Glen Corder-Eidos sustainable development in resource intensive regions
Delivering better sustainabledevelopment outcomes in resourceintensive regionsDr Glen CorderPrincipal Research FellowDevelopment Manager – SUSOPPty Ltd
Overview Gladstone and Sustainability and Regional Synergies A New Sustainability Framework Better sustainability outcomes for resource intensive regions?
Gladstone Regional Synergies• Aims: – enhance local synergies between industrial operations – assist operations to achieve greater efficiencies in energy, water and materials consumption – reduce wastes and emissions generation.• Timeframe – April 2004 until June 2007• Supported by: – CRC for Sustainable Resource Processing – Gladstone Area Industry Network
Gladstone Industrial Area (circa 2007) Queensland Energy Resources Cement AustraliaTranspacific Industries Rio Tinto Aluminium Yarwun Refinery Central Qld Ports Orica Chemicals Authority Gladstone Power Station Gladstone Area Water Board Gladstone Area Industry Network Queensland Alumina Ltd Boyne Smelters Rio Tinto Aluminium Yarwun Refinery Cement Australia Awoonga Dam Central Qld Ports Authority Gladstone Area Water Board NRG Power Station N Orica Chemicals Boyne Smelters Queensland Alumina Ltd 0 4 Queensland Energy Resources Transpacific Industries
Gladstone Regional Synergies (circa 2007) Calcined ash Queensland Cement Boyne Fly ash Energy Caustic soda Australia Smelters Resources Caustic soda Rio Tinto Transpacific Yarwun Pozzolanic NRG Power Industries - Queensland Refinery Enterprises Station Waste Plant Waste Alumina Transfer Tyres Fly ash StationSolvent based fuels Secondary treated effluent Gladstone Gladstone Orica Ports Area Water Chemicals Authority Board Synergies Gladstone City •Alternative fuels Council Old tyre Geocycle suppliers •QAL effluent re-use Calliope River STP •QAL waste separation/re-use •Fly ash re-use •Caustic recovery
Common Factors for Success• All involved parties must benefit – business benefit, either direct or indirect• Key success factors: – Proven technology Technology – Convincing business case Successful – Licence to operate synergy projects Business Licence to Case Operate van Berkel, R. (2006). Regional resource synergies for sustainable development in heavy industrial areas: an overview of opportunities and experiences
Lack of uptake of synergies?• For an industrial region, some key questions are: – Why are more synergies not being implemented? – To what extent is synergy uptake related to physical constraints, such as industry mix, density, and location? – To what extent do less tangible factors, such as regional community pressure, organisational networks, and regulatory issues, also play a part?
Drivers for Industrial Synergies• Are there 3 types of synergies? Cost Benefits SD Benefits Research? High At least sound Will happen (without researchers) Marginal Strong Yes Low Limited No need• Do most synergies fall into the middle category?
Industry Commitment• Strong public commitment to sustainable development and sustainability• From both industry bodies (e.g. International Council on Mining and Metals) and major mining companies – ‘Sustainability’ or ‘Sustainable Development’ is on the Home Page of major mining companies’ websites
International Council of Mining and Metals 10 Principles1. Implement and maintain ethical business practices and sound systems of corporate governance.2. Integrate sustainable development considerations within the corporate decision-making process.3. Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities.4. Implement risk management strategies based on valid data and sound science.5. Seek continual improvement of our health and safety performance.6. Seek continual improvement of our environmental performance.7. Contribute to conservation of biodiversity and integrated approaches to land use planning.8. Facilitate and encourage responsible product design, use, re-use, recycling and disposal of our products.9. Contribute to the social, economic and institutional development of the communities in which we operate.10. Implement effective and transparent engagement, communication and independently verified reporting arrangements with our stakeholders.http://www.icmm.com/our-work/sustainable-development-framework/10-principles
The Challenge is…• How to incorporate sustainability at the practical level• Typically sustainability principles are used to ensure, at best, compliance – Once all major decisions are made – Leaving little scope for innovative initiatives that could improve sustainable development outcomes in resource intensive regions
Key Research QuestionWhat is the most rigorous and defensible mechanismthat enables sustainable development principles to beincorporated into the design and operation ofresource processing?
Development of SUSOP®• Co-operative Research Centre for Sustainable Resource Processing (CSRP) from 2003 to 2010• Key members of the SUSOP® Development Team – University of Queensland – University of Technology Sydney – GHD Pty Ltd – Hatch Associates Pty Ltd – CSIRO
SUStainable OPerationsSUSOP® is an emerging industry standard:A guiding framework for projects that enables aproper contribution to sustainability by the industrialfacilities being studied, designed, built or operated.HAZOP brought a design methodology to safety… ….SUSOP® seeks to do the same for sustainability.
