GHBJ
GHBJ
GHBJ
CLEAN
FUEL
Report of the Task Force on
Clean Fuel
Copyright © (2018) Confederation of Indian Industry (CII) and NITI Aayog. All rights reserved.
Without limiting the rights under the copyright reserved, this publication or any part of it may not be translated, reproduced,
stored, transmitted in any form (electronic, mechanical, photocopying, audio recording or otherwise) or circulated in any binding
or cover other than the cover in which it is currently published, without the prior written permission of CII and NITI Aayog.
All information, ideas, views, opinions, estimates, advice, suggestions, recommendations (hereinafter ‘content’) in this
publication should not be understood as professional advice in any manner or interpreted as policies, objectives, opinions or
suggestions of CII and NITI Aayog. Readers are advised to use their discretion and seek professional advice before taking any
action or decision, based on the contents of this publication. The content in this publication has been obtained or derived from
sources believed by CII and NITI Aayog to be reliable but CII and NITI Aayog do not represent this information to be accurate or
complete. CII and NITI Aayog do not assume any responsibility and disclaim any liability for any loss, damages, caused due to
any reason whatsoever, towards any person (natural or legal) who uses this publication.
This publication cannot be sold for consideration, within or outside India, without express written permission of CII and NITI
Aayog. Violation of this condition of sale will lead to criminal and civil prosecution.
Published by
Confederation of Indian Industry (CII), The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road, New Delhi 110003, India,
Tel: +91-11-24629994-7, Fax: +91-11-24626149; Email: [email protected]; Web: www.cii.in; and
NITI Aayog, Sansad Marg, Sansad Marg Area, New Delhi, Delhi 110001
Task Force Convenor Research Team
Supported by:
Message
Message
CONTENTS
1. Background 1
4. Implementation Plan 20
Reference 21
Annexures 22
Annexure 1. 23
Sulphur reduction in furnace oil
Annexure 2. 24
Impact of using BS–VI fuel in BS–IV vehicles
Annexure 3. 28
Hydrogen blended CNG (HCNG for buses)
Annexure 4. 32
Bio–CNG for Delhi NCR
Annexure 5. 35
LPG footprint in Delhi NCR
Annexure 6. 37
List of stakeholders consulted
01
REPORT OF THE
TASK FORCE ON
CLEAN FUEL
1. BACKGROUND
Air pollution is one of the major man–made pollution in a holistic manner by engaging with
environmental risks to the public health. The release of different stakeholders who are part of common
various gaseous emissions and particulate matter in air-shed in Delhi. Aforesaid task forces were mandated
the air has been on the rise due to various by NITI Aayog to find out actionable solutions for air
anthropogenic emissions. To address the rising pollution in their respective focus areas. First meeting
concerns of deteriorating air quality, Confederation of of the task force on clean fuel was organised by the
Indian Industry (CII) in partnership with NITI Aayog Convenor on 17 July 2017, which was attended by task
launched the 'Cleaner Air Better Life Initiative' in force members including policymakers and
November 2016. The first meeting of this initiative was representatives from industry, public sector
held on 5 June 2017, on the World Environment Day undertakings (PSUs) and civil society organisations.
and the initiative is now working towards engaging Key focus areas were identified by the task force during
businesses, civil societies and government for the first meeting. This was followed by a second
actionable steps to improve the air pollution in Delhi meeting on 2 August 2017, where the task force
and National Capital Region (NCR). Under the initiative, pursued on finding solutions to challenges specific to
four task forces have been constituted by NITI Aayog individual sectors outlined during first meeting of the
for Clean Transportation, Clean Fuel, Clean Industry task force (see Figures 1 and 2). Third meeting of the
and Biomass Management. task force was held on 22 August 2017, where first
draft of the report was discussed and specific
There are several studies conducted by different inputs were sought from members. Drawing from the
institutions on deterioration of air quality in Delhi. A discussions during the task force meeting and inputs
recent and most comprehensive source apportionment from its members, the report presents a recommended
study was undertaken by IIT–Kanpur (IIT–K ) on behalf action plan including the short-term, medium-term and
of the Government of National Capital Territory (NCT) long-term actions. This report has been finalised
of Delhi. Findings from IIT–K study are being during fourth meeting of the task force held on 29
considered as the basis for designing the action plans November 2017, considering all the inputs received
for the initiative. The CII–NITI Aayog 'Cleaner Air Better from the members.
Life Initiative' initiative aims at finding solutions to air
02
ACTION PLAN FOR
CLEAN FUEL
Air-shed is a common geographical area where • Building consensus and getting buy–in from
prevalent topographical and meteorological stakeholders on actions for improving air quality
conditions limit dispersion of pollutants, thereby
• Delivering voluntary commitments from
necessitating an overall strategy for air-quality
stakeholders towards reducing air pollution
management. An integrated approach is required
to involve all stakeholders in common air-shed • Influencing adherence to existing policies and
for designing market-oriented solutions which advocacy towards newer policies
are scalable and replicable. This would ensure long
term sustainability of actions. Various institutions The task force on Clean Fuel has adopted the
have designed different actionable plans, however, structured approach in identifying key issues and
this initiative aims to create required synergy and possible solutions to address the polluting fuels and
build a consensus among the stakeholders to drive combustion sources of emissions. The consultative
actions on ground. and multi-sectoral approach is outlined below in
Figures 1 and 2. The full list of stakeholders
The initiative aims towards: consulted by the task force can be found in
Annexure 6 of the report.
• Developing an integrated approach that brings
together policy makers, industry, academia,
community and civil society
05 JUNE 2017 17 JULY 2017 02 AUGUST 2017 22 AUGUST 2017 29 NOVEMBER 2017
01 02 03 04 CHT’s 05
consultations
with OMCs for
BS VI fuel supply
First meeting of First meeting of Second Third meeting in Delhi Fourth meeting
the Cleaner Air Better task force on meeting of of the and NCR of the
Life Initiative Clean Fuel the task force task force task force
Stakeholders consulted:
Government: NITI Aayog, Ministry of Petroleum and Natural Gas (MoPNG); Ministry of New and Renewable Energy (MNRE); and
Central Pollution Control Board (CPCB).
