type of 
fuel  - solid, liquid or gaseous - and plant capacity (thermal input). 

In some Member States (Belgium, Germany, Denmark, Italy, Austria, Finland, 
Sweden  and  the  Netherlands)  the  emission  limit  values  are  generally  more 
stringent  than  those  contained  in  the  LCP  Directive.  In  the  remaining 
Member States  (Spain,  France,  UK,  Ireland,  Luxembourg,  Greece  and 
Portugal)  the  emission  limit  values  are  the  same  as  those  contained  in  the 
LCP Directive. 

In most  cases emission  limit values  expressed  in mg/Nm  are more  stringent 
for  gaseous  fuels  than  liquid  fuel  which  in turn  are more  stringent  than  solid 
fuels. A similar relationship can be observed for plant sizes, with larger plants 
being more tightly controlled than smaller plants28. 

Gas Turbines 

Most  Member  States  (excluding  Ireland,  Greece  and  Luxembourg)  regulate 
NOx  emissions  from  gas  turbines.  Some  Member  States  have  specific 
regulations for gas turbines, while others use emission limit values applicable 
to  large  combustion  plants.  However,  currently  there  are  no  common 
approaches to environmental standards for gas turbines in the Community. 

Some  Member  States  base,  or plan  to, emission  limit  values  on the  German 
TA Luft  standards, which are set at  150 mg/Nm3, regardless the type of  fuel. 
However,  there  are  considerable  variations  from  this  standard 
in  the 
Member States,  especially  in  the  case  of  combined  heat  and  power.  This 
means  there  is  no  uniform  regulation  of NOx  emissions  from  gas  turbines  as 
compared to boilers. 

10.2.  Inventory of Emissions 

summary 

Directive  88/609/EEC  requires  Member  States  to  provide  the  Commission 
with 
reports  which  detail  emissions  of  SO2  and  NOx 
(see Articles 3(3)  and  16(1)).  All  Member  States  have  submitted  emission 
data  from  existing  plants  plants put  into  operation  before  1 July  1987 -  for 
the years  1990-1993, and some have been received for the years  1994-1996. 

2S  A. more complete breakdown of emission  limit values are presented  in "ERM LCP BAT study' 

20 

These data are presented in figures 1  and 2. These figures show that: 

• 

• 

most  countries  have  emitted  less  than  the  allowed  ceilings,  and  in 
some cases considerably less, both for NOx and SO2; 

two exceptions are SO2 emissions in Greece which are higher than the 
1993 ceiling, and NOx emissions in Portugal which are slightly higher 
than the 1993 ceiling29. 

If  as  forecast  this  progress  is  to  continue  it  will  be  possible  to  achieve  the 
1998 limits. 

Despite  the  provisions  of  Annex  IX.C2  of  Directive  88/609/EEC,  some 
Member States have failed to provide data concerning emissions  from "new" 
combustion  plants  -  plants  put  into  operation  after  1 July  1987).  However, 
from data provided by Germany, United Kingdom, France and Netherlands, it 
appears  that  emissions  from  "new"  plants  represent  less  than  2% of  total 
emissions from large combustion plants for the year 1993. 

29  The  Member  States  concerned  explained  these  exceedances  in  terms  of  exceptional  atmospheric 
conditions which required a greater output from  thermal power stations than had been envisaged. 

21 

Figure 1 
Emissions ofS02Jrom  existing LCPsfor  1980, 1990 and 1993, 
Compared to the 1993 emission ceiling, by Member State 

Figure 2 
Emissions ofNOxfrom  existing LCPsfor  1980, 1990 and 1993, 
compared to the 1993 emission ceiling, by Member State 

22 

Proposal for a 
COUNCIL DIRECTIVE 

amending Directive 88/609/EEC on the limitation of emissions of 
certain pollutants into the air from large combustion plants 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article  13 Os(l) thereof, 

Having regard to the proposal from the Commission30, 

Having regard to the Opinion of the Economic and Social Committee31, 

Acting  in  accordance  with  the  procedure  laid  down  in  Article  189c  of  the  Treaty,  in 
cooperation with the European Parliament32, 

