This itgm has been cleared for submission to the Board by:

=eran O'Brien ..... 0 Paddy Nolan ....... E f

OFFICE OF 1 Jonathan Derharn.:...u GUIDANCE @Pa An Enwronmental chn,.amho,nhl um Protection 0lllanhni can*,- Agency

#To:- Directors

From: Aoife Loughnane - Licensing Unit

Date: 21" March 2006 L

Application for an IPPC Licence Review from Glanbia Ingredients (Ballyragget) Limited, Licence Register 758

Classes of activity: (First S'chedule EPA Acts 1992 & 2003)

Section 87( 1)b notice sent: Section 87( I)@) information received:

Notices ynder h i c l e 17 issued:

Information under Article 17 received:

Submissions received:

Site visits:

Class 2.1 The operation of combustion installations with a rated thermal input equal to or greater than 50MW. Class 7.2.1 The treatment and processing of milk, the quantity of milk received being greater than 200 tonnes per day (average value on a yearly basis). 2710712005

2610812005

131 1012005

1111 1105,02/12105,21/02/06,22/02106.

One

3 Ol06l2005

SUMMARY This application by Glanbia Ingredients (Ballyragget) Ltd is for the review of their current licence (Reg. 359) granted on 23/12/1998. Glanbia requested a review on 25/5/2005 under Article 15 of the EPA (Licensing) Regulations, 1994 to 2004. The licence review is necessary for the following reasons:

To take account of the proposed expansion in production & changes in relation to emissions to air and water;

To update the licence in light of changes at the installation; and

To incorporate the requirements of the Protection of the Environment Act, 2003 (PoE Act), as appropriate.

(i)

(ii)

(iii)

COMPANY Glanbia Ingredients Ireland operate three dairy and food ingredient processing plants at Ballyragget, Kilmeaden and Virginia. The Ballyragget plant is the largest of these, with a production capacity of over 3 million cubic meters of dairy liquids per annum. It was founded in 1967 as Avonmore Creameries Ltd, and currently employs approximately 350 full

Page 1 of 17

i

time staff. Production activities are on a continuous 24-hour basis, seven days per week during peak production periods. Since the current licence (Reg. 359) was issued, Glanbia have obtained planning permission for various extensions to the processing plant, for the installation of a Combined Heat and Power (CHP) plant, and most recently, in July 2005 for an extension to the butter oil plant and a new sludge storage facility.

The site layout and licensed site boundary is shown in Figure 1. Glanbia own approx. 133ha of farmland in the area surrounding the dairy plant, including a farm and Ballyconra House. The nearest receptors to the installation are three residential properties to the south west of the site, three c :ottage :s to the north and one house on the N77 to the north east oj F the site.

I / \ \ \ \ \ / \ \

PROCESS DESCRIPTION The processes which take place on-site include milk intake, separation & pasteurisation, production of cheese, whey, butter and casein products. Unit operations include steam heated evaporation and drying, amongst others. These processes were described in the Inspector’s report for the current licence (Reg. 359). Due to seasonal fluctuations in the availability of whole milk substrate, some of the unit operations observe an off-peak outage e.g., the Whey & Casein Plants have historically operated from February to November, and the Cheese Plant from March to November. However, improved plant efficiency has resulted in extended production around the “shoulder periods” (i.e., November to February) where typically plant utilisation has been lower.

CHANGES AT THE INSTALLATION SINCE LICENSING Since the current licence (Reg. 359) was issued in December 1998, there have been a number of changes on-site with environmental consequences, including:

Conversion of the site from heavy fuel oil to natural gas; Installation of Combined Heat and Power (CHP) plant; Installation of membrane technology for effluent treatment; Installation of bag houses on some drier emission points; Installation of water recovery facilities; Extensive nutrient management planning (NMP) for landspreading of organic waste; Achievement of IS0 1400 1 Environmental Management System Certification.

=

. . Glanbia have requested the modification and/or removal of a number of existing conditions from the revised licence. All of the requests have been considered and assessed in the preparation of the Recommended Determination (RD), and are dealt with where relevant, under the appropriate sections of this report.

Page 2 of 17

PROPOSED CHANGES AT THE+IaSTALLATION , 1 s

The installation processed approx. 975,700m3 of whole milk during 2004. Overall production is projected to increase to a dairy throughput of 2.5 million cubic metres per annum (1.2 million m3 each of milk and whey, 75,000 m3 cream) over an approximate 2 year timescale. Much of this increase will take place during the shoulder periods of the production year. The licensee states that the existing arrangement of driers has adequate capacity to accommodate the additional throughput, as utilisation rather than capacity will be increased. Overall peak daily effluent volumes are projected to increase by 2,300m3/day (1 OOOm3 arising from additional milk and whey volumes imported to the site and 1,300m3 arising from additional milk processing projects on-site, details of which are given below). To accommodate the additional hydraulic loading, the licensee has identified that it will be necessary to upgrade the wastewater treatment plant by adding further membrane units and providing additional sludge dewatering by a belt-press. The licensee intends to introduce the following additional projects at the installation over the coming years.

1. Evaporator Project This will involve the relocation of an evaporator from the Kilmeaden plant to facilitate concentration of delactosed whey permeate (DLP) on-site by evaporation from 3 0% to 60% solids. The operation of this evaporator will require approx. 100 Kwh power and 2,70Okgs/hour steam, will utilise 200m3/day of water, and will generate an additional 500m3/day of wastewater. The plant will be enclosed within a new building and Glanbia state there will be no contribution to noise levels at the noise sensitive locations. There are no associated significant emissions to atmosphere.

2. Butteroil Project The existing butteroil production plant is to be extended to increase the production rate from 1.5 to 4 tons per hour. This will lead to a 150m3/day and 800kg/hour increase in water and steam consumption respectively, and will generate an additional 150m3 of wastewater per day. The new butteroil plant is expected to be more efficient than the existing plant, and there are no expected changes to COD loadings arising from the increased production. No additional noise impact is expected, as the plant will be housed within a new building. There will be no emissions to atmosphere of environmental significance. The skim phase at the separation stage of the butteroil process is normally added to buttermilk, however occasionally it is necessary to dispose of the serum e.g., off- spec product. Up to 25m3 per day of waste butteroil serum may require off-site disposal, which takes place at one of two permitted anaerobic digestion units.

