Climate Change and Hydrocarbon Sector

1
Climate Change andHydrocarbon Sector

• Presentation by
• Sanjoy Dasgupta, DGM (SEP),
• Indian Oil Corporation Limited, New Delhi

Energy and Climate Summit -2009  Meeting
New Challenges 4 February
2009 New Delhi
2
GLOBAL WARMING

• Solar energy arrives at Earth from sun in the
  form of short wavelength radiation.
• Earth sends 30 of this energy back to space in
  the form of long wavelength, infra-red radiation.
  
• Most of the infra-red radiation emitted by the
  earth's surface is absorbed in the atmosphere by
  water vapour, carbon dioxide and the other Green
  House Gases (GHGs)".
• The concentrations of GHGs are increasing in
  atmosphere due to industrial/ human activities
  and tropical deforestation.
• CO2 conc. increased from 313ppm in 1960 to 375 in
  2005. This increase of GHGs is reducing the rate
  of energy release.
• Such trapping of energy leads to rise in global
  temperature, sea level and affecting the climate
  system.

3
Global surface temperature trends

• Global average air temperature near the Earth's
  surface raised by 0.74 0.18 C (1.3 0.32 F)
  during the past century.
• From 1920 to the present, the earths average
  surface temperature has increased by 1.4 F.
• The sharpest rise in temperature occurred between
  1975 and 2005, when temperature rose steadily by
  about 1 F.
• This change is the largest global temperature
  rise witnessed so far.
• The Intergovernmental Panel on Climate Change
  (IPCC) concludes that
• increase in globally averaged temperatures since
  the mid-20th century is very likely due to the
  observed increase in anthropogenic greenhouse gas
  concentrations, which leads to warming of the
  surface and lower atmosphere.

4
Global Warming and Climate Change - recent
signs 

• In recent times numerous long-term changes in the
  climate have been observed, such as
• extreme weather (droughts)
• heavy precipitation,
• heat waves,
• tropical cyclones intensity,
• alternations in cropping patterns,
• new disease

5
Climate Change Convention

• In 1992, first international Earth Summit
  convened to address urgent problems of
  environmental protection.
• More than 100 heads of state attended the summit
  in Rio de Janeiro, Brazil.
• A global convention on climate change now known
  as UNFCCC) signed.
• Objectives of UNFCCC
• Reduction of greenhouse gas (GHG) emissions to
  1990 level by developed country parties by 2000
• Cope with negative effects of climate change
• Developed country parties would assist developing
  countries in implementing the UNFCCC

6
Kyoto Protocol

• 175 countries ratified the Kyoto Protocol so far.
  
• Of these, 36 countries and the European Economic
  Community required to reduce greenhouse gas
  emissions below levels specified for each of them
  in the treaty.
• Total cut in GHG emission at least 5 from 1990
  level (2008 2012)
• The protocol came into force on 16th February
  2005.
• USA not ratified the Protocol.
• Developing countries like India, China, Brazil
  are exempted from the GHG reduction stipulation
  in the Protocol.
•  

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Kyoto Protocol - Mechanisms

• Under the Kyoto Protocol, three mechanisms enable
  cross-border trading in GHG emissions reduction
• International Emissions Trading (IET)
• Buying and selling of emission credit among
  developed countries.
• Joint Implementation (JI)
• One developed country can receive emission
  credit for a specified project undertaken in
  another developed country
• Clean Development Mechanism (CDM)
• Developed countries can participate in
  implementation of project activities that reduces
  emission of GHG.

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Clean Development Mechanism

• CDM is an instrument of cooperation between
  developed and developing country parties
• Three main objectives
• Developed countries to invest in projects of
  developing countries to reduce emission.
• Assist developing country to achieve sustainable
  development
• Contribute to achieving stabilization of
  concentrations of GHGs in the atmosphere.
• Criteria for participation
• Voluntary
• Party to the Kyoto Protocol

9
International developments on emission reductions

• Pressure on developing countries to commit to
  reduction of GHG emission during next meeting in
  Bali in Dec 07
• China second largest emitter of GHG
• India sixth largest
• Indias per capita CO2 emission 0.93 to 1.19 tons
  per annum as against world avg.of 3.87
• In India, energy sector contributes 55 of total
  emission

10
International developments on emission reductions

• Significant variation in the stance of leading
  nations on what should follow Kyoto Protocol when
  that treaty expires in 2012, and in their
  progress towards targets for Kyoto Protocol
  itself.
• Countries like Japan,EU and Scandinavian
  countries committed to GHG reduction and accepted
  caps
• Future discussions on post 2012 regime /
  extension of Kyoto Protocol taking place in
  different Forums.
• Countries that did not ratify Kyoto Protocol
  including the United States have agreed to
  non-binding talks on a climate-change agreement
  that will eventually replace Kyoto Protocol.
• One such development is the Asia Pacific
  Partnership on Clean Development and Climate.

