At IRPC, a large-scale petrochemical company, more than Bt2 billion is needed this year to check all operating systems and improve those systems to meet an international standard.

Bt1.2 billion will be spent on constructing new smokestacks, Bt160 million on improving its waste-water treatment and the rest will go towards improving the efficiency of other systems. IRPC chief executive Piti Yimprasert says the company also plans to spend US$1.07 billion (Bt37.4 billion) in the long term on upgrading its refining plants to support Euro IV standards, which will help reduce pollution emissions.

Due to environmental concerns, IRPC has changed its mind about setting up a coal-fired power plant and will instead open a gas-powered plant. Although a coal plant would require lower investment, it would cause more concerns about the environmental impact.

Apparently, the threat to the physical health of Rayong residents and the damage that industrial plants could pose to society are forcing industrial companies to set aside a higher budget than ever for sustainable business and a better perception from the public.

"We have allocated a higher budget than last year to combat pollution problems. Certainly, the industrial sector needs to be more concerned about the environment," Piti said.

His view should be more than welcomed by Deputy Prime Minister and Industry Minister Kosit Panpiemras, who has reiterated that Thai industrial companies, old or new, must pay more heed to the health of people in surrounding communities. "Without community acceptance, they stand no chance of doing business there," he said.

Many companies have also stepped up efforts to combat pollution problems.

SCG Chemicals, a business unit of Siam Cement Group, invested $2.4 million last year to improve its production technologies, which decreased emissions of carbon dioxide by 104,000 tonnes and oxide of nitrogen by 79 tonnes.

It has already reduced 30 per cent of its volatile organic compounds (VOC) emissions with a budget of Bt36 million. In addition, it will spend Bt130 million on an accounting system for recording its VOC emissions and repairing all leaking points in its plants.

It has spent Bt90 million on advanced technologies since 1998 in order to reduce its energy usage. Last year, it was able to save energy amounting to more than 3 million gigajoules. It also plans to invest Bt160 million this year to boost energy, saving up to 4 million gigajoules per year.

Moreover, it will invest Bt27 million to develop its water management. Of that total, Bt10 million will go towards decreasing water use by 500,000 cubic metres per year and Bt17 million for reducing its waste-water release by 300,000 cubic metres per year.

Banpu, the region's leading coal producer, has set up an environmental-mitigation and mine-rehabilitation master plan to rehabilitate surroundings around each mine and to improve people's living standards in communities in the area.

It has set aside a part of its revenue for the fund - for example, its Lampang mine contributes Bt8 for every tonne of coal sold.

Thai Oil is another company that focuses on environmental management, as the oil-refining process naturally can discharge inorganic compounds into the waste water, affecting its quality. Therefore, it measures the chemical oxygen demands of the water in order to determine its quality and assess the efficiency of the treatment system.

In 2006, it changed the measuring point for effluent testing as required by the amended government regulations. It has installed ambient air-quality monitoring stations within the refinery compound to monitor the environmental impact on surrounding communities. It also installed a continuous emission-monitoring system in refinery stacks, which are regularly calibrated by registered consultants to ensure the data collected is accurate and reliable.

It uses the technology of dry low nitrogen oxide (Nox) combustion to generate electrical power and limit Nox emissions, as well as using natural gas, a clean fuel. The technology significantly reduces Nox emissions to below the government standard.

It is also implementing a project to change the floating roofs of its oil storage tanks from single to dual protection. This will minimise volatile organic compound emissions into the atmosphere, while the risk of igniting fuel vapour near tank roofs will also decrease.

Responding to the government's greater concern, the authorities are stepping up their efforts in reducing pollution. The Department of Industrial Works has joined with the Japan Society of Industrial Machinery Manufacturers to invite Japanese companies to invest in advanced technology for 40 local flour plants in a bid to reduce energy costs and pollution.

During the past two years, the department has installed technology that produces biogas from waste water in three flour facilities with the support of Bt30 million from the Energy Ministry's fund for energy-saving promotion.

As a result, each plant can cut its energy costs by Bt30 million per year and reduce carbon dioxide emissions by about 60,000 tonnes annually.

The Ministry of Industry also plans to levy a radical tax on power plants, petrochemical factories and refining facilities in Rayong province, depending on their pollution emissions, with a plan to extend the tax to all plants in the Kingdom. The three sectors are highlighted as the first targets due to the large quantity of sulphur dioxide and oxide of nitrogen they emit to the air.

"In some developed countries, the government charges between 0.5 per cent to 5 per cent of net profit as environment tax," said deputy permanent secretary Damri Sukhotanang.

Proceeds from "emission charges" would go towards improving communities in the area where the plants are located.

New environmental standards could also be imposed soon by the Office of Natural Resources and Environmental Policy and Planning whereby new industrial plants must come under a stricter approval process. Aside from standard pollution-control systems, they would need acceptance from the communities in the areas where they are located.

The Industry Ministry's pollution-reduction plan for Rayong will also require plants to put up additional investment to ensure their protection measures are up to standard.

The master plan also specifies the need for infrastructure-management systems to ensure that waste or residue treatment does not result in a negative environmental impact. Another key point is that plants there would come under more scrutiny by local communities, non-governmental groups and local media.

These requirements will raise operating costs. PTT Group has seen its quest to open a new petrochemical plant in Map Ta Phut put on hold.

The Industry Ministry has made it clear that it will reconsider new investment applications worth about Bt300 billion only when the pollution problems in the area are contained. To pave the way for the new investment, those existing plants are also required to reduce their toxic emissions - and that means a certain cost for them. 

Chalida Ekvitthayavechnukul

The Nation