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, 17-18 March 2009 Presentation by: Dr. Anurag A. Gupta Dy. General Manager
Glimpse of Oil Sector in India
India s Growth Forecast India is a fast growing economy in the region
India s Energy Needs A profile Oil to continue the dominant role to fulfill India s energy need
Indian Refineries RIL IOCL BRPL CPCL HPCL BPCL KRL NRL MRPL- ONGC ONGC Of the refining capacity of 126MMTPA, IOC & RIL share nearly 60%.
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
AUTOMOTIVE FUEL QUALITY ACTS AS SOCIO-ECONOMIC & CULTURAL DRIVER OF THE COUNTRY
IndianOil
FUEL QUALITY
FUEL QUALITY
INDIAN TRANSITION TOWARDS HYDROGEN ECONOMY.
FOSSIL FUEL BASED PRODUCTS LPG NAPHTHA GASOLINE KEROSENE HIGH SPEED DIESEL RESIDUAL FUELS BITUMEN
PRODUCTION OF GASOLINE IN INDIA UNLEADED STRAIGHT RUN GASOLINE FCC GASOLINE REFORMATE (Aromatics) OXYGENATES OTHERS IMPORTANT GASOLINE IS NOT A SINGLE COMPONENT PRODUCT
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
Fuel Availability Scenario in India Surplus / (Deficit) Y 2003/04 Diesel - 6.18 MMTPA. Gasoline - 2.98 MMTPA. LPG - (2.18) MMTPA Kerosene - Nil (after stopping import by parallel Mkt) ATF - 1.66 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.
FACTORS INFLUENCING CURRENT FUEL MARKET LEGISLATION CRUDE OIL PRICE REFINERY CONSTRAINTS AUTOMOTIVE TECHNOLOGY CUSTOMER PREFERENCES FUEL MARKET
ENVIRONMENT Fuel Quality & Emissions
Is Fuel Quality alone to be blamed?
OLD & POLLUTING VEHICLES Do you think only better fuel quality can improve the AAQ?
POOR INSPECTION & MAINTENANCE PROGRAMME Do you think only better fuel quality can improve the AAQ?
INEFFECTIVE PUC SYSTEM Better fuel quality alone cannot improve the AAQ
POOR ROADS Do you think only better fuel quality can improve the AAQ?
POOR TRAFFIC MANAGEMENT Can better fuel quality alone improves the AAQ?
FUEL ADULTERATION Do you think only better fuel quality can improve the AAQ?
Integrated Approach!
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?
THE EURO - INDIA GAP FUEL QUALITY OTHER CRITICAL FACTORS PERFORMANCE EUROPE TIME INDIA PERFORMANCE EUROPE? INDIA TIME Heading Towards Fuel Neutral Scenario
INTERNATIONAL FUEL QUALITY STATUS vis-à-vis INDIAN SCENARIO
WORLDWIDE GASOLINE LEAD CONTENT 0.7 0.6 0.5 gm / lt. 0.4 0.3 0.2 0.1 0 USA EU CHINA AUSTRALIA JAPAN THAILAND S.KOREA INDONESIA PHILIPPINES TAIWAN HONG KONG INDIA PAKISTAN MALAYSIA SINGAPORE Morocco S.Africa
0.2 0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 WORLDWIDE GASOLINE SULPHUR CONTENT %WT. S.Africa India Pakistan Malaysia Singapore Philippines Taiwan Hong Kong Thailand S.Korea Indonesia China Australia Japan EU USA
WORLDWIDE GASOLINE BENZENE CONTENT 5 4.5 4 3.5 3 2.5 % VOL. 2 1 1.5 1 0.5 0 Singapore Philippines Taiwan Hongkong Thailand S.Korea Australia Japan EU USA S.Africa India
CHANGE OF LEAD IN GASOLINE IN INDIA gm/lt. 0.6 0.5 0.4 0.3 0.2 0.1 0 1990 1995 2000
WORLDWIDE DIESEL SULPHUR CONTENT 1 0.9 0.8 0.7 % WT 0.6 0.5 0.4 0.3 0.2 0.1 0 EU Japan China Australia S.Korea Indonesia Taiwan Hongkong Thailand Singapore Philippines India Pakistan Malaysia Morocco S.Africa USA
EUROPEAN DIESEL FUEL SULPHUR LEVELS 1980s TO 2000 Sulphur level, ppm 5000 4000 3000 2000 1000 0 1980s 1990 1996 2000 Note: Reduction of sulphur content from 0.50% to 0.05% in 16 years
INDIAN DIESEL FUEL SULPHUR LEVELS 1995 TO 2000 10000 Sulphur level, ppm 8000 6000 4000 2000 0 1995 1998 2000 2000 NCT Note: Sulphur reduction from 1.00% to 0.05% with in 5 years
WORLDWIDE DIESEL CETANE NUMBER 60 50 40 30 20 10 0 EU USA Japan China Australia S.Korea Indonesia Hongkong Thailand Taiwan Malaysia Philippines India Pakistan Morocco S.Africa HIGHER CETANE SIGNIFIES BETTER FUEL QUALITY
TREND OF CETANE NUMBER OF DIESEL IN INDIA 50 CN 48 46 44 42 40 38 1990 1995 2000 2005 Proposed Cetane No. above 50 is reported to result in Increased particulates (Ref. Concawe 99/55)
FUEL QUALITY TARGETS & EUROPEAN FUEL QUALITY NORMS
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 500 150 50 ppm Lower SO2 - Increase in octane to 91- Energy Efficiency, lower CO2 DIESEL - Sulphur reduction 2500 350 50 ppm Lower SO2 - Cetane increase 48-51 - 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
Gasoline Quality Requirements (Euro Norms) Property Euro-I Euro-II Euro-III Euro-IV (92) (96) (00) (05) RON 95 95 95 95 MON 85 85 85 85 S% Wt., Max 0.05 0.05 0.015$ 0.005 Bz., %Vol., Max 5.0 5.0 1.0+ 1.0 Arom., %Vol., Max - - 42 35 Olef., % Vol., Max. - - 18? Lead, gm/litre 0.013 0.013 0.005 0.005 In India, as on date BS-III Fuel is available in 16 Most Polluted Cities & BS-II in Rest of the Country
Diesel Quality Requirements (Euro Norms) Property Euro-I Euro-II Euro-III Euro-IV (92) (96) (00) (05) Cetane Number 49 49 51 54 S% Wt., Max 0.20 0.05 0.035 0.005 T 95, Deg.C. Max 370 370 360 360 PAHs., %Wt., Max - - 11 11 In India, as on date BS-III Fuel is available in 16 Most Polluted Cities & BS-II in Rest of the Country
Worldwide Diesel Quality 2.7 500 Source - IFQC Despite WWFC effort, there is variance in approach to fuel quality.