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Asia Pacific Partnership on Clean Development and
Climate

• The Asia-Pacific Partnership on Clean Development
  and Climate (AP6) a non-treaty agreement among
  Australia, India, Japan, China, South Korea, and
  USA was announced on July 28, 2005 at (ASEAN)
  Regional Forum meeting and launched on January
  12, 2006 in Sydney.
• Member countries account for around 50 of the
  world's greenhouse gas emissions, energy
  consumption, GDP and population.
• Unlike the Kyoto Protocol, which imposes
  mandatory limits on greenhouse gas emissions,
  this agreement allows member countries to set
  their goals for reducing emissions individually
  with no mandatory enforcement mechanism.

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Asia Pacific Partnership on Clean Development and
Climate

• The Partnership will focus on
• expanding investment and trade in cleaner energy
  technologies, goods and services in key market
  sectors.
• Partners have approved eight public-private
  sector task forces covering
• Aluminum
• Buildings and Appliances
• Cement
• Cleaner Use of Fossil Energy
• Coal Mining
• Power Generation and Transmission
• Renewable Energy and
• Distributed Generation and Steel.

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The Indian Context

• Indias oil imports touch 70 of the total
  demand.
• Dependence on fossil fuels is a must considering
  limited energy options.
• Present challenge before developing nations is
  energy (and development) versus emissions.
• Indias growing energy consumption is perceived
  as a major future source of global warming.
• It is expected that post 2012 (end of first
  commitment period) global pressure will mount on
  India to cut its greenhouse gas (GHG) emissions.

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The Indian Context

• Indias contribution to world carbon emissions is
  expected to grow at an average of 3 per year
  until 2025, compared with 1.5 in the United
  States.
• According to industry estimates, Indias oil
  consumption is expected to grow to 2.8 million
  barrels per day by 2010, from 2.65 million
  barrels per day in 2004.
• The annual per capita oil consumption in the US
  is about 28 barrels, in India it is about 0.5
  barrels.
• Indias contention is "every country should have
  the same per capita rights to GHG emission".

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Government of India initiative

• Indian government has been taking several
  initiatives to contribute to the cause of
  emission reductions.
• India has the largest number of Clean Development
  Mechanism projects.
• Its recent initiative is the setting up of
  National Council on Climate Change.
• The Government on June 5, 2007 announced the
  constitution of a high-level advisory group on
  climate change.
• The Prime Minister's Council on Climate Change
  will coordinate National action plans for
  assessment, adaptation and mitigation of climate
  change. Activities proposed to be executed

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Government of India initiative

• Afforestation of degraded forest land India has
  about 6 million hectares of degraded forest land.
  The project is called as Green India.
• The Prime Ministers Office(PMO) has also
  mandated various Public Sector Undertakings to
  take up identification and development of CDM
  projects.
• The council has been advised to carry out a
  review to decide upon the domestic policy on
  climate change.

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Oil Gas Sectoremissions and mitigation

• Worldwide the oil gas industry is responsible
  for supplying / generating / meeting 63 of the
  energy demand.
• Oil and gas companies are taking steps to limit
  greenhouse gas emissions from operations and to
  improve customers ability to use the products
  more efficiently in the future such as
• Efficiency improvements from operations and
  investment in cogeneration facilities
• Research and development to commercialize
  innovative technologies such as fuel cells,
  advanced fuels and separation and sequestration
  of CO2 (CCS Carbon Capture Storage)

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Oil Gas Sector emissions and mitigation

• Achieving greenhouse gas (GHG) reduction targets
  from operations by utilizing gas and reducing
  venting and flaring wherever possible
• Participation in commercial ventures on renewable
  energy and
• Participation in emissions trading schemes and
  the establishment of internal trading schemes to
  seek cost-effective reductions across diverse
  operations.
• Successful development of innovative and
  affordable technologies with low greenhouse gas
  emissions.