Industry: Confederation of Indian Industry (CII); and Society for Indian Automobile Manufacturers (SIAM)
Oil and Gas Marketing Companies: GAIL India Limited; Indraprastha Gas Limited (IGL); Indian Oil Corporation Limited (IOCL),
Reliance India Limited (RIL).
Civil Society: Centre for Science and Environment (CSE).
03
REPORT OF THE
TASK FORCE ON
CLEAN FUEL
Combustion sources contribute most to the air quality toxic PM. It is estimated that the annual average PM10
in Delhi’s air-shed. Source apportionment study reduction of 74% will be required to meet the air quality
reveals that 54% contributions to particulate matter standards in Delhi. As a result, incremental actions
(PM) 2.5 arise from combustion sources, including would not have any impact on air-pollution and
100% contribution to NOx emissions from the comprehensive set of actions are urgently required.
combustion sources (Sharma & Dikshit, 2016). Health
impacts and exposure to air pollution are important The key sub-sectors for the task force on clean fuel
criteria for designing control strategies especially in and proposed solutions for them are elaborated under
case of vehicular emissions. Characteristics of PM the subsequent sub sections. These sub-sectors and
from different sources are also important, for key recommendations under them are highlighted in
instance, coal and diesel are major contributors of Figure 2.
Industries
Fuel subsitution for industial units in NCR
CLEAN FUEL
Imports of PC have reached
14 million
tonne in 2016–17
3.1 Clean Fuels for Industry (DPCC 1996). The ban on these fuels has been further
extended by Supreme Court of India, to the
Highly polluting fuels1 such as petroleum coke (PC) and neighbouring states of NCR, and the sale, distribution
furnace oil (FO) are used by industrial units, especially and use of pet coke and furnace oil is prohibited in NCR
the small and medium-sized enterprises (SMEs) in the from 1 November 2017.
country. Even some categories of waste such as tyre
oils and used lubricants, that don’t fall under the It has been assessed by IOCL and was noted by the
approved list of fuels (for their use) by regulatory task force that removal of sulphur from PC/FO1 is not
authorities, are used as source of energy in some cost-effective. The estimated cost for production of
industrial units. Imports of PC have reached 14 million 5,000 ppm FO is around INR 40 per litre whereas the
tonne in 2016–17 (Department of Commerce, GoI, cost of production for BS-IV Diesel (50 ppm) is around
2017) which is a matter of concern. Countries like INR 30 per litre (IOCL 2017). In addition, it was reported
USA and China have banned the import of PC. As per that no commercially viable technology is available for
the DPCC notification under the Air Prevention & desulfurization of FO from current sulphur levels of 3%
Control of Pollution Act, use of PC is banned in Delhi (by weight) to 500 ppm (See Annexure 1).
1
These are petroleum refinery by–products; with high sulphur content ranging 20,000 - 75,000 ppm.
05
REPORT OF THE
TASK FORCE ON
Taxation and pricing strategy CLEAN FUEL
As the use of PC and FO is already prohibited in Delhi carried out (GAIL, 2017b). Gas can readily be supplied
NCR, it is recommended that fuel substitution is to industrial clusters, except very thinly spread industry
facilitated by making sure that alternate fuel is available share of which is relatively small and supplying gas
and fiscal instruments are utilised to provide a policy would not be economically viable. Therefore, the task
push towards cleaner fuels. force recommends that LPG and Piped Natural Gas
(PNG) supply is ensured in all designated industrial
Liquid Natural Gas (LNG) is the cleanest and economic clusters located in Delhi–NCR. Whenever PNG
fuel available, as during the process of liquefaction of infrastructure is available in an industrial area,
natural gases all the impurities especially sulphur gets polluting fuels may be removed from the list of
removed completely and the product is directly approved fuel list for that area.
imported as finished product. Due to the prevailing tax
structure, the current delivery prices of LNG are higher
than polluting fuels like furnace oil and pet coke even b) Better taxation strategy for
though the imported price of LNG is 8–10% cheaper cleaner fuels is required
than crude oil (GAIL 2017a). Government’s import bill
can hence be reduced by promoting LNG. Taxation and pricing strategy is needed to provide
impetus to cleaner fuels and discouraging the use of
Further, for geographical regions of the country, polluting ones. Lower taxes on the cleaner fuels are
where natural gas pipeline or City Gas Distribution sought and for the purpose, GST can create a level
(CGD) network availability is an issue, LNG supply playing field in the country. It is recommended that
through cryogenic road tankers should be incentivized MoPNG may undertake formulation of taxation
to make it competitive compared to furnace oil and pet strategy along with the Ministry of Finance (MoF).
coke, through cess on polluting fuels, lower differential
taxes on cleaner fuels and inclusion of LNG in GST.
Following actions are recommended for enabling the c) Notify the list of approved fuels in
fuel switch in industrial units in NCR- NCR region
2
As per the latest information available at the time of writing this report, a new list of acceptable fuels in Delhi is currently in its draft stage and will soon be
notified.
06
ACTION PLAN FOR
CLEAN FUEL
Government should facilitate city gas distribution natural gas distribution infrastructure include Hapur,
operations in all towns/areas falling under NCR, Bulandshahar, Baghpat, Mewat, Jhajjar, Bhiwani,
wherever PNG supplies are currently not available. Mahendragarh, Jind, Muzaffarnagar and Palwal.
Few such cities or towns in NCR which do not have
07
REPORT OF THE
TASK FORCE ON
CLEAN FUEL
Priority ranking of power plants
needs to be revised so that
gas-based generation enjoys
the same status as renewables
for its ability to provide
clean power
3.2 Clean Fuels for Power • Fast ramping capabilities of gas-based generation
(open–cycle gas power plants) for large-scale
integration of renewables into the grid.