3. Milk Minerals Project A new Milk Minerals Recovery Facility is to be installed to recover calcium phosphate from whey and drying it to a powder product for use as a food supplement (capacity 3 tonnedday). The process will involve the installation of a new Trucal drier (emission point A2-14). The process will reuse water removed from whey for washing the calcium phosphate mixture prior to drying. This project will give rise to an additional steam demand of 6,800 kgshour and 260m3 per hour of process water, and will generate an additional 450m3 of wastewater per day. The new plant will be housed in an existing building and is not expected to give rise to additional noise emissions.

4. Baghouse Installation Glanbia propose to install bag filters on the Niro 3 Drier in 2006 and Niro 2 Drier in 2007 to replace existing cyclones, resulting in final emissions from the driers of <20mg/Nm3. The work on the Niro 2 drier will result in emission points A2-3 & A2-12 being combined as a single discharge from emission point A2-3.

Page 3 of 17

5. Casein Throughput Rennet Casein production is approx. 270 tondweek at peak production and is expected to increase to 3 10 tondweek. The increased throughput will give rise to an additional 200m3 per day of wastewater as curd washing. In addition, acid casein production is projected to increase. Although wastewater arisings are likely to be modest, the production of acid casein will give rise to additional chloride loadings to the wastewater treatment plant.

‘

USE OF RESOURCES

The primary fuel in use at the installation is natural gas, with gas oil used as a back-up fuel for use in the event of a gas outage. Water is supplied from both the River Nore and three on- site boreholes. Current and projected resource consumption figures are shown in Table 1.

Table 1 Current and Projected Resource Consumption

Overall annual water usage is projected to increase by 520,396 m3 by 2007. The extra demand arises from additional water requirements to facilitate increased milk and whey throughput ( 500m3/day), evaporator relocation project (200m3/day), butteroil project (1 50m3/day), milk minerals project (260 m3/day) and increased casein throughput (200m3/day). All additional process effluents will require treatment in the on-site wastewater treatment plant.

IPPC DIRECTIVE This installation falls within the scope of the following categories of Annex I of Council Directive 96/6 l/EC concerning integrated pollution prevention and control:

- Category 1.1 Combustion installations with a rated thermal input exceeding 50h4W7 and

Category 6.4(c) Treatment and processing of milk, the quantity of milk received being greater than 200 tonnes per day (average value on an annual basis).

This Directive has been transposed into Irish Law by the enactment of the Protection of the Environment Act, 2003. The Recommended Determination (RD), as drafted, takes account of the requirements of the POE Act. In particular, Condition 7 provides conditions dealing with energy, water and raw material use, reduction and efficiency on site. Conditions 9 and 10 deal with accidents, emergency response, decommissioning and residuals management at the installation. BAT is taken to be represented by the technologies described in the Final Drafr Reference Document on Best Available Techniques in the Food, Drink and Milk Industry, June 2005.

LARGE COMBUSTION PLANT DIRECTIVE 2001/80/EC The LCP Directive applies to combustion plants with a rated thermal input of equal to or greater than 50 MW, irrespective of the fuel used (solid, liquid or gaseous). However the Directive does not apply to combustion plant at this installation for the following reasons: the CHP plant commenced operation in 2000 as replacement for existing boilers, therefore it is considered exempt under Article 2(7)(i) of the Directive, and the ‘new plant’ (as defined under Article 2(9) of the Directive) i.e., boilers AI-3, A1-4 and proposed boiler A1-6, have a combined thermal input of less than 50 MW. Boiler AI-5 is considered ‘existing plant’ under Article 2( 10) of the Directive, as it was installed in 1977. All boilers on-site were converted to run on natural gas in 2000.

Page 4 of 17

EUROPEAN COMMUNITIES (CONTROL OF MAJOR ACCIDENT HAZARDS INVOLVING DANGEROUS SUBSTANCES) REGULATIONS, 2006 (S.I. NO. 74 OF 2006) The activity is not an establishment to which the EC (Control of Major Accident Hazards involving Dangerous Substances) Regulations, 2006 applies.

RECOMMENDED DETERMINATION

AIR: The main emissions to atmosphere are combustion gases and particulate emissions arising from product drying operations.

Combustion Plant This licence review includes the addition of a new 14.25 MW boiler (AI-6) within the existing boiler house for generating steam as a stand-by to the normal operation of the CHP plant. The CHP plant was constructed in 1999 and commenced operation in 2000. The heat generated is in the form of steam, which is supplied to meet plant production demand. The plant comprises 2 gas combustion turbines (5 MW(e) output each) and 2 heat recovery boilers (12.4 tonnes steamhr output each, or 26.1 tonnes steamhr output with supplementary firing i.e., burning natural gas in the heat recovery system). Efficiency levels for the conversion of fuel to energy are approx. 72% when recovering the waste heat from the electricity generating process. The overall efficiency is increased to approx. 78% to 84% through supplementary firing, thereby significantly increasing the heat output. In the event that heat is not required, the exhaust from the turbines can be diverted directly to atmosphere through the by-pass stacks Al- la & Al-2a. Due to the low efficiency of conversion of fuel to electricity (29%), the CHP plant is not operated in by-pass mode except in situations where a short term drop in steam demand occurs on-site (approx. 40 hours per year maximum).

Since the installation of the CHP plant and the conversion of steam boilers from heavy fuel oil to natural gas, emissions of SOz from the installation have been practically eliminated, and may only arise on occasions when the natural gas supply is interrupted and boilers are fired on gas oil. This will be a short-term measure, and unlikely to be implemented with any frequency. Condition 6.10 of the RD specifies that gas oil may only be used in the event of an unplanned accidental interruption to the natural gas supply or for test purposes. Schedule B. I of the RD specifies emission limits for combustion plant on site.

