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Cleaner Production Demonstration Project at Holden's Engine Operations, Port Melbourne, Victoria

Holden's Engine Operations, previously named Holden's Engine Company, is a production unit of Holden Ltd.

Table of Contents
EXECUTIVE SUMMARY

1.0 REVIEW OF THE HOLDEN'S ENGINE COMPANY OPERATIONS

2.0 PLANNING AND ORGANISATION OF THE HEC CLEANER PRODUCTION PROJECT

2.1CLEANER PRODUCTION APPROACH USED AT HEC
2.2CLEANER PRODUCTION OPPORTUNITIES AT HEC
2.2.1 Chemical Management Program

Inside the Port Melbourne facility

3.0 CLEANER PRODUCTION INITIATIVES
3.1 CHEMICAL USE
3.1.1 Coolant Waste Reduction - MAZAK Area
3.1.2 Coolant Dump and Recharge Reduction
3.1.3 Investigation into New Coolants
3.1.4 Cost Incentives to Reduce Waste
3.2 WASTEWATER QUALITY
3.2.1 Baseline Data
3.3 OTHER INITIATIVES 3.4SUMMARY OF RESULTS

4.0 REVIEW OF PROJECT

5.0 CONCLUDING REMARKS

6.0 HOLDEN'S ENGINE COMPANY PERSPECTIVE

7.0 GLOSSARY OF TERMS

LIST OF TABLES
TABLE 1 TRADE WASTE TREATMENT PLANT - BASE-LINE DATA
TABLE 2 SUMMARY OF COST BENEFITS - IMMEDIATE AND PROJECTED
TABLE 3 TRADE WASTE TREATMENT PLANT EFFLUENT DATA

LIST OF FIGURES
FIGURE 1 EFFLUENT, OIL AND WATER AND DISSOLVED AIR FLOTATION SLUDGE VOLUMES
FIGURE 2 EFFLUENT PARAMETERS

LIST OF APPENDICES
APPENDIX A TRADE WASTE TREATMENT PLANT PROCESS DESCRIPTION
APPENDIX B LIST OF COOLANT SYSTEMS


EXECUTIVE SUMMARY

The Cleaner Production Demonstration Project (the Project) is an initiative of Environment Australia's Environment Protection Group (EPG). The aim of the Project was to raise the awareness of Australian industry and actively promote cleaner production issues. One of the companies chosen for the project, Holden's Engine Company (HEC), manufactures and assembles vehicle engines for local and international markets. The Cleaner Production Demonstration Project identified for study, from the outset, was the Chemical Management Program outsourced by HEC to Castrol +Plus (Castrol) in April 1995. Dames & Moore's role was to study the effects of the newly introduced Chemical Management Program on the final wastewater quality discharged from the HEC site.

During the project study, Castrol also undertook to monitor their performance (chemical usage, volume of waste discharge to Trade Waste Treatment Plant) as it was critical for Castrol to maintain control of the program on a daily basis. Dames & Moore's role was to study the effects of any chemical management initiatives on wastewater streams being discharged to the Trade Waste Treatment Plant and the effluent discharged as trade waste. Periodic reviews prepared by Dames & Moore for HEC and Castrol provided assistance by indicating changes in the content and volume of effluent discharged as trade waste.

The Chemical Management Program, which will run indefinitely, has been very successful in its first year of operation. Estimated average monthly reductions in trade waste volume have been 6% per month. Oil and water waste and Dissolved Air Flotation (DAF) sludge waste indicated an overall increase in volume over the period of the Project, however the later period of the Project provided strong indications of a future downwards trend in the volume of liquid waste requiring disposal from the Trade Waste Treatment Plant. The constituents of trade waste, including ammonia and total dissolved solids, have not changed significantly over the period of the Project, however there has been a noticeable reduction in the oil and grease content of the discharge.

Cost savings, chemical purchase volume savings and waste discharge volume savings realised during the project, resulting from improved coolant management, coolant exchange practices, the use of bacterial/fungal resistant coolants and reduced liquid/sludge waste disposal are presented in the table below. Projected additional annual savings resulting from the change in practices observed and the current trends in chemical use and waste reduction are also presented below.

