SIAM April 05 Diesel

1
Developing Fuel Quality Roadmaps in Asia
The experience of India on producing cleaner
fuels by Dr. AA Gupta - IndianOil NS
Murthy - Reliance Industries Ltd. 23rd May
2006 Regional Workshop, ADB, Manila
2
Clean Fuels Initiatives - India

• Glimpse of Oil Sector in India
• Indian Clean Air Programme
• Clean Fuels Experiences
• Clean Fuels - Redefined
• Road Ahead

3
Glimpse of Oil Sector in India
4
Operating Refineries in India
18 operating refineries 6 more coming up.
5
Indian Refineries
Of the refining capacity of 126MMTPA, IOC RIL
share nearly 60.
6
Fuel logistics 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.
7
Indian Clean Air Programme
8
Air Quality Standards in India

• In Indian context CO pollution, Particulate (PM10
  , PM2.5 PM0.1) and NOx (in select cities) are
  areas of concern. Internationally concerns are
  raised about ground level Ozone, Benzene other
  air toxins such as 1,3 butadiene, aldehydes,
  alkenes, etc.

Each nation devices adopts a balanced approach
for BAQ.
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Ambient air quality Factors involved
an integrated approach pays rich benefits for
the cost spent
10
Stakeholders in Auto Oil Program AAQ
For the health of common man on the kerb-side
Growing awareness in India for BAQ amongst key
stakeholders
11
I CAP Mission

• Conduct a scientific ambient air quality study in
  metros involving source identification, emission
  factors generation and apportionment thru
  modeling.
• Provide a cost benefit solution for BAQ
  considering issues like in use vehicles, IM
  practices, traffic mgt, product quality
  assurance, developments in Tail Pipe devices,
  etc.
• Set road map starting with least cost but max
  returns.

Right combination of technology fuel to combat
auto emissions.
12
Clean Fuels Experiences
13
Worldwide Diesel Quality
Source - IFQC
Despite WWFC effort, there is variance in
approach to fuel quality.
14
Diesel Quality Stakeholders needs

• Excellent Lubricity to enhance life of fuel pump
  engine parts.
• Very Good fuel stability with least deposit
  formation tendency.
• Better fuel filter performance.
• Min viscosity limit to minimize / eliminate drip
  from injector.
• Best fuel economy, acceptable emissions.
• Lowest sulphur for longevity of tail pipe
  devices.
• Lowest delivered cost to consumers.

CN of 51 min is for high speed LCV running in
Euro Autobahn. For heavy duty vehicles, NCWM
(National Conference of Weights and Measures)
specified 47CN Min. EMA recommended CN of 50min.
Assessment of Right Quality calls for a
balanced approach.
15
Diesel Quality Change - India

• India spends 26 Billion / yr on diesel alone.
• With Bharat III (similar to Euro III) grade in 13
  metros, India spends additionally 150MM/yr on
  account of control spec of T95 in BS III.

Cost of HSD Quality change - Did it provide the
AQ benefits?
16
LCV PM Vs Diesel grades Vs Technology
Source - ARAI
Euro II 0.08 gm/km
Euro III 0.05 gm/km
Euro IV 0.025 gm/km
Technology plays a key role in abating vehicular
emission..
17
HCV PM Vs Diesel grades Vs Technology
Source - ARAI
Euro IV 0.03 gm/Kwh
Euro II 0.15 gm/km
Euro III 0.10 gm/km
Euro IV 0.02 gm/km
Technology plays a key role in abating vehicular
emission..
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Diesel Effects on Emissions - Summary
Source - Shell
Heavy Duty (Euro 2 / 3)
0 / implies conflicting results (dependent on
engine technology)
T95 has no impact on PM. However, it impacts
diesel production.
19
Worldwide - Gasoline Quality
Taiwan follows emission models to allow
refiners to choose limits on olefins and
aromatics. Japan does not have olefins or
aromatics spec. and intends to meet emission
norms with tail pipe technology combination
Despite WWFC effort, there is variance in
approach to fuel quality.
20
Gasoline Quality Stakeholders needs

• Deposit Control (IVD, PFI, CCD, Carburetor
  rating, etc.)
• Fuel Economy, better acceleration Acceptable
  emissions.
• Longer life of tail pipe cat.
• Enhanced Engine / Component Life.
• Lowest Delivered cost to consumers

India mandated deposits control thru use of EPA
regd additives.
21
Gasoline vehicles (2W) Emission test -HC
No significant impact by Fuel. 2W technology near
static till 2000.
22
Gasoline vehicles (2W) Emission test -CO
No significant impact by Fuel. 2W technology near
static till 2000.
23
Emission test Cal. Fuel Economy
Need to work on higher fuel efficiency vehicles
to reduce GHG.
24
Gasoline Effects on Emission - Summary
Source Shell
25
Clean Fuels - Redefined
26
Clean Fuels - Redefined

• Voice of stakeholders
• Lessons learnt
• Technological advancements
• Product / Market segmentation approach

27
Vehicle Owners / Engine Operators

• Mostly unorganized barring STUs, Fleet operators,
  etc. Issues are-
• Cost of fuel and mileage sole concerns
• No serious attention to vehicular emission -
  in-use vehicles.
• Depend next door garages for I M needs.
• Perception on fuel adulteration is high though
  reducing.
• Restrained mobility arising from two fuel policy
  in India.
• There is Quality overkill in some sectors.

