Automotive Fuel Specification in India The Journey & Path Forward
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1 Automotive Fuel Specification in India The Journey & Path Forward Indo-Japanese Conference on Fuel Quality & Vehicular Emissions-2009 Organised by BIS & Petrofed India Habitat Centre, New Delhi, March 2009 Presentation by: Dr. Anurag A. Gupta Dy. General Manager
2 Glimpse of Oil Sector in India
3 India s Growth Forecast India is a fast growing economy in the region
4 India s Energy Needs A profile Oil to continue the dominant role to fulfill India s energy need
5 Indian Refineries RIL IOCL BRPL CPCL HPCL BPCL KRL NRL MRPL- ONGC ONGC Of the refining capacity of 126MMTPA, IOC & RIL share nearly 60%.
6 Operating Refineries in India Panipat Digboi Mathura Barauni BRPL NRL Guwahati RIL, JN ONGC, Hz BPCL, BBY HPCL,BBY Vadodara Haldia HPCL Vizag MRPL, ONGC CPCL, Chennai KRL CPCL, CB 18 operating refineries & 6 more coming up
7 AUTOMOTIVE FUEL QUALITY ACTS AS SOCIO-ECONOMIC & CULTURAL DRIVER OF THE COUNTRY
8 IndianOil
9 FUEL QUALITY
10 FUEL QUALITY
11 INDIAN TRANSITION TOWARDS HYDROGEN ECONOMY.
12 FOSSIL FUEL BASED PRODUCTS LPG NAPHTHA GASOLINE KEROSENE HIGH SPEED DIESEL RESIDUAL FUELS BITUMEN
13 PRODUCTION OF GASOLINE IN INDIA UNLEADED STRAIGHT RUN GASOLINE FCC GASOLINE REFORMATE (Aromatics) OXYGENATES OTHERS IMPORTANT GASOLINE IS NOT A SINGLE COMPONENT PRODUCT
14 PRODUCTION OF DIESEL IN INDIA HSD STRAIGHT RUN GAS OIL HEAVY NAPHTHA TCO & HCU GAS OIL SKO & COKER KERO ADDITIVES DIESEL IS NOT A SINGLE COMPONENT PRODUCT
15 Fuel Availability Scenario in India Surplus / (Deficit) Y 2003/04 Diesel MMTPA. Gasoline MMTPA. LPG - (2.18) MMTPA Kerosene - Nil (after stopping import by parallel Mkt) ATF MMTPA Gasoline & Diesel remain surplus for next 10 years while LPG & Natural Gas continue to be deficit. Source: Petrofed Surplus Gasoline and Diesel push quality competitiveness.
16 FACTORS INFLUENCING CURRENT FUEL MARKET LEGISLATION CRUDE OIL PRICE REFINERY CONSTRAINTS AUTOMOTIVE TECHNOLOGY CUSTOMER PREFERENCES FUEL MARKET
17 ENVIRONMENT Fuel Quality & Emissions
18 Is Fuel Quality alone to be blamed?
19 OLD & POLLUTING VEHICLES Do you think only better fuel quality can improve the AAQ?
20 POOR INSPECTION & MAINTENANCE PROGRAMME Do you think only better fuel quality can improve the AAQ?
21 INEFFECTIVE PUC SYSTEM Better fuel quality alone cannot improve the AAQ
22 POOR ROADS Do you think only better fuel quality can improve the AAQ?
23 POOR TRAFFIC MANAGEMENT Can better fuel quality alone improves the AAQ?
24 FUEL ADULTERATION Do you think only better fuel quality can improve the AAQ?
25
26 Integrated Approach!
27 INTEGRATED APPROACH TO THE AMBIENT AIR QUALITY Old / Polluting Vehicles Fuel Quality Lack of MRTS Effective PUC I&M Programme Ambient Air Quality Traffic Congestion Fuel Adulteration Vehicle Technology Traffic Management Road Maintenance Alone Fuel Quality is not Responsible for AAQ?
