1                                          Introduction

1.1                                    Background

CLP Power Hong Kong Limited (CLP) and Castle Peak Power Company Limited (CAPCO) are responsible for providing a safe, highly reliable and environmentally-friendly supply of electricity to over 80% of Hong Kong¡¦s population at reasonable cost.  Within Hong Kong, CLP operates three power stations, namely the Castle Peak Power Station (CPPS), Black Point Power Station (BPPS) and Penny¡¦s Bay Power Station (PBPS), all owned by CAPCO, a joint venture between CLP and China Southern Power Grid Company Limited, in which CLP holds a 70% interest.

CLP and CAPCO support the HKSAR Government¡¦s objective of improving air quality and environmental performance in Hong Kong.  Consistent with the HKSAR Government¡¦s medium-term strategy of increasing the use of natural gas for local power generation, and reducing carbon intensity of local electricity generation, provision for additional local gas-fired generation capacity is considered by CLP and CAPCO to be the preferred choice.

In addition, additional gas-fired generation capacity will provide sufficient generation capacity to meet load demand which is vital to a reliable electricity supply, and help maintain appropriate reserve margins to cater for unplanned outages.  In 2014 the peak demand for electricity in CLP¡¦s system reached 7,030 MW and this is forecast to rise in the next several years.  The reserve capacity of CLP¡¦s supply system has already declined to 26%, against the range of 20-35% recommended by the International Energy Agency, and will reduce further if electricity demand continues to grow as forecasted. 

The purpose of CAPCO¡¦s current proposal is to consider the installation of up to two additional gas-fired generation units in phases by CAPCO at the Black Point Power Station (BPPS) (hereafter referred to as ¡§the Project¡¨).  However, any formal decision by CLP/CAPCO to proceed with building any additional gas-fired generation capacity requires further analysis as such investment decision is dependent upon a host of factors including the rate of demand growth, environmental requirements, technical feasibility, the economic merits of the Project and HKSAR Government approval.  Accordingly, the submission of and content described in this Environmental Impact Assessment (EIA) Report does not amount to a commitment by or on behalf of CLP and/or CAPCO to proceed with the Project.

1.2                                    Purpose & Nature of Project

The scope of the Project involves the construction and operation of up to two 600 MW class additional gas-fired generation units in phases at the BPPS to both increase gas-fired electricity generating capacity and accommodate continuous growth in electricity demand.  Planning for such gas-fired generation units is also consistent with the HKSAR Government¡¦s strategy to increase the use of natural gas for power generation.

Technically, CAPCO¡¦s preference is to adopt combined cycle gas turbine (CCGT) configuration using natural gas as the primary fuel.  Such configuration is aimed at reducing emissions as compared with coal-fired generation, thereby providing a relatively clean source of electricity for Hong Kong.

The following elements of the Project are classified as Designated Projects under the Environmental Impact Assessment Ordinance (EIAO) (Cap. 499):

¡P      Installation of additional gas-fired generation unit(s) in phases at the BPPS (Schedule 2, Part I, Item D.1 - Public utility electricity power plant); and

¡P      If a second unit is to be installed, a dredging operation less than 100 m from the BPPS seawater intake location would be required (Schedule 2, Part I, Item C.12(b) - A dredging operation which is less than 100 m from a seawater intake point).

1.3                                    Purpose and Objectives of the EIA Study

The purpose of this EIA study is to provide information on the nature and extent of environmental impacts arising from the construction and operation of the Project and associated works that will take place concurrently in accordance with the requirements described in the EIA Study Brief No. ESB-286/2015 (¡§the EIA Study Brief¡¨).  This information will contribute to decisions by the Director of Environmental Protection on:

¡P      The overall acceptability of any adverse environmental consequences that are likely to arise as a result of the Project;

¡P      The conditions and requirements for the detailed design, construction and operation of the Project to mitigate against adverse environmental consequences wherever practicable; and

¡P      The acceptability of residual impacts after the proposed mitigation measures are implemented.