Although, there are no coal based thermal power plants
(TPPs) operational in Delhi, except one plant in • Gas-based power plants act as peaking plants in
Badarpur, there are 13 TPPs with the capacity over the electricity system. Additionally, the Diesel
11000 MW in a radius of 300 km from Delhi (Sharma & generators used during peak hour power
shortages are not only more expensive, they are
Dikshit, 2016). Additionally, the gas-based plants in the
environmentally more polluting (CEA 2016).
region are highly underutilised. This is due to the
regulatory procedures for power dispatch and • Higher efficiency (55%), in general, compared to
fluctuation in gas prices which render plant operation coal-based TPPs (38–40%) and lower auxiliary
economically unviable. Currently, all renewable based power consumption (3% compared 8.5% in
power plants, except the biomass power plants and coal-based TPPs).
cogeneration plants, are treated as ‘must–run’ power • Significantly lesser land and water requirements
plants which means that they are not subjected to the compared to coal based TPPs, which is very
merit dispatch order (owing to their infirm nature) relevant for densely packed urban areas.
(CERC 2010). On account of Merit Dispatch Order
principle, the coal based power plants with cheapest
Nationally, gas-based generation suffers huge
variable cost per unit of electricity gets advantage over
economic loss due to inadequate supply and very low
Natural gas based power plants. As a result, natural
plant load factor (PLF) of about 23% (2015—16) due to
gas power plants in Delhi are not able to run at full unavailability of natural gas (CEA 2016). As per the
capacity. Gas-based power can meet 50% of Delhi’s World Bank’s world development indicators, the gas-
demand whereas it is only catering upto 20% of this based power share in India is 7.7% compared to global
demand presently (CSE 2017). Hence the priority average of 22% (CEA, 2016).
ranking of power plants needs to be revised so that
gas-based generation enjoys the same status as It is also important to understand what percentage of
renewables for their ability to provide clean power. renewable electricity could be a realistic target to meet
Delhi’s electricity demand. Currently, under smart city
mission, the New Delhi Municipal Council (NDMC) is
The gas-based generation has several benefits over other proposed to lease rooftops for setting up rooftop solar.
conventional thermal power generation plants including: Public participation is an important enabler for
adoption of rooftop solar at a substantial scale.
• Low emissions (0.30 tCO2/MWh) to atmosphere
compared to coal (0.98 tCO2/MWh) or diesel (0.59 Following actions are required for prioritising clean fuel
tCO2/MWh) and ability to provide clean electricity as for power generation-
a result.
08
ACTION PLAN FOR
CLEAN FUEL
a) Provide a push to cleaner power Fund (PSDF). Outlay of this support was fixed at INR
generation in NCR by notifying 3500 Crores and INR 4000 Crores for the year 2015–16
and 2016–17, respectively. In line with this scheme
priority status for gas–based following recommendations are made–
power generation (short–term)
It is recommended that, in line with the scheme for
financial support to gas based generation (in FY
Notification to Northern Region Load Dispatch Centre
2015–16 and 2016–17), a long term scheme is
(NRLDC) to provide the priority status to natural gas formulated (as recommended in the draft National
based generation in Delhi NCR, by making sure that gas Electricity Plan of CEA in 2016) to support the stranded
based generation is granted a must-run status and is capacities in coming years and priority is given to the
not subjected to merit order dispatch. stranded gas-based power plants located in and
around dense urban agglomerations.
It is recommended that learnings from initiative are • Reliance India Limited (RIL) has capacity in excess
replicated in the colonies of three municipal to Delhi’s demand for transport fuels. It is found that
corporations of Delhi (MCDs) and other major urban RIL’s combined capacity to provide BS–VI fuels, at
local bodies within NCR, in order to promote clean two of its refineries, is 24 million tonne high speed
energy across NCR and have a wider impact. diesel (HSD) and 10.8 million tonne MS. But, it would
need an assurance for logistic support from the
government for supplying fuel in Delhi.
3.3 Clean Fuels for Transportation
The feasibility for supplying BS–VI fuels to meet Delhi’s
Fuel quality has direct link to the emissions from demand has been assessed by the Centre of High
vehicles. During the discussion in task force meeting, it Technology (CHT) in consultation with OMCs and
was agreed that if NCT of Delhi can move to BS–VI
accordingly, the task force makes following
compliant fuels without any change in current vehicle
recommendation.
technology, it would be beneficial to improving air
quality of Delhi. The BS–VI fuel offers significant
advantages compared to BS–IV fuel being used today
including reduced sulphur (80% reduction) content and
a) Prepone the introduction of BS–VI
reduced polycyclic aromatic hydrocarbon (PAH) (27% compliant fuels in Delhi and NCR
reduction) content (See Annexure 2 for more details)
(ACEA; Alliance; EMA; JAMA 2013; IOCL 2017). It has been assessed by IOCL that if BS–VI fuels are
made available in Delhi and NCR before the expected
The present demand for transport fuels in Delhi NCR is
date (1 April 2020), the emissions from all the in–use
6.2 million tonne diesel and 1.98 million tonne Motor
vehicles would reduce thereby lowering the emission
Spirit (MS) (IOCL 2017). The BS–VI fuel can alleviate
the vehicular pollution and should immediately be load of all existing vehicles in the NCR. Task force
made available in Delhi. Task force recommended that agrees that BS–VI compliant fuels can lead to
the technical feasibility for sourcing the required fuel improvements in air quality and should be adopted at an
should be explored and the cost of sourcing BS–VI earlier date. The logistic arrangements for supply of
fuels for Delhi can be absorbed in national market. BS–VI fuels have been assessed by CHT in consultation
Capacities of two major Oil Marketing Companies with OMCs and task force recommends supplying
(OMCs) have therefore been assessed with this BS–VI compliant fuels to Delhi by 1 April 2018 and to
purpose– entire NCR by 1 April 2019.
CLEAN FUEL
HCNG can be used as a fuel for
heavy duty engines after minor
engine optimisation.