(1)  Whereas  the  fifth  Environmental  Action  Programme33  sets  as  an  objective 
"no exceedance  ever  of  critical  loads  and  levels"  of  certain  acidifying  pollutants 
such  as  sulphur  dioxide  (SO2)  and  nitrogen  oxides  (NOx).  and  in  terms  of  air 
quality  the  objective  is  that "all people  should  be  effectively  protected  against 
recognised health risks from Air Pollution"; 

(2)  Whereas  Council  Directive  88/609/EEC34,  as  amended  by  Directive  94/66/EC35 
and  last  amended  by  the  Act  of  Accession  of  Austria,  Finland  and  Sweden, 
contributed  to  the  reduction  and  control  of  atmospheric  emissions  from  large 
combustion plants; 

(3)  Whereas  the  Commission  has  recently  published  a  Communication  on  a 
revision  of 
integral  component  of 

to  combat  acidification36;  whereas 
identified  as  being  an 

the 

Community  strategy 
Directive 88/609/EEC  was 
that strategy; 

(4)  Whereas, in accordance with the principles of subsidiarity and proportionality as set 
out in Article 3b of the Treaty, the objective  of reducing acidifying  emissions  from 
large  combustion  plants  cannot  be  sufficiently  achieved  by  the  Member  States 
acting  individually  and  unconcerted  action  offers  no  guarantee  of  achieving  the 
desired  objective;  whereas,  in  view  of  the  need  to  reduce  acidifying  emissions 
across  the  Community,  it  is  more  effective  to  take  action  at  the  level  of  the 

30 

31 

32 
33  OJC  138,  17.5.1993, p. 1. 
34  OJ L 336, 7.12.1988, p. 1. 
35  OJL  337, 24.12.1994, p. 83. 
36  COM(97) 88 final. 

23 

Community;  whereas  this  Directive  confines  itself  to  minimum  requirements  for 
new combustion plants; 

(5)  Whereas Council Directive  96/61/EC37 sets out an integrated  approach to pollution 
prevention  and  control  in  which  all  the  aspects  of  an  installation's  environmental 
performance  are  considered 
in  an  integrated  manner;  whereas  combustion 
installations  with  a rated  thermal  input  exceeding  50 MW  are  included  within  the 
scope of that Directive; 

(6)  Whereas  compliance  with 

the  emission 

laid  down  by 
Directive 88/609/EEC,  as  amended  by  this  Directive,  should  be  regarded  as  a 
necessary  but  not  sufficient  condition  for  compliance  with  the  requirements  of 
Directive  96/61 /EC  regarding  the  use  of  best  available  techniques;  whereas  such 
compliance  may  involve  more  stringent  emissions  limit  values,  emission  limit 
values for other substances and other media, and other appropriate conditions; 

limit  values 

(7)  Whereas  industrial  experience  in  the  implementation  of  techniques  for  the 
reduction  of  polluting  emissions  from  large  combustion  plants  has  been  acquired 
over a period of 15 years; 

(8)  Whereas installations for the production of electricity represent an important part of 

the large combustion plant sector; 

(9)  Whereas  Directive  96/92/EC  of  the  European  Parliament  and  of  the  Council  of 
19 December  1996 concerning common rules for the internal  market  in electricity38 
must be transposed by  19 February  1999; whereas this is likely to have the effect  of 
distributing new production capacity among new arrivals in the sector; 

(10)  Whereas the Community  is committed  to a reduction  of carbon  dioxide emissions; 
whereas  the  combined  production  of  heat  and  electricity  represents  a  valuable 
opportunity for significantly  improving overall efficiency  in fuel use; 

(11)  Whereas  a significant  increase in the use of natural  gas for  producing  electricity is 
already  underway  and  is  likely  to  continue,  in  particular  through  the  use  of 
gas turbines; 

(12)  Whereas  Council  Resolution  of  24  February  1997  on  a  Community  strategy  for 
waste  management39  emphasises  on  the  need  for  promoting  waste  recovery  and 
states that appropriate emission standards should apply to the operation of  facilities 
in  which  waste  is  incinerated  in  order  to  ensure  a  high  level  of  protection  for 
the environment; 

(13)  Whereas  industrial  experience  has  been  gained  concerning  techniques  and 
equipments  for  the  measurement  of  the  principal  pollutants  emitted  by  large 
combustion  plants;  whereas  the  European  Committee  for  Standardization  (CEN) 
has  undertaken  work  with  the  aim  of providing  a framework  securing  comparable 

