R&D in Refinery Processes for Fuel Quality Upgradation National Workshop Auto Fuel Policy – Way Forward R&D in Refinery Processes for Fuel Quality Upgradation R.P. Verma Executive Director Indian Oil Corporation Limited R&D Centre, Faridabad

Current/future fuel specifications Discussion on …….. Current/future fuel specifications Status & trends in technology for fuel quality upgradation R&D’s role Summary The Hydrocdarbon industry has been passing through very turbulent and challenging times since last one decade. The increasingly stringent environmental regulations, emergence of Natural Gas as a serious competitor to liquid hydrocarbon fuels and soaring crude prices have opened newer perspectives and thrown extreme challenges to the industry. In response, industry have sought to convert these challenges to opportunities and the health of the industry would be determined by how successful we are in this endeavour.

Technologies used in Indian refineries for fuel quality upgradation SULPHUR PLANT TAIL GAS TREATING ACID GAS ISOMERIZATION JET/DIESEL HT GASOLINE REFORMER LN HN JET DIESEL HGO ATM TOWER SR Coker / Visbreaker JET/DIESEL HT HCU/FCC LSFO LVGO VAC HCU LCO HVGO VGO HT FCCU FCCG HDT Crude

Environmental Regulations Rapid changes in combustion technologies & fuel specifications induced by Legislative bodies Recommendation of Euro / BS specifications for India by Mashelkar Committee

Gasoline Specification - Trend Environmental regulations on gasoline quality, which began with removal of lead from gasoline in the seventies and eighties, were initiated in USA and then spread to other regions. Further regulations e.g. Clean Air Act Amendment (CAAA) sought to reduce ozone precursors. Following the world trend, the gasoline quality specification in India, too, has become very stringent. Newer specifications on Sulfur, Benzene, aromatics and olefins are changing the face of refining industry gradually and definitively. The production of gasoline meeting new specifications has been generally guided byLead phase out, Lower RVP, Benzene Content, Olefins Content, Oxygen Content & Sulfur Content. * Proposed by World Fuel Charter

Effect of Gasoline Specifications on Major Parameters Lower Sulfur content Lower RVP Lower benzene & aromatics Lower olefin content Limited Oxygen content Environmental regulations on gasoline quality, which began with removal of lead from gasoline in the seventies and eighties, were initiated in USA and then spread to other regions. Further regulations e.g. Clean Air Act Amendment (CAAA) sought to reduce ozone precursors. Following the world trend, the gasoline quality specification in India, too, has become very stringent. Newer specifications on Sulfur, Benzene, aromatics and olefins are changing the face of refining industry gradually and definitively. The production of gasoline meeting new specifications has been generally guided byLead phase out, Lower RVP, Benzene Content, Olefins Content, Oxygen Content & Sulfur Content.

Technologies for Gasoline Reformer (Major technology for MS) Technological / operational change Low pressure operation Change to CCR from SR Pre-fractionation for Benzene Spec Integration with Isomerisation unit FCC (Major technology for MS) Use of low ‘S’ crude, Hydrocracker bottom/ Hydrotreated feed for ‘S’ spec Use of desulfurisation additives Selective desulfurisation of FCCG Treatment of heart-cut of FCCG in reformer Environmental regulations on gasoline quality, which began with removal of lead from gasoline in the seventies and eighties, were initiated in USA and then spread to other regions. Further regulations e.g. Clean Air Act Amendment (CAAA) sought to reduce ozone precursors. Following the world trend, the gasoline quality specification in India, too, has become very stringent. Newer specifications on Sulfur, Benzene, aromatics and olefins are changing the face of refining industry gradually and definitively. The production of gasoline meeting new specifications has been generally guided byLead phase out, Lower RVP, Benzene Content, Olefins Content, Oxygen Content & Sulfur Content. Contd.

Technologies for Gasoline (Contd.) Isomerisation Ideal choice for upgrading light naphtha Used for saturation of benzene also Pt on Chlorinated alumina – most active catalyst Zeolite catalyst based technology to be improved (more activity required) Alkylation No unit in India (High LPG demand) Proven technology based upon HF / H2SO4 hazardous Solid acid based process at development / demonstration stage Environmental regulations on gasoline quality, which began with removal of lead from gasoline in the seventies and eighties, were initiated in USA and then spread to other regions. Further regulations e.g. Clean Air Act Amendment (CAAA) sought to reduce ozone precursors. Following the world trend, the gasoline quality specification in India, too, has become very stringent. Newer specifications on Sulfur, Benzene, aromatics and olefins are changing the face of refining industry gradually and definitively. The production of gasoline meeting new specifications has been generally guided byLead phase out, Lower RVP, Benzene Content, Olefins Content, Oxygen Content & Sulfur Content.