Delhi due to its advantage of lower emissions and 29% reduction in CO emissions and 13% reduction in
better fuel economy. Delhi may go ahead with CNG methane and total hydrocarbon (THC) emissions
buses in future till the BS–VI is fully implemented. whereas the specific fuel consumption is 2-3% lower
Therefore, opportunities for utilising existing gas than CNG. The NOx emissions during the pilot tests
piping infrastructure for Bio–CNG can be explored in with buses, however, increased by 40% on average.
Delhi. In order to find cleaner alternative for Comprehensive testing with various vehicles indicate
transportation and reduce dependence on petroleum no clear trend in NOx reduction (increase in NOx levels
imports, the Indian Oil Corporation limited (IOCL) and in most of the cases except very few cases where NOx
Society of Indian Automobile Manufacturer (SIAM) levels decrease) but consistent reduction in CO
have collaboratively undertaken a pilot project emissions across vehicles (SIAM 2017). The Indian Oil
(sponsored by MNRE) on compact reforming Corporation limited maintains that these emissions
process for Hydrogen and Compressed Natural Gas can be brought under control by tuning the engine and
(HCNG) blend. optimising air–fuel ratio, ignition timings etc. These
adjustments will reduce NOx emissions to at least neat
It envisages lowering of the exhaust emissions
CNG levels if not lesser (IOCL 2017). The technology is
from CNG vehicles due to improved combustion
ready for demonstration and is recommended by the
characteristics of resultant fuel blend (18 v/v %
task force for implementation at one of the Delhi
hydrogen in CNG, See Annexure 3 for more details).
Transport Corporation (DCT) depots. However, there
HCNG can be used as a fuel for heavy duty engines
are several challenges related to the implementation of
after minor engine optimisation. The test results
new technology that need to be addressed, as outlined
with buses on a pilot scale indicates on average,3
in the subsequent recommendations.
3
Pilot level testing with the Ashok Leyland and Tata buses.
11
REPORT OF THE
TASK FORCE ON
Existing vehicles can handle up CLEAN FUEL
A single stage compact reformer plant with 4 tonnes IOCL will need approval from Petroleum and Explosives
HCNG per day capacity is recommended to be set up Safety Organisation (PESO, formerly the Department of
by IOCL at one of the DTC bus depots. This plant can Explosives) for using type–1 cylinders to store HCNG in
fulfil the fuel requirements of nearly half of the average vehicles. Test results for type–1 fuel cylinder have
bus fleet at such depot.4 The CAPEX of the plant is already been submitted by IOCL to PESO (See
estimated to be 11.56 Crores (IOCL 2017). The OPEX is Annexures II and III, A3).
estimated at INR 6.8/ kg HCNG.5 Following actions are
required for the proposed demonstration project at
DTC by IOCL- While discussing other clean fuel options for vehicles, it
is highlighted that existing vehicles can comfortably
handle up to 10% blending beyond which flex–fuel
i. Set up compact reformer plant vehicles will be required. Currently, the supply of
at one DTC depot molasses based ethanol in the country is limited for
achieving higher blending targets. Flex–fuel vehicle
The capacity of the unit would be 4 tonne HCNG/day roadmap is required in order to move to higher blending
(CAPEX: INR 11.56 Crores) which can cater to the fuel targets. Also, biofuel blending would need to be
demand of nearly half of the buses at the respective harmonised and standardised across the states. A shift
depots. Time required for setting up compact reformer to bio–fuels is a long–term goal and will require at least
is 18 months. 3–5 years. Subsequent recommendation is made in
this regard.
4
DTC owns 43 bus depots with 7200 CNG buses.
5
Expected to come down to INR 2-3/ kg with economy of scale in the future (IOCL 2017).
12
ACTION PLAN FOR
CLEAN FUEL
Vapour emissions during fuel loading
and dispensing are major concerns for
secondary organic particles which
eventually contribute to PM pollution.
It was highlighted during task force
meetings that vapour recovery systems
(VRS) can be implemented easily in a
cost effective manner.
6
Stage one covers the fuel loading, and unloading via tankers at supply locations and retail outlets, respectively.
13
REPORT OF THE
TASK FORCE ON
The role of new and emerging CLEAN FUEL
technologies
would be very important in
future as they could disrupt
the business as usual, paving
a way for cleaner fuels
Currently VRS stage two in Delhi exists at 55% of the Consumer Affairs, Food and Public Distribution.
Retail Outlets (ROs) above dispensing capacity of 300 There is no evidence suggesting that VRS system
kilo litres per month and at 20% ROs of smaller size affects consumers in any way (CHT 2017). With the
(See Table 2 for more details). VRS stage 2 clearance for the Department of Legal Metrology,
implementation in Delhi may be expedited notifying the implementation of VRS stage II in Delhi can be
urgency of action to the Department of Legal Metrology completed by OMCs in 2018.
under the Department of Consumer Affairs; Ministry of
Retail outlet (RO) size Number of total Number of total Remaining ROs
ROs in Delhi ROs with VRS stage two
iii. Install the leak detectors at under the task force, it is speculated that improved fuel
efficiency norms can have a positive impact on air
ROs in Delhi
quality. Additionally, the role of new and emerging
technologies would be very important in future as they
OMCs will need to install leak detectors at all ROs using
could disrupt the business as usual, paving a way for
submersible turbine pump (STP) for dispensing fuel.
cleaner fuels. For instance, the Shell is piloting a 5
Leak detectors are not required for ROs using suction
tonne per day (TPD) plant in Bangalore for liquefaction
type dispensation.
of municipal waste to transport fuels which could pave
a way for converting waste into transport fuels in
Bureau of Energy Efficiency (BEE) is currently
future. Role of electricity is crucial for clean
implementing first phase of fuel–efficiency norms
transportation and electric vehicle are being addressed
which cover the light vehicles below 3.5 tonne.
by task force on clean transportation under this
Additionally, for heavy duty vehicles, the norms have
initiative.
been notified by BEE. Although these are not addressed
7
Stage two covers dispensing of fuels at retail outlets
14
ACTION PLAN FOR
8
CII–ITC CESD, 2017 estimation based on cited references.
9
Rest is composed of construction and demolition waste, hospital waste and industrial waste.
10
In an optimised system, biogas generation varies from 70-90 m3 per tonne of organic waste.
