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E F M A S A F E T Y H E A L T H A N D E N V I R O N M E N T R E P O R T

Introduction 2

EFMA’s Product Stewardship Programme 4

Safety 5

● EFMA’s Safety Survey 6

● Incident analyses 7

● EFMA’s Safety Seminar 8

● EFMA’s Guidance Documents 9

❍ Recommendations for the Safe and Reliable Inspection of Atmospheric, Refrigerated Ammonia Storage Tanks, 2002 10

❍ Guidance for Safe Handling and Utilization of Non-Conforming Fertilizers and Related Materials for Fertilizer Producers, 2003 11

❍ Guidance for Safe Handling and Utilization of Non-conforming Solid Fertilizers and Related Materials for Fertilizer Importers, Distributors and Merchants, 2004 12

❍ EFMA’S Leaflet Fertilizer and Fire 13

❍ Guidance Relating to Sea Transport of Ammonium Nitrate Based Fertilizers, 2004 13

❍ Guidance for Transporting Ammonia by Rail, 2005 14

❍ Guidance for the Storage of Hot Ammonium Nitrate Solutions 15

Health 16

● Chemical Policy 16

Environment 17

● Best Available Techniques Booklets 17

● EFMA’s Environmental Benchmark 19

● EFMA’s Energy Benchmark 20

● Good Agricultural Practices 21

● EFMA’s Codes of Practice 22

● Energy Use and Greenhouse Gases 23

Prepared by EFMA

DISCLAIMER:The information and guidance provided in this document is given in good faith. EFMA, its members and staff accept

no liability for any loss or damage arising from the use of this guidance.

I N T R O D U C T I O N

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The European Fertilizer Manufacturers’ Association (EFMA) represents the major nitrogen fertilizer producersin Europe. These producers annually issue a Safety, Health and Environmental (SHE) report on their companyactivities. Jointly, in EFMA, they work together on many activities with the purpose to enhance the health andsafety and environmental performance of the fertilizer industry.

These activities are part of EFMA’s Product Stewardship programme. The activities cover the whole value chain,as illustrated below. The programme commits all EFMA members to the following:

● Fertilizers and their raw materials, additives and intermediate products are processed andmanufactured, handled, stored, distributed and used in a safe way,

● We work according to the highest standards and respect applicable legislation with regard to health,occupational and public safety, environment and security,

● Our plant nutrients shall satisfy society’s requirements for safe food production and animal feed,

● We co-operate with the whole supply chain to achieve these targets.

An important part of EFMA’s work is to share information on these activities internally between the membercompanies as well as with our business partners, the regulators and with the community at large.

This report covers the SHE activities of EFMA over the last years and is the first SHE report issued by theassociation. EFMA aims to issue a SHE report every year.

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Schematic visualisation of the fertilizer value chain

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EFMA’s Product Stewardship (PS) programme was officially launched in September 2003. The principle is thatthe Responsibility for our products goes beyond the fences of our production sites and involves activities in thewhole chain: “from cradle to grave” or “from raw material to farmer”.

The programme exists as a CD-ROM with guidance on how to implement PS in the company and an auditmanual. Auditing is carried out by an independent third party. All EFMA’s SHE activities form part of this PSconcept.

EFMA’S PRODUCT STEWARDSHIP PROGRAMME

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SAFETY

Introduction

EFMA member companies strive for zero accidents. The PS programme and EFMA’s guidance documents andactivities are tools to achieve this goal. EFMA’s safety principles are summarised below.

EFMA’s Safety Principles:

1. All sites should have a high standard of housekeeping.

2. All sites should establish annual safety targets with action plans (what, who, when).

3. All sites should have a safety committee comprising the site manager and members reflecting all levels ofthe organisation. All employees should participate in safety meetings on a regular basis.

4. All jobs should be evaluated with respect to safety, and a job safety analysis should be carried out for thosejobs that are considered critical. Critical jobs should be described in job procedures, including theprescription for the use of any special personal protective equipment. Employees should be trainedaccordingly.

