Product Quality- Future Road Map

Dr. R.K. Malhotra

Executive Director (R&D)
Indian Oil Corporation Ltd.
 Road Map-Background

• Expert committee constituted to

recommend Auto Fuel Policy for the
country on 13.9.2001
• Report submitted in August 2002
•Govt. announced Auto Fuel Policy in
October 2003
 Objective of the 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.
 Major Changes in
Gasoline Specification
Parameter BIS-2000 BS-II BS-III EU-IV Eq.
Sulphur ppm max. 1000/500 500 150 50
Benzene Vol%max. 5/3 3 1 1
Aromatics Vol% max. - - 42 35
Olefins Vol% max. - - 21(18#) 21(18#)
RON 88/93(#) 88/93(#) 91/95(#) 91/95(#)
(#) Premium grade
 Major Changes in
Diesel Specification
Parameter BIS-2000 BS-II BS-III EU-IV Eq.
Sulphur ppm max. 2500/500 500 350 50
Cetane No. * 48 48** 51** 51**
Cetane Index (CI)* - 46** 46** 46**
Distillation 0C 370 370 360 360
at 95% max.

Polycyclic Aromatics - - 11 11
(Wt % max.)

* Lower by 3 nos. for Assam Crude

** Either Cetane No. or CI
Fuel Quality Improvement
- Challenges
Gasoline Diesel
-Reduction of Benzene - Sulphur reduction
& aromatics - Cetane increase
- Reduction of olefins - Poly-aromatic control
- Reduction of sulphur - End point & density
- Increase in octane reduction
 Impact of MS & HSD
(BS-III/Euro-IV) on Refinery operations

• Space limitation in refineries for

new facilities
• Increase in complexity of refinery
operations and safety concerns
• Shrinkage in flexibility of operations
w.r.t. crude mix, processing capacity,
product slate.
 Impact of MS & HSD
(BS-III/Euro-IV) on Refinery operation

Non-availabilityof any one component

affects product availability (viz FCCU
gasoline, Reformate, Isomerate)

•Impact of T-95 recovery at 360 Deg C for HSD –

Disposal of Heavy ends

Increasing demand of skilled manpower for

operating plants with advanced technology
 Financial Impact to meet
BS-II/III/Euro-IV
BS-II/III Production
•Investment over Rs.8,000 Crore
•Increase in production cost by approx.Rs.1.00 per
litre

BS-III/IV Production
•Investment over Rs.15,000 Crore
• Increase in production cost by approx.Rs.1.50 per
litre
 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
 Status of Implementation

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
 Status of Implementation

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

 Status of Implementation

 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
rather than CO2 norms
Preparedness for BS-III/IV Facilities

Preparation of switchover plan

Firming up of manufacturing specs for
products for pipeline transfer of products
Firming-up the Pumping sequence for
pipeline transfer
Pipeline Inter-phase absorption plan
 Air Quality Monitoring and
Source Apportionment Studies

 Oil Industry initiated and funded

the programme
 MOE&F monitoring the studies in
6 six cities: Delhi, Bangalore,
Mumbai, Chennai, Pune and
Kanpur
 Interim Report received in July
2008
 Air Quality Monitoring and
Source Apportionment Studies
Major findings:
 Levels of PM10 and PM2.5 high.
 Industries, construction activities, re-
suspension of road dust are major
contributor to PM in most of the
cities
 Vehicles are major contributor to PM
in Bangalore, with considerable share
in Delhi, Kanpur, Pune and Chennai
 DG sets are major source of fine
particles
 Air Quality Monitoring and
Source Apportionment Studies

 Final report is expected by December

2008
 It will provide city level emission
inventories,
 sources, and
 their emission loads, and
 Future projections for next 5-10
years.
 Auto Industry Preparedness
 SIAM confirmed readiness for compliance
with new emission regulations for
vehicles from 1st April 2010.

 Vehicle manufacturers requested the Oil

Industry to supply BS-IV fuels one year
in advance for undertaking trials.

 BS-IV fuels can not be supplied before

2010 from domestic sources.
Requirement can be met through
imports.
 Auto Industry Preparedness

 Selective Catalytic Reduction (SCR)

technology for NOx reduction in BS-IV
diesel vehicles need Urea to be dispensed
from retail outlets along with diesel.

 Urea availability to the oil companies need

Govt. intervention

 Auto industry also need to incorporate

systems to check by-passing of SCR
device by vehicle operators
 Oil Industry Preparedness
 Most of the refineries will be
producing both BS-III and BS-IV fuels
to meet the requirements of 13 major
cities
 Most of the refineries stated
completion of the projects by March
2010
 Should be possible for refineries to
meet the April 2010 target of BS-IV on
overall basis
 Future Specifications may
require MS/HSD of
Sulphur less than 10 ppm in
line with Global Trends
 MS of Sulphur less than
10 ppm
Technological Options

• Hydro-treatment of Gasoline produced from

FCCU, Coker, Straight Run Naphtha and
Visbreaker Naphtha
Limitation- Octane loss by over 2 to 2.5 units
• Hydrotreatment of FCCU feed
• Alkylation -For Sulphur reduction and Octane
Improvement
• Augmentation of Existing treating facilities for
H2S and Mercaptan
 HSD of Sulphur less than 10 ppm
Technological Options

Hydrotreating for Sulphur reduction &
Cetane Improvement
• Hydrocracking for HSD maximisation with
Sulphur reduction /Cetane Improvement
• Installation of additional deep de-sulphurisation
units for treatment of
•Straight run gas oil from crude distillation unit
•Vacuum gas oil from Vacuum distillation unit
•Total cycle oil from FCCU
•Gas oil from Cokers &
•Visbreaker units
 HSD of Sulphur less than 10 ppm
Technological Options
•Replacement of catalyst of existing
DHDTU/DHDS/HCU/OHCU by next generation
catalyst to reduce sulphur in diesel streams of
these units
• Augmentation / revamp of various sections of
existing units
• De-sulphurisation units for Kerosene to meet
the plug requirement of pipeline for pumping MS
and HSD from refineries
MS and HSD of Sulphur < 10 ppm
Magnitude of investments

Considering present and future blend of

Gasoline and HSD, existing and required
configuration of process units of refineries,
utilities, offsite and environmental requirements,
Estimated investment : Over Rs 37,000 crore
for IOCL refineries at current market rate of
Project execution.
 Issues related to Production of
HSD of Sulphur less than 10 ppm

Space limitation : A number of projects

installed since commissioning of
refineries for capacity augmentation,
profitability improvement of refinery,
product quality improvement and meeting
other statutory norms leaving hardly any.
 Issues related to Production of
HSD of Sulphur less than 10 ppm
• Impact of changes made in Fuel
Specification made till date need to be
assessed
• Air Quality Monitoring and Source
Apportionment Study report yet to be
received
Further, moving to Euro-V / 10 ppm sulfur fuel may be
decided after receiving the above data
Thank You