28 THE EURO - INDIA GAP FUEL QUALITY OTHER CRITICAL FACTORS PERFORMANCE EUROPE TIME INDIA PERFORMANCE EUROPE? INDIA TIME Heading Towards Fuel Neutral Scenario
29 INTERNATIONAL FUEL QUALITY STATUS vis-à-vis INDIAN SCENARIO
30 WORLDWIDE GASOLINE LEAD CONTENT gm / lt USA EU CHINA AUSTRALIA JAPAN THAILAND S.KOREA INDONESIA PHILIPPINES TAIWAN HONG KONG INDIA PAKISTAN MALAYSIA SINGAPORE Morocco S.Africa
31 WORLDWIDE GASOLINE SULPHUR CONTENT %WT. S.Africa India Pakistan Malaysia Singapore Philippines Taiwan Hong Kong Thailand S.Korea Indonesia China Australia Japan EU USA
32 WORLDWIDE GASOLINE BENZENE CONTENT % VOL Singapore Philippines Taiwan Hongkong Thailand S.Korea Australia Japan EU USA S.Africa India
33 CHANGE OF LEAD IN GASOLINE IN INDIA gm/lt
34 WORLDWIDE DIESEL SULPHUR CONTENT % WT EU Japan China Australia S.Korea Indonesia Taiwan Hongkong Thailand Singapore Philippines India Pakistan Malaysia Morocco S.Africa USA
35 EUROPEAN DIESEL FUEL SULPHUR LEVELS 1980s TO 2000 Sulphur level, ppm s Note: Reduction of sulphur content from 0.50% to 0.05% in 16 years
36 INDIAN DIESEL FUEL SULPHUR LEVELS 1995 TO Sulphur level, ppm NCT Note: Sulphur reduction from 1.00% to 0.05% with in 5 years
37 WORLDWIDE DIESEL CETANE NUMBER EU USA Japan China Australia S.Korea Indonesia Hongkong Thailand Taiwan Malaysia Philippines India Pakistan Morocco S.Africa HIGHER CETANE SIGNIFIES BETTER FUEL QUALITY
38 TREND OF CETANE NUMBER OF DIESEL IN INDIA 50 CN Proposed Cetane No. above 50 is reported to result in Increased particulates (Ref. Concawe 99/55)
39 FUEL QUALITY TARGETS & EUROPEAN FUEL QUALITY NORMS
40 Fuel Quality Improvements to meet Emission Norms PETROL - Reduction of benzene 5 to 1 (%v) - Reduction of Olefins to 21 (R), 18 (P) - Reduction of sulphur ppm Lower SO2 - Increase in octane to 91- Energy Efficiency, lower CO2 DIESEL - Sulphur reduction ppm Lower SO2 - Cetane increase Better Efficiency, lower CO2 - PAH control 11% max/mass lower hydrocarbon emissions - End point & density reduction Lower VOC emission Lower CO, NOx, VOCs, SO 2 have indirect influence on the formation of GHGs
41 Gasoline Quality Requirements (Euro Norms) Property Euro-I Euro-II Euro-III Euro-IV (92) (96) (00) (05) RON MON S% Wt., Max $ Bz., %Vol., Max Arom., %Vol., Max Olef., % Vol., Max ? Lead, gm/litre In India, as on date BS-III Fuel is available in 16 Most Polluted Cities & BS-II in Rest of the Country
42 Diesel Quality Requirements (Euro Norms) Property Euro-I Euro-II Euro-III Euro-IV (92) (96) (00) (05) Cetane Number S% Wt., Max T 95, Deg.C. Max PAHs., %Wt., Max In India, as on date BS-III Fuel is available in 16 Most Polluted Cities & BS-II in Rest of the Country
43 Worldwide Diesel Quality Source - IFQC Despite WWFC effort, there is variance in approach to fuel quality.
44 Worldwide - Gasoline Quality Attibutes Unit India Euro III Japan Korea New Zealand China Taiwan South Afirica RON min / / / / 95 90/93/95 92/95/98 95 / 97 Sulphur ppm min / /120/ /1500 Aromatics vol % max or 35 48/42 40 ** - Olefins vol % max 21/18 21/18-23 or or ** - RVP KPA & S, 96 -W 45 KPA min 88 (W) 59/59/61** Source - IFQC Despite WWFC effort, there is variance in approach to fuel quality.