Process Emissions The licence review includes changes to the process emission characteristics in terms of maximum volume of exhaust gases currently licensed, and corresponding emission limits specified for total particulates. Under the current licence (Reg. 359), the licensee was required to meet the BATNEEC standards for total particulates of 50mg/m3 for the Niro 2 and 3 driers by 1" January 2002 in order to significantly reduce emissions from the plant. However, the licensee failed to carry out this measure. The licensee now proposes to replace the existing cyclones on the Niro 2 and 3 driers with high efficiency bag filtration units, resulting in final emissions of <20mg/Nm3 total particulates from these two major emission sources. BAT standards, as referenced in the BREF document, are emission levels of 5-20 mg/m3 for dry dusts. The RD requires that bag filters be installed on the Niro 2 and 3 driers by 31St October 2007, and that the licensee meet the BATNEEC standards for total particulates of 50 mg/m3 for all process emission points by 3lSt October 2007. The licensee has applied for one new process emission point to atmosphere: a new Trucal drier (A2-14) at the proposed Milk Minerals Recovery Facility. Schedule B.1 of the RD accommodates these changes and also incorporates two emission points installed by the licensee since the issue of the current licence (Reg. 359); A2-12 (Niro 2 fluidised bed - previously B16) and A2-13 (Casein Mill No. 2 -previously B17). Two previously licensed lactose drier emissions (B6 & B7) are no longer in operation and have been removed from the schedule of licensed

Page 5 of 17

emissions, while previously licensed lactose driers B11 & B12 have been combined to discharge through one stack, A2-8.

The licensee has applied for increased flowrates from all of the driers and process vents, as flowrates specified in the current licence (Reg. 359) were based on a one-off measurement instead of design flowrates. This has resulted in ongoing non-compliances under the current licence. The revised flowrates specified in Schedule B. I of the RD reflect the actual operating range to ensure compliance with the emission limit value.

Request: Glanbia have requested the removal of the requirement to implement a test programme for the proposed bag filters on the Niro 2 & 3 driers, on the basis that bag filters are a well-proven technology and performance guaranteed by the suppliers.

Response: A test programme for newly installed abatement equipment is a standard requirement in IPPC licences. The test programme may be tailored as appropriate with the agreement of the Agency. Condition 6 of the RD specifies the test programme requirements for the proposed installation of dust abatement equipment on process emission points.

Impact of Air Emissions on ReceivinP Environment The licensee has used the ADMS3 air quality dispersion model to predict ground level concentrations of nitrogen oxides and particulate matter (PMlo) within 1.5km of the boundary of the installation. Climatological data from the period 1988-2 to 1990 recorded at Kilkenny meteorological station was used in the model. Table 2 provides the Inspector’s summation of modelled impacts with reference to appropriate Air Quality Standards (AQS).

Table 2: Modelled ImDacts

NO2 (assumes 60% NOx converted to NO2 in emission plume)

PMlO (particles with a mean aerodynamic diameter of less than 10pm)

Note 1: PMlo mod concentrat

98Y0ile of hourly values 99.8% of hourly values Annual limit value

Existing Emissions 90.4%ile of daily values

Proposed 2006 Emissions 90.4%ile of daily values Annual average

Proposed 2007 Emissions 90.4%ile of daily values Annual average

98.1 %ile of daily values

ling is based on conservative cond is from all production processes.

75 90- 100 9-1 1

100-1 10

100-125 40

50-80 25-30

125-1 50

jns of maximum e

30-40 40-50 2-5

35-60

25-50 10-20

10-20 <10

25-40

aust gas volume flow ra

200Note 2ooNote 4A

40Note 4A

30Note 4B

5o Note 4C

50 Note 4C

40 Note 4C

2o Note 4D

5o Note 4C

40 Note 4C

20 Note 4D

50 Note 4D

E and emission

Note

Note

2:

3:

Ground level concentrations are indicated as ranges based on the interpolation procedure used in the gridding and contouring software carried out on 2025 receptor points in a 45 x 45 grid matrix. S.I. No. 244 of 1987 Air Pollution Ad, 1987 (Air Quality Standards) Regulations, 1987. S.I. No. 271 of2002 Air Quality Standards Regulations, 2002. Reducing standard to be fully achieved by 2310. A. Protection of Human Health B. Protection of vegetation C.

D.

Note 4:

Stage 1 limit value, compliance date 1 Jan 2005. The 50 @m3 24 hour limit value for the protection of human health must not be exceeded more than 35 times a calendar year. Stage 2 limit value, compliance date 1 Jan 2010. The 50 pdm’ 24 hour limit value for the protection of human health must not be exceeded more than 7 times a calendar year.

Page 6 of 17

Results of NOx Modelling The emission rates used in the‘model are based on conseiVative conditions where all the heating plant are operating at maximum load and NO, emission concentrations for each of the stacks are assumed to be at the IPC limit of 200 mg/m3. The modelled results indicate that the predicted hourly and annual NO2 ground level concentrations (GLCs) beyond the site boundary are substantially below the Air Quality Standards (AQS) specified in both the Air Pollution Act, 1987 (Air Quality Standards) Regulations, 1987 (S.I. 244 of 1987) and the Air Quality Standard Regulations 2002 (S.I. 271 of 2002). The AQS for NO2 is an hourly limit of 200 pg/m3 expressed as a 98%ile, which is to be replaced from lst January 2010 by a more stringent hourly AQS of 200 pg/m3 as a 99.8%ile, and a corresponding annual average of 40 CLg/m3.

The max. 98%ile of hourly NO2 GLCs is predicted to be 75 pg/m3 (less than 38% of the AQS), with a corresponding max. predicted 99.8%ile of 90-100 pg/m3 (i.e., 50% of the AQS). The predicted annual average NO2 GLC beyond the site boundary is 9-11 pg/m3 (i.e., less than 28% of the AQS). Combustion plant will only be fired on gas oil in the event of an interruption to the natural gas supply. Glanbia state in the review application that the boilers will achieve 250 mg/m3 NO, when running on gas oil, this represents a 25% increase over the maximum emission when operating on natural gas. An extrapolation of the model results by increasing NO2 emissions by 25% indicates that potential emissions from the plant will comply with the AQS. Overall, the results of air dispersion modelling indicate that emissions from the installation are in compliance with the National Air Quality Standards for NO;?.

