PRESENTATION ON BEST CLEAN DEVELOPMENT MECHANISM PROJECT in KSRTC 12/8/2010 1

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1 PRESENTATION ON BEST CLEAN DEVELOPMENT MECHANISM PROJECT in KSRTC 12/8/2010 1

2 INDIAN TRANSPORT EMISSION SCENARIO Transport sector accounts for 25% energy consumption 12-15% 15% of GHG emission Apart from CO2 substantial amounts of other pollutants such as SPM, HC, NOx and CO are also emitted Expected growth in the sector poses a serious threat to climate change

3 Promoting the use of cleaner technologies KSRTC was the first STU to take up alternate fuels like biodiesel and ethanol blended diesel in more than 750 buses in Mysore divisions. The ethanol diesel blend proposed will be the first of its kind in the entire South East Asia. This project has been approved by the World Bank under the Clean Development Mechanism for purchase of carbon credits. 12/8/2010 3

4 PROJECT IN KSRTC Project carried out by Karnataka State Road Transport Corporation (KSRTC), a Public Sector Undertaking with 7,000 bus fleet Technology provider - Energetics Pte Ltd., Singapore Fuel is also known as EnerDieselTM Started in 2006, trail run with 126 buses Currently, 2160 buses are in operation in 17 depots running with EnerdieselTM Proposed use of ethanol-diesel blend in the entire fleet. 12/8/2010 4

5 What is Ethanol Diesel? A premium ethanol diesel fuel blend with: > 7.7 vol% Fuel Ethanol > 0.5 vol% Multi Patented Proprietary Additive > 91.8 vol% Regular Diesel > Enhanced Lubricity > Improved Cetane > Improved Corrosion Resistance > Outstanding Static Properties > Compatible with High Sulphur Diesel, Low Sulphur Diesel, Biodiesel and ULSD > Less polluting > Excellent response > No Power/Torque loss 12/8/2010 5

6 Cheaper, renewable environment ally cleaner fuel Direct correlation with oil oil prices Increased Demand for Ethanol Reduces fossil fuel dependence and import bill Sugarcane: Cheapest source of of manufacturing Reduction of pollutants 12/8/2010 6

7 Visibly cleaner air > Ethanol Diesel substantially reduces: White smoke caused by incomplete combustion during ignition of cold engines Black smoke composed of carbon particles containing oil No engine modifications required 12/8/2010 7

8 ONSITE DIESEL ETHANOL BLENDING Computerised Blending Equipment and ethanol storage tank installed It offers high accuracy and homogenous blending of all components Fully automatic- No need for human intervention Ethanol diesel blend is extremely clear and stable Instant effect on reducing black & white smoke emissions [ No material compatibility issues Engines are observed to be running as normal 12/8/2010 8

9 Technology for the future > High competitiveness Low cost compared to other alternatives Ample environmental benefits Proven immediate effects > Compatibility with other technologies New engines Diesel Oxidation Catalysts Diesel Particulate Traps Bio-diesel Hybrid bus 12/8/2010 9

10 Latest Cost of Ethanol Diesel Latest Cost of Bio Diesel Rate % Diesel Ethanol Solubliser Rate of Mixture Savings in Rs 1.06 per lts Rate % Diesel Bio Diesel Additive Rate of Mixture Savings in Rs 0.98 per lts 12/8/

11 KSRTC Ethanol Diesel Evaluation Rollout of EnerDiesel across KSRTC fleet 7000 buses will reduce the following emissions annually by: Particulate Matter Nitrogen Oxides Carbon Monoxide CO2 25,912 Metric Tonnes 29,174 Metric Tonnes 49,744 Metric Tonnes 33,180 Metric Tonnes 12/8/

12 Co 2 Emission per liter of Diesel CO2 per L diesel 2.63 kg/l km per bus per year km/yr avg baseline fuel eff km/l 12/8/

13 Ethanol Diesel consumption in KSRTC Year Total HSD Ethanol EnerDiesel HSD Solubilizer % Enerdiesel 2006/ / / / /8/

14 CDM - Benefits Cost Benefit Analysis of Using Ethanol Blended Diesel (Enerdiesel TM ) by KSRTC Cost of regular HSD = Rs Per liter A 91.8% of Rs = Rs B Cost of Ethanol = Rs Per liter C 7.7% of Rs = Rs D Cost of Solubilizer to treat 1 liter of HSD (0.5 ml) = Rs E Net cost of Ethanol-Diesel Blend = Rs ( B+D+E ) F Cost savings per liter of HSD = Rs (A-F) Annual consumption of HSD =15 crore liters Net cost savings =Rs crores Carbon credits generated per annum = tons Earnings from sale of credits = X $12/ton X50(1USD = Rs.50) = Rs.2.64 crores Net Cost savings to KSRTC per annum= Rs crores 12/8/

15 Thank You! A cleaner burning diesel fuel for the Indian Transport Industry 12/8/

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