Environment Friendly Fuels &

Lubricants: Indian Trends

Dr SSV Ramakumar

Director (R&D)

IndianOil Corporation Limited

ECT 2017 – November 2nd, 2017, New Delhi

Energy of India 2

Demand & Growth Projections

Emission Norms

Fuel Quality Up-gradation

Technologies & Challenges

Fuel Economy

Multi functional Fuel Additives

Fuel Efficient Engine Lubricants

Recap

Contents

Energy of India 3

775 mtoe

1439 mtoe

1281 mtoe

639 mtoe

1314 mtoe

603 mtoe

CAGR: 3.7%

CAGR: 4.4%

CAGR: 4.4%

Primary Energy Demand-2030

Energy of India 4

Growth of Indian

Automobile Industry

Source: SIAM, Booz & Company

24 million vehicles produced in 2015-16 of which Share of two wheelers, passenger vehicles, three wheelers and

commercial vehicles were 78%, 15%, 3% and 4% respectively Automotive Mission Plan 2016 envisages a 3.5 – 4 times growth from

current levels by 2026 Contribution of 7% towards GDP

0

5000000

10000000

15000000

20000000

25000000

30000000

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Total Vehicle Sales in india

Energy of India 5

Consumption Trends - India

0.00

1.00

2.00

3.00

4.00

5.00

6.00

0

10000

20000

30000

40000

50000

60000

70000

80000

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

HS

D t

o M

S R

ati

o

X 1

00

0 M

etr

ic T

on

nes

HSD MS HSD to MS Ratio

• India witnessing a robust gasoline demand

• Relatively flat Diesel trajectory being observed for past 4 years

• Downward trend in Diesel to Gasoline consumption ratio

Energy of India 6

138

263

67

127

0

50

100

150

200

250

300

2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30

Industry IOC Industry Prod'n(FY15-16) IOC Prod'n(FY15-16)

Fuel Matrix: Demand Supply Gap

(HSD/MS/LPG/ATF/SKO)

Demand projections as per MD data & Production figs as per IOCL/ Industry Data

2015-16 Industry Production: 132 MMT

2015-16 IOCL Production: 49 MMT

CAGR 2019-20 2023-24 2029-30 HSD 5.9% 5.1% 4.6% MS 7.1% 7.1% 7.9% LPG 6.9% 2.2% 2.0% ATF 3.0% 3.0% 3.0% SKO -4.0% -5.0% -6.0%

All Prods 5.2% 4.4% 4.5%

All figs in MMT

Energy of India 7

Chronology of Indian Gasoline Specs.

Fuel Characteristics India

2000

BS-II

2002

BS –III

2005

BS IV

2010 NCR

2017

BS VI

2020

Density Kg/m3

@15ºC 710-770 710-770 720-775 720-775 720-775

Sulphur Content,

ppm 1000 500 150 50 10

RON 88/93 88/93 91/95 91/95 91/95

Motor Octane

Number 84 (AKI) 84 (AKI) 81/85 81/85 81/85

RVP, kpa - 35-60

(35-67) 60(67) 60 67

Olefin Content, %vol - - 21 21 21 (18)

Aromatic Content,

%vol - - 42 35 35

Lead Content, g/l 0.013 0.013 0.005 0.005 0.005

Benzene % vol 3/5 3 1 1 1

Final boiling point

deg C 215 215 215 210 210

Energy of India 8

Chronology of Indian Diesel Specs. Major parameters:

India

2000

BS-II

2002

BS –III

2005

BS IV

2010 NCR

2017

BS VI

2020

Density,

kg/m3 820-860 820-860 820-845 820-845 845 max

Cetane

Number, min 48 48 51 51 51

Sulphur,ppm,

max 2500 500 350 50 10

Kinematic

Viscosity,cst 2.0-5.0 2.0-5.0 2.0-4.5 2.0-4.5 2.0-4.5

PAH, % mass - - 11 (max) 11 (max) 8 (max)

Distillation recovery

85% 350°C 350°C

95% - - 360°C 360°C 360°C

Energy of India 9

0.36

0.15

0.1

0.02 0.01

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

B.S I B.S II B.S III B.S IV B.S VI

Em

iss

ion

Lim

its

(in

g/k

W-h

r)

Trends in Particulate Matter Reductions

8

7

5

3.5

0.46

0

1

2

3

4

5

6

7

8

9

B.S I B.S II B.S III B.S IV B.S VI

Em

issio

n L

imits (

in g

/kW

-hr)

Trends in NOx norms

Emission Norms in India

Heavy duty Vehicles Light Duty Vehicles & 2/3 wheelers

• BS VI PN concentration for LDVs and HDVs : 6x10^11 p/km • Particle size from 23 nm to be sampled during the testing

Energy of India 10

Changing Landscape

1991 1996 1999/2000 2001 2005 2010 2020

BS I BS II BS III BS IV BS VI

Reg

ula

ted

Po

llu

tan

ts (

g\k

m f

or

Cars

,g\K

Wh

r fo

r C

V)

