Air Quality and Natural Resource Management

The Group’s aims to continuously reduce air emissions and improve its environmental footprint, thereby contributing to better air quality in the areas where it operates.

This objective is achieved through the implementation of a series of actions such as: a) maximizing the use of fuel gases, b) using fuels with higher environmental standards, c) investing in modern production technologies (e.g., low-nitrogen oxide burners), and d) direct emission reduction such as through VOC recovery systems during the loading of petroleum products or particulate filters.

Atmospheric pollution, also assessed as a material impact on the environment, whether positive or negative, is related to the entire value chain of the Group’s activities. Specifically, it constitutes a negative impact (both actual and potential, in the future) from procurement activities (upstream), due to emissions of air pollutants from the transport of raw materials, but mainly from the usage of fuels by end consumers (downstream) and the treatment of waste.

At the same time, it represents an actual and potential negative impact linked to the Group’s core activities, such as emissions of air pollutants (SO_₂, NO_x, PM₁₀, VOC) from the production process at industrial facilities and the intra-group transport of products and raw materials.

The Group strictly follows the national and European legislative framework to comply with the obligations arising from it and related to its activities. This includes adhering to the Best Available Techniques for the petroleum products sector and the European Industrial Emissions Directive, while also implementing certified environmental management systems throughout its business activities.

The utilization of materials and natural resources throughout their life cycle constitutes an important business opportunity and reflects the Group’s commitment to environmental protection.

HELLENiQ ENERGY’s strategic approach is based not only on the reduction of solid waste to landfill through investments in modern waste treatment plants, but also on the creation of synergies for the utilization of waste for energy recovery and the exploration of alternative technologies for its use as raw materials, aiming at the substitution of mineral raw materials.

It is emphasized that the continuous reduction of the quantity of waste for final disposal significantly contributes not only to minimizing the negative impact on the environment and human health but also to reducing the operating costs of business activities.

In addition, the protection of ecosystems and biodiversity is an important part of HELLENiQ ENERGY’s corporate culture, which complies with the relevant legislative frameworks and applies international best practices aimed at sustainable land use, minimizing any negative impacts of its activities on ecosystems and contributing to the national and European biodiversity strategy.

Performance

At the Group’s three refineries, which constitute the main part of its production activity, the aim is to select the appropriate blend of fuels for self-consumption, implementing the related best available techniques and strictly complying with the respective terms of the environmental permit, in order to achieve significant reductions in key air emissions.

In 2023, due to the normalization of the energy market, the Group refineries’ fuel mix consumption was adjusted, and the use of more environmentally friendly fuels was reinforced, resulting in decreased air emissions. Specifically, SO₂, NOx, VOC, and PMs emissions intensities were significantly decreased, compared to last year, by 22%, 16%, 6%, and 41%, respectively. More specifically, the effective operation of the new electrostatic particulate filter (ESP) in the Aspropyrgos refinery’s catalytic cracking unit (FCC) contributed significantly to the reduction of PMs emissions.

Over the last decade, air emission indicators have shown a 48%, 48%, 69%, and 52% reduction in SO₂, NOx, PMs, and VOC emissions, respectively, as shown in the following chart.

*PM index is multiplied by 10 for presentation purposes

Especially for the reduction of Volatile Organic Compounds (VOC) emissions, Best Available Techniques are implemented in the storage and handling of products. Specifically, these techniques include secondary seals on the floating roofs of tanks, painting VOC tanks with white highly-reflective paint, and loading tankers from the bottom with the simultaneous operation of a Vapor Recovery Unit. These methods effectively limit the emission of volatile compounds. Furthermore, Vapor Recovery Systems are operated at the tanker loading piers, while the implementation of regular preventive maintenance and early leak detection and repair (Leak Detection and Repair-LDAR) programs on equipment (e.g., valves, gaskets, etc.) continues. The reduction in VOC emissions over the last decade from the implementation of BATs at the Group’s refineries amounts to 52%.

