Automotive Fuel Specification in India – The Journey & Path Forward

Presentation by:

Dr. Anurag A. GuptaDy. General Manager

“Indo-Japanese Conference on Fuel Quality & Vehicular Emissions-2009”

Organised by BIS & Petrofed

India Habitat Centre, New Delhi, 17-18 March 2009

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%.

HPCL Vizag

BRPL

Haldia

Barauni

Panipat

Mathura

RIL, JN

HPCL,BBY

Digboi

GuwahatiNRL

BPCL, BBY

KRL

CPCL, Chennai

CPCL, CB

MRPL, ONGC

VadodaraONGC, Hz

Operating Refineries in India

18 operating refineries & 6 more coming up

AUTOMOTIVE FUEL QUALITY AUTOMOTIVE FUEL QUALITY ACTS AS ACTS AS

SOCIOSOCIO--ECONOMIC & CULTURAL ECONOMIC & CULTURAL DRIVER OF THE COUNTRYDRIVER 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

STRAIGHT RUN GASOLINEFCC GASOLINE

UNLEADED REFORMATE (Aromatics)OXYGENATES OTHERS

GASOLINE IS NOT A SINGLE COMPONENT PRODUCT

IMPORTANT

STRAIGHT RUN GAS OILHEAVY NAPHTHA

HSD TCO & HCU GAS OILSKO & COKER KEROADDITIVES

DIESEL IS NOT A SINGLE COMPONENT PRODUCT

PRODUCTION OF DIESEL IN INDIA

Fuel Availability Scenario in India

Surplus / (Deficit) – Y 2003/04Diesel - 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 INFLUENCINGCURRENT FUEL MARKET

LEGISLATION

REFINERY CONSTRAINTS

AUTOMOTIVETECHNOLOGY

CUSTOMER PREFERENCES

FUEL MARKET

CRUDE OIL PRICE

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 !

Ambient Air Quality

INTEGRATED APPROACH TO THE AMBIENT AIR QUALITY

Fuel Quality

Vehicle Technology

Traffic Management Road Maintenance

Old / Polluting Vehicles

Lack of MRTSEffective PUC I&M Programme

Traffic Congestion Fuel Adulteration

Alone Fuel Quality is not Responsible for AAQ ?

THE EURO - INDIA GAP

• FUEL QUALITY

INDIA

EUROPE

TIME

PERF

ORM

ANCE

• OTHER CRITICAL FACTORS

PERF

ORM

ANCE

EUROPE

INDIA

TIME

?

Heading Towards Fuel Neutral Scenario

INTERNATIONAL FUEL QUALITY STATUS

vis-à-vis

INDIAN SCENARIO

WORLDWIDE GASOLINE LEAD CONTENT

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

USAEU JAPANAUSTRALIACHINAINDONESIAS.KOREATHAILANDHONG KONG

TAIWAN

PHILIPPINES

SINGAPORE

MALAYSIA

PAKISTANINDIAS.AfricaM

orocco

gm / lt.

WORLDWIDE GASOLINE SULPHUR CONTENT

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0.2

USAEU JapanAustraliaChinaIndonesiaS.KoreaThailandHong KongTaiwanPhilippinesSingaporeMalaysiaPakistanIndiaS.Africa

%WT.

WORLDWIDE GASOLINE BENZENE CONTENT

1

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

USA

EU JapanAustralia S.KoreaThailandHongkongTaiwanPhilippinesSingaporeIndia

S.Africa

% VOL.

CHANGE OF LEAD IN GASOLINE IN INDIA

0

0.1

0.2

0.3

0.4

0.5

0.6

1990 1995 2000

gm/lt.

WORLDWIDE DIESEL SULPHUR CONTENT

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

USAEU JapanAustraliaChinaIndonesiaS.KoreaThailandHongkongTaiwanPhilippinesSingaporeMalaysiaPakistanIndiaS.AfricaMorocco

% WT

EUROPEAN DIESEL FUEL SULPHUR LEVELS 1980s TO 2000

0

1000

2000

3000

4000

5000

1980s 1990 1996 2000

Sulphur level, ppm

Note: Reduction of sulphur content from 0.50% to 0.05% in 16 years

INDIAN DIESEL FUEL SULPHUR LEVELS 1995 TO 2000

0

2000

4000

6000

8000

10000

1995 1998 2000 2000 NCT

Sulphur level, ppm

Note: Sulphur reduction from 1.00% to 0.05% with in 5 years

WORLDWIDE DIESEL CETANE NUMBER

0

10

20

30

40

50

60

USAEU JapanAustraliaChinaIndonesiaS.KoreaThailandHongkongTaiwanPhilippinesMalaysiaPakistanIndiaS.AfricaMorocco