Results of PMlo Modelling The emission rates used in the model are based on conservative conditions of maximum exhaust gas volume flows and emission rates from the stacks with maximum continuous operations of all production processes. These emission characteristics are considered to be worst-case, therefore resulting in conservative predicted GLCs. It is also noted that the model did not take into account any seasonal or diurnal variation in emissions from the exhaust vents. The following three scenarios were modelled:

(i) Existing Emissions (ii)

(iii)

Proposed 2006 Emissions (planned installation of bag filtration on Niro 3 drier to replace existing cyclone) Proposed 2007 Emissions (planned installation of bag filtration on Niro 2 drier to replace existing cyclone)

The fraction of the total particulates emitted from each process vent assumed to be PMlo material is based on manual sampling programmes undertaken by Teagasc Dairy Products Research Centre. A 62% PMlo fraction was used in the model for the existing cyclones on the Niro 2 and 3 driers. In model scenarios (ii) and (iii), a 90% PMlo fraction was used, due to the introduction of bag filtration which will lead to a significant reduction of total particulates, but a higher fraction of PMlo material in the reduced emissions.

The model results demonstrate that with the planned installation of bag filters on the Niro 2 and 3 driers by the end of 2007, there will be a substantial reduction in predicted PMlo concentrations downwind of the site boundary. Compared to the current emission scenario, the predicted 90.4%ile of daily PMlo concentrations will decrease from 35-60 pg/m3 at the nearest residences to the north of the site, to 10-20 pg/m3. Based on the 2007 emission scenario, the corresponding 98.1 %ile at the nearest residences is predicted to be <40 pg/m3 i.e., below the 50 pg/m’ AQS. The predicted annual average PMlo concentrations for both the 2006 and 2007 emission scenarios are less than 50% of the AQS at the nearest residences.

The model results show high GLCs in breach of the daily AQS in an area NE of the site boundary. This area is very small, extending over approx. 0.8 hectares, comprising the N77 carriageway and verge (0.14 ha), with the remainder within lands owned by the licensee. This area is within the building wake zone of the Niro l/Casein plant building, which results

Page 7 of 17

in the plume from the exhaust vents being caught within the turbulence and causing elevated GLCs. The exposure risk to health by the local community at this location is very low as there are no properties within this area. The duration of exposure by passing pedestrians at this location would be very low. The licensee has implemented an ambient PMlo monitoring programme under the current licence (Reg. 359) at a location to the north east of the dry goods stores, close to the site boundary. Results to date show compliance with the AQS, with a max. daily concentration of 34 pg/m3 measured in the first two quarters of 2005. Condition 6.1 1 of the RD requires the ambient PMlo monitoring programme to be maintained to the satisfaction of the Agency, in order to determine compliance with the AQS. This will allow the impact of the installation of bag filters on the Niro 2 & 3 driers to be evaluated in terms of reduction of PMlo emissions from the installation.

Minor & Fugitive Emissions There are approximately 150 minor and fugitive emission points to atmosphere on-site including extraction fans, steam vents, condensers etc. Under the EMP, the licensee is required to prepare a programme for the identification and reduction of fugitive emissions. As in the current licence (Reg. 359), the RD requires that scrubbers on the hydrochloric and nitric acid tanks be operational at all times during filling operations.

EMISSIONS TO WATERS:

There are three discharge points to the River Nore, a designated river under the European Communities (Quality of Salmonid Waters) Regulations, 1988 (S.I. 293 of 1988).

Sources of process effluent arising at the installation are cleaning operations, waste product, condensate, operationalhandling losses, river water treatment plant sludge, surface water run-off from ‘dirty yard’ areas and truck wash. The WWTP comprises the following unit operations; balancing tank, dissolved air flotation (DAF), Biotower, Anoxic tank, oxidation ditch, membrane process, picket fence thickener, odour removal plant, sludge press. The plant was upgraded in 1999 with the installation of a membrane bioreactor which functions as a high Mixed Liquor Suspended Solids (MLSS) activated sludge process. Further work carried out included upgrading the aeration capacity on the oxidation ditch by the installation of fine bubble air diffusers. Glanbia propose to install additional membranes and sludge dewatering facilities to accommodate the proposed production increase.

SW-2 CoolinP Water Line

The discharge at SW-2 is referred to as the ‘Cooling Water Line’ although most cooling water is now recovered and re-used on-site. The actual discharge at SW-2 comprises polished condensate from the evaporation process and backwash from the filter beds at the river water treatment plant. Raw water treatment involves chemical dosing, coagulation, flocculation, clarification and filtration. The flocculated material removed at the clarification stage is discharged to the WWTP. The backwash from the filter beds is discharged to SW-2. Daily backwash volumes range from 250 m3/day to 1000 m3/day, depending on the condition of the river water. The licensee has considered the possibility of diverting the backwash water to the WWTP, but states that this would require a revision of the discharge volume limit at SW-1 (from the requested 12,000 to 13,000m3/day) in addition to the requirement for more pumping and membrane separation equipment in the WWTP, which would result in increased energy consumption with limited overall benefit.

Uncontaminated surface water drainage collected from parts of the cheese plant roofs, cold stores and engineering building areas discharges at SW-3. This dedicated surface water drainage route was installed after the issue of the current licence (Reg. 359).

SW-1: Wastewater treatment plant discharge

SW-3 Uncontaminated Surface Water Run-off

Page 8 of 17

Receiviw Waters

Glanbia undertake annual biological quality monitoring of the River Nore in order to determine the impact of discharges from the plant. The results of this monitoring programme from 2001 to 2005 are shown in Table 3. The Q values recorded in 2005 indicate that the installation currently has no significant negative effect on the ,biological water quality of the river. Upstream at Tallyho Bridge, river quality is rated as unpolluted (44). Before the river reaches the Glanbia plant, the water quality has dropped to slightly polluted (Q3-4 recorded at Site 2). Downstream of the cooling water discharge, the river is also rated as slightly polluted. At Ballyragget Bridge, results indicate that the river has recovered and is classified as unpolluted (44).