21.6

7.9 3.83 1.78

1.25 0.83 0.67

16.3 11.68

3.69 2.65

2.07 5.48 7.86 12.25 13.96

1.16 1.18 2.7

35.5 28

Cars/Light Duty -Diesel

95.7% reduction till BS 4

96.5% reduction till BS 6

Cars- Gasoline

92.8% reduction till BS 4

92.9% reduction till BS 6

Commercial Vehicle

92.8% reduction till BS 4

92.9% reduction till BS 6

1st April 2017

1st April 2016

BS IV Fuel availability in India

A collective investment of Rs 80K Cr from BS III to VI (Rs 30 K Cr alone from BS IV –VI)

quality up-gradation by OMCs

Source: SIAM

Energy of India 11

Typical Gasoline Pool

Gasoline

FCC Gasoline Reformate

Isomerate

Alkylate

Oxygenates

Other Naphthas

• Gasoline pool constituent varies

depending on availability of

process/streams

• Each process producing gasoline blending

component is important to meet final

specifications:

Aromatics within limit

Olefins within limit

Sulfur within limit

Desired Octane

Process Pros Cons

Catalytic

Reforming

• High octane

(RON 98-104)

• Low RVP

• Low sulfur

• No olefins

• High aromatics

(>70%) and

benzene (3-

5%)

FCC • Moderate

octane (RON 89-

93)

• High sulfur (>

300 ppm)

• High olefins

(>25%)

Isomerizat

ion

• Better octane

than LSR ( RON

80-93)

• Low sulfur,

olefins and

aromatics

• Higher

investment for

increasing

octane

• High RVP (>70

kPa)

Alkylation • Good octane (

90-98)

• Low RVP

• No olefins and

aromatics

• Environmental

concerns

Energy of India 12

Typical Diesel Pool

DIESEL

Non-Conventional

FCC LCO

S No Process Unit HSD Component Characteristics

1 Fludised Catalytic Cracking TCO Low Cetane, High Sulphur

2 Crude distillation SRGO Crude Specific

3 Hydro Cracking Gas Oil High Cetane, Low Sulphur

4 Delayed Coking &

Visbreaking

Kero/Gas Oil Low Cetane, High Sulphur

Energy of India 13

Commercialized / Demonstrated

• INDMAX

• Naphtha

isomerization

(Zeosom)

• DHDT

(indeDiesel)

• FGH

(indeHex)

• indDieselRen

• INDAdeptG

• LPG

Deasphalting

• Catalysts

Under commercialization

• Octamax

• Removal of

sulfur &

diolefins

(indSelectG)

• ATF

Hydrotreating

(indJet)

• IndDSK

• IndDSN

• IndCokerAT

Ready for commercialization

• INDALIN

• INDALIN-

Plus

Under

development

• indPet

• indResidH

• IndErupt

• Membrane

Deasphalting

• Propane

Dehydrogenation

• Superior Resid

Conversion

• CNT production

Refining Technology:

IOC’s Basket

Energy of India 14

Fuel Economy Improvement &

Emissions Reduction - Options

Improving Refinery Processes – High Cost

Use of Fuel / Oil additives – Low Cost

Energy of India 15 15

Indian Fuel Economy Legislation

Notification of Min. of Power, The Gazette of India, Jan 30th, 2014

Average Consumption figures of 2009-2010 as base line

Covers MS,HSD,LPG & CNG

Applies to - Vehicles GVW< 3500 KG

- Seats 9 max including driver

Average CO2 targets 130 gms/Kms in 2017 and 113 gms/kms by 2022

Compliance Started from April 1st 2017

Fuel Economy norms for heavy duty/commercial vehicles issued

recently by BEE, Ministry of Power

•Limits on constant speed fuel consumption for vehicles with GVW >12 tonnes

• Compliance from 1st April 2018 covering diesel vehicles of M3 and N3 category

Energy of India 16

Fuel Additives

Additive is a fine chemical which modifies the characteristic of

Refined Petroleum Fractions

Additives Provide economical and easy means

– of Improving Performance

– Controlling quality during production, distribution, and while the product is in use

