LUCKY STAR ST HELENA BAY EMERGENCY INTERVENTION PLAN WATER CRISIS SEPTEMBER 2017 Abstract The current water crisis in the Western Cape is one of Lucky Star Operations highest risk for business continuity. Although the company has implemented several water saving initiatives, it remains highly dependent on water for producing canned pilchard and fishmeal. The company is therefore implementing an emergency intervention plan to prevent closure of the factory. Titania Stefanus-Zincke Titanias@luckystar.co.za
L U C K Y S T A R S T H E L E N A B A Y E M E R G E N C Y I N T E R V E N T I O N P L A N P a g e 1 Contents 1. Introduction... 2 2. Alternatives... 2 3. Water Saving Initiatives... 2 3.1 Interventions in Progress... 2 3.2 Water Awareness... 2 4. Proposed Emergency Interventions... 5 4.1 Boreholes... 5 4.2 Desalination Plan Phase 1... 6 4.3 Desalination Plan Phase 2... 6 Annexure A... 10
L U C K Y S T A R S T H E L E N A B A Y E M E R G E N C Y I N T E R V E N T I O N P L A N P a g e 2 1. Introduction On 24 May 2017 the Western Cape was declared a provincial state of disaster as a result of the magnitude and severity of drought affecting the province. The drastic measure was in response to the current drought crisis, the worst since 1904. Oceana Group Limited has two large canning and fishmeal processing facilities on the West Coast. The operations are highly dependent on water for steam generating which is required for pilchards and industrial fish processing. The two facilities employ a total of 2 000 employees for its land and sea based operations. Lucky Star Operations has implemented several interventions to comply with the municipalities request for a 30% reduction in consumption. Engagements with the Saldanha Bay Municipality and Berg River Municipality have led us to conclude that the municipal emergency intervention plans will not be completed in time to avoid DAY ZERO (anticipated 1 January 2018) consequences. 2. Alternatives Alternatives to the emergency intervention solutions include mothballing the facilities and importing canned product from Thailand and Etosha Fisheries. A large scale reduction in employment numbers will negatively impact the West Coast economy. The two facilities collective provide salaries & wages of approximately R200 million per annum and local procurement spend to the value of approximately R440 million per annum on the West Coast. The alternative of mothballing the facilities have therefore been declined as it will lead to an increase in the already high unemployment regional statistics as well as negatively impact the West Coast economy. 3. Water Saving Initiatives 3.1 Interventions in Progress Lucky Star St Helena Bay has implemented several water saving initiatives: Switch sealing water on thawing vacuum pumps from potable water to seawater Installation of shell tube heat exchangers on saucer vacuum pumps seal water Switch sealing water on waste heat evaporator vacuum pumps from potable water to seawater Re-use waste heat evaporator condensate for cleaning of waste heat evaporator Cleaning of stainless steel equipment and floors with seawater instead of potable water Switching flushing water of tricanters from potable to seawater The investigation and approval to install a reverse osmosis plant at cost of R2 million rand to decrease the water consumption of boiler feed water 3.2 Water Awareness Daily water meter readings are conducted per department to ensure no wastage and early identification of possible leaks. Fresh water supply locked in areas where potable water requirements are low Locking of water supply valves during non-production weekends Distribution of cistern bricks to all employees for use at their homes
L U C K Y S T A R S T H E L E N A B A Y E M E R G E N C Y I N T E R V E N T I O N P L A N P a g e 3 Increasing water saving awareness with weekly dashboard of the Water Crisis situation. See below latest distributed and used as toolbox talk.
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L U C K Y S T A R S T H E L E N A B A Y E M E R G E N C Y I N T E R V E N T I O N P L A N P a g e 5 4. Proposed Emergency Interventions 4.1 Boreholes Lucky Star St Helena Bay owns 615 hectares of farm property in Stompneus Bay. It is proposed to drill boreholes on the farm and replace potable water with borehole water dependent on the quality of water. A desktop study has been conducted by Geoss Hydrology on possible positions for boreholes on the farm. (See Annexure A). The boreholes will be drilled to approximately 100 metres deep. The yield test will determine the quantity of water that will be piped to the factory. The yield test will determine if a General Authorisation or Water Use Licence Application must be done to Department of Water and Sanitation. See below Google Map layout of possible pipeline positions which will be determined after borehole drilling is completed. The pipeline will be routed from the farm underneath the district municipal road to the farm.
L U C K Y S T A R S T H E L E N A B A Y E M E R G E N C Y I N T E R V E N T I O N P L A N P a g e 6 4.2 Desalination Plan Phase 1 It is proposed in to install an 814m 3 per day desalination plant on the Lucky Star St Helena Bay site. The cost of the installation is estimated to be R16, 5 million and is estimated to be completed by 31 January 2018. The installation includes: 1. One 34m 3 per hour containerized desalination plant 2. Two 1000m 3 storage tanks 3. Beach Wells for sea water supply and seawater extraction pipeline 4. Pumps and piping connecting new tanks with current piping infrastructure 5. Pumping of brine with current effluent into extended effluent pipeline into the Stompneus Bay. The brine will be diluted with seawater from seawater scrubber, thawing water and waste heat evaporator cooling water. The brine will be a maximum of 51m 3 per hour diluted in the current effluent stream of average 700 to maximum 1300m 3 per hour. The brine concentration will be between 4 to 6 % of the total effluent stream. The effluent discharge point will be at the current jetty outlet. 6. The current effluent sump capacity will be increased to ensure continuous pumping of effluent to sea and prevent sump over flow over the beach. 7. The discharge pipe will be extended 1,300 meters away from the current discharge point to assist with dispersion and to get the discharge into 10 depth. 8. Installation of switchgear and cables to supply power from Genset to the ice plant 1 4.3 Desalination Plan Phase 2 It is proposed in to install a 600m 3 per day desalination plant on the Lucky Star St Helena Bay site. The implementation of phase 2 desalination is dependent on the Western Cape water supply recovering and the Laaiplek factory water supply situation. The installation includes: 9. Additional electricity supply from Eskom 10. One 25m 3 per hour containerized desalination plant 11. Additional Beach Wells for sea water supply and seawater extraction pipeline 12. Pumps and piping connecting desalination permeate to phase 1 tanks and piping 13. The brine will be pumped with other effluent into the 1,3km pipeline 1 The Lucky Star St Helena Bay site is currently over the maximum demand limit. An additional Power Supply line from Eskom is required which could take up to 2 years and could cost up to R7 million. The Gensets on the site will be used to generate electricity to the ice plant in the interim which will produce enough power for the desalination plant to operate.
L U C K Y S T A R S T H E L E N A B A Y E M E R G E N C Y I N T E R V E N T I O N P L A N P a g e 7 See layout of position of Phase 1 desalination plant, possible position of two 1000m 3 tanks, proposed effluent discharge pipe and beach wells. Large effluent sump New 1, 3 km pipeline
L U C K Y S T A R S T H E L E N A B A Y E M E R G E N C Y I N T E R V E N T I O N P L A N P a g e 8 Due the anticipated DAY ZERO to be in March 2018, the company has adopted an acceleration approach to the project. See the below Gantt chart of the desalination project.
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L U C K Y S T A R S T H E L E N A B A Y E M E R G E N C Y I N T E R V E N T I O N P L A N P a g e 10 Annexure A
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L U C K Y S T A R S T H E L E N A B A Y E M E R G E N C Y I N T E R V E N T I O N P L A N P a g e 19 Annexure A Cont..)
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