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ENERGY
MANAGEMENT IN IOC REFINERIES

• Energy consumption in IOCL refineries
• Direct fuel in process heater
• Indirect fuel for raising steam and power
• Energy Consumption depends upon
• --- Type of crude processed
• Processing schemes
• Plant capacity
• Equipment design
• Degree of heat integration
• Mode of product dispatch

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ENERGY MANAGEMENT IN IOC REFINERIES

• Based on cost / benefit analysis, energy
  consumption programme launched in following
  stages
• Improving house keeping and operating practices
• Short term measures involving minor modification
  in existing equipment
• Long term measures requiring large capital
  investment
• Specific energy consumed per barrel of crude
  processed per energy factor (NRGF). Avg.NRGF in
  IOCL refineries has reduced from 77 to 66.7 in
  last 5 years
• To improve ENCON performance of refineries
  various measures undertaken from time to time.
  IOCL has plans to reduce energy consumption by
  another 10 to 20 in future through operational
  improvement and technology upgradation.

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ENERGY
MANAGEMENT IN IOC REFINERIES

• Carbon Dioxide Emission,MT/MT of Crude processed,
  reduced from 0.333 to 0.223
• Renewable Energy Projects Setting up a Wind
  Power Project of 21 MW installed capacity in the
  state of Gujarat at a cost of Rs.131.66 crore
• Use of Natural Gas
• Use of hydrogen as fuel cell
• Use of bio fuel

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BIODIESEL

• Biodiesel is a clean burning renewable fuel made
  using natural vegetable oils and fats.
• Biodiesel is made through a chemical process
  which converts oils and fats of natural origin
  into fatty acid methyl esters (FAME).  Biodiesel
  IS NOT vegetable oil.
• Biodiesel is intended to be used as a replacement
  for petroleum diesel fuel, or can be blended with
  petroleum diesel fuel in any proportion.
• Biodiesel does not require modifications to a
  diesel engine to be used.
• Biodiesel has reduced exhaust emissions compared
  to petroleum diesel fuel.
• Biodiesel has lower toxicity compared to
  petroleum diesel fuel.
• Biodiesel is safer to handle compared to
  petroleum diesel fuel.
• Biodiesel quality is governed by ASTM D 6751
  quality parameters.
• Biodiesel is biodegradable.

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BIODIESEL

• community-based biodiesel model that maximizes
  the advantages of smaller scale plants utilizing
  feedstocks grown or collected nearby.
• significantly smaller environmental footprint can
  be obtained by reducing the need for long
  distance shipping of feedstock to, and product
  from, a biodiesel refinery. 

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BIODIESEL

• IOC RD has studied complete value chain of
  Biodiesel, initiating from plantation to field
  trials. Few of the major initiatives are
• DEVELOPMENT OF BIODIESEL TRANS-ESTERIFICATION
  PROCESS
•  
• IOC (RD) has examined and optimized the
  synthetic processes for the preparation of
  bio-diesel from various vegetable oils which
  includes oil from Rice bran, Jatropha Curcas,
  Palm, Sunflower etc. The process has been
  patented and scaled up to pilot plant level.

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BIODIESEL

• TRIALS WITH INDIAN RAILWAYS
• The tests have been conducted with 5, 10
  and 20 blends of Jatropha bio diesel in diesel
  on 16-cylinders Alco Diesel Locomotive Engine for
  power, specific fuel consumption, firing
  pressures and exhaust gas temperatures. Trial
  runs on Shatabdi and Jan Shatabdi express trains
  have been carried out successfully at 5 and 10
  biodiesel.
•  
• FIELD TRIALS ON BIO-DIESEL WITH TATA MOTORS
•  
• Indian Oil, jointly with Tata Motors launched
  field trial run on 43 buses plied for their
  employees at Tata Motors in Pune in March 2005.
  These buses were run on 10 biodiesel-diesel
  blends.