37  OJL 257,  10.10.1996, p. 26. 
38  OJL 27, 30.1.1997, p. 20. 
-V)  OJC  76,  11.3.1997, p.  I. 

24 

measurement results within the Community and guaranteeing a high level of quality 
of such measurements; 

(14)  Whereas  there  is  a  need  to  improve  knowledge  concerning  the  emission  of  the 
principal pollutants from large combustion plants; whereas, in order to be genuinely 
representative  of the  level  of pollution  of an  installation,  such  information  should 
also be associated with knowledge concerning its energy consumption; 

(15)  Whereas Directive 88/609/EEC should therefore be amended  accordingly, 

HAS ADOPTED THIS DIRECTIVE 

Article 1 

Directive 88/609/EEC is hereby amended as follows: 

1.  Article 2 is amended as follows: 

(a) 

(b) 

In point  4,  the  words  "by processes  especially  designed for  this purpose" 
are deleted 

In  point  6,  the  words  ""with  the  exception  of  domestic  refuse  and  toxic 
or dangerous  waste"  are  replaced  by  the  words  "with  the  exception of 
waste covered  by  Council  Directives  89/369/EEC*,  89/429/EEC**  and 
94/67/EC*". 

OJL  163, 14.6.1989, p. 32. 
OJL 203,  15.7.1989, p. 50. 
OJL 365, 31.12.1994, p. 34." 

(c)  Point 7 is amended as follows: 

(i)  The following  indents are added to the third paragraph: 

"- 

any technical  apparatus  used  in the propulsion  of  a vehicle,  ship 
or  aircraft, 

gas turbines used on offshore  platform." 

(ii) 

In the  fourth  paragraph,  the words  "or by gas  turbines,  irrespective of 
the fuel used" are deleted. 

(d)  The following points are added: 

"11.  "biomass" means: any whole or part of a vegetable matter which can be 
used  for the purpose of recovering its energy content. Wood wastes and 
vegetable  matter  wastes  are  also  considered  as  biomass  provided  that 
they  do  not  fall  into  the  scope  of  Council  Directives  89/369/EEC, 
89/429/EEC and 94/67/EC; 

25 

12.  "gas  turbine"  means:  any  rotating  machine  which  converts  thermal 
energy  into  mechanical  work,  consisting  mainly  of  a  compressor,  a 
thermal  device  in  which  fuel  is  oxidised  in  order  to  heat  the  working 
fluid, and a turbine." 

2. 

3. 

4. 

In Article 3, paragraph 4 is deleted. 

In Article 4, paragraph 2 is deleted. 

In Article 5, the following  sentence is added to point  1 : 

"This provision does not apply to new plants for which the licence is granted on or 
after  1  January 2000." 

5.  Article 7 is replaced by the  following: 

"Article 7 

In  new  plants  for  which  the  licence  is  granted  on  or  after  1  January  2000  the 
competent  authorities  shall  ensure  that  there  is  provision  for  the  combined 
generation  of  heat  and  electricity  where  this  is  technically  and  economically 
feasible.  To  this  end,  the  Member  States  shall  ensure  that  operators  examine  the 
possibilities of locating the installations on sites with a heat requirement." 

6.  Article 8 is amended as follows: 

(a)  Paragraph  1  is replaced by the following: 

"1.  Member  States  shall  ensure  that  provision  is  made  in  the  licences 
referred  to  in  Article  4(1)  for  procedures  relating  to  malfunction  or 
breakdown  of  the  abatement  equipment.  In  case  of  a  breakdown  the 
competent authority shall in particular require the operator to reduce or 
close  down  operations  if  a return  to  normal  operation  is  not  achieved 
within 24 hours, or to operate the plant using low polluting fuels. In any 
case  the  competent  authority  shall  be  notified  within  48  hours.  In  no 
circumstances  shall  the  cumulative  duration  of  unabated  operation  in 
any  one  year  period  exceed  120  hours  except  in  cases  where,  in  the 
judgement  of  the  competent  authority,  there  is  an  overriding  need  to 
maintain energy supplies." 

(b)  Paragraph 2 is deleted. 

