USE OF ALTERNATIVE FUELS; INDUSTRY PERSPECTIVE

Transcription

1 USE OF ALTERNATIVE FUELS; INDUSTRY PERSPECTIVE Presented at Session on: Green Transport Urban Mobility India Conference November 23-28, 2014 K. K. Gandhi Executive Director (Technical) Society of Indian Automobile Manufacturers

2 Industry market segmentation Segmentation: By Volume Segmentation: By Value Passenger Vehicles (2,503,685) 14% Commercial Vehicles (632,738) 3% 3% Three Wheelers (479,634) 51% 28% 80% 2% 19% Two Wheelers (14,805,481) 2 Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers Source: SIAM SIAM

3 Emissions/Safety Regulations Progression in India Emission EURO1 EURO2 EURO3 EURO4 EURO5 EURO6b Major cities BS1 BS2 BS3 BS BS4 OBDII EURO6c Nationwide BS1 BS2 BS3 BS4 OBDII BS5 BS6 Fuel Consumption Nationwide for M1 Vehicles FE Regulation 1 FE Regulation 2 Safety Full Frontal Offset Crash Side Impact

4 Fuel Specifications Improvement Fuel and Emission improvement have gone hand in hand thru series of Emission legislations in India

5 Emission Limit Progression in India CV s Emission Norms Nox Vs PM Emission Norms CO Vs HC PM g/kwh BS 3 BS NOx g/kwh BS BS HC g/kwh BS BS CO g/kwh BS BS 1 CO 4.5 HC 1.1 NOx 8.0 PM 3.6 % Reduction from BS-I to BS-IV NOx 56 % PM 94 % CO 67 % HC 58 % CO 1.5 HC 0.46 NOx 3.5 PM 0.02 In last decade PM emission of Trucks have been reduced by 94%.

6 Progression - Mass Emission Standards 2&3W 90% Emission Standards for 2&3 Wheelers have been India specific, with Indian Driving Cycle Norms derived for Indian conditions DF of1.2isapplicablefromyear ~96% reduction of emissions achieved since 1991

7 Emission reduction of Light duty Vehicles THC+Nox, mg g/km THC+NOX Gasoline THC+NOX Diesel PM, mg/ /km PM-Diesel PM-Diesel 20 0 BS-1 BS-2 BS-3 BS-4 Emission Norm 0 BS-1 BS-2 BS-3 BS-4 Emission Norm > 84~86% Reduction of emissions of PM and THC + Noxachieved since 2000 SIAM

8 Status of Auto Fuel Policy 2025 S/W group 1 Vehicle Emissions Member S/W group 2 Auto exhaust S/W group 4 Logistics Chairman Auto Fuel Policy 2025 Committee S/W group 3 Refinery Final Report Submitted to Minister of Petroleum for approval. Uploaded for stake holders comments (May 2014 ) (July 2014 ) Expected Release of Auto Fuel Policy 2025 (2014 end) 2 /14

9 Bharat Stage IV Emission Norms Extension 2010:13cities (Delhi NCR, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad, including Secunderabad, Agra, Pune, Ahmedabad, Surat, Kanpur, Lucknow& Sholapur). 2014: Extendedto20morecities (Puducherry, Mathura, Vapi, Jamnagar, Ankaleshwar, Hisar, Bharatpur, Daman, Diu, Silvassa, Unnao, Rae Barielly, Aligarh, Karnal, Valsad, Yamuna Nagar, Kurukshetra, Nizamabad, Medak& Mehboobnagar) 2015: Northern India, Except Eastern UP& Madhya Pradesh 2016: Southern India SomeregionsinTamilNadu&Kerala may not get covered. 2017:Rest of the country

10 Important Alternative Fuels in India at Present Benefit Issues Clean burning s Abundant availability Negligible sulfur/toxic HC content CNG Less volumetric efficiency leading to power loss Infrastructure for filling fuel Clean burning, Lower tendency for smog formation Negligible sulphur/toxic HC content Lower emission Easier implementation LPG Ethanol Volumetric efficiency less Dispensing Infrastructure Heavier than air Flammability Material compatibility and durability Storage and handling Reduces CO2 emissions Can be used in conventional diesel engines Fewer particulate emissions of CO and sulfur dioxide Increase in NOx emissions Cold weather concerns 10

