[ANALYSIS] Is the ‘cancer factory’ back in town?
Malta will be spending €37 million to install two diesel generators that will be used for a maximum of 47 days in a two-year period, to prop up the energy supply and avoid a repetition of last year’s power outrage until the second interconnector comes on board. Does this represent a U-turn on Labour’s 2013 promise to close the ‘cancer factory’ once and for all, James Debono asks
In terms of emissions the use of diesel, albeit limited to 500 hours a year, represents a step back from Liquified Natural Gas, but remains a far cry from the impacts of a permanent power plant fuelled exclusively by Heavy fuel oil (HFO).
Even during the pre-2013 controversary on the HFO-fired BWSC plant, the Marsaxlokk, Birżebbuġa and Zejtun local councils had called on the government to use diesel until the cleaner natural gas became available.
The decision at the time to opt for HFO had represented a U-turn for the Nationalist government which in 2008 had underhandedly increased the allowable emission limits for the Delimara power station in the middle of the tender process. This enabled BWSC to use Heavy Fuel Oil instead of gasoil, and still comply with environmental requirements.
When the HFO-operated BWSC plant was approved by the Planning Authority in 2011 the Labour Party reacted by promising that upon being elected it would initiate the process to convert the power station to gas, by first converting it to diesel.
But the government refused this option on the back of of a study commissioned by Enemalta authored by economist Gordon Cordina showing that gasoil was 44 % more expensive than HFO, while claiming that the use of abatement technology ensured HFO emissions would remain within EU limits.
This was not enough to allay the concerns of residents in the Southeast, which prompted Joseph Muscat to pledge to close-down the Delimara ‘cancer factory’- a term he coined during an electoral campaign dominated by Labour’s energy plan, which revolved around private investment in a new LNG powered plant.
Upon being elected to power the new Labour government honoured its pledge by embarking on a gas purchasing agreement to supply both the new Electrogas power plant and the BWSC plant, which was converted to LNG following an injection of Chinese investment.
This enabled the government to shift to LNG without having to resort to gasoil in the short intermediate process. In fact, rather than shifting to gasoil, Labour ended up extending the operational permit for the HFO plant till 2015. By 2017 Malta became completely reliant on LNG and electricity imported from the interconnector, while boasting that Malta had enough energy to fuel the economic boom.
It was on this aspect, that the government seems to have missed the plot, after the country was exposed to 10 days pf continuous power outages., a situation blamed on poor distribution infrastructure.
Diesel makes a comeback
But following last year’s power outrage the government has opted to install a 60 MW “temporary” diesel-powered “emergency plant” to serve as back up and avoid a repetition of last year’s power outrage.
The decision to invest in the temporary plant was publicly announced by Energy Minister Miriam Dalli in November 2023, when she said the government was allocating €12 million for a power source that could generate an extra 60MW of electricity if one of the existing power supplies were to be interrupted in some way.
But in a letter sent to the Environment and Resources Authority underlining the urgency of the new plant to justify its exemption from a lengthy Environment Impact Assessment, Enemalta CEO Ryan Fava warned that in the absence of the new plant the energy company “will not be able to guarantee the security of electricity supply.” Fava blamed the unforeseen spike in demand on climate change “which has created extreme weather conditions, including long periods of extreme heat during the summer months.”
These statements contradicted previous claims by Enemalta during last year’s power outage that its “current electricity generation capacity is capable of meeting the demand requirements of the country, even during periods of severe weather conditions, when consumption tends to increase”.
The ERA subsequently accepted to waive the need for an Environmental Impact Assessment for the new plant which according to Fava would have resulted in a delay which could have caused “a significant number of customers being left without electricity supply for a considerable period.”
ERA justified the waiver on the premise that the project is unlikely to impact the environment significantly since the emergency power plant will only be used in emergencies and will be located in an area already used for power generation.The government has now proceeded with awarding the tender for the plant to a company owned by Bonnici Brothers.
What is being proposed?
The new plant, which can be used for a maximum of 500 hours a year, will consist of two containerised gasoil-fired generators located within the boundaries of the existing Delimara power station. The plant is expected to cost Enemalta €46 million over a period of 27 months.
Enemalta’s project statement says the 60MW back-up is required for seasonal peaks in winter, mainly in January and February, and in summer between June and September, apart from “emergency situations when one of the country’s principal electricity supplies fails during peak demand.” The plant is meant to fill the time gap until the second interconnector is completed.
On its part the PN has reacted by shooting down what it described as the government’s amateur energy policy, while noting that after spending years calling heavy fuel oil-powered energy a “cancer factory” it was now falling back on diesel power.
The PN fell short of claiming that the new temporary plant is itself a ‘cancer factory’ but the insinuation is that Labour has backtracked on its promise to do away with more polluting fuels.But how does the use of gasoil compare with HFO and with LNG?
Heavy Fuel Oil (HFO) vs. Gasoil vs. LNG
HFO is a residual fuel oil derived from crude oil refining, characterised by its high sulphur content. When burned for power generation, HFO releases substantial amounts of sulphur dioxide (SO2), nitrogen oxides (NOx), particulate matter (PM), and polycyclic aromatic hydrocarbons (PAHs) into the atmosphere.
Gasoil, commonly known as diesel fuel, is a distillate fuel with lower sulphur content compared to HFO. While gasoil combustion emits fewer pollutants such as SO2 and PM compared to HFO, it remains a significant source of NOx emissions and PAHs, particularly from older diesel engines.
Both HFO and gasoil combustion release carcinogenic pollutants, including PAHs, which pose a significant risk of cancer to exposed populations. NOx found in gasoil can also adversely affect respiratory and cardiovascular health. However, HFO tends to have higher levels of PAHs compared to gasoil, primarily due to its higher sulphur content and less efficient combustion processes. Therefore, in terms of cancer risk, gasoil presents a lower health risk compared to HFO.
But any comparison on health impacts must take into account the kind of technology used especially with regards to pollution abatement. For example, while the cancer factory label was apt to describe the Marsa plant which was completely shut down in 2015, studies suggest the newer BWSC plant had a less pronounced impact on air quality thanks to the abatement technology used.
In fact, a report conducted by the University of West England in 2014, found no deterioration of air quality because of the plant despite the use of heavy fuel oil. It was because of this report that the operational permit for the plant was extended for another year by the newly elected PL administration. But the abatement technology still came at a considerable environmental cost as the plant was generating 10,000 tonnes of hazardous waste annually which had to be locally stored before being exported.
Emissions form diesel engines also depend on the technology used with more negative impacts normally associated with older plants. But the Project Description Statement for the emergency generators submitted by Enemalta to ERA acknowledges that it will result in NOx emissions from the genset’s individual stacks.
This impact is deemed to be “adverse, localised and temporary for the duration of operation of the plant”. But the impact is mitigated by limiting the operational hours of the plant to not more than 500 operating hours per year.
In short, while gasoil tends to emit lower levels of certain pollutants compared to HFO, both fuels contribute to air pollution and associated health impacts. In contrast, LNG combustion emits minimal NOx, PM, and PAHs, resulting in lower cancer risk and reduced respiratory and cardiovascular health effects.
Yet, unlike renewable energy, LNG still emits carbon which contributes to climate change. But even in this case LNG is preferable to gasoil which produces even more CO2 emissions.
The verdict
Therefore, if the new plant is temporary; its use limited to a few days a year; and the best available technology is used; the ‘cancer factory’ label does not apply to the two diesel generators being installed in Delimara.
But the absence of an Environmental Impact Assessment, dictated by the urgency of a race against darkness, also comes with an information deficit on potential impacts, air dispersal models and mitigation measures.