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Environmental Management
Sustainability Report 2006

Report: Air Emission Problems at Steelworks
1. Introduction

Recently, several problems were discovered at Kakogawa Works and Kobe Works. Air emissions were found to have exceeded statutory limits, data was inappropriately handled, and boiler breakdowns were not reported as they should have been. These lapses put us in violation of the Air Pollution Control Law and the Electricity Utilities Industry Law. They had a negative impact not only on the residents living near the works but also on the local governments of Hyogo Prefecture and Kakogawa, and everywhere in Japan. They also damaged the confidence that people have in us. To ensure that similar incidents do not recur, we established a task force headed by the president to conduct an in-house investigation. The following report outlines the results of that investigation, including a description of the main problems, their cause, and the countermeasures that were subsequently adopted.


2. Problems That Occurred
2.1. Kakogawa Works

(1) Emissions That Exceeded Limits Set by the Air Pollution Control Law, and Inappropriate Handling of Data
After examining data covering a combined total of approximately 310,000 hours of in-house power generating boiler operation and about 160,000 hours of steelmaking equipment operation, Kobe Steel discovered that legal limits for sulfur oxide (SOx) and nitrogen oxide (NOx) either had been exceeded, or might have been exceeded. (Incomplete charts and other gaps in the data make it impossible to know for certain in some cases.) It should be noted, however, that total NOx and SOx emissions from the steelworks were still below the limits set by pollution prevention agreements signed between the Kobe Steel Group and the city and prefectural governments.

(2) Unreported Breakdowns of In-House Power Generating Equipment, and Failure to Perform Safety Inspections
Of the total number of malfunction incidents that occurred in in-house power generating equipment from 2001 through 2004, 12 were not reported as required to the Ministry of Economy, Trade and Industry's Nuclear and Industrial Safety Agency. According to in-house safety inspection documents, nearly all of these incidents were recorded falsely as "temporary shut-down for electric power adjustment." Subsequent investigation also revealed that at five power generating facilities, no safety inspection was conducted at all.



Extent to Which Emission Standards Were Exceeded
 

NOx

SOx


NOx

SOx

* K value: a coefficient used on the basis of the Air Pollution Control Law to calculate the SOx emission capacities for individual regions and facilities according to smokestack height.


Table 1. Status of Excessive Emissions for Each Facility
(Cases in which excessive emissions were either confirmed or interpreted as having occurred)
 
  Facility Time
(hours)
Substance Emission
standard
Maximum
value
Cause
In-house
electric
power
generating
boilers

No. 4
boiler
13 NOx 180ppm - To prevent black smoke emissions, excessive combustion air was supplied. No exhaust-gas recycling device was used to reduce NOx emissions at the No. 5 boiler.
No. 5
boiler
22 NOx 100ppm 115ppm
No. 6
boiler
22 SOx K value
1.75
K value
2.37
Fuel blockage due to use of wood chips. Insufficient supply of desulfurized coal.
Steelmaking
equipment
No. 2
soaking
pit
Low
sealability
96 NOx 170ppm - Low sealability
No. 1
pellet
baking
furnace
2 SOx K value
3.50
K value
4.62
Inadequate treatment of high-sulfur iron ore
Alloy steel
sintering
furnace
5 NOx 260ppm 415ppm Operation with excessive oxygen
Cold-rolled
continuous
annealing
furnace
2 NOx 150ppm 176ppm
Total   162        

* The NOx concentrations shown are converted NOx values.
* Boxes marked with a line (-) in the "Maximum value" column indicate cases in which the maximum value cannot be determined.



Table 2. Status of Excessive Emissions for Each Facility
(Cases in which data are missing, giving rise to the possibility that excessive emissions occurred)
 
  Facility Time (hours) Substance Emission standard
Boiler Boilers Nos. 1 through 5 357 NOx 100 - 190ppm
No. 6 boiler 626 SOx K value 1.75
Total   983    

* The NOx concentrations shown are converted NOx values.


Inappropriate Handling of Data

1
Incomplete chart records: 993 hours

2
Failure of the environmental monitoring system to take measurements during the time excessive emissions were occurring (lack of measured values): 101 hours

3
Manual alteration of data: 336 hours

4
Automated alteration of data through the environmental monitoring system: 445 hours

5
Manual writing of chart records: 237 hours

6
21 instances of inappropriate re-analysis sampling methods used during periodic measurements (batch analyses).
* After subtracting overlapping data in Tables 1 and 2 and the Inappropriate Handling of Data section, the total time is 1,950 hours.