11 Important Alternative Fuels in India in the Future Benefits Issues Clean burning Abundant availability Negligible sulfur / toxic HC content Biogas Less volumetric efficiency leading to power loss Infrastructure for filling fuel Low minimum ignition energy Better combustion efficiency Lower fuel consumption Lower HC, CO and CO2 emissions HCNG + Safety considerations higher Reduction in knock resistance characteristics Reduces Air Pollution Carbon less Fuel Higher Energy Content on Weight Basis Higher Octane Rating Very low NOx emissions Next to zero emissions of particulate matter H2 Fuel DME 11 Need of Infrastructure & resources for development, suitability & evaluation of such vehicles. Hydrogen and Fuel Cell Safety MPFI Combustion is relatively sensitive to operating conditions High HC, CO emissions At high loads, knocking & noise is present

12 Need to develop multiple options IC Engine Optimization Weight and Friction reduction Gasoline Diesel CNG No single option is Hybrids and Evs either an absolute or complete solution for LPG India Biofuels Hydrogen 12 12

13 Alternative Fuels Available in India CNG : Mostly methane stored at a pressure of 200 bar Distributed by GAIL/IGL/MGL Auto LPG : Mixture of Propane and Butane stored at pressure of 10 bar Distributed by HPCL/BPCL/RIL Ethanol: Government has recently notified to use of 10 % blend in Gasoline Govt. of India has issued draft Notification for use of Ethanol as ED 95% for CI engine & E 85% for SI engine

14 Product technology exists Technology availability with all major OEMs, some launched others waiting Tata Motors Toyota Toyota Maruti Suzuki Tata Motors Maruti Suzuki Maruti Suzuki General Motors Tata Motors

15 Product technology exists Technology availability with all major OEMs, some launched others waiting Bajaj Auto Bajaj Auto PIAGGIO Bajaj Auto TVS Motors PIAGGIO

16 Product technology exists Technology availability with all major OEMs, some launched others waiting Mahindra Tata Motors Tata Motors Eicher Eicher Eicher Tata Motors Ashok Leyland Ashok Leyland Mahindra

17 Gas Utilization Policy The large gap between demand and available supplies prompted the government to develop a Gas Utilization Policy and to go back to administrative control over prices and over volumes to be allocated to end-consumers. Therefore, in 2008, the government introduced new guidelines called the Gas Utilization Policy, which effectively took away gas producers' rights to sell the gas they discover on the open market. These guidelines were applicable for five years and be reviewed afterwards.

18 Gas Utilization Policy (2) Currently, the rules of the General Policy for the gas market imply that gas will be allocated according to sectoralpriorities set up by the government. This does not imply that the gas is reserved : if one customer is not in a position to take the gas, the next one on the list becomes eligible. As per reports, the Government will give city gas projects selling CNG to automobiles and piped cooking gas to households top-most priority for receipt of domestically produced gas.

19 Sectorial Snapshot CGD infrastructure is available in 46 cities in India Delhi, Mumbai, Ahmedabad, Suratand Pune are some major cities covered by CGD infrastructure. India had 925 CNG stations at the end of March 2014 Gujarat has the maximum number of stations: 326, followed by Delhi NCR with 295 stations Total numbers of Piped Natural Gas Consumers are 24.6 million while CNG serves a vehicle population of 1.97 million vehicles. Average sale of CNG in India is 6.5 MMSCMD.

20 CNG Infrastructure as on March 2014 Plan to add 52 more cities by 2022 Haryana Guragaon Faridabad Sonepat Panipat Gujarat Ahmedabad Anand Ankleshwar Bharuch Banaskantha Bhavnagar Daman Gandhinagar Kheda Mehsana Morbi Navsari Panchmahal Patan Rajkot Sabarkantha Silvassa Surat Surendranag ar Vadodara Valsad Amritsar Rajasthan Kota Punjab Daman & Diu Daman Dadar & Nagar- Haveli Andhra Pradesh Vijaywada Hyderabad Kakinada Rajahmundry Rangareddy Nalgonda Khammam Delhi NCR Delhi Noida Greater Noida Ghaziabad Existing CNG infrastructure Upcoming CNG infrastructure Tripura Agartala Chattisgarh Raigarh Kerala Ernakulam Uttar Pradesh Kanpur Bareilly Agra Meerut Lucknow Mathura Shahjahanpur Madhya Pradesh Indore Gwalior Dewas Ujjain Guna Maharashtra Mumbai Pune Thane Map not on scale

