Preexisting situations of concern and solutions

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Pre-existing situations of concern and solutions

• The Akzo Nobel case

Sebe Buitenkamp Strasbourg, 23 November 2006
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• Link between Akzo Nobel case and Objective 4
• Identify strategies that address pre-existing
  situations of concern between Seveso sites and
  residential and other sensitive areas, taking
  into account the role of technical measures and
  emergency plans

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• Pre-existing situation
• Chlorine production of Akzo Nobel in the
  Netherlands
• Solution ending chlorine transports
• Decision by European Union state aid or not?
• Results

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• Pre-existing situation
• Longstanding political debate on transport of
  chlorine through cities as
• - Chlorine is highly toxic
• - Chlorine accidents may have major effects
• - Worst case scenario an accident with a
  chlorine train in a city of average size will
  kill app. 5000 people within 30 minutes and
  injure 18.000 uncontrollable situation for
  emergency services
• Renewal of demands by pressure groups for ending
  chlorine transports, after
• - 2 derailments with chlorine trains in 2000
• - fireworks disaster Enschede (13 May 2003 23
  people killed, social disruption)

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• Pre-existing situation (2)
• Concern about Akzo chlorine plant in Hengelo
  (NL), situated in the vicinity of a residential
  area risk values exceeded
• - 10-6 over residential areas
• - societal risk exceeded
• Risk in Akzo plant dominated by
• - chlorine storage tanks
• - chlorine loading to rail
• Additional complication risk values exceeded
  because of waiting time for chlorine transport to
  Rotterdam at marshalling yard Hengelo

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• Chlorine production of Akzo Nobel in the
  Netherlands
• Production at 3 sites in the Netherlands
  (Rotterdam, Delfzijl, Hengelo)
• Surplus production in Delfzijl and Hengelo
• Demand in Rotterdam exceeds production
• Consequence chlorine transport through the
  Netherlands from Delfzijl and Hengelo to
  Rotterdam

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• Political and public expectation
• Minimise (stop) chlorine transports through the
  Netherlands
• Close and dismantle chlorine plant in Hengelo
• Improve risk situation marshalling yard
  (Hengelo)
• Parallel development
• Wish of local authorities to develop a run down
  area between marshalling yard and Akzo Nobel
  plant
• Area 35 hectare 1000 new houses large
  secondary school small businesses

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• Drastic solution
• So-called chlorine deal signed with Akzo Nobel
  (largest producer/transporter in NL)
• - Closure and dismantling of the factory in
  Hengelo
• - Concentration of all chlorine activities
  (production and use) in Rotterdam and Delfzijl
• - Production of chlorine equals the use

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• - Result
• Transport of chlorine no longer necessary
  (exception small quantity allowed during
  maintenance of either plant)
• Room for desired spatial developments in run
  down area of Hengelo
• Akzo Nobel invested over 200 million
• Condition the Dutch government contributes 65
  milion for compensation
• - Compensation for closure chlorine factory in
  Hengelo
• - Subsidy new chlorine plant in Delfzijl on the
  basis of the environment aid guidelines
  (max 30 of sum of invested amount)

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• Condition ( 65 milion) dependent on approval by
  the EU is this form of state aid allowed or not?
• Relevant articles
• - Articles 87 and 88 of EC Treaty
• - Paragraph E.1.9. Relocation of firms
  (Environmental aid guidelines
• Objective aid for relocation of production
  facilities of chlorine
• Legal basis a binding agreement between the
  Dutch government and Akzo Nobel
• Timetabel relocation should be realized by 2006
• Procedure
• Long informal procedure from beginning of 2002
  up to March 2003
• Formal procedure from 15 March 2003 16 June
  2004
• Formal announcement DG Competition 15/07/2003
• Decision Commission in June 2004 the
  compensation is not considered to be state aid
  in the sense of article 87, section 1 (EU
  Treaty). This form of state aid is thereby
  allowed. (N304/2004)

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• Present situation (2006)
• Hengelo plant closed and dismantled
• Rotterdam plant expanded (600.000 ton chlorine)
• Delfzijl plant built and opened in summer 2006
• Production of chlorine equals its use for each
  location
• Significant improvement of risk situation of
  marshalling yard Hengelo
• Relocation allowed for new spatial developments
  in Hengelo
• August 2006 chlorine transport through the
  Netherlands stopped
• More than 20 years of debate on transport of
  chlorine ended in a win- win situation