(c) 

(d) 

In  paragraph  3,  the  words  "a  short  period"  are  replaced  by  the  words 
"a period not exceeding ten days". 

In  paragraph  4,  the  words  "'this  Article"  are  replaced  by  the  words 
"paragraph 5". 

7. 

In Article 9(3), the first subparagraph is replaced by the  following: 

"As  an  alternative  to  paragraph  2,  the  following  emission  limit  values  for 
sulphur dioxide averaged over all new plants within the refinery  and  irrespective of 
the fuel  combination used by be applied: 

26 

(a) 

(b) 

for  plants  for  which  a  licence 
1 000 mg/Nm3, 

is  granted  before  1  January  2000: 

for  plants  for  which  a  licence  is  granted  on  or  after  1  January  2000: 
450 mg/Nm3. 

8. 

9. 

In Article 13, paragraphs 2 and 3 are deleted. 

In Article 15, the following paragraph 4 shall be added: 

"4.  For new plants for which the licence is granted on or after 1  January 2000, the 

emission limit values shall be regarded as complied with if: 

no validated daily average value exceeds the relevant figures set out in 

-  Annexes III to VII; 

no validated hourly average value exceeds 200% of the relevant figures 
set out in Annexes III to VII. 

The  "validated  average  values"  are  determined  as  set  out  in  Annex  DC, 
Part A, paragraph 6." 

10. 

In Article 16, paragraph 3 is deleted. 

11.  Annexes III to IX are amended as set out in the Annex to this Directive. 

Article 2 

Member States shall bring into force the laws, regulations and administrative  provisions 
necessary  to comply  with this  Directive  by 31  December  2000  at the  latest.  They shall 
forthwith inform the Commission thereof. 

When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  be  accompanied  by  such  a  reference  on  the  occasion  of  their  official 
publication. Member States shall determine how such reference is to be made. 

This Directive shall enter into force on the twentieth day following that of its publication 
in the Official Journal of the European Communities. 

Article 3 

This Directive is addressed to the Member States. 

Article 4 

Done at Brussels, 

For the Council 

The President 

27 

ANNEX 

( 1 )  The following Annex shall be added to Annex III: 

"S02 emission limit values expressed in mg/Nm3 (02 content 6%) to be applied by 
new plants for which the licence is granted on or after  1  January 2000 

Type of fuel 
Biomass 
General case 

50tol00MWth 
200 
850 

100to300MWth 

200 
850 to 200 
(linear decrease) 

> 300 MWth 
200 
200 

(2).  The following  shall be added to Annex IV: 

"SO2 emission  limit values expressed  in mg/Nm3 (02  content  3%) to be applied by 
new plants for which the licence is granted on or after  1  January 2000 

50 to 100 MWth  1  100 to 300 MWth  1 

850 

850 to 200 
(linear decrease) 

> 300 MWth 
200 

(3).  The following  shall be added to Annex V: 

"SO2 emission  limit values expressed  in mg/Nm3 (O2 content  3%) to be applied by 
new plants for which the licence is granted on or after  1  January 2000 

Gaseous fuels  in general 
Liquefied  gas 
Low calorific  gases from coke oven 
Low caloric gases from blast furnace 

__ 

35 
5 
400 
200 

(4)  The following  is added to Annex VI: 

"Solid  fuels 

NOx emission  limit  values expressed  in mg/Nm"  (O2 content  6%)  to be applied by 
new plants for which the licence is granted on or after  1  January 2000 

Type of  fuel 
Biomass 
General case 

50 to  100 MWth 
350 
400 

100 to 300 MWth 
300 
300 

> 300 MWth 
300 
200 

I 
1 

28 

Liquid  fuels 

N0X  emission  limit values expressed  in mg/Nm  (O2 content  3%) to be applied by 
new plants (with the exception of gas turbines) for  which the licence is granted on 
or after  1  January 2000 

50 to 100 MWth  I  100 to 300 MWth 

400 

300 

I 
I 

> 300 MWth 
200 

Gaseous  fuels 

NOx  emission  limit  values expressed  in  mg/Nm3 (O2 content  3%)  to be applied by 
new plants (with the exception  of gas turbines)  for  which the licence  is granted on 
or after  1  January 2000 