In more detail, the specific objectives of the EIA study defined in the EIA Study Brief are as follow:

(i)            to describe the Project and associated works together with the requirements and environmental benefits for carrying out the Project;

(ii)           to identify and describe elements of community and environment likely to be affected by the Project and/or likely to cause adverse impacts to the Project, including both the natural and man-made environment and the associated environmental constraints;

(iii)          to identify and quantify emission sources and determine the significance of impacts on sensitive receivers and potential affected uses;

(iv)         to identify and quantify any potential losses or damage to flora, fauna and natural habitats;

(v)          to identify any negative impacts on cultural heritage resources and to propose measures to mitigate these impacts;

(vi)         to propose the provision of infrastructure or mitigation measures so as to minimise pollution, environmental disturbance and nuisance during construction and operation of the Project;

(vii)        to investigate the feasibility, effectiveness and implications of the proposed mitigation measures;

(viii)       to identify, predict and evaluate the residual (ie after practicable mitigation) environmental impacts and the cumulative effects expected to arise during the construction and operation phases of the Project in relation to the sensitive receivers and potential affected uses;

(ix)         to identify, assess and specify methods, measures and standards, to be included in the detailed design, construction and operation of the Project which are necessary to mitigate these residual environmental impacts and cumulative effects and reduce them to acceptable levels;

(x)          to design and specify environmental monitoring and audit requirements; and

(xi)         to identify any additional studies necessary to implement the mitigation measures or monitoring and proposals recommended in the EIA report.

The detailed requirements of the EIA study are set out in Clause 3 of the EIA Study Brief.  The specific scope for this EIA study is presented in Clause 3.2 of the EIA Study Brief.

This document, the EIA Report, is produced in accordance with the requirements in the EIA Study Brief and the Technical Memorandum on Environmental Impact Assessment Process issued under the EIAO (EIAO-TM) for the Project to obtain an Environmental Permit (EP) under the EIAO.  The description presented herein has been based on best available information compiled by CLP/CAPCO describing relevant construction activities, operational details and baseline information describing the conditions at the Project Site (as shown in Figure 1.1) and its surrounding environment.

1.4                                    Public Engagement

During the EIA study for this Project, CAPCO has been reaching out to potential stakeholders to explain the Project and seek their views.  These stakeholder engagement activities included briefings and meetings with special interest groups.  Since July 2015, CAPCO has arranged meetings with special interest groups including members of District Councils, advisory committees, academics, fishermen groups, green groups etc.  Further details of the stakeholder engagement activities undertaken are presented in Annex 1A.  The feedback and advice obtained from the stakeholder engagement activities have been considered and incorporated where applicable as part of the technical assessments under this EIA study.

1.5                                    Organisation of the Report

Following this introductory section, the remainder of this EIA Report is organised as follows:

Section 2    Presents the background and history of the Project and provides information on the purpose, objectives and benefit of the Project, and scenarios with and without the Project.

Section 3   Provides a description of the Project highlighting the key design, construction and operational activities and the timeline for implementing the Project.  This section forms the basis of the technical assessments presented in Sections 4 ¡V 14 below.

Section 4    Presents the air quality impact assessment.

Section 5    Presents the hazard to human life assessment.

Section 6    Presents the noise impact assessment.

Section 7    Presents the water quality impact assessment.

Section 8    Presents the waste management implications.

Section 9    Presents the land contamination impact assessment.

Section 10  Presents the ecological impact assessment.

Section 11  Presents the fisheries impact assessment.

Section 12  Presents the landscape and visual impact assessment.

Section 13  Presents the cultural heritage impact assessment.

Section 14  Presents the health impact assessment.

Section 15  Describes the environmental monitoring and audit requirements.

Section 16  Presents the conclusion and summarises the environmental outcomes of the EIA study.