Nano-powders are composed of particles in size range from about 1 to 100 nano-metres (nm). The growing demand for nano-powders arises from the change in physical, chemical and electrical properties exhibited by such particles when their size falls below 100 nm. Along with the increasing production and use of Nano scale particles, there has been a growing concern over the impact of this new technology on health, safety and environment. This has almost exclusively concentrated on the potential health hazards of nano-powders. One potential hazard that appears to have received little attention to date is their explosivity. Explosive dust clouds can be generated from most organic materials, many metals and even some non-metallic inorganic materials. Dust explosions involving particle sizes ranging from a few microns to hundreds of microns, there is a need for these particles to be extensively studied. This work involves computationally modelling the explosion, and investigation of critical parameters that can enhance the severity of the explosion. These parameters include but are not limited to effect of particle size, dust concentration and composition, ignition strength, degree of dust dispersion, explosion characteristics of nano-particles, operating conditions. Further, the work involved in this paper looks at the impact onto the environment by explosion of such nano-powders. The possibility of dust generation accumulation and explosion in various areas of the facility are investigated. A checklist for adequacy of existing safety measures is prepared, and requirement for additional safeguards is studied, in order to avoid catastrophic effects. © 2017, Society of Petroleum Engineers