It is noted that in 2004 the licensee’s monitoring programme assigned a Q3-4 rating at Station 1300 (upstream of Glanbia), while the Agency’s biological survey rated the site as 44-5. The licensee’s sample contained three Group A taxa (Ephemera, Ecdyonurus and Heptugeniu). The Agency’s classification criteria prescribe that at least one Group A taxon should be present for a 4 4 and that at least three such taxa should be recorded for a Q5. Therefore the correct Q value for a site with three Group A taxa is 4-5. (pers. comm. with John Lucey, Senior Scientific Officer, Office of Environmental Assessment (OEA)).

Table 3: Results of Glanbia Biological Quality Monitoring (Summary 2001-2005)

Ammonia (as N)

Ortho-Phosphate (as P)

downstream of Glanbia.

Note 1 EPA biological survey rating of Q4-5 assigned to this site in 2004

The results of chemical analysis (average) of the River Nore for 2005 upstream and downstream of Glanbia are given in Table 4.

Table 4: 2005 Chemical Analysis of River Nore

0.026 0.083

0.033 0.038

Nitrate (as N)

Nitrite (as N)

Chloride (as C1)

3.43 3.43

0.018 0.03

19.2 21.1

Page 9 of 17

Glanbia have requested a number of changes in relation to discharges to the river, as follows:

Table 5:Requested changes to ELVs for discharge to River Nore

Max. daily volume flow at SW-2 (m3/day)

Temperature ("C)

1

6,500 3,500

25 (SW-I), 30 (SW-2) 27 (SW-I), 28 (SW-2)

Suspended Solids at SW-2 (mg/l) 10 30 I I

Sulphate Note ' (mg/l) I 100 (SW-1), 100 (SW-2) I 500 (SW-l), 100 (SW-2)

Chloride Note ' (mg/l) 250 (SW-I), 500 (SW-2) 500 (SW-I), 900 (SW-2)

Residual Chlorine Note ' (mg/l) 0.02 (SW-1), 0.02 (SW-2)

The licensee has carried out an assessment of the impact of the requested changes at the 95%ile flow rate (184,032 m3/day). The impact assessment relates to emissions at limit values and under maximum flow conditions, whereas actual mass emissions discharged from the site are in most cases significantly lower than those licensed. Table 6 shows the current mass loadings and requested changes in mass emissions of pollutants to be discharged to the river.

Table 6:Requested Changes in Emissions to Water

Removal (SW-l), 0.02 (SW-2)

Temperature Note 1 Note 1 Note 1

Page 10of 17

Chloride

Residual Chlorine

5500 9150 +3650

0.3 1 -- 0.07 based on removal of ELV at SW-I

.

Suspended Solids (mg/l)

Nitrate (as N) (mg/l)

Ammonia (mg/l)

Total P (mg/l)

Ortho P (mg/l)

Sulphate (mg/l)

Chloride (mg/l)

changes on the receiving waters at 95%ile flow with reference to relevant Environmental Quality Standards (EQS).

Table 7: Impact of Requested Changes on Receiving Waters

1.55 20 21.55 25 Note A

0.84 2.50 3.34

0.15 0.023 0.173 1 (as N&) A

11 NoteD

0.02 unionised NH3 Note A

value MRP (mg/l) by 2007 0.07 NIA Background + 0.07 0.03 as annual median

0.04 0.02 0.06 Note B

34.5 45 79.5 200 mg/l SO, Note

49.7 19 68.7 250 mg/l C1

Residual Chlorine (mg/l) 0.0004 NIA Background + 0.0004 0.005 mg/l HOC1 Note A

Temperature

Increased temperatures have been recorded at SW-1 since the BOD limits from the WWTP were reduced from 20mg/l to lOmg/l in 2001, due to the extensive aeration required to achieve the specified limit. An ecological report submitted by the licensee on the assessment of the requested changes in emissions to water projects that the requested increase of 2°C at SW-1 is will not have a detectable impact on the biota of the river, as the pipe discharges into a strong flow with good mixing, and the requested decrease of 2°C at SW-2 could result in a small positive benefit of decreased microbial growth, as that pipe discharges close to the riverbank where the presence of localised amalgams of microbial slime have been noted in slacker water. The RD requires the licensee to report on the advantages or otherwise of installing a river bed diffuser as an outfall mechanism on the thermal discharges from SW-1 and SW-2, and to implement any recommendations with the agreement of the Agency. To comply with the Salmonid Regulations, Condition 5.4 of the RD requires that effluent discharge from SW-1 and SW-2 must not result in a variation of more than 1S”C in the receiving system measured at the edge of the mixing zone, or an exceedence of 21.5”C, or 10°C during the period from 1 November to 30 April. Condition 5.4.2 requires the licensee to submit proposals on the means by which compliance with this requirement shall be achieved and demonstrated.

Phosphorus

The licensee states that although there will be an increase in production at the installation, there will not be a commensurate increase in sources of phosphorus to the WWTP. The licensee requests that the emission limit value for ortho-P at SW-1 remains at 0.6mg/17 on the basis that overall phosphorus loads will remain within current mass emission levels. In 2004 & 2005, median ortho-P concentrations in the treated effluent discharge at SW-1 were 0.41mg/l i.e., 68% of the ELV.

The Local Government (Water Pollution Act), 1977 (Water Quality Standards for Phosphorus) Regulations, 1998 requires an improvement in the water quality of rivers and lakes relative to the quality determined between 1/1/1995 and 31/12/1997 i.e., the “existing” quality rating.‘ This improvement is to be achieved by 31/12/2007. Compliance with this

Page 11 of 17

regulation can be achieved by either an improved biological quality rating, or by a reduction in median concentration of molybdate reactive phosphate. For the River Nore:

The ‘existing’ biological quality rating for the stretch of the Nore on which

Therefore the target rating is 44;

And the target median molybdate-reactive phosphate (MRP) concentration is

the installation is situated is Q3-4.

rn

0.03mg/l.