15
REPORT OF THE
TASK FORCE ON
CPCB may issue a directive for CLEAN FUEL
CLEAN FUEL
Table 3. Execution details for respective sectors with agencies involved in implementation
Recommended
Steps required Implementation Status
action
Fuel switch in
NCR industry
Notify the list of approved CPCB, SPCBs for
fuels in NCR regions in a Haryana, U.P. and
phased manner Rajasthan
urban agglomerations
for cleaner
(long-term)
generation
Recommended Implementation
action Steps required agencies Status
Already notified
Introduce BS–VI by the Ministry
compliant fuels in http://pib.nic.
MoPNG, OMCs
Delhi NCT by in/newsite/
pooling national PrintRelease.
Introduce BS-VI capacities aspx?relid=173517
compliant fuel in
Delhi and NCR
day)
Application
Safety Clearance for HCNG on-
PESO submitted to PESO
vehicle storage cylinders
in 2012 by IOCL
Formulate a strategy
Promote LNG as for promoting LNG as MoPNG, MoRTH
transportation fuel transportation fuel
18
ACTION PLAN FOR
CLEAN FUEL
Recommended Implementation
action Steps required agencies Status
Ministry of
Notify the urgency of action Consumer
to the Department of Legal Affairs, Food
Transportation
Set up waste–to–
energy from food/
organic waste Identify areas for setting IOCL, Hotels/
at commercial up waste to bio–CNG restaurants,
buildings and demonstration plants RWAs
residential societies
Commercial
CLEAN FUEL
4. IMPLEMENTATION PLAN
Actions recommended by task force are captured in and highlights various actors who are responsible for
Table 3 with the key execution details (such as steps policy/regulatory changes and implementation
required, implementation agencies involved and action required to bring the recommended actions to fruition.
status) required for their implementation. Also, the
short–term actions which deserve immediate
attention of policymakers and implementation
agencies, are highlighted in the table. Figure 3 outlines
the implementation plan of the Clean Fuel Task Force
Figure 3. Implementation plan for the Task Force on Clean Fuel with MoPNG
as the central monitoring agencies for all the actions
Regulatory
changes
Policy Changes Regulatory agencies
Government of India Central Electricity
Ministry of Petroleum and Regulatory Commission (CERC)
Natural Gas (MoPNG) Central Pollution Control Board (CPCB)
Ministry of Road Transport State Electricity Regulatory
and Highways (MoRTH) Commissions (SERCs)
Ministry of Power (MoP) Petroleum and Explosives
Ministry of Finance (MoF) Safety Organisation (PESO)
Bureau of Indian
Standards (BIS)
Implementation
Industry
Indraprastha Gas
Limited (IGL)
Others
21
REPORT OF THE
TASK FORCE ON
CLEAN FUEL
REFERENCES
ACEA; Alliance; EMA; JAMA. (2013). Worldwide Fuel IOCL. (2017). Indian Oil Corporation Limited (IOCL) at the
Charter. 5th ed. Brussels. Washington D.C. Chicago. Tokyo. Second Meeting of the Task Force on Clean Fuel. 02 Aug
2017. MoPNG, Shasti Bawan, New Delhi, India.
CEA. (2016). Draft National Electrcity Plan (Vol. 1). New
Delhi, India. Kumar, S., & Sil, A. (2015). Challenges and Opportunities
in SWM in India: A Perspective. In Cities and
CERC. Central Electricity Regulatory Commission (Indian Sustainability: Issues and Strategic Pathways (pp.
Electricity Grid Code) Regulations, 2010, Pub. L. No. 193–210). New Delhi, India: Springer.
L-1/18/2010-CERC (2010). India.
MCD. (2015). MCD online - Solid Waste Transportation
CHT. (2017). CSIR proposal for Benzene Emission of Management System (STMS). Retrieved 1 January 2016,
Petrol Stations in India and solution for its abatement. from http://mcdonline.gov.in/tri/edmc_mcdportal/dems/
New Delhi, India. MNRE. (2017). MNRE at the fourth meeting of the Task
force on Clean Fuel. 29 Nov 2017. MoPNG, Shastri
CSE. (2017). Centre for Science and Environment (CSE)
Bhawan, New Delhi, India.
at the Second Meeting of the Task Force on Clean Fuel.
2 August 2017. MoPNG, Shastri Bawan, New Delhi, India. MoUD. (2017). India Smart Cities: Success Stories from
Mission Cities. New Delhi, India.
Dekate, A., Nikam, S., Rairikar, S., Sreenivasulu, M. et al.
(2013), "A Study on Material Compatibility with Various NCRPB. (2017). NCR Constituent Areas. Retrieved October
Blends of HCNG on Existing CNG Fuel Kit," SAE Technical 4, 2017, from http://ncrpb.nic.in/ncrconstituent.php
Paper 2013-26-0079, https://doi.org/10.4271/2013-26-0079.
PC. (2014). Report of the Task Force on Waste to Energy
Department of Commerce-GoI. (2017). Export Import Data ( Volume I ): In the context of Integrated Municipal Solid
Bank. Retrieved 8 August 2017, from http://commerce.nic.in/eidb Waste Management. Task Force on Waste to Energy
(Vol. I). Planning Commission, Government of India.
DP C C . (1996) . Appr oved f uel s i n the N a ti onal
Sharma, M. (2016). Urban Solid Waste Management:
Capital Te rri t o ry of D el hi . R etr i eved from
Envisaging Framework and Solutions for Tackling Solid
http://cpcb.nic.in/Industry-Specific-Standards/Emissio
Waste in Cities (Working paper). New Delhi, India.
n/ApprovedFuelsinthe NationalCapitalerritory.pdf
https://doi.org/10.13140/RG.2.1.1328.7286
DPCC. (2014). Annual Review Report of Delhi Pollution Sharma, M. and O. Dikshit. (2016). Comprehensive Study
Control Commitee. Delhi. on Air Pollution and Green House Gases (GHGs) in Delhi.
Indian Institute of Technology Kanpur. New Delhi, India.