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BIODIESEL

• Trials on Tata Indica and Tata LCVs were also
  launched at IOC RD. Four Tata Indica Passenger
  Cars, one each were run on 5, 10 20 BD Blends
  (in comparison with Neat Diesel car) for 40,000
  kms and thereafter Engines alongwith FIEs of
  these cars have been sent to Engineering Research
  Center of Tata Motors, Pune for inspection and
  Tear Down Ratings of Engine and FIE components.
  One Tata LCV is running on 10 BD Blend for a
  targeted mileage accumulation of 1 lac kms (with
  intermittent performance tests  at 10,000 km
  intervals) .
• LIFE CYCLE ASSESSMENT STUDIES OF BIODIESEL FROM
  JATROPHA PLANT
• Life cycle assessment of the use of
  Biodiesel from Jatropha is being studied in
  collaboration with NREL, USA. This study will
  help in estimating the overall environmental
  impact of using Jatropha Biodiesel vis-à-vis
  Diesel.

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HYDROGEN AS FUEL

• Hydrogen (H2) being aggressively explored as a
  fuel for passenger vehicles. It can be used in
  Fuel Cells to power electric motors or burned in
  internal combustion engines (ICEs).
• It is an environmentally friendly fuel that has
  the potential to dramatically reduce our
  dependence on foreign oil, but several
  significant challenges must be overcome before it
  can be widely used.
• Benefits
• Produced Domestically. Hydrogen can be produced
  domestically from several sources, reducing our
  dependence on petroleum imports.
• Environmentally Friendly. Hydrogen produces no
  air pollutants or greenhouse gases when used in
  fuel cells it produces only NOx when burned in
  ICEs.

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HYDROGEN AS FUEL

• Challenges
• Fuel Cost Availability. Hydrogen is currently
  expensive to produce and is only available at a
  handful of locationsVehicle Cost Availability.
  Fuel Cell vehicles are currently far too
  expensive for most consumers to afford, and they
  are only available to a few demonstration fleets.
• Onboard Fuel Storage. Hydrogen contains much less
  energy than gasoline or diesel on a per-volume
  basis, so it is difficult to store enough
  hydrogen onboard a vehicle to travel more than
  200 miles.
• Other challenges include fuel cell performance,
  customer acceptance, and hydrogen transport and
  bulk storage.

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HYDROGEN AS FUEL

• IndianOils RD Centre the nodal agency of the
  hydrocarbon sector for ushering in Hydrogen
  energy use in the country. As a part of its
  roadmap for a Hydrogen-fuelled economy, IndianOil
  recently commissioned Indias first Hydrogen-CNG
  fuel dispensing station at its RD Centre at
  Faridabad. The pilot station provides a hands-on
  experience with on-site Hydrogen production,
  storage, distribution and supply. In course of
  time, IndianOil, in coordination with vehicle
  manufacturers, will take up lab scale development
  of Hydogen-CNG engines. Some of the other
  projects identified include development of
  Hydrogen-powered three-wheeler and bus engines in
  association with SIAM (Society of Indian
  Automobile Manufacturers), conversion of CNG
  three-wheelers and buses to Hydrogen-CNG mixture
  and development of Hydrogen conversion kits for
  portable gensets.

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ALTERNATIVE FUELS

• Autogas (LPG)
• Autogas (LPG) as a clean-burning fuel is now
  available from 136 IndianOil outlets across the
  country.
• Ethanol-blended petrol
• In the year 2003, a new eco-friendly fuel
  popularly called Gasohol was launched. This
  fuel combines petrol with 5 ethanol obtained
  from the sugarcane molasses available throughout
  the country. IndianOils RD centre has
  established a feasibility of ethanol blending up
  to 10, which is now gaining acceptance of
  vehicle manufacturers. India has also signed a
  MoU with Brazil in April 2002 for transfer of
  technology in blending ethanol with petrol and
  diesel at higher proportion.

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ALTERNATIVE FUELS

• Addition of ethanol with petrol supplies extra
  oxygen for complete combustion, which reduces
  carbon monoxide levels in auto emission and
  therefore, it is considered more environment
  friendly as it lessens air pollution. Based on
  successful completion of the pilot project
  initiated by the Ministry of Petroleum Natural
  Gas, Govt. of India and studies conducted by
  IndianOil RD, supply of 5 ethanol-blended
  petrol has been initiated in 10 States and three
  Union Territories in the first phase, and will be
  further extended to all parts of the country
  subsequently.

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Thank You