– Impart Properties which are not present in the base fuel

– Extend the life of the machine and expands the range of application

Detergent & Dispersant Keep the engine clean and sludge in suspension

Antioxidant Prevents formation of sludge & deposits, slows down the rate of

oxidation of the hydrocarbon

Corrosion Inhibitor Prevents corrosion /rust on ferrous and non ferrous surfaces

Foam Inhibitor Minimizes foam formation

Lubricity Additive Improves lubricity and reduces wear

Cetane / Octane

Improver Improves combustion ability

Energy of India 17

Diesel MFAs

With Additive

Without Additive

Injection hole

Foreign material

Normal Spray

Injection

Hole

Clogging

Bottom view Injector tip

Source: Lubrizol

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

CarbonMonoxide

Hydro Carbons Oxides ofNitrogen

Particulates

Em

iossio

n,

g/t

est

W/o Additive With Additive

Heavily Scored Injector Pintle with Untreated

Fuel

Clean Injector Pintle with additive treated

Fuel

Energy of India 18

Gasoline MFAs

Heavily Scored Inlet Valve with Untreated

Fuel

Clean Inlet Valve with additive treated Fuel

PRODUCT Treat Level

ppm

IVD, mg CCD, mg REMARKS

Base Fuel - 152.7 3421 -

Base Fuel + MFA-1 250 34.0 4300 Good IVD control but

higher CCD deposits

Base Fuel + MFA-2 600 7.42 2217 Excellent in IVD & CCD

control

Base Fuel + MFA-3 250 2.85 3250 Excellent in IVD & CCD

Control

Energy of India 19

Impact of MFA on Fuel Economy

Vehicle 1 Vehicle 2

Vehicle 3 Vehicle 4

Both Driving cycle and Constant fuel economy improves by Gasoline MFA

The effect of MFAs is sustainable Source: IOC R&D

kpl kpl

Energy of India 20

•Predominantly operate

Hydrodynamic regime

•Reduction of viscous drag

from lubricant minimizes

friction, leading to fuel

economy

Piston & Bearings

•Operates in mixed or

boundary regimes

•A good friction modifier in the

lubricant formulation may

reduce boundary friction

leading to fuel economy

Valve Train

Lubricant Factors Affecting

Fuel Economy

Energy of India 21

0.0

1.0

2.0

3.0

4.0

Fu

el

Eco

no

my

Imp

rove

me

nt

(%)

10W-40 3.7cP

5W-30 3.0cP

5W-40 3.5cP

5W-30 3.5cP

0W-20 2.6cP

Baseline:

15W-40 RL191

Reference Oil

1.8%

1.3%

2.0%

1.5% 1.0% 0.6%

3.0%

2.2%

4.0%

2.8%

Effect of Viscosity

– Viscometrics can affect the level of fuel economy improvement

– Viscometrics are affected by many factors, including high temperature-high shear viscosity (HTHS), kinematic viscosity, shear stability, cold crank viscosity, base oil viscosity index

Typical ranges for M111E fuel economy improvement

Source : Lubrizol

Energy of India 22

0.3% MoDTC

0.5% Standard Organic

0.5% New Organic

0.4%

1.0%

0.4% Baseline:

5W-30 / 2.9cP

Passenger car engine oil

Note : MoDTC is an acronym for molybdenum dithiocarbamate

0.0

0.4

0.8

1.2

Fu

el

Eco

no

my

Imp

rove

me

nt

(%)

Effect of Friction Modifiers

Fuel economy improvement by friction modifier type

– Many components affect fuel economy

– Getting the balance of components right is critical to fuel economy

– Friction modifiers do not all perform the same and must be tailored to the rest of the formulation for optimum results

Energy of India 23

Fuel Efficient

Passenger Car Diesel Engine Oil

Low viscosity With Durability/Friction Reducer

Engine Oils Fuel Economy

(kpl)

% improvement

w.r.t 15W40

% improvement

w.r.t 5W40

SAE 15W40* 18.85

A5 / B5 5W40 (Industry Ref.) 19.45 +3.19%

Candidate A5 / B5 5W30 w/o FM 19.81 +5.08% +1.83%

Candidate A5 / B5 5W30 with

FM

19.95 +5.86% +2.58%

Energy of India 24

Composite Fuel Economy Benefits

in Commercial Vehicles

Test Type % Imp. (Engine + Trans. + Axle Oil)*

DBDC Cycle Cold 4.12

DBDC Cycle Hot 4.65

Lower Viscosity Grades Engine Oil: API CI4 + 10W-30 MTF: Dedicated 75W-80 Axle Oil: Dedicated 80W-110 Huge Benefits to Fleet Operators in Commercial vehicle sector

*Reference Oils : CI4 Plus 15W-40, Transmission oil 80W-90 & Axle Oil 85W-140

Details Existing grade FE grade

No of vehicles 4000 4000

Average km/lt 3.5 3.62

ODI 1 lacs 2 lacs

Annual cost saving due to fuel only -- 1.3 crore

Expected Cost benefits to customer

Added Long Drain Potential

3.5-4.7 % improvement in FE in OEM fleet*

Energy of India 25

Recap…..

Fossil fuels to continue as major primary energy source

Changing product slate – Declining HSD:MS consumption ratio

Increasing environmental concern

Stringent fuel specifications

BS VI fuel quality needs major changes and investments in the refineries

Fuel Economy is going to impact the future technological choices

R&D interventions would continue in:

Improved energy efficiency (EII) through:

Refinery technologies

Fuel Additives

Energy efficient lubricants

Energy of India 26

Thank You