GAIL. (2017a). GAIL at the fourth meeting of the Task
force on Clean Fuel. 29 November 2017. MoPNG, Shastri SIAM. (2017). Use of Hydrogen (up to 30%) as Fuel
Bhawan, New Delhi, India. Blended with Compressed Natural Gas in Internal
Combustion Engines. Retrieved August 18, 2017, from
GAIL. (2017b). GAIL at the third meeting of the Task http://mnre.gov.in/file-manager/UserFiles/rnd-conclav
force on Clean Fuel. 22 August 2017. MoPNG, Shastri e-082012/rnd-conclave-gandhi-siam.pdf
Bhawan, New Delhi, India.
Talyan, V., R.P. Dahiya, and T.R. Sreekrishnan. (2007).
Hulgaard, T. (2015). 5. Circular Economy: Energy and State of municipal solid waste management in Delhi, the
fuels. ISWA task force on resource management. capital of India. Waste Management, 28(7), 1276–1287.
https://doi.org/10.1016/j.wasman.2007.05.017
IGL. (2017). IGL at the fourth meeting of the Task force
on Clean Fuel. 29 November 2017. MoPNG, Shastri
Bhawan, New Delhi, India.
22
ACTION PLAN FOR
CLEAN FUEL
ANNEXURES
Annexure 1
Sulphur reduction in furnace oil
Annexure 2
Impact of using BS–VI fuel in BS–IV engine vehicles
Annexure 3.
Hydrogen blended CNG (HCNG for buses)
Annexure 4
Bio–CNG for Delhi NCR
Annexure 5
LPG footprint in Delhi NCR
Annexure 6
List of stakeholders consulted
23
REPORT OF THE
TASK FORCE ON
CLEAN FUEL
ANNEXURE 1
Sulphur Reduction in Furnace Oil
Presently, the fuel oil (FO) of different grades (Sulphur: Typical ballpark cost estimate for a 1 MMTPA FO
3–3.5 wt %) is prepared by blending of following desulfurization unit (from feed sulphur of 3 wt % to 0.5
streams to meet viscosity and sulphur: wt %) is around Rs. 2000 Cr. However, this unit also
requires other accessories, viz. hydrogen generation
• Lighter stream (light cycle oils/ other cracked gas unit, sulphur recovery unit, off–site plants, etc. Hence,
oils) the estimated cost for a FO desulfurization complex is
around Rs. 3000 Cr., the typical operating cost for a 1
• Heavy stream (vacuum/ visbreaker residues, cat
MMTPA unit is around Rs. 4500 per Metric Ton. The
cracker slurry oils)
estimated cost for production of 5000 ppmw FO is
around Rs. 40 per liter. However, the cost of production
for BS–IV Diesel (50 ppm) is around Rs 30 per liter.
Fuel oil desulfurization
In view of the above it is better to use BS–IV Diesel (50
economics ppm) instead of 500 ppmw sulfur containing FO.
CLEAN FUEL
ANNEXURE 2
Impact of using BS–VI fuel in BS–IV engine vehicles
Impact of using BS–VI fuel in BS–IV GASOLINE: The comparison between the BS–IV and
and pre-BS-IV vehicles BS–VI motor gasoline is given in Table A2.2. There are
certain parameters namely distillation (E70), sulphur, Reid
Indian Oil Corporation Limited (IOCL) Vapour Pressure (RVP), Vapour Lock Index (VLI), gum,
03 August 2017, New Delhi oxygen content and ethanol content were revised in BS VI
compared to BS IV. The effect of these changes on BS–IV
and older vehicles are as follows;
BS–VI fuels offer significant improvements in terms of
performance, emissions and durability of BS–IV and 1) Sulphur: Studies indicate strong correlation between
Pre–BS–IV vehicles. fuel sulphur with HC and PM emissions. It enables
the use of more advanced technologies for
DIESEL: The comparison between the BS–IV and emissions reduction and fuel efficiency. Further, like
BS–VI diesel fuel is given in Table A2.1. Few fuel diesel, low sulphur gasoline improves the
specifications have been revised in BS–VI as compared to performance of engine and efficacy & durability of
BS–IV. The effect of these changes on BS–IV & older after-treatment devices.
vehicles are as follows:
Possibility of advancing the availability BS VI hence, in the view of this timeline it will be difficult to cater
fuels in Delhi and NCR region and the cost to the demands of Delhi NCR region by BS–VI compliant
implications thereof: fuels prior to April 2020 deadline.
The present annual Diesel and MS demand in Delhi and However, IOC has commenced supplies to auto majors for
NCR region is as 6200 TMT and 1980 TMT respectively, engine testing purposes BS–VI compliant fuels from
while at present the annual capability of both Panipat and Mathura Refinery. Moreover, supply of limited volumes of
Mathura refineries to produce BS–VI compliant Diesel and BS–VI gasoline and diesel are already being explored at
MS is only 220TMT and 385TMT respectively. It is select RO’s in major metros on the request of the
pertinent to note that the BS–VI projects for both the Automobile manufacturers.