Natural gas<notel) 
Other gases 

50 to 300 MWth 
150 
200 

1 

| 

> 300 MWth 
100 
200 

~~ 

Gas Turbines 

NOx emission limit values expressed in mg/Nm3 (O2 content  15%) to be applied by 
a single gas turbine unit for which the licence is granted on or after  1  January 2000 

following  limit values apply only above 70% load 

Natural gas (Note  I) 
Liquid  fuels(N otc3) 

> 50 MWth 
(thermal input at ISO conditions) 
50^ ote2) 
120 

Note  1:  Natural  gas  is  naturally  occurring  methane  with  not  more  than  20% 

(by volume) of inerts and other constituents. 

Note 2:  75 mg/Nm3 in following cases: 

gas turbine used in a combined heat and power system; 
gas turbine driving compressor for public gas grid supply. 

For gas turbines  not  falling  into either  of the above  categories, but having 
an efficiency  greater than 35% -  determined  at ISO base load conditions  -
the ELV shall  be 50*r|/35  where r\ is the gas turbine  efficiency  expressed 
as a percentage (and determined at ISO base load conditions). 

Note 3:  This  emission  limit  value  only  applies  to  gas  turbine  firing  light  and 

middle distillates." 

29 

(5).  The following is added to Annex VII: 

"Solid fuels 

Dust emission limit values expressed in mg/Nm3 (02  content 6%) to be applied by 
new plants for which the licence is granted on or after  1  January 2000 

50 to  100 MWth  1 
1 

50 

>  100 MWth 
30 

~ 

Liquid fuels 

Dust emission limit values expressed in mg/Nm3 (O2 content 3%) to be applied by 
new plants for which the licence is granted on or after 1  January 2000 

SO to  100 MWth  1 

50 

I 

>  100 MWth 
30 

~ 
~ 

Gaseous fuels 

Dust emission limit values expressed in mg/Nm  (O2 content 3%) to be applied by 
new plants for which the licence is granted on or after  1  January 2000 

As a rule 
For blast furnace  gas 
For  gases  produced  by the  steel  industry 
which can be used elsewhere 

. 

| 

5 
10 
30 

The following is added to Annex VIII: 

"For new plants for which the licence is granted on or after 1  January 2000 

50 to 100 MWth 
90% 

100 to 300 MWth 
92% 

> 300 MWth 
95% 

NB: Installations  which  achieve  300  mg/Nm  SO2 are  exempt 
from application of the relevant rate of desulphurisation. 

7.  Annex  IX is amended as follows: 

(a)  Part A is amended as follows: 

(i) 

In the  title,  the  words  from  new plants " are  replaced  by  the  words 
"from combustion plants ". 

30 

(ii)  Paragraph 1  is replaced by the following: 

"1.  Until  1  January 2000  concentrations  of  SO2,  dust,  NOx  shall  be 
measured  continuously  in  the  case  of  new  plants  with  a 
rated thermal input of more than 300 MW. However, monitoring 
of SO2 and dust may be confined to discontinuous measurements 
or  other  appropriate  determination  procedures 
in  cases 
where such  measurements  or  procedures,  which  must  be 
verified and approved by the competent  authorities, may be used 
to obtain concentration. 

In the  case  of  plants  not  covered  by  the first subparagraph, the 
competent  authorities  may  require  continuous  measurements  of 
those  three  pollutants  to  be  carried  out  where  considered 
necessary.  Where  continuous  measurements  are  not  required, 
discontinuous  measurements  or  appropriate  determination 
procedures as approved by the competent authorities shall be used 
regularly  to  evaluate  the  quantity  of  the  above-mentioned 
substances present in the emissions. 

From  1  January 2000  competent  authorities  shall  remiire^ 
continuous  measurements  of  concentrations  of  SO2,  NOx,  ana "* 
dust from  each  combustion  plant  which  falls  into  one  of  the 
following categories: 

-  new combustion plant with a rated thermal  input of  100 MW 

or more. 

-  other combustion plant with a rated thermal input of 300 MW 

or more. 

By  way  of  derogation  from  the  third  subparagraph,  continuous 
measurements s^all not be required in the following cases: 

-  for  combustion  plants  with  a 

life 

span 

less 

than 

10 000 operational hours; 

-  for  SO2 and di^st from  gas turbines  firing  natural  gas or light 

and middle distilates. 

