Lagatar24 Desk
Sept.27: The chairman of Indian Oil Corp (IOC) S.M. Vaidya at the Platts APPEC 2021 Conference on Monday has stated that India needs to build 2 million barrels per day (BPD) of refining capacity by 2030 to promote its economic progress, even as it moves toward cleaner fuels. India, the world’s third-largest oil importer and user, currently has a refining capacity of 5 million barrels per day. About a third of that is under IOC’s control.
“We are a developing and ambitious economy, and development is inextricably connected to energy consumption…so we can’t afford to abandon fossil fuels so soon. They have an important role to play”, he added.
However, he believes that as the country transitions to cleaner fuels, demand for fossil fuels will decline in the next two to three decades. IOC wants to increase output of petrochemicals and lubes while also increasing green energy consumption to de-risk its core refining operation. IOC has already stated that it intends to use renewable energy to power its future expansion. In Delhi, the company has opened a plant to supply 18% hydrogen-spiked compressed natural gas (CNG), which reduces emissions for Euro-IV compliant engine buses to near-Euro-VI levels.
“This is a watershed moment for us in terms of taking the hydrogen route,” Vaidya said, adding that his company plans to build similar units around the country. However, combining hydrogen at higher concentrations than 18% is not possible since it would necessitate a complete revamp of the existing pipeline network, he warned. The APPEC conference this year is being hosted in a hybrid style, including both in-person and virtual attendees.