SUMMARY OF COST BENEFITS: IMMEDIATE AND PROJECTED
Initiative
Cost($)
Cost Benefit (savings realised during period of Project)($/year & volume)
Projected (additional) Savings($/year)
Chemical Purchase Savings
Waste Discharge/Disposal Savings
Chemical Purchase Savings
Waste Discharge/ Disposal Savings
Management (incl. installation of coolant recycling unit)
$76,000
$84,000
35,000 L
$12,000
100,000 L
$100, 000
$12, 000
Coolant Exchange
-
$10,000
10,000 L
$6,000
50,000 L
$32,500
104,000 L
$19,500
163,000 L
Fungal and Bacterial Resistant Coolant
-
$ 30,000
1,850 L
-
$ 110,000
6,800 L
-
Trade Waste Discharge Savings
-
-
$1,650
13,800 L
cannot project savings
Liquid Waste Disposal Savings
-
-
-
-
$25, 000
120,000 L
TOTAL Cost $76,000 $124,000 $19,650 $242,500 $56, 500

1.0 Review of Holden's Engine Company Operations

Further Developments

Environmental Policy

A Holden Environmental Policy was initially approved in March 1999.One Policy commitment is to 'Commit to the principles of cleaner production its activities, including actions to reduce the generation of waste, to implement preventative measures with regards to pollutants, to conserve energy and resources and to recycle materials'.

EMS

An Environmental Management System (EMS) was established in accordance with ISO14001, covering Holden's Fishermans Bend and Lang Lang sites. The EMS was certified in January 2000.

Packaging

A returnable bulk packaging system using a combination of vacuum formed polypropylene trays and pallets, has been introduced for components imported for Holden's V6 engine. This replaces non- returnable fumigated timber dunnage. Waste reduction has been estimated at 800 tonnes per year with annual cost savings of $3,000,000 per year. 

Resource Management System

A Resource Management System project is being implemented. It is envisaged that a contract for this project will be let later this year. This contract will include similar concepts to those included in the Chemicals' Management system. This will provide financial incentives for the Resource Management contractor to introduce cleaner production initiatives to reduce the quantity of wastes leaving the area.

 

Energy Management System

Holden has implemented an Energy Management System which has resulted in the implementation of energy saving and eco-efficiency projects. Tables 1 and 2 below itemise the costs and savings of both completed and continuing projects.

 

Table 1

Completed Energy Saving and Eco-Efficiency Projects

Project Estimated CO2 reduction (tonnes/annum)

Financial information

Comments
Project cost Financial savings, p.a.
1 Installation and commissioning of moisture drains 1,956 $90,000 $80,000 Increases lifespan of machines which use compressed air (i.e. increase eco-efficiency of equipment)
2 Installation and commissioning of air drain plugs and reduction of air leakages $24,000 Energy savings due to decreases in the amount of air loss in the system
3 Installation and commissioning of compressed air meters $71,000 Allows for precise measurement of air flow to specific production areas
4 Install VSD on compressed air cooling water system 324 $40,000 $36,000 Saves energy and extends lifespan of cooling water system.
5 Improved cooling tower temperature control 102 Nil $4,000 Allows energy savings as water temperature is at an optimum temperature
6 Installation and commissioning of PLC system 2,445 $66,000 $100,000 Allows for control of meters both local and from a PC
7 Installation and commissioning of Energy Monitoring System $20,000 Allows for the collection of data and general control of energy consumption over the entire site.
8 Installation and commissioning of energy meter interface and pulse output cards $26,000 Allows for interface between meters and Energy Management System
9 Installation and commissioning of optic fibre/data highway computer link for Energy Monitoring System $30,000 Allows for transfer of information between distant PLCs and meters to one central location.

 

Table 2

Continuing Energy Savings and Eco-Efficiency Projects

  Project Estimated CO2 Reduction (tonnes/annum) Timeframe Financial Information Comments
Project Cost Financial Savings, p.a.
1 Reduction in compressed air leakage 2,792 Dec 2001 $70,000 $140,000 Energy savings - 20% of project has already been completed
2 Improvements in compressed air usage practices in foundry and manufacturing 527 Jul 2001 $40,000 $25,000 Energy savings
3 Improve operation of baghouses 2,000 Mar 2002 $100,000 $100,000 Energy savings
4 Review possible replacement of excisting boiler with energy efficient heating system 6.740 2003 $4,500,000 $2,250,000 To achieve energy savings
5 Natural gas reduction on sutter machines 271 2003 $4,000 $13,333 Energy savings
6 Lighting improvements 172 Jul 2001 $40,000 $40,000 Energy savings

Contact

Don Campbell
Senior Environmental Engineer
Holden's Engine Operations
241 Salmon Street
Port Melbourne Vic 3207
Ph: 03 9647 1396
Fax: 03 9647 5290
Email: donald.g.campbell@holden.com.au

Casestudy implementation: 1995
Further initiatives: 1999, 2000, 2001
Casestudy initially prepared: 1996 with assistance from Dames and Moore as part of Environment Australia's Cleaner Production Demonstration Project
Last modified: May 2001