Worldwide - Gasoline Quality Attibutes Unit India Euro III Japan Korea New Zealand China Taiwan South Afirica RON min 91 91 / 95 89 / 96 91 / 94 91 / 95 90/93/95 92/95/98 95 / 97 Sulphur ppm min 150 150 100 130 350/150 800 80/120/180 1000/1500 Aromatics vol % max 42 42-30 or 35 48/42 40 ** - Olefins vol % max 21/18 21/18-23 or 18 20 or 25 35 ** - RVP KPA 35-60 60 & 70 44-78 70 - S, 96 -W 45 KPA min 88 (W) 59/59/61** 45-75 Source - IFQC Despite WWFC effort, there is variance in approach to fuel quality.
Drivers for Fuel Quality related Decisions in India
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.
Background An expert Committee to recommend an Auto Fuel Policy for the country including major cities was constituted on 13.09.2001 The Committee submitted its report in August 2002 GOI approved the policy in October 2003
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
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 1.4.2005 BS-III 1.4.2010 11 major cities: BS-III 1.4.2005 BS-IV 1.4.2010
Roadmap as per Auto Fuel Policy Emission norms for new 2-3 wheelers to be uniform all over the country: BS-II 1.4.2005 BS-III preferably from 1.4.2008 but not later than April 2010 These schedules would be reviewed in the year 2006, after BS-II (Euro-II equivalent) norms are implemented.
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
CHRONOLOGY OF DIESEL SPECIFICATION DEVELOPMENT IN INDIA (IS 1460) PARAMETER 1974 1980 1995 2000 2005(BSIII) CETANE NUMBER, MIN. 42 42 45 48 51 DISTILLATION, o CMAX 85% VOL - - - 350-90% VOL 366 366 366 - - 95% VOL - - 370 360 SULPHUR, WT% MAX. 1.0 1.0 1.0(0.25) 0.25(0.05) 0.05(0.035) PAH, VOL% MAX - - - - 11 TOTAL SEDIMENTS, mg/100ml # 1.0 [1] 1.0[1] 1.6 [2] 1.6 [2] 2.5 [3] [1] : DEF 2000-16; [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
CHRONOLOGY OF GASOLINE SPECIFICATION DEVELOPMENT IN INDIA (IS 2796) PARAMETER 1964 1971 1984 1995 2000 2005(BSIII) OCTANE NUMBER, MIN. 83 83/93 87/93 87/93 88 95(MON 85) (87ULP) ANTI KNOCK INDEX, MIN - - - 82 84 DISTILLATION, o C MAX MIN. RECOVERY AT MIN.& MAX. RECOVERY 70, 125 & 180 o C AT 70, 125 & 180 o C SULPHUR, WT% MAX. 0.25 0.25 0.25 0.2 0.10 / 0.05 / 0.15(ULP) 0.05 0.015 LEAD CONTENT, g/l, MAX 0.56 0.56/ 0.56/ 0.013 0.013 0.005 0.80 0.80 0.8/0.56/0.15 BENZENE, VOL% MAX - - - - 5,3,1 1 AROMATICS, VOL% MAX - - - - - 42 OLEFINS, VOL% MAX - - - - - 18 / 21 No Major Changes Took Place till 1995 when Emission Norms were Tightened
Impact of Cleaner Fuels on Air Quality SO 2 NOx CNG or Diesel??? RSPM CO Level at ITO Traffic Intersection Concentration (mg/m3) 6 5 4 3 2 1 0 CO Level 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 Year Source : CPCB
COST IMPLICATIONS Cost of Fuel Quality Upgradation in all Refineries India 2000 to Bharat Stage II Bharat Stage II to Bharat Stage III Rs. 17000 crores Rs. 18000 crores Bharat Stage III to Bharat Stage IV Rs. 17500 crores Total Rs. 52500 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
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
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
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
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
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
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
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
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
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
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
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
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
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.
Email: guptaaa@iocrd.co.in