1
Incomplete Chart Records

4
Alteration of Data
Incomplete Chart Records

* Regarding incomplete chart records, when the No. 5 boiler began operating in 1977, it proved especially difficult to adhere to reported values, and it seems that the employees involved decided that this situation couldn't be helped over short periods of operating time. The same general approach was adopted when various kinds of coal were tested in the No. 6 boiler in 1990, and again when recycled fuel began to be introduced between 1999 and 2002.
Alteration of Data


2.2 Kobe Steel Works

(1) Excessive NOx Emissions from the Boilers and Interrupted Telemeter Transmission
When the No. 2 boiler was started up again and data transmission had been re-initiated after regular maintenance had been completed, transmission was interrupted again and data that showed excessive NOx emissions were deleted.

(2) Excessive NOx Emissions at a Rolling Mill and Inappropriate Handling of Data
A logic program had been introduced that deleted data in cases where there were unusually high levels of oxygen or when converted NOx values exceeded standard emission limits.



3. Causes

Environmental data had been mishandled for many years with the under awareness of some managers. Although Kobe Steel has adopted business policies that give priority to environmental conservation and corporate compliance, in actual practice production was given priority over environmental protection. There were also inadequacies in the in-house monitoring system, which should have prevented compliance violations. We recognize that these lapses were not due to individual employees, but rather stem from the fault of the internal control system.


4. Measures to Prevent Recurrence
(1) Measures Concerning Company Organization and Administration

To strengthen our environmental control system, we have increased the number of personnel in environmental administration both in the head office and at our various operating locations. As part of this effort, we have established a new Environmental Control & Plant Safety Department in Kakogawa Works. The environmental control system places top priority on environmental protection, with the executive in charge of environmental issues at Kobe Steel given authority to halt operations at any operating location if deemed necessary. Environmental control departments in each operating location are authorized to halt operations at manufacturing facilities if deemed necessary.

To ensure that environmental measurement data remain transparent, environmental administration in the head office will be able to view measurement data directly, and the data from Kakogawa Works and Kobe Works will be made available to local authorities and the public at large. We will also expand our educational programs for all employees regarding environmental protection and compliance.

To ensure that these measures are steadily implemented, we have established a new Environmental Administration Committee. Comprised of experts from both inside and outside the company, this Committee is in charge of formulating and implementing measures for the environment and related safety assurance, reviewing the status of environmental administration, and reporting to and advising the Board of Directors.


Conceptual Diagram of Main Measures
 
Conceptual Diagram of Main Measures


(2) Technical and Facility-Related Measures
Kobe Steel's Fiscal 2006-2008 Medium-Term Business Plan had already give consideration to maintaining and improving environmental practices at both Kakogawa Works and Kobe Works. While implementing the environmental-related construction projects outlined in the Plan ahead of schedule, we have added further projects that will bring our total investment in environmental measures to approximately 27 billion Yen.

To combat smoke, we will fit our boilers with automated combustion control systems, install desulfurizing equipment, introduce low-NOx burners in our boilers and annealing furnaces, upgrade the desulfurizer at the sintering plant, and take other necessary steps. To control dust, we will hermetically enclose equipment especially where dust is generated, enhance cleaning and water-spraying systems, increase the number of dust collectors, and install anti-dust nets. We will also renew our environmental control system by increasing the number of environmental measuring devices and upgrading existing devices.
Composite image of future anti-dust net
Composite image of future anti-dust net


(3) Restoring the Trust of Local Communities

1
Explanatory Meetings for Local Residents
To help local residents understand the steps we are taking to protect the environment, we will further enhance the explanatory meetings we hold in local communities. On July 30, 2005, one such meeting held at Kakogawa Works was attended by nearly 200 people.


2
Public Monitoring Equipment
Under the guidance of government authorities, we will install public monitoring equipment in public places and disclose environmental data.


3
Publishing Environmental Control Information on Our Web site
Environmental control data and information concerning facility investment aimed at environmental improvement will be posted online. The status of our compliance with laws and regulations regarding facilities that generate smoke, as well as the amount of dust generated are also published on the website, along with other pertinent information.


4
Phone Access for Public Interaction
Both Kakogawa Works and Kobe Works maintain an environmental hotline that citizens can use to express their concerns.
Kakogawa Works: 0120-145065
Kobe Works: 0120-755505
Publication of environmental information on the Kobe Steel Web site
Publication of environmental information on the Kobe Steel Web site


5. Future Measures

We take these lapses very seriously and resolve to do everything in our power to ensure that they do not recur. All of our employees are working to regain public trust in us as an environmentally advanced company. We will hold improvement and verification meetings so that the progress we make can be confirmed with Hyogo Prefecture and Kakogawa, and we will take appropriate action to disclose the results.