Key Features of SUSOP® SUSID™ Generate “new ideas” leading to better project outcomes Identify business and sustainability risks SD Balance Sheet™ Schematically show impacts on sustainability framework Sustainability Register™ Formal record of outcomes, similar to a risk register
SUSOP® Key Elements Familiarisation with (SD frameworks and principles, public domain information and data, details on other Sustainability Concepts and Project Context Goal Scoping and Opportunities & Risks SUSID™ Identification SUSOP® case studies, relevant SD tools) Analysis of Sustainability Knowledge Base Opportunities and Risks Prioritisation of Sustainability Opportunities and Risks SD Assessment Sustainability SD Balance Decision Support Register™ Sheets™
Case Study 1:Site selection for new mineral processing plantProblem: Solution – SUSOP® delivered: Developer faced with Clear points of difference deadline for site selection due Labour, energy, infrastructure to pending lease expiration integration, by-products, transport Standard risk and financial 70 opportunities and risks analysis could not provide definite Water treatment, energy, guidance on which sites to retain transport, enterprise development, export, by-products A development plan for two key business risks Related to high operating costs (specifically energy and expatriate labour costs)
Case Study 1: Site selection for new mineral processing plant Integrated development plan Avoiding high energy costs and high expatriate labour costsRenewable Full scale Energy implementation of Demonstration at Small Scale in Trial on Mine Implement on commercially available Current Camp Community Equipment equipment renewable energy technology Lowest Operating Costs Supporting local skills Local capacity building Local capacity building technician workforce Enhancing skills and businesses Local support Local expertise development Local mature Local labourDevelopment Skills Small-scale Local skilled technician Support Skills Local Technical Skilled workforce Enterprise workshop (employees Development Support servicing operation Development and contractors) Concept (Year 1) Pre-feasibility Feasibility Construct/Commission Operation (Year 10)
Financial Financial Manufactured Manufactured No Change Human Human Negative Change Positive Change Social Social Natural Natural -5 -4 -3 -2 -1 0 1 2 3 4 5 -5 -4 -3 -2 -1 0 1 2 3 4 5 Rating Rating Standard outcomes from Improved outcomes from business-as-usual approach application of SD principlesSD Balance Sheet™Ideal: All capitals positiveAcceptable: Balance of all capitals is positiveUnacceptable: Balance of all capitals is negativeCatastrophic: Any capital has extreme negative impact or all capitals are negative
Case Study Learnings Importance of recording outcomes is critical Led to the Sustainability Register™ Relevance of sustainability concepts with project Implications on surrounding community and environment and the wider range of stakeholders Value of sorting opportunities into categories Rather than producing a single, long prioritised list Value of clustering into “concepts” Shows linkages across sustainability framework
Into the Future3 key questions for newprojects: Fundamental aim of SUSOP®: Is it technically feasible? A standard approach to Does it make financial identify and drive sense? innovative solutions Will government or that translates community or owners of sustainability principles the resource allow it? into operating practice and design without compromising financial rigour
So what about a region like Gladstone? Projects Under Construction (GEIDB website) Queensland Curtis LNG (QGC) – LNG for CSG Rio Tinto Alcan – Yarwun Alumina Refinery (Stage 2 expan.) Boyne Smelters Ltd – new furnace and reduction line upgrade Powerlink - Infrastructure upgrades Western Basin Dredging and Disposal Project Fishermans Landing Reclamation Area – Port Expansion Queensland Energy Resources Ltd – oil shale technology GLNG (Santos, Petronas, Total and Kogas) – LNG for CSG
AcknowledgementsThis project presented here were carried out under the auspiceand with the financial support of the Centre for SustainableResource Processing, which was established and supportedunder the Australian Government’s Cooperative ResearchCentres Program.The Centre for Sustainable Resource Processing was a jointventure between Alcoa, ANSTO, BHP Billiton, CSIRO, CurtinUniversity of Technology, Newmont, Rio Tinto, University ofQueensland, Xstrata, Anglo Platinum, BlueScope Steel, GHD,Murdoch University, OneSteel, Orica, Rocla, University ofNewcastle, Department of Environment Water Heritage and theArts, Hatch, Kwinana Industries Council, Minerals Council ofAustralia, and URS.
SUStainable OPerationsQuestions?www.susop.com.auGlen CorderDevelopment Manager, SUSOP Pty LtdPrincipal Research Fellow, Sustainable Minerals Institute,University of QueenslandEmail email@example.com
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