This improved performance is also reflected in the air quality measurements of the areas, as monitored by the Network of Air Quality Measurement Stations of the Group’s facilities and by similar stations of the competent regulatory authorities (air quality reports from the municipalities and the competent Ministry of Environment and Energy). It is noted that the air quality measurements account for the contribution of all air emission sources in the area, such as transportation and other industrial activities.

Sustainable Water Management

Water is an essential raw material in the production process of the Group’s facilities and, in this respect, HELLENiQ ENERGY is committed to ensuring ongoing sustainable and sound management of water resources, while constantly seeking new solutions and best practices in water use management.

To ensure sustainable water management, the Group aims to reduce the amount of water used in its operations, to reuse and recycle it as much as possible, and to dispose of it responsibly, after treatment at its facilities to minimize impact.

Water-saving initiatives and actions are continuously implemented in all business activities and geographic areas in Greece and abroad, including those identified by the World Resources Institute, as well as in accordance with the River Basin Management Plans of the Ministry of the Environment and Energy, as areas with increased water stress, water shortage, and/or poor water quality. In 2023, the reduction in water consumption amounted to 22% compared to water consumption in 2013, while the water consumed, recycled, and reused in production facilities amounted to 31%, marking the highest recycling rate in the last decade.

In particular, for the sustainable management of water, a system has been installed to monitor water consumption across the Group’s activities, identifying opportunities to reduce consumption and investing in water-saving systems so that the Group’s production facilities and cleaning processes become as efficient as possible.

The issues assessed in the field of water management relate directly to the water used (quality measurements, use of different types of water, e.g., seawater for cooling, treatment technologies, etc.), but also to broader management parameters (availability, quality, and ecosystems affected by discharge), in order to identify all areas for improvement.

The main sources of water abstraction are the public network (81%) and the sea (17%). The water resource management system includes monitoring and reporting of water abstraction, quality, and discharge at all facilities and subsidiaries of the Group in order to continuously improve efficiency and reduce not only the environmental footprint but also operating costs.

Sustainable Waste Management

Petroleum by-products of the refinery processes are classified as waste (self-produced or third-party) at the stage of their life cycle, and they constitute a significant opportunity to be used as raw materials in the Group’s production facilities, but also as fuels, as per the principles of a circular economy.

In 2023, HELLENiQ ENERGY continued its efforts to reduce the production of liquid and solid waste, maximizing recycling for as many waste streams as possible and then, for the remaining waste streams, managing them on-site in the best possible way for the environment and human health.

The ultimate goal is to stabilize the reduction of the amount of waste sent to disposal (landfill/incineration) up to 15% by 2030.

Modern waste treatment plants, such as the Group’s three-stage integrated wastewater treatment plants at the Group’s refineries, ensure the continuous protection of water bodies through the continuous improvement in wastewater management performance.

In line with the progress made in the last seven years, the improvement in most waste and water-related indicators from all the Group’s operations continued in 2023.

Specifically, in 2023 there was a slight decrease (4%) in the amount of wastewater generated by all facilities compared to the previous year, which is mainly due to the development of circular economy and sustainable water resources management synergies with third-party companies for additional wastewater treatment (slops) and an increase in the re-refining rate.

In 2023, there was a 20% increase in the amount of waste generated compared to the previous year, which was accompanied by a high recovery rate as a result of the adoption of improved recycling and recovery practices at the Group’s facilities, as shown in the following charts that present the ways of management and recovery of solid waste generated in 2023.

Specifically, more than 21,000 tons of waste, 87% of the total, was either reused, recycled, or further recovered through a raw material recovery process. It is also noted that hazardous waste constitutes the majority of the total waste generated and almost all of it is recovered and not sent for final disposal.

It is noted that the quantities of solid waste per industrial facility depend, for the most part, on the cleaning of product tanks and, therefore, vary from year to year, depending on tank maintenance scheduling and, secondarily, on the availability of solid waste treatment plants, either on-site or off-site.

More specifically, out of the total amount of solid waste generated by the Group in 2023, approximately 23% was derived from cleaning activities of tanks held in the Aspropyrgos refinery.