(Source: Kilkenny County Council Phosphorus Regulations Implementation Report 2002)

Notwithstanding the requirements above, it is also required that the existing biological quality rating be maintained. The median MRI” concentrations for 2005 upstream and downstream of the Glanbia plant were 0.033mg/l and 0.038 mg/l (EPA River Quality Monitoring Data). Given the current MRP concentrations in the River, a discharge of zero MRP would be required, which is neither technically or economically feasible. The current licence (Reg. 359) authorises Total P and ortho-P daily mass emissions of 12.25 and 7.35 kgslday respectively. Glanbia have requested that the current ELVs for Total and ortho-P are retained, however the requested reconfiguration of volumetric discharges at SW-1 and SW-2 would result in an increase of 1.5 kgs/day Total P (i.e., 12% increase to 13.75 kgdday), and an increase of 0.9 kg/day ortho-P (i.e., 12% increase to 8.25 kgs/day) discharging to the river. As there is no additional assimilative cauacity for ortho-P in the receiving waters, the increased mass loading of Total P and ortho-P is not deemed appropriate. However, it is considered that the flow limit at SW-1 may be increased to 10,500 m3/day and the limit at SW-2 be reduced to 3,500 m3/day, which will maintain the current daily mass loading of 12.25 kgs/day Total P and 7.35 kgslday ortho-P on the river. Schedule B.2 of the RD specifies the revised discharge limits. Ammonia

Glanbia have requested that the total ammonia emission limit value of 2 mg/l (SW-1) and 0.8 mg/l (SW-2) remain unchanged in the revised licence. However, the requested reconfiguration of discharges would give rise to an additional 3.6 kgs/day of ammonia (as N) discharging to the river, which represents a 15% increase on current daily mass emissions.

The guide value for ammonia (NK) in the Freshwater Fish Directive (78/659/EEC) is 0.04 mg/l. This guide value, while not directly transposed into Irish law, is intended to protect water quality (and fisheries) in conditions where low Dissolved Oxygen may lead to risk of increased toxicity due to the non-ionised form (NH3). The licensee states that DO levels in the Nore are high (typically >85% sat.) and accordingly, this risk does not apply. The Salmonid Regulations set limits for total ammonia (NK) of 4 mg/l and un-ionised ammonia (NH3) of <0.02 mg/l in salmonid waters.

The licensee has calculated that based on the complex relationship between pH, temperature and ammonia concentration, in the River Nore, l.lmg/l total ammonia would contain 0.02mg/l un-ionised ammonia and that background total ammonia concentration in the river at 95Yoile flow is 0.023mg/l. Taking into account the proposed discharge of an additional 3.6kg/day of ammonia, the resultant ammonia concentration in the river would be 0.17mg/l, which equates to 15% of the available capacity for total ammonia used to ensure the concentration would contain 0.02mg/l NH3 (at average temperature and pH). The RD recommends retaining the current ELVs for ammonia at SW-1 and SW-2, but restricts the flow to 10,500 m3/day at SW- 1, as outlined above in relation to orthophosphate.

’ Median Molybdate-Reactive Phosphate (MRP), expressed as mgh, is broadly equivalent to “orthophosphate” as determined using the ascorbic acidlmolybdate colorimetric procedure. (Source: Parameters of Water Quality, Interpretation and Standards, EPA 2001)

Page 12 of 17

Sulphate

The licensee had initially requested that sulphate limits be removed from the list of licensed parameters as compliance with the ELV has been problematic, particularly as discharges are directly related to the use of Aluminium Sulphate in removing phosphorus from the wastewater. However, the subsequent discharge impact assessment submitted as Article 17 information applied sulphate ELVs of 500mg/l at SW-I and 100mg/l at SW-2.

The EU Mandatory Limit Value for sulphate in Al, A2 and A3 surface waters intended for abstraction of drinking water supply is 200mg/l SO4, as implemented by the Surface Water Regulations (S.I. 294 of 1989). Water for the Ballyragget public water supply is abstracted approx. 1.5km downstream of Glanbia. At 95%ile flow, the licensee reports background sulphate levels in the river of up to 45mg/l. The assimilative capacity of the river is calculated, using 95%ile flow, as 28,524 kg/day. The licensee proposed a discharge of 6,350 kg/day (at an increased discharge rate of 12,000 m3/day at SW-1). The resultant concentration in the river would be 78.5mg/l, which equates to 40% of the EQS. The RD recommends the requested sulphate ELVs of 500mg/l at SW-1 and 100mg/l at SW-2 but restricts the discharge flow rate at SW-1 to 10,500 m3/day, as outlined above in relation to orthophosphate. The RD requires the licensee to include the minimisation of sulphate emissions to the river in their Schedule of Environmental Objective and Targets under Condition 2.2.2.2 and to carry out ambient river monitoring for sulphates on a quarterly basis.

Chloride

The licensee had initially requested that chloride limits be removed from the list of licensed parameters due to the fact that the WWTP cannot remove chlorides from the effluent stream and at present there is no feasible technology to ensure chloride removal. However, the subsequent discharge impact assessment submitted as Article 17 information applied chloride ELVs of 500mg/l at SW-I and 900mg/l at SW-2. The sources of chloride in the effluent stream at SW-1 are sodium hypochlorite for cleaning and hydrochloric acid for the manufacture of Acid Casein. The source of chlorides at SW-2 is regeneration of water softeners, which give rise to elevated chloride concentrations during periods of regeneration only.