45 Drivers for Fuel Quality related Decisions in India
46 Drivers for Fuel Quality Related Decisions in India EPCA headed by Sh. Bhure Lal submitted report on Clean Fuels to the Hon ble Supreme Court. As per orders of the Hon ble Supreme Court All buses in Delhi to be converted to CNG mode. Autos allowed option of CNG and Petrol. Taxis complying to Bharat Stage II allowed with CNG / Petrol / Diesel. LPG allowed by Government as an automotive fuel. MoP&NG introduced 5% ethanol blending in gasoline. Expert Committee headed by Dr. R A Mashelkar appointed to recommend Auto Fuel Policy for the country.
47 Background An expert Committee to recommend an Auto Fuel Policy for the country including major cities was constituted on The Committee submitted its report in August 2002 GOI approved the policy in October 2003
48 Objective of the Auto Fuel Policy To recommend an Auto Fuel Policy for the country and devise roadmap for its implementation To recommend suitable auto fuels and the specifications thereof To recommend attributes of automobile technologies To recommend monitoring and enforcement measures
49 Roadmap as per Auto Fuel Policy Adoption of Euro-II, Euro-III & Euro-IV equivalent Bharat Stage (BS) Emission Standards and Fuel quality New vehicles except 2-3 wheelers: Entire country: BS-II BS-III major cities: BS-III BS-IV
50 Roadmap as per Auto Fuel Policy Emission norms for new 2-3 wheelers to be uniform all over the country: BS-II BS-III preferably from but not later than April 2010 These schedules would be reviewed in the year 2006, after BS-II (Euro-II equivalent) norms are implemented.
51 Automotive Fuel Specification Development in India Standards first published in 1959 for HSD Major revision in 1995 to meet tighter emission norms Apex court intervention for NCT/NCR in 1998 onwards Next revision of standards in 2000 again to meet tighter emission norms Amendments during the year 2002,2003 and 2005 Recent trend - Fuel Quality driven by the engine technology for meeting emission norms
52 CHRONOLOGY OF DIESEL SPECIFICATION DEVELOPMENT IN INDIA (IS 1460) PARAMETER (BSIII) CETANE NUMBER, MIN DISTILLATION, o CMAX 85% VOL % VOL % VOL SULPHUR, WT% MAX (0.25) 0.25(0.05) 0.05(0.035) PAH, VOL% MAX TOTAL SEDIMENTS, mg/100ml # 1.0 [1] 1.0[1] 1.6 [2] 1.6 [2] 2.5 [3] [1] : DEF ; [2] : UOP 413; [3] : ASTM D-2274 # NOT PART OF SPEC FROM 1959 to 1974 No Major Changes Took Place till 1995 when Emission Norms were Tightened
53 CHRONOLOGY OF GASOLINE SPECIFICATION DEVELOPMENT IN INDIA (IS 2796) PARAMETER (BSIII) OCTANE NUMBER, MIN /93 87/93 87/ (MON 85) (87ULP) ANTI KNOCK INDEX, MIN DISTILLATION, o C MAX MIN. RECOVERY AT MIN.& MAX. RECOVERY 70, 125 & 180 o C AT 70, 125 & 180 o C SULPHUR, WT% MAX / 0.05 / 0.15(ULP) LEAD CONTENT, g/l, MAX / 0.56/ /0.56/0.15 BENZENE, VOL% MAX ,3,1 1 AROMATICS, VOL% MAX OLEFINS, VOL% MAX / 21 No Major Changes Took Place till 1995 when Emission Norms were Tightened
54 Impact of Cleaner Fuels on Air Quality SO 2 NOx CNG or Diesel??? RSPM CO Level at ITO Traffic Intersection Concentration (mg/m3) CO Level Year Source : CPCB
55 COST IMPLICATIONS Cost of Fuel Quality Upgradation in all Refineries India 2000 to Bharat Stage II Bharat Stage II to Bharat Stage III Rs crores Rs crores Bharat Stage III to Bharat Stage IV Rs crores Total Rs crores * The cost for upgrading fuel to Euro IV level for limited cities in 2010 is being worked out. Cost of Vehicle Technology Upgradation SIAM Estimate Rs. 25,000 Cr TERI Estimate Rs. 35,000 Cr Ref: Mashelkar Committee Report
56 Branded Fuels IOC launched branded MS & HSD in the month of August 2002 Characteristics of IOC Branded Fuels Motor Spirit Xtra Premium Octane No: + 91 MFA: Additional dose of EPA Approved MFA FM High Speed Diesel Xtra Mile Regular HSD potentiated with Imported MFA Advantages MS - High Power, Smooth running with better engine cleanliness leading to low emissions HSD Improved mileage, low emission & increased engine life