HIGHER CETANE SIGNIFIES BETTER FUEL QUALITY

TREND OF CETANE NUMBER OF DIESEL IN INDIA

38

40

42

44

46

48

50

1990 1995 2000 2005 Proposed

CN

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, SO2 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 95MON 85 85 85 85S% Wt., Max 0.05 0.05 0.015$ 0.005Bz., %Vol., Max 5.0 5.0 1.0+ 1.0Arom., %Vol., Max - - 42 35Olef., % 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 54S% Wt., Max 0.20 0.05 0.035 0.005 T 95, Deg.C. Max 370 370 360 360PAHs., %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

Source - IFQC

Despite WWFC effort, there is variance in approach to fuel quality.

2.7

500

Worldwide - Gasoline Quality

Attibutes Unit India Euro III Japan Korea New Zealand China Taiwan South AfiricaRON min 91 91 / 95 89 / 96 91 / 94 91 / 95 90/93/95 92/95/98 95 / 97Sulphur ppm min 150 150 100 130 350/150 800 80/120/180 1000/1500Aromatics 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

Despite WWFC effort, there is variance in approach to fuel quality.

Source - IFQC

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 HSDMajor revision in 1995 to meet tighter emission normsApex court intervention for NCT/NCR in 1998 onwardsNext revision of standards in 2000 again to meet tighter emission normsAmendments during the year 2002,2003 and 2005

Recent trend - Fuel Quality driven by the engine technology for meeting emission norms

PARAMETER 1974 1980 1995 2000 2005(BSIII)• CETANE NUMBER, MIN. 42 42 45 48 51• DISTILLATION, oC MAX• 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

# NOT PART OF SPEC FROM 1959 to 1974

CHRONOLOGY OF DIESEL SPECIFICATION DEVELOPMENT IN INDIA (IS 1460)

• 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

No Major Changes Took Place till 1995 whenEmission Norms were Tightened

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, oC MAX MIN. RECOVERY AT MIN.& MAX. RECOVERY70, 125 & 180 oC AT 70, 125 & 180 oC

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 0.0050.80 0.80 0.8/0.56/0.15

BENZENE, VOL% MAX - - - - 5,3,1 1

AROMATICS, VOL% MAX - - - - - 42

OLEFINS, VOL% MAX - - - - - 18 / 21

CHRONOLOGY OF GASOLINE SPECIFICATION DEVELOPMENT IN INDIA

(IS 2796)

No Major Changes Took Place till 1995 whenEmission Norms were Tightened

Impact of Cleaner Fuels on Air Quality

SO2 NOx

RSPM CO Level at ITO Traffic Intersection

0

1

2

3

4

5

6

19961997199819992000200120022003200420052006

Year

Con

cent

ratio

n (m

g/m

3)

CO Level

Source : CPCB

CNG or Diesel ???

COST IMPLICATIONS

* The cost for upgrading fuel to Euro IV level for limited cities in 2010 is being worked out.

Cost of Fuel Quality Upgradation in all Refineries

India 2000 to Bharat Stage II Rs. 17000 crores

Bharat Stage II to Bharat Stage III Rs. 18000 crores

Bharat Stage III to Bharat Stage IV Rs. 17500 crores

Total Rs. 52500 crores

Cost of Vehicle Technology Upgradation

SIAM Estimate – Rs. 25,000 CrTERI 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

AdvantagesMS - High Power, Smooth running with better engine cleanliness

leading to low emissions

HSD – Improved mileage, low emission & increased engine life

• Bio-fuels • Ethanol (5% & 10%)• Biodiesel (5%)

• Gaseous Fuels (CNG & LPG)

• Hydrogen & HCNG fueled Vehicles (IOCL Initiatives)

• Electric vehicles Fuel cell Vehicles

Alternative Energy Options

Auto Fuel Policy ReviewMOP&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 CommitteeDr.K.S.Balaraman, Executive Director, CHTDr.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 refineriesmay 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

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 compensatedfor huge investments made for fuel quality up-gradation

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 convertersto 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 CO2 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

Recommendations

• 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.

Conclusions

Email: guptaaa@iocrd.co.in