21 Srinagar Natural gas pipelines in India (as on December 2013) Map labeling Existing pipelines Jammu A HVJ- Hazira-Vijaipur-Jagdishpur (GAIL) B GREP -GAIL Nangal C DUPL/DPPL Dahej-Uran-Panvel (GAIL) D East-West PL (RGTIL) Ludhiana F H E VKPL Vijaipur Kota (GAIL) S Hisar New Delhi F Dadri Nangal (GAIL) Dadri P Assam regional P/L G Dabhol Bangalore (GAIL) Bareilly Chainsa H Dadri-Panipat (GAIL) Jodhpur Auraiya Jagdishpur K Lakwa I Hazira- Ankleshwara (GSPC) Bhilwara B U Patna J Gujarat Regional Network (GSPC) Kota Phoolpur Barauni K Assam Regional Network(AOC) J Mehsana Chittorgarh E V L Tripura Regional Network(GAIL) Kuchh Bhuj Vijaipur Tripura regional P/L M Mumbai Regional Network(GAIL) Durgapur Mundra L N Kakinada Regional Network(GAIL) Vaghodia I Shahdol A W Jamnagar Surat Kolkata O Cauvery Basin Network (GAIL) Dahej Haldia Under Construction pipelines Gandhar Digha Hazira R P Chainsa-Jhajjhar-Hisar (GAIL) Chhara Dhamra Q Kochi-Kottanad-Mangalore-Bangalore (GAIL) Pipavav M C T Paradip R Surat-Paradip (GAIL) Mumbai Uran D S Mehsana-Bhatinda-Srinagar(GSPC) Nagothane X Srikakulam T Mallapuram-Bhilwara (GSPC) Mallavaram Gangavaram U Jagdishpur-Haldia (GAIL) Dabhol V Shahdol- Phoolpur (RGPL) Jaigarh N Proposed pipelines Kakinada G W Durgapur-Kolkata Existing gas pipelines X Kakinada-Srikakulam Mangalore Bangalore Under construction gas pipelines Ennore Y Ennore Nagapattinum O Proposed gas pipelines CNG infrastructure Q Y Operational LNG terminals Kottanad Nagapattinam Planned LNG terminals Planned FSRU Gas-based Petrochemical plants Kochi Gas processing plants

22 Vehicle Population Running on CNG The vehicles have grown at a CAGR of 30.8 % during 2002 to ,00,000 18,00,000 18,23,927 1, ,00, ,00, No. of Vehicles 12,00,000 10,00,000 8,00,000 8,74,091 10,37, No. of CNG Stations 6,00,000 4,00,000 3,75, ,00,000-94, Cars LCV/HCV Autos Buses CNG infrastructure 100 -

23 Key Highlights for CNG Infrastructure during Q1 (Apr 14-Jun 14) The total number of CNG stations in the country added in Q were 8 as compared to 18 in Q CNG consumption during Q1 FY for around 1.7 million IGL had the largest market share with 45% of total gas sales volume followed by Gujarat Gas Company with 10% market share. Growth in CNG infrastructure

24 Global Ranking based on number of CNG vehicles Millions Country wise, CNG vehicle parc Source: IANGV and Industry estimates, 2011

25 Evolution of Gaseous Fuel Kit Technology BS-V BS-IV Sequential Injection Direct Injection Throttle body Injection BS-III Gas Air Valve BS-II Venturi System BS-I

26 INDIAN SCENARIO Indian Government permitted use of LPG for automotive purposes in August Amendment to Motor Vehicles Act, 1988, SMPV rules, LPG Control Order etc. permitted the use of LPG as auto fuel Auto LPG was permitted to be marketed by Govt. Oil Companies as well as parallel marketers by importing/ import substitution. IS: standard was drafted for Specifications of Auto LPG The overall no of ALDS in the country ie. Of Govt oil marketing companies and parallel marketers in the market today is close to 1100 spread over 300 cities with an annual sales of about 320 TMT.

27 AUTOGAS CONSUMPTION AND VEHICLE FLEET INDIA

28 PRESENT SITUATION Stagnant market with low consumption Increase in both OPEX and CAPEX costs Vulnerability to Foreign exchange variations & seasonal international price fluctuations Stand alone ALDS no longer a viable business proposition Price intervention by government distorting fuel choicepresent decontrol may help Substitutes like CNG : driven by low pricing which hopefully may not last Lack of enforcing fuel quality standards affecting industry LPG conversions on the wane

29 PRESENT SITUATION Flat/ negative growth leading to low / nil investment on new stations/ facilities. Govt. appears to be focused more on CNG as automotive green fuel and ALPG yet to get its rightful place. Untapped potential of rural areas, cannot be realized due to existing cost structure and uncertainty on future potential. Sales which have shown signs of revival post 6 cylinder cap on domestic LPG now fallen to record lows on doubling of cap to 12 cylinders.

30 Challenges Today for Alternative Fuels in India Inadequate distribution infrastructure Technology up gradation for kits/fuel systems Harmonization of regulations Development of vehicle I&M programs Promotion of Safety Consciousness Stricter enforcement on the field Elimination of Spurious Kits Stringent environmental regulations Fire Safety

31 SIAM -Members

32 Thank you.