Diesel Specifications - Trend While the drive to improve gasoline quality was initiated in USA, the tightening of diesel specification started from Sweden and California. Europe has a much higher percentage of diesel cars, and diesel regulations are of greater importance for improving the environment. Though it is difficult to correlate between the diesel properties and engine emission, some key properties have been identified which are considered to have major impact on emission. New specifications for diesel fuels are mainly guided by Low ‘S’, Low Aromatics & High Cetane. * Proposed by World Fuel Charter

Effect of Diesel Specifications on Major Parameters Low sulfur Low aromatics / PAH High cetane number Lower density Lower distillation end point Environmental regulations on gasoline quality, which began with removal of lead from gasoline in the seventies and eighties, were initiated in USA and then spread to other regions. Further regulations e.g. Clean Air Act Amendment (CAAA) sought to reduce ozone precursors. Following the world trend, the gasoline quality specification in India, too, has become very stringent. Newer specifications on Sulfur, Benzene, aromatics and olefins are changing the face of refining industry gradually and definitively. The production of gasoline meeting new specifications has been generally guided byLead phase out, Lower RVP, Benzene Content, Olefins Content, Oxygen Content & Sulfur Content.

Technologies to meet Diesel specifications DHDS for meeting sulfur specifications Intensive research on DHDS catalyst for improving activity Development of high performance internals High Pressure DHDT/MHC for Cetane improvement Single stage units based upon non-noble metal catalysts MHC an attractive option along with FCC Hydrocracking process for best quality diesel Since the implementation of BIS-2000, all the refineries have installed DHDS units for meeting sulfur specification. Some refineries are installing high pressure diesel hydrotreatment unit for meeting the new Cetane number specfication. In addition, six new hydrocracker units have been set up and three more are being installed / commissioned for producing premium quality diesel and ATF.

R&D’s role Technologies For Environ-friendly Fuels Tailor-made Catalysts / Additives Technologies For Future Alternate Fuels

Technologies For Environ-friendly Fuels Conversion of Naphtha to LPG & MS: Hydrocracking Low pressure process of conversion of naphtha to auto-LPG and high octane, very low S MS component Indalin + Catalytic cracking process for conversion of naphtha to LPG and high-aromatics, low S MS component Treating Process: IndeTreat/IndeSweet Non-dispersive extractive process for desulfurisation of LPG and Naphtha Contd.

Technologies For Environ-friendly Fuels (Contd.) DHDS / DHDT Development of Hydroprocessing technology for production of ultra low sulfur and high Cetane diesel Commercialisation at BRPL (with EIL) and at Paradip (with EIL and Shell) Development of high performance DHDS catalyst Hydrodynamic studies & development of reactor internals (with EIL) Adsorptive desulfurisation Reactive adsorption based process for desulfruisation Most suitable as a finishing reactor Isomerisation Development of zeolyte based catalyst (jointly with IIP) Process development

Tailor-Made Catalysts / Additives FCC catalysts & additives – Developed & commercialized by Indian Oil Lotus-24 (Catalyst with higher LPG yield) i-Max / Super i-Max (ZSM-5 additive) Hydrocracking catalyst – Developed by Indian Oil IZV (Along with M/s Zeolyst International) – For increase in LPG make (Commercialised) IZN (Naphtha hydrocracking to LPG)

Technologies for future Coal/residue/biomass gasification - Production of premium liquid fuels, hydrogen and / or power Reactivity studies for Indian coal, petroleum residue, biomass and combination Pilot plants for feasibility data generation Gas to liquid technologies - High quality middle distillates Development of catalysts Pilot plant studies

Technologies for future Bio-oil refining Thermochemical Routes from Biomass to H2 Gasification/Water-Gas Shift Supercritical Steam/Water Conversion Pyrolysis/Steam Reforming Does not require tricky gas clean-up step Processing biomass has nearly zero net CO2 impact

Technologies for future Pyrolysis/Steam Reforming Liquid bio-oil can be pumped and has higher energy volumetric density than biomass Can be processed in distributed systems or at locations with existing hydrogen infrastructure in large-scale centralized reformers (earlier concept) Can be co-processed with traditional fossil feedstocks Biorefinery Integration Produce from residues

Alternate Fuels Alternate fuels currently in use CNG LPG Ethanol & Biodiesel Emerging fuels & engine technologies Bio-fuels Hydrogen Electric vehicles Fuel cells Considerable R&D activities in progress on bio-fuels, H2, HCNG, Fuel cells etc.

Hydrogen IOC-R&D the nodal agency for research on Hydrogen fuel Developments in H2 production from various sources – renewable & non-renewable Environmental benefits realizable with use of H2 as neat fuel or in admixture with CNG in existing IC engines High-energy conversion efficiencies & associated environmental benefits of emerging fuel cell technology National Hydrogen Energy Board prepared an extensive report IOC-R&D the nodal agency for research on Hydrogen fuel

Environmental regulations have led to Summary Environmental regulations have led to Development in new processes / catalysts Significant enhancement of catalyst performance Re-orientation of technologies Prominence of hydroprocessing Innovative approach & new technologies and willingness to look beyond fossil fuels would sustain the industry in longer term In conclusion it can be said, hydrocarbon fuel technology, in India, is going through challenging and exciting times. Environmental regulations, sky rocketing crude price, emergence of gas as a good alternative are changing the perspectives and bottom lines of the industry. In spite of the increasing competition, liquid hydrocarbons would remain its prime position, however, a lot of investment in new technologies has been done to meet the regulations and a lot would be required. Gas would increase its share and industry has to find economic disposal routes for displaced fuels, e.g. naphtha, FO. Bio fuels would also replace the liquid hydrocarbons in parts and in the long run, Hydrogen seems to be the future.

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