57 Alternative Energy Options Bio-fuels Ethanol(5%& 10%) Biodiesel (5%) Gaseous Fuels (CNG & LPG) Hydrogen & HCNG fueled Vehicles (IOCL Initiatives) Electric vehicles Fuel cell Vehicles
58 Auto Fuel Policy Review MOP&NG vide O.M. No. R-29011/19/2004-OR.I dated 22nd March 2007 constituted the three member Committee: Shri M.B.Lal, Chairman, Scientific Advisory Committee Dr.K.S.Balaraman, Executive Director, CHT Dr.R.K.Malhotra, Executive Director, IOC (R&D) Auto Fuel Policy to be reviewed based on Air Quality and Source Apportionment studies
59 Review of Key Recommendations Vehicular Emission Norms: BS-III and BS-II norms in 13 major cities and rest of the country in 2005 complied Likely to comply with BS-IV and BS-III norms respectively from the year 2010 BS-IV norms to be extended to Lucknow and Solapur
60 Review of Key Recommendations Supply of Auto Fuels: In the initial stages of implementation in 2005, some slippage in supply of fuels Refineries working against tight schedule for meeting April 2010 norms
61 Review of Key Recommendations Pollution Reduction from In-use Vehicles: PUC system up-gradation to identify polluting vehicles: yet to be done by MOSRT&H Introduction of I&M system for vehicles starting 2005 to 2010 in phases for reducing emissions: not in practice Old and poorly maintained vehicles are gross polluters
62 Review of Key Recommendations Checking of Emission warranty for new vehicles: no system in place to verify Mandatory performance checking of catalytic converter from 2005 in 11 cities: no system developed Schemes with incentives for Retrofitting of devices on old vehicles: need to develop a programme Declaration of fuel economy: in km / litre
63 Recommendations Roadmap of AFP need to be adhered to In view of some likely delays in projects, arrangements / hospitality among the refineries may be worked out Gaseous fuels to be promoted for public transport, particularly for 3 wheelers in highly polluted cities Use of bio-fuels to be promoted as it gives emission reduction from automobiles
64 Recommendations Fuel outlets on major highways connecting 13 major cities should also supply BS-IV fuels along with BS-III fuels Oil companies to be adequately compensated for huge investments made for fuel quality upgradation BS-IV fuel will have quality give away for 2 & 3 wheelers. Needs tightening of emission standards for these vehicles
65 Recommendations Diesel engine technology being more fuel efficient with less GHG emissions, should not be discouraged Oil industry to examine the technologies, costs and timeline for achieving 10 ppm sulfur, based on which decision can be taken in future Issue of urea availability for SCR technology in diesel engines for NOx reduction to be addressed
66 Recommendations Genset emission norms may be reviewed to get real benefit from high quality fuels Inspection & Maintenance (I&M) system for vehicles needs to be implemented Policy for replacement of catalytic converters to be developed Greater investments in mass public transport
67 Recommendations Effective retro-fitment programme need to be developed Declaration of fuel economy in km / litre, as CO 2 norms may not be well understood A policy also needs to be in place for fuel economy standards Hybrid vehicles to be promoted through fiscal incentives
68 Conclusions Oil Industry strictly adhering to the recommendations of Auto Fuel Policy Marching towards Fuel Neutral Scenario Studies on alternative fuels are in advanced stage Complimentary vehicle technology is also available Stringent regulations and infrastructure required for implementing the same Sustained focus required on behavioral approach; better driving habits, I&M programmes, adulteration monitoring, etc.
69
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