5. A preventive maintenance system should be in place.

6. Modifications of process systems and process equipment should be approved, based on a systematic review.

7. A work permit system should be in place for all special work.

8. An approval system for contractors should be in place.

9. All accidents and near misses should be reported and investigated, with the subsequent implementation ofcorrective actions.

10. All sites should have an emergency plan. This plan should be tested at least once every year. The planshould be developed in co-operation with external emergency services.

11. Total commitment of support from the line management is imperative for the above principles to besuccessfully implemented.

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EFMA’S SAFETY SURVEY

(Note: the high figure in 2001 is the result of the Toulouse explosion but was not related to commercial grade fertilizer material).

(Note: LTIR is defined as the number of Injuries per million worked hours leading to the absence from work for 1 day or more (EFMA)or converted to absence from work for 3 days (CEFIC))

Figure 1 LTIR comparison of EFMA’s safety performance with the European Chemical Industry (CEFIC)

The Lost Time Injury Rate (LTIR) is a good indicator for safety performance in a company. Since 1996 EFMAhas collected the LTIRs of member companies with the purpose to benchmark EFMA against the EuropeanChemical Industry (CEFIC). The graph shows an improving trend over the years.

Although the statistics give a favourable impression, the industry has experienced some serious incidents andnear-miss incidents. These are seriously examined by the industry to take account of lessons learnt.

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INCIDENT ANALYSES

All incidents can be prevented. To avoid suffering to people, environmental pollution, costly damages andproduction interruptions, EFMA believes that lessons from past incidents must be turned into preventiontechniques and best practice standards. With such an objective, the members report incidents to EFMA as partof their rapid alert system. EFMA in turn shares the information with all the members.

EFMA keeps records of all relevant incidents that have happened in the fertilizer industry – in Europeancountries and elsewhere. This information is stored in EFMA’s incident data base. Experts from EFMA membercompanies analyse these accidents on a regular basis and make recommendations to prevent these accidents fromoccurring again.

Selected themes are part of the annual EFMA Safety Seminar where the members have the opportunity to discussthese accidents and prevention techniques in more detail.

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EFMA’S SAFETY SEMINAR

In April 2005 EFMA experts came together in Budapest (Hungary) for the 8th time to exchange informationand views on technical, environmental and safety issues. This year’s main theme was Transport including loadingand unloading.

Previous seminars have dealt with learning from incidents (1997), Ammonia (1998), Nitric Acid (1999),Ammonium Nitrate (2000), Safety Management Systems (2001), Regulatory Issues (2003) and EU legislationrelated to the Fertilizer Industry (2004).

Members of the 8th EFMA Safety Seminar during a plant visit which is part of the Seminar.

E F M A’ S G U I D A N C E D O C U M E N T S

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Ever since EFMA was established (1987) the members have co-operated in establishing and issuing industryguidance documents and easy-to-read leaflets. These documents are considered best practice standards for safeand environmentally correct operations. The documents are made freely available for anyone interested atEFMA’s website www.efma.org.

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Recommendations for the Safe and Reliable Inspection of Atmospheric, Refrigerated Ammonia StorageTanks, 2002

Safe storage and operation of Atmospheric Refrigerated Ammonia tanks can only be done if the tank is in a goodcondition. EFMA’s “Recommendations for the Safe and Reliable Inspection of Atmospheric, RefrigeratedAmmonia Storage Tanks” (2002) provides our members with a good method to evaluate their tanks and to takeappropriate actions.

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Guidance for Safe Handling and Utilization of Non-Conforming Fertilizers and Related Materials ForFertilizer Producers, 2003

This guidance is intended for fertilizer producers, including blenders. It concerns the safe management of solidnon-conforming (i.e. off-spec and reject) fertilizer materials and associated raw materials. During production,deviations in process conditions can lead to the manufacture of off-spec materials and, in the handling activities,fines, deteriorated and contaminated materials may be generated. Some of these materials can be potentiallymore hazardous than the standard products and, therefore, need to be carefully managed with respect tohandling, storage and safe utilisation or disposal.