The EU Mandatory Limit Value for chloride in Al , A2 and A3 surface waters intended for abstraction of drinking water supply is 250mg/l C1, as implemented by the Surface Water Regulations (S.T. 294 of 1989). Water for the Ballyragget public water supply is abstracted approx. I .5km downstream of Glanbia. The licensee reports the background median chloride concentration in the river as 19mg/l. The assimilative capacity of the river is calculated, using 95Yoile flow, as 42,511 kg/day. The licensee proposed a discharge of 9,150 kg/day (at an increased discharge rate of 12,000 m3/day at SW-1). The resultant concentration in the river would be 68.7mg/l, which equates to 27.5% of the EQS. The RD recommends the requested ELVs of 500mg/l at SW-1 and 900mg/l at SW-2, but restricts the discharge flow rate at SW-1 to 10,500 m3/day, as outlined above in relation to orthophosphate. The RD requires the licensee to include the minimisation of chloride emissions to the river in their Schedule of Environmental Objective and Targets under Condition 2.2.2.2 and to carry out ambient river monitoring for chlorides on a quarterly basis.

Residual Chlorine

The licensee has requested that residual chlorine limits be removed from the list of licensed parameters on the basis that the only source of chlorine at the installation is the disinfection of process water, the chlorine dosing location has been changed to the treated process water reservoir (to remove any potential chlorine at SW-2), and monitoring results have shown there is no potential for chlorine to exist in the treated wastewater discharge.

Residual chlorine is included as a parameter in the Freshwater Fish Directive (78/659/EEC) as transposed into Irish law by the Salmonid Regulations, with the limit value set at 0.005mg/l. There is however a problem with measurement of the parameter, especially at low levels, and in effluents, and in the field. The analytical procedures used are designed for drinking waters

Page 13 of 17

and there can be problems with using this method for effluents, especially if they are turbid or contain suspended matter (pers. comm. with Michael Neill, Regional Chemist, Kilkenny Laboratory). However, as residual chlorine is a parameter listed in the Salmonid Regulations, the RD retains the current ELVs.

Suspended Solids

The source of the suspended solids load at SW-2 is backwash from the filter beds at the river water treatment plant, which has become more concentrated due to reduced flow in this effluent stream. The licensee states that the suspended matter in the backwash is innocuous in nature as it originated in the river itself, and that nutrient levels are lower than the background river levels as most of the nutrients and particulate matter are removed in the clarification stage of the water treatment process and discharged to the WWTP. The river water treatment plant is currently being upgraded to improve the performance of the clarifiers. This is expected to reduce the amount of particulate material the filter beds have to remove and consequently reduce the discharge mass of suspended solids at SW-2. The ecological report submitted by the licensee states that as the habitat a short distance downstream of the discharge is unsuitable for salmon or lamprey spawning, the potential impact on species sensitive to suspended solids is slight.

The Salmonid Regulations set a limit of 25 mg/l for suspended solids. The licensee’s discharge impact assessment shows a resultant concentration of 21.55 mg/l in the river (86% of the EQS), at an increased discharge rate of 12,000 m3/day at SW-1. The RD recommends the requested ELV of 30mg/l at SW-2, but restricts the discharge flow rate at SW-1 to 10,500 m3/day, as outlined above in relation to orthophosphate.

Request: Glanbia have requested the removal of the requirement to carry out toxicity testing of effluent on the basis that the potential toxicity of organic wastewater discharges from the processing ofdairy liquids is low.

Response: Periodic toxicity tests are recommended in the BATNEEC Note for the dairy sector. Condition 6 and Schedule C.2.2 of the RD include an enabling provision for compliance toxicity monitoring to be carried out, as required by the Agency.

Firewater Retention

The licensee states that a firewater risk assessment was undertaken in 1999 and updated in 2002, resulting in a number of preventative measures being implemented on-site. The assessment concluded that the risk of a serious fire occurring in any area of the installation is low. The installation drains to the on-site WWTP which has the capacity to absorb spills and runoff in the event of an emergency. The licensee therefore considers the requirement for a separate firewater retention facility is not justified. Condition 3.9 of the RD requires the licensee to review the current firewater risk assessment to determine if the activity operating at an increased throughput should have a firewater retention facility.

EMISSIONS TO GROUND:

There are no existing or proposed emissions to ground from the site. The groundwater monitoring programme under the current licence (Reg. 359) has shown an improvement in groundwater quality upgradient of the plant since 1993, beneath an area where sludge spreading took place in the past. This practice was discontinued in the early 1990’s. Off-site emissions to ground relate to the landspreading of approximately 18,000 tonnes per annum of sludge generated at the WWTP, which is undertaken in accordance with a nutrient management plan (NMP).

Request: The licensee has requested the frequency of groundwater monitoring on-site be reduced from quarterly to biannually, on the basis that there has been no deterioration in groundwater quality over the past 7 years.

Response: The RD requires biannual groundwater monitoring at the installation.

Page 14 of 17

WASTE:

No new wastes will be generated as a result of the proposed developments. Hazardous wastes generated on-site include waste oil, batteries, fluorescent light bulbs and laboratory reagents. Non-hazardous waste generation includes WWTP sludges, whey waste, waste butteroil serum, packaging waste and general officekanteen waste. The quantity of waste generated in 2004 was approximately 7.6% lower than in 2003, primarily due to decreases in organic waste arisings (8.1%). WWTP sludges and whey waste are landspread in accordance with a nutrient management plan to be agreed annually with the Agency, waste butteroil serum is sent off-site for treatment by anaerobic digestion.

At the time of the original licence application, delactosed whey permeate (DLP) produced during lactose manufacture was classified as a waste and sent for disposal by landspreading. Since licensing, DLP produced on-site is concentrated for use as an animal feed ingredient, as a replacement for molasses, and is no longer classified as a waste. The licensee state that this process has been audited and approved by the Department of Agriculture and is recognised under Council Directive 96/25/EC concerning the use of feed materials for animal feeds. Condition 8 of the RD specifies the standard materials handling requirements at the installation.

Wastes for Landspreading WWTP sludges and whey permeate will continue to be landspread in accordance with an approved Nutrient Management Plan. Condition 8.8 of the RD requires the licensee to provide a minimum of 16 weeks storage capacity for waste destined for landspreading. This is the storage period specified in Schedule 3 of the Nitrates Regulations (SI. No. 788 of 2005), which although refers specifically to livestock manures, is considered an appropriate timeframe in this case to ensure sufficient capacity for over-winter storage of organic wastes prior to landspreading. The RD requires the licensee to carry out an integrity assessment of the sludge storage facility at least once every three years.