refineries are getting completed by the end of 2019 and
26
ACTION PLAN FOR
CLEAN FUEL
Cetane No Min 51 51
PAH % wt max 11 8
a) summer, max °C 18 18
b) winter, max °C 6 6
RON Min 91 91
MON Min 81 81
RVP@38°C Max 60 67
VLI
Ethanol 5 10
Iso-propyl alcohol 10 10
Iso-butyl alcohol 10 10
Tertiary-butyl alcohol 7 7
Ethers containing 5 or 15 15
more C atoms per molecule
Other oxygenates 8 8
*
Methanol is not permitted as per draft BIS specification for BS-VI motor gasoline
28
ACTION PLAN FOR
CLEAN FUEL
ANNEXURE 3
Hydrogen blended CNG (HCNG for buses)
Ashok Leyland Bajaj 3-Wheeler Mahindra Bolero Tata Indica Average Percentage
reduction with HCNG
0 Km Base CNG
0 KM 18% HCNG
Notes:
1. Emission data expressed in g/km on a chassis dynamometer
2. Wide variations in results of other three vehicles were observed
29
REPORT OF THE
TASK FORCE ON
CLEAN FUEL
Table A3.2 Heavy duty engine testing with 18% HCNG blends
TATA Motors
Ashok Leyland
CLEAN FUEL
Box A3.1 Indian Oil Corporation The used cylinder has still good mechanical strength
and its DBTT (ductile brittle transition temperature) is
Limited’s letter to PESO for safety
still around -50 oC. The cylinder’s application temperature
clearance to HCNG demonstration will be much higher than DBTT obtained (except
plant (Dated 12.07.2012) Himalayan region where temperature is sub-zero). Based
on the above in-depth study, it may be concluded that the
This is in reference to the letter no. G3(4) 40/ Hythane/ HCNG cylinder is fit for use for another 20000 km. After
2011 dated 7th May 2012 on the above subject. that, further studies may be carried out on the metallurgy
and mechanical properties of the cylinder material. This
The pointwise response to your various queries is as under- study would provide further insight into the effect of
HCNG usage on the cylinder material.
1. We want to submit the following facts regarding
commissioning of our HCNG dispensing stations: 2. Noted, we will ensure the compliance to gas cylinder
rules for valves
a) HCNG dispensing station at IOC R&D Centre,
Faridabad was commissioned in October 2005 and, 3. The dispenser at IOC R&D comprises of two nozzles.
One nozzle is for dispensing HCNG @ 250 bar and
b) Dwarka HCNG station in New Delhi was
another one is for dispensing hydrogen @ 350 bar.
commissioned in January 2009. HCNG dispenser is already approved by PESO and
approval is being sought for dispensing neat
Further, we have recently completed the demonstration
hydrogen. A photo of the dispenser is attached
trial of 20,000 km with 18% HCNG blended fuel in 5 nos.
indicating the hydrogen and H-CNG dispensers
of 3-wheelers with refuelling from both the dispensing
separately. Further technical details of the hydrogen
stations. In these 3-wheelers, CNG cylinders conforming
nozzle are also attached (Annexure-II).
to IS 15490 have been used. After completing 20.000 km
of field trial, the cylinder from one of the 3-wheeler was 4. The P&ID of the dispenser is enclosed (Annexure-III)
removed and sample specimen of the same was highlighting the hydrogen line for dispensing.
investigated and compared against new CNG cylinder
5. The hydrogen is produced from electrolyser and it
for the following characteristics in our laboratories:
conforms to ISO 14687-2.
• Chemical analysis • Tensile tests • Impact tests 6. The refuelling connection devices will conform to ISO
17268-2.
• Hardness tests • Micro structural analysis
Further, Sh. P. C. Srivastava, Joint CCOE, Nagpur also
The detailed test report on the above aspects is visited our HCNG dispensing station on 18 June 2012
attached (Annexure-I). On comparing the results of and technical features of the station and future plans
tensile test and impact test of used HCNG cylinder and have been discussed in detail. Further, as desired by Sh.
new CNG cylinder as well as reference data, it is evident Srivastava, third party certificates and documents for
that the tensile properties (UTS & YS), % elongation and the dispensing station are also enclosed (Annexure IV).
impact energy of used HCNG cylinder are on lower side
as compared to those of new cylinder as well as In view of the above, it is requested to grant approval
reference data. HCNG cylinder’s mechanical properties for dispensing neat hydrogen for our demonstration
show factor of safety of the order of 2.0. protects as mentioned earlier.
32
ACTION PLAN FOR
CLEAN FUEL
ANNEXURE 4
Bio–CNG for Delhi NCR
Bio–methanation is a process of converting organic Indian Oil R&D has developed in–house bio–methanation
wastes into biogas and digestate by anaerobic technology for conversion of kitchen waste into biogas
microorganisms in the absence of air. Products of that can be used as bio–CNG. The technology deploys
bio–methanation are biogas and digestate. Biogas is a high performing bacterial inoculum which is responsible
mixture of methane, carbon dioxide and traces of other for conversion of organic waste into biogas with high
contaminant gases. Biogas can be used for various methane (>80%) content (as indicated in Table A4.1)
applications such as power generation, heating, cooking vis–a–vis 60-70% reported in conventional biogas plant
and transport applications. Digestate contains valuable technologies.
plant nutrients such as nitrogen and potassium to be used
as a fertilizer and soil conditioner.
Table A4.1 Typical composition of biogas generated through IndianOil R&D bio–methanation process
Performance of 50 kg/day bio–methanation plant was The Table A4.2 shows details of cost estimates for
validated at Indian Oil R&D. Based on the encouraging installing a 250 kg/day bio–methanation plant with
results; the microbial inoculums were successfully expected biogas yield and composition.
evaluated in an existing 250 kg/day bio–methanation
plant at Panipat Refinery. Efforts are underway to setup
plants in other IOC refineries.
Table A4.2 Cost estimates for installing a 250 kg/day bio–methanation plant
Capex
Opex*
Way forward
In Delhi NCR, IOC’s technology can be deployed at states of the country. The potential of bio–CNG as
integrated townships, colleges, hotels and Municipal automotive fuel may also be explored in Delhi NCR to
Corporation identified locations to utilize this gas for improve the ambient air quality. Use of fuel cells can
captive cooking purpose. Further, IOC is in the process also be explored using bio–CNG both for stationary
of marketing the CNG source from biogas plants in few and mobility applications.
35
REPORT OF THE
TASK FORCE ON
CLEAN FUEL
ANNEXURE 5
LPG Footprint in Delhi NCR
In Delhi NCR, 664 TMT of domestic LPG was supplied OMCs also supplied 121 TMT non–domestic packed
by IOC during the FY 2016–17 which constituted 59% LPG and 5.1 TMT bulk LPG, for which IOC’s contributed
of the entire market. Auto LPG sales during the same 50% and 30% respectively. The LPG penetration levels in
period were 1.18 TMT in Delhi NCR which was entirely Delhi–NCR region are more than 100% as per the
met by IOCL. Apart from domestic and auto LPG, the available data [See Table A5.1].
