Case Study: Reducing Oil and Coal Refinery Pollution by 80%

Introduction

Oil and coal refineries have historically been among the largest contributors to air and water pollution globally. With increasing regulatory pressure and societal demands for cleaner operations, several refineries are exploring pathways to dramatically reduce pollution—targeting an 80% reduction across air emissions, wastewater, and soil contamination.

Goals

• Achieve an 80% reduction in air pollutants (SO₂, NOₓ, PM, VOCs)

• Cut CO₂ and methane emissions substantially (including flaring reduction)

• Decrease water contamination through advanced treatment

• Improve soil safety via containment and remediation

Tools and Technologies

1. Advanced Emission Controls

• Flue gas desulfurization (scrubbers) — ~$100–300 million per unit

• Selective catalytic reduction (SCR) for NOₓ — ~$10–50 million per unit

• Electrostatic precipitators / fabric filters — ~$20–50 million

2. Leak Detection & Repair (LDAR)

• Infrared cameras for fugitive emissions (~$50,000 per unit + labor)

• Annual LDAR program costs for large sites: $500k–$5M

3. Flaring Reduction & Gas Recovery

• Flare gas recovery systems — ~$10–60 million

• Vapor recovery units — ~$5–20 million

4. Carbon Capture & Storage (CCS)

• Full-scale retrofit: ~$60–100/ton CO₂ captured

• Typical refinery CCS: $500 million–$1.5 billion

5. Water & Soil Remediation

• Membrane bio-reactors / zero-liquid discharge — ~$20–100 million

• Containment & soil treatment — highly site-specific, $1–20 million

6. Fuel Switching & Process Change

• Switch from coal-heavy processes to gas / hydrogen: capital retooling $100M+

• Electrification of auxiliary systems

Implementation Cost Example

Successful Examples

• Shell’s Scotford refinery (Canada): Integrated CCS and flare gas recovery → 50% CO₂ reduction, major SO₂ cuts

• Valero (various U.S. refineries): LDAR + vapor recovery → VOC and benzene emissions down 70%+

• Tata Steel / Drax (UK): CCS pilot for industrial-scale CO₂ reduction

• Sinopec (China): SO₂ scrubbers + NOₓ controls → 90% air pollutant cut at some sites

Funding & Resources

• Public incentives: e.g., U.S. Inflation Reduction Act CCS tax credits (~$85/ton)

• Green bonds / climate funds

• UN and World Bank clean industry grants (esp. for emerging economies)

• Technology vendors: Mitsubishi, Siemens, Honeywell UOP, Carbon Clean

Summary

Reducing refinery pollution by 80% is challenging but feasible with current technologies. The typical CAPEX for such a transition at a large refinery could range from $500 million to $2 billion, depending on scale, location, and technology mix. The payoff: regulatory compliance, reputational improvement, and climate risk mitigation.