Oil companies on most occasions address all these
issues
28
OEMs

• The issues are -
• Engine warranty Vs Right fuel availability /
  Adulteration
• No firm vehicle retiring policy
• Auto Garages Consistency in Quality Output
• Mismatch in auto fuel quality, which is neither
  on European nor Japanese model.
• Reliability of tail pipe devices synergy
  thereof with engine technology to combat auto
  emission.

One Nation One Fuel and or ensure right fuel to
sustain mobility
29
Oil Companies

• The issues are -
• Mounting fuel bill and the need to innovate and
  supply right fuels for appropriate end
  applications.
• Wrath of unpleasant intervention by judicial and
  other lobbies In the process put on reactive
  mode.
• Tamper proof system of delivery to Retails and
  ability to demonstrate at forecourt.
• Lopsided subsidies in fuels failing to reflect
  true cost to nation.

Forums like I CAP, BIS and SIAM / Petrofed to
lead the nation
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Lessons Learnt - Factors on AAQ
Vehicle technology impact is substantial than
fuel quality.
31
Effect of Sulphur change Diesel vehicles
Reduction achieved during hot EUDC
(extra-urban) portion of test.
32
Lessons Learnt - Gasoline Deposit Control
Right MFA and not base gasoline quality helps to
reduce deposits.
33
Olefins Spec EU story
Briefly, as far as history of the EU gasoline
olefins spec is concerned, the EPEFE study, basis
for EU Auto/Oil 1, did not investigate olefins
effects as, at the time, this was not considered
to be of sufficient priority - the emphasis was
on aromatics, E100 and sulphur. Auto industry,
however insisted on its inclusion into the air
quality modeling stage, the argument put forward
was that higher olefins were linked to higher NOx
and hence higher ozone. The data for this came
from the earlier US Auto/Oil (AQIRP) programme
and was questionable, being based predominantly
from non-catalyst vehicles or ones fitted only
with Oxycats (no three-way catalyst vehicles -
thus different from all the EPEFE data).
Despite all this, politics prevailed EU ended
up with an olefins spec.
34
Cat devices reduce exhaust emission-NOx
Tail pipe devices facilitate Euro II engine /
vehicle technology with Euro II gasoline to
comply with Euro III norms.
35
Right Fuel Campaign
Diesel
Source - Petrofed
Urgency to differentiate diesel for on road off
road applications.
36
Proposed Roadmap on Fuel Segmentation
Oil companies could ensure control in supply
chain to reach right product to appropriate
market.
37
Clean Fuels Redefined
In short, there is a need to harness
technology advancements in tail pipe devices,
segment the market to use appropriate fuels and
twig the fuels to create win win situations
in combating air quality issues.
38
Road Ahead
39
Diesel Fuel Quality - Proposed

• Attributes Unit Current Bharat III To be for
  Metros
• Density kg/cum 820 - 860 820 - 845 820 860
• T95 recovery deg C 370max 360max 370
• Sulphur ppm 500 350 50
• Cetane Number - 48 min 51 min 48 min

Adopt group average concept too.
Encourage voluntary reduction by oil companies to
help installation of tail pipe devices in older
technology in-use vehicles.
40
Gasoline Fuel Quality - Proposed

• Attribute Unit Current Euro III To be for
  Metros
• Sulphur ppm m 500/150 150 lt50
• Benzene vol max 1 3 1 1
• Aromatics vol max no spec 42 No spec
• Olefins vol max no spec 18 /21 No spec
• Ethanol vol max 5 Optional Optional

Also, there is need to harmonize gasoline spec on
BS II BS III with respect to density
distillation. Mandate tail pipe devices thru
retrofit in metros.
41
Forward path

• Critically examine Japanese Model including FQMs
  for appropriate inputs.
• For Sustainable Mobility (safe and environment
  friendly transport solutions) right fuel
  availability across India is a must.
• Mandate installation of tail pipe devices on all
  in-use vehicles plying in hot spots.
• Segment fuels based on market needs and
  encourage retrofits in reducing exhaust
  emissions.
• Emphasis only on induction of fuel efficient
  vehicles from 2007.

42
thank you
43
Emission Norms
Emission norms for off road applications are
different.
44
Vehicular Emission Euro Norms
45
Emission norms (2W)
Figs in gm/KM
Indian two wheeler emission norms tougher than
Europe and it is possible only due to perhaps
better technology and use of tail pipe catalyst
devices.
46
Indias growth forecast
India is a fast growing economy in the region
47
Indias Energy needs A profile
Oil to continue the dominant role to fulfill
Indias energy need
48
Crude Oil Geographical Production
2003-04 Source Petrofed
Figs MMTPA Total 33.38MMTPA
0.66
4.24
4.67
17.68
6.13
India imports Crude oil 70MMTPA, this will be
140MTPA by 2012
49
Natural Gas Recoverable Reserves
Source Petrofed
Figs TCF Total 54.13 TCF 1163 MMTOE
13.09
6.28
34.76
Considering R/P ratio of gas reserves, Oil
dependence to continue
50
Vehicular Emission Norms Road Map
The schedules would be reviewed in end 2006
No forward path given for in-use vehicles as well
retiring policy
51
Cat devices reduce tail pipe emission - HC
Tail pipe devices facilitate Euro II engine /
vehicle technology with Euro II gasoline to
comply with Euro III norms.
52
Cat devices reduce tail pipe emission - CO
Tail pipe devices facilitate Euro II engine /
vehicle technology with Euro II gasoline to
comply with Euro IV norms.
53
Emission test Total Aldehyde (2W)
Aldehyde showed increase with Ethanol in blend.