Request No. 1: Glanbia have requested that details of the organic waste register be reported to the Agency on a quarterly basis, instead of monthly.

Response: The RD requires that the organic waste register be maintained on-site and available for inspection by authorised personnel of the Agency at all reasonable times, with summary details to be submitted annually as part of the AER.

Request No. 2: Glanbia have requested a new definition for “organic waste” in the glossary of terms as follows: dewatered sludge, whey permeate, butteroil serum, retentate and calcium phosphate sludge.

Response: The definition for organic waste in the current licence (Reg. 359) is “dewatered sludge +om WWTP, delactosed whey permeate”. It is recommended that the definition of organic waste in the glossary should be “dewatered sludge from WWTP, whey permeate and other wastes agreed by the Agency”.

NOISE:

The 2004 noise survey shows that during daytime, specific plant noise levels were less than the specified 55dB(A) limit at noise sensitive locations, while night-time levels were within the 45dB(A) limit at noise sensitive locations, allowing for the 2dB(A) interpretation margin. The night-time noise is steady, non-impulsive and non-tonal in character at all noise sensitive locations. The RD retains the 55/45 dB(A) daytimehight-time noise limits and the 2 dB(A) tolerance, as specified under Condition 4. The RD retains the requirement for an annual noise survey to be carried out.

Request: Glanbia have requested that compliance with noise limits be measured using LA90

instead of LAeq as they believe LAeq is severely affected by offsite sources e.g., road traffic,

Page 15 of 17

birdsong and wind, while LA90 is not affected by any appreciable extent to fluctuating noise levels or noisy events of short duration. They state the nature of noise from the installation is such that if there were no other noise contributions in the vicinity, the LA90 would be the same as the LAeq, 15 minute.

Response: The RD recommends retaining LAeq as the parameter against which compliance is assessed. If there are any short duration, or intermittent, high level noise events at the installation, these will not be included in the LA90 but will be in the LAeq. Such events may have the potential to cause nuisance. While the LAeq records all noise at the monitoring location (including any offsite noise) the operator carrying out the monitoring should be able to clearly comment on the extent of the offsite noise. If there is a small amount of intermittent offsite noise, e.g., occasional offsite traffic, then the effects of this can be removed during monitoring by pausing the monitoring equipment whenever an offsite noise event occurs, so the LAes should accurately reflect the noise from the facility. If there is a significant difference between the LAeq and the LA90 the licensee should be able to clearly set out the reasons why in their monitoring report. Therefore, shall remain the parameter against which compliance is assessed.

HABITATS

The River Nore hosts a number of species listed in Annex I1 of the EU Habitats Directive (92/43/EEC) e.g., freshwater pearl mussel, white-clawed crayfish, brook lamprey, river lamprey, salmon. The protected species likely to occur adjacent to and immediately downstream of the plant are river lamprey, salmon and trout. A short distance downstream of the Glanbia discharge, the river deepens and the deep glide which predominates down to Ballyragget is not suitable for salmon or trout spawning or nursery, but is a good habitat for adult salmon & trout. The crayfish was not recorded at any site again in 2005 and appears to have been affected by disease or infestation. The collapse of this protected species was first recorded in 2001, however the population in the river may recover in the future. The RD specifies controls on effluent discharges to the river and monitoring to be carried out, to ensure the installation does not adversely affect the listed species.

COMPLIANCE RECORD:

The licensee’s overall compliance record is satisfactory, however there have been a number of non-compliances with emission limit values in the current licence (Reg. 359) for discharges to water and breaches of air flow rates from process emissions. Since issue of the current licence (Reg. 359), Glanbia have implemented several measures to improve their environmental performance e.g., installation of membrane filtration units in WWTP, installation of CHP Plant, changeover to natural gas, new sludge storage facility etc. Overall the installation is well managed with good levels of housekeeping and record keeping, and the licensee has a pro-active attitude to continually improving environmental performance.

COMPLAINTS:

No complaints concerning the installation were received by the Agency in 2005. One noise- related complaint was received in 2004. Previous complaints received by the Agency include ten noise complaints in the 2000-2003 period, and three odour complaints in the 1999-2000 period.

SUBMISSIONS:

One submission was received in relation to this application.

(i) Mr Pat Foley, Senior Engineer, Environment Section, Kilkenny County Council.

Mr Foley requests that milk products that do not meet quality standards and any hazardous waste arising from the processing facility are disposed or recovered in a satisfactory manner.

..

Page 16 of 17

Comment:- Condition 8 of the RD as drafted specifies requirements for the recovery and disposal of waste materials arising from the milk processing operations, in accordance with National and European legislation and protocols.

FIT & PROPER PERSON:

The licensee’s experience, technical abilities, financial and legal standing qualifies them as Fit & Proper Persons. The licensee states that the financial value to which the installation is underwritten to cover the environmental aspects of any closure or decommissioning of the activities has been established in a Residuals Management Plan (RMP), which has been prepared for the site under the current licence (Reg. 359). The licensee has requested the removal of the RMP and ELRA (Environmental Liabilities Risk Assessment) requirements from the revised licence, on the basis that these reports have been completed under the current licence (Reg. 359). The RD requires the licensee to maintain and annually review the RMP (Condition lo), and to review the ELRA as necessary to reflect any significant change on site, and in any case every three years (Condition 12), as standard conditions.

CHARGES:

The financial charge for 2005 was €22,635. An annual charge of €24,360 is proposed in the RD, which reflects the enforcement effort required for the installation.

RECOMMENDATION:

I recommend that the Recommended Determination be issued subject to the conditions and for the reasons as drafted.

Signed

Inspector

Office of Licensing & Guidance

Procedural Note

In the event that no objections are received to the Proposed Determination of the review application, a revised licence will be granted in accordance with Section 87(4) of the Environmental Protection Agency Acts 1992 and 2003 as soon as may be.

Page 17 of 17