Where continuous measurements are not required, discontinuous 
measurements  shall  be  required at least  each  six  months.  As an 
alternative, appropriate deàrmination procedures, which must be 
verified  and approved by the competent authorities, may be used 
to evaluate the quantity of the atkve-mentioned pollutants present 
in  the  emissions.  Such  procedui^s  shall  use  relevant  CEN 
standards as soon as they are available." 

31 

(iii)  Paragraph 4 is replaced by the  following: 

"4.  The  continuous  measurements  carried  out  in  compliance  with 
paragraph  1  shall 
relevant  process  operation 
the 
parameters  such  as  oxygen  content,  temperature,  pressure.  The 
continuous  measurement  of  the  water  vapour  content  of  the 
exhaust  gases  shall  not  be  necessary,  provided  that  the  sampled 
exhaust gas is dried before the emissions are analysed. 

include 

Representative  measurements,  i.e.  sampling  and  analysis,  of 
relevant  pollutants  and  process  parameters  as  well  as  reference 
measurement  methods 
to  calibrate  automated  measurement 
systems  shall  be  carried  out  in  accordance  with  CEN standards. 
Until  the  CEN  standards  are  drawn  up,  national  standards 
shall apply. 

Continuous  measuring  systems  shall  be  subject  to  control  by 
means  of  parallel  measurements  with  the  reference  methods  at 
least every one year." 

(iv)  The following paragraphs 5 and 6 are added: 

"5.  The  value  of  the  95%  confidence  intervals  determined  at  the 
emission  limit  values  shall  not  exceed  the  following  percentages 
of the emission limit value: 

Sulphur dioxide 
Nitrogen oxides 
Dust 

20% 
20% 
30% 

6.  The validated hourly and daily average values shall be determined 
within  the  effective  operating  time  (excluding  start-up  and 
shut-off  periods), from the measured  valid  hourly  average  values 
after having  subtracted  the  value  of  the  confidence  interval 
specified  above. 

Any  day  in  which  more  than  three-hourly  average  values  are 
invalid  due  to  malfunction  or  maintenance  of  the  continuous 
measurement  system  shall  be  invalidated.  If  more  than  ten  days 
over  a  year  are  invalidated  for  such  situations  the  competent 
authority  shall  require  the  operator  to  take  adequate  measures  to 
improve the reliability of the continuous njonitoring  system." 

(b)  Part B is amended as follows: 

(i) 

In  the  title,  the  words  "new plants"  are  be  replaced  by  the  words 
"combustion plants ". 

(ii)  The  words  "Until  2003"  are  added  at 

the  beginning  of 

the 

first paragraph. 

32 

(iii)  The following pararaphs are added: 

"Member  States  shall  establish,  starting  in  2003  and  for  each 
subsequent  year,  an' inventory  of  SO2  and  NOx  emissions  from  all 
combustion plants with a rated thermal  input of  50 MW or more. The 
competent  authority  shall  obtain  for  each  plant  operated  under  the 
control of one operator at a given location the following data: 

the  total  annual  emissions  of  SO2,  NOx  and  dust  (as  total 
suspended particles), 

the  total  annual  amount  of  energy  input,  related  to  the  net 
calorific  value,  broken  down  in  terms  of  the  five  categories  of 
fuel:  biomass,  other  solid  fuels,  liquid  fuels,  natural  gas, 
other gases. 

A  summary  of  the  results  of  this  inventory  shall  be  communicated  to 
the Commission  every three years within twelve  months from the end 
of the three-year period considered. The yearly plant-by-plant data shall 
be made available to the Commission upon request." 

(c)  Part C is amended as follows: 

(i) 

In paragraph  1, the words "until and including 2003" are inserted after 
"and for  each subsequent year". 

(ii) 

In paragraph 2, the second subparagraph is deleted. 

33 

ISSN 0254-1475 

COM(98) 415 final 

DOCUMENTS 

EN 

12  14  15 

Catalogue number  : CB-CO-98-459-EN-C 

ISBN 92-78-38177-2 

Office  for Official  Publications of (he I European Communities 

L-2985  Luxembourg 

34