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Guidance for Safe Handling and Utilization of Non-conforming Solid Fertilizers and Related Materials forFertilizer Importers, Distributors and Merchants, 2004.

This guidance is intended for fertilizer importers, distributors and merchants. It concerns the safe managementof solid non-conforming (i.e. off-spec and reject) fertilizer products (with particular attention to ammoniumnitrate based materials) and associated raw materials. During storage and in handling activities, fines,deteriorated and contaminated materials may be generated, some of which can be potentially more hazardousthan the standard products and therefore, need to be carefully managed. This guidance offers alternative optionswhich the importers, distributors and merchants should evaluate in relation to their own particular situation andselect the most suitable one having carried out a risk assessment. Based on this document EFMA has preparedposter versions in 5 major languages with the basic principles: “Guidance for Handling Non-conformingAmmonium Nitrate Fertilizers in the Distribution Chain”

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EFMA’S Leaflets Fertilizer and Fire

Clear messages enhance safety. In 2003 EFMA developed a “Fertilizer and Fire” leaflet in 5 major languages fordisplay in warehouses based on the recommendations given in the EFMA Handbook on Safe Storage andHandling of AN based fertilizers (1992 under revision). The leaflet gives DOs and DON’Ts to prevent fire ordecomposition in warehouses and what to do if such an event happens.

Guidance Relating to Sea Transport of Ammonium Nitrate Based Fertilizers, 2004

In 2004 EFMA issued the Guidance Relating to Sea Transport of Ammonium Nitrate Based Fertilizers. Thisbooklet gives guidance to ship’s masters on how to prevent decomposition in a cargo of fertilizers. The guidancealso provides checklists for those who are involved in the ship transport of AN based fertilizers.

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Guidance for Transporting Ammonia by Rail, 2005

The Guidance for the transport and handling of ammonia has been drawn up by EFMA with the help andexpertise of members in order to secure high safety standards in operations involving ammonia transport. TheGuidance deals exclusively with the transport of anhydrous ammonia in rail tank cars. The recommendationsmade in the Guidance go beyond the requirements of national and international regulations and arerecommended for all those involved in the handling and transport of ammonia.

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Guidance for The Storage of Hot Ammonium Nitrate Solutions, 2005

The guidance concerns the storage of hot ammonium nitrate solutions with a concentration in excess of 80% infixed tanks. The recommendations are not intended for tanks used as process vessels in manufacturing plants.The guidance may also serve to determine the basic safety concept in performing studies and the design ofstorage tanks related to hot ammonium nitrate solutions.

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Our employees, our customers and users of our products shall be informed and trained when necessary in thesafety of operations and any health hazards associated with chemicals and products. All EFMA members issuesafety data sheets. These are based on EFMA’s Guidance for the Compilation of Safety Data Sheets for FertilizerMaterials (1996; under revision).

CHEMICAL POLICY

In 2003 EFMA together with The Fertilizer Institute (TFI, US) completed a research programme with the aimof collecting toxicological data for 23 fertilizers and their intermediates. Presently EFMA is working to get thesefertilizers approved in the voluntary ICCA High Production Volume testing programme.

This will be part of the necessary compliance with the new EU chemical policy programme REACH.

HEALTH

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EFMA members are strongly committed to environmental protection. They operate using “state of the art”technology and the operational practices are continuously improved. As a result, the emissions to air and waterhave been decreased and the energy efficiency of their processes enhanced to be amongst the best world-wide.

BEST AVAILABLE TECHNIQUES

In 1993 EFMA volunteered, as the first industry association, to co-operate with the EU Commission to establishdocumentation on Best Available Techniques (BAT) for Pollution Prevention and Control for the fertilizer

ENVIRONMENT

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industry. Eight BAT booklets for different fertilizer production processes were issued in 1995, in parallel withthe EU Commission’s drafting of the IPPC Directive.

The booklets describe the production processes; give state of the art techniques for pollution prevention andcontrol and emission levels that are achievable for older existing plants and for modern new plants. A secondrevised edition of the 8 booklets was issued in 2000.

