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

Sulphur ppm max.

1000/500

500

150

50

Benzene Vol%max.

5/3

Aromatics Vol% max.

42

35

Olefins Vol% max.

21(18#)

21(18#)

RON
(#) Premium grade

88/93(#)

BS-III

88/93(#)

EU-IV Eq.

91/95(#)

91/95(#)

Major Changes in
Diesel Specification
Parameter

BIS-2000

Sulphur ppm max.

2500/500

BS-II BS-III

EU-IV Eq.

500

350

50

Cetane No. *

48

48**

51**

51**

Cetane Index (CI)*

46**

46**

46**

Distillation 0C
at 95% max.

370

370

360

360

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-availability

of 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-29011/19/2004OR.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, IOCR&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
pipeline transfer
Pipeline

Pumping

sequence

Inter-phase absorption plan

for

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, resuspension 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