36
ACTION PLAN FOR
CLEAN FUEL
Table A5.1 LPG Detail for Delhi and its adjoining Districts
As on 01.07.2017
Product-wise LPG sale Product-wise LPG sale during FY 2016-17 (in TMT)
during FY 2016-17 (in TMT)
No. of ALDS as on
Estimated
LPG 01.07.17
State District Active Domestic number of Non-Domestic
Domestic LPG Bulk LPG Auto LPG
Consumers (in Lakh) households coverage Packed LPG
by OMCs
(in lakh)
BPC HPC IOC OMC BPC HPC IOC OMC BPC HPC IOC OMC BPC HPC IOC OMC BPC HPC IOC OMC BPC HPC IOC OMC
A B C = A/B
DELHI 11.6 7.2 29.3 48.1 37.9 127% 0 5 13 18 164.2 106.9 443.9 715.1 24.0 14.0 43.7 81.7 0.00 0.00 0.03 0.03 0.00 0.00 0.93 0.93
FARIDABAD 2.4 0.7 2.2 5.4 4 135% 30.8 8.9 30.4 70.2 3.7 0.9 2.8 7.3 0.14 0.24 0.00 0.38 0.00 0.00 0.00 0.00
HARYANA GURGAON 1.7 1.0 3.1 5.8 3.6 161% 20.2 12.5 38.8 69.6 4.6 3.3 6.0 13.9 1.64 0.71 0.30 2.65 0.00 0.00 0.00 0.00
JHAJJAR 0.3 0.8 1.1 2.1 2.1 104% 2.7 8.3 12.0 23.0 0.2 1.4 0.6 2.2 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
SONIPAT 1.4 0.4 1.3 3.0 3 100% 14.8 5.0 14.1 34.0 1.3 0.7 1.3 3.3 0.78 0.00 0.00 0.78 0.00 0.00 0.00 0.00
BAGHPAT 0.0 0.3 1.6 2.0 2.3 85% 0.3 3.1 17.4 20.8 0 0.0 0.1 0.1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
UTTAR GAUTAM 2.7 1.3 2.3 6.3 3.6 176% 2 2 33.5 15.8 26.3 75.6 3.5 2.0 2.0 7.4 0.00 0.00 0.51 0.51 0.00 0.00 0.13 0.13
PRADESH
BUDH NAGAR
GHAZIABAD 2.0 0.6 6.4 9.0 9.4 96% 1 1 24.6 7.2 83.8 115.6 1.6 0.6 3.0 5.1 0.00 0.00 0.74 0.74 0.00 0.00 0.13 0.13
Total 22.1 12.3 47.2 81.7 65.8 124% 0 5 16 21 291.3 167.8 664.7 1123.8 38.8 22.9 59.3 121.0 2.56 0.95 1.57 5.08 0.00 0.00 1.18 1.18
37
REPORT OF THE
TASK FORCE ON
CLEAN FUEL
ANNEXURE 6
List of stakeholders consulted
S M Vaidya IndianOil
Civil Society Anumita Roy Choudhury Centre for Science and Environment
CII is a non-government, not-for-profit, industry-led and industry-managed organization, playing a proactive role in India's
development process. Founded in 1895, India's premier business association has over 8,500 members, from the private as
well as public sectors, including SMEs and MNCs, and an indirect membership of over 200,000 enterprises from around 265
national and regional sectoral industry bodies.
CII charts change by working closely with Government on policy issues, interfacing with thought leaders, and enhancing
efficiency, competitiveness and business opportunities for industry through a range of specialized services and strategic
global linkages. It also provides a platform for consensus-building and networking on key issues.
Extending its agenda beyond business, CII assists industry to identify and execute corporate citizenship programmes.
Partnerships with civil society organizations carry forward corporate initiatives for integrated and inclusive development
across diverse domains including affirmative action, healthcare, education, livelihood, diversity management, skill
development, empowerment of women, and water, to name a few.
As a developmental institution working towards India’s overall growth with a special focus on India@75 in 2022, the CII
theme for 2017-18, India@75: Inclusive. Ahead. Responsible emphasizes Industry's role in partnering Government to
accelerate India's growth and development. The focus will be on key enablers such as job creation; skill development and
training; affirmative action; women parity; new models of development; sustainability; corporate social responsibility,
governance and transparency.
With 67 offices, including 9 Centres of Excellence, in India, and 11 overseas offices in Australia, Bahrain, China, Egypt, France,
Germany, Iran, Singapore, South Africa, UK, and USA, as well as institutional partnerships with 355 counterpart organizations
in 126 countries, CII serves as a reference point for Indian industry and the international business community.
CII-ITC Centre of Excellence for Sustainable Development is a not-for-profit, industry-led institution that helps business
become sustainable organisations. It is on a mission to catalyse innovative ideas and solutions, in India, and globally, to
enable business, and its stakeholders, in sustainable value creation. It’s knowledge, action and recognition activities
enable companies to be future ready, improve footprints profiles, and advocate policymakers and legislators to improve
standards of sustainable business through domestic and global policy interventions.
CESD leverages its role of all-inclusive ecosystem player, partnering industry, government, and civil society. It has been
a pioneer of environment management systems, biodiversity mapping, sustainability reporting, integrated reporting, and
social & natural capital valuation in India, thus upgrading business in India to sustainable competitiveness.
With three locations in India, CESD operates across the country and has also been active in parts of South and South East
Asia, Middle East, and Africa. It has held institutional partnerships and memberships of the United Nations Global
Compact, Global Reporting Initiative, International Integrated Reporting Council, Carbon Disclosure Project, development
agencies of Canada, the USA, the UK, and Germany.
Confederation of Indian Industry
The Mantosh Sondhi Centre
23, Institutional Area, Lodi Road, New Delhi – 110 003
T: 91 11 45771000 / 24629994-7 F: 91 11 24626149
E: [email protected] W: www.cii.in
Follow us on:
facebook.com/followcii twitter.com/followcii www.mycii.in