EFMA’s BAT booklets have been used as important input material for the EU BAT Reference Document;Ammonia, Acids and Fertilizers (BATREF AAF). This reference document will be used as a guidance documentby local authorities for setting permits to operate as from October, 2007.

They are amongst the more “popular” documents issued by EFMA and have been requested by fertilizercompanies and regulatory authorities world-wide. This confirms the need to establish common uniformstandards on a global basis.

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EFMA’s ENVIRONMENTAL BENCHMARK

EFMA has carried out environmental benchmarking amongst its members on an annual basis since 1996. Dataon the emission into air and into water for a great number of components, (e.g. NH3, NOx, N2O, CO2, dust)are gathered and graphically displayed. It enables EFMA to see whether our performances as an industry proceedin a proper direction. In addition it enables our individual members to benchmark themselves.

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EFMA’S ENERGY BENCHMARK

Ammonia is the basis for all nitrogen containing fertilizers. Production is based on the use of gas, oil or coal, andrepresents by far the most energy consuming part of the fertilizer manufacturing processes. It is thereforeimportant that ammonia production is as energy efficient as possible. Due to the high cost of energy in Europeancountries compared to other regions of the world and due to strict environmental regulations in Europe, theEuropean ammonia producers are amongst the most energy efficient with the lowest emissions. This is evidentfrom recent benchmarking of world-wide ammonia production carried out by independent benchmarkingcompanies.

The leading average position of EFMA producers has been confirmed by more recent benchmarks made by IFA.

Energy Efficiency Ammonia Production 2000

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EFMA Best 10

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Best FSU Plant

US Average

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Best CEC Plant FSU

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Best EFMA

Plant

EFMA Average

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GOOD AGRICULTURAL PRACTICES

EFMA promotes the correct use of all kinds of fertilizer according to the principles of Good AgriculturalPractices.

Furthermore, EFMA fully support the principles of Integrated Farm Management (IFM) as a system goingbeyond Good Agricultural Practices, producing quality affordable food under profitable conditions and with dueregard to the environment. Integrated Farm Management is defined by a set of common principles and practiceswhich efficiently contribute to achieve a Sustainable Agriculture.

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EFMA’s CODES OF BEST PRACTICE AGRICULTURE

Adequate guidance documents and support material are worked out to ensure efficient operation and minimalrisk of environmental impact. In that respect, EFMA published several general guidance documents for productuse.

Code of practice Nitrogen

The growth and harvest of any crop takes nutrients from the soil reserves which must be replenished.Nitrogenous fertilizers contain the most essential crop nutrient in a high quality mineral form, which can beapplied with precision. The objective of this “EFMA code of practice Nitrogen” is to encourage the responsibleuse of nitrogen containing fertilizer and prevent contamination of the atmosphere or aquatic environment.

Code of Practice Urea

For healthy growth, plants depend upon various nutrients of which nitrogen is needed in the largest quantity.With nitrogenous fertilizers, farmers and growers supply nitrogen to the plants in order to achieve optimum cropyields and sustainable agricultural production. These EFMA guidelines focus on the nitrogenous fertilizer urea.

They are designed to provide general recommendations for its effective use on agricultural crops under Europeanconditions.

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ENERGY USE AND GREENHOUSE GASES

EFMA published a simple leaflet on the production of biomass as a source of renewable energy in order tocontribute to informing a large part of civil society on issues related to Sustainable Development and agriculture.It demonstrated that the very positive energy balance of biomass production is greatly increased when usingmineral fertilizers, while at the same time the Greenhouse Gas balance is increased accordingly:

Fertilizers stimulate plant growth. When plants are harvested, they contain 5-10 times more energy than wasused to make the amount of fertilizer required. Fertilizer can thus be considered a catalyst for the capturing ofsolar energy.

In the same context, when plants are growing, photosynthesis enables significant amounts of CO2 to be capturedby the plants. The production and use of fertilizers will reduce the world-wide greenhouse gas emissions if careis taken to utilise plant waste material as an energy source.

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For more information about EFMAvisit the web-site www.efma.org

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