use of alternative fuels; industry...

USE OF ALTERNATIVE FUELS;

INDUSTRY PERSPECTIVE

Presented at Session on :

Green Transport

K. K. Gandhi

Executive Director (Technical)

Society of Indian Automobile Manufacturers

Green Transport

Urban Mobility India ConferenceNovember 23-28, 2014

14%3% 3%

Passenger Vehicles

(2,503,685)

Three Wheelers

(479,634)

Commercial Vehicles

(632,738)

Industry market segmentation

51%

Segmentation: By Volume Segmentation: By Value

SIAM

80%

Two Wheelers

(14,805,481)

2

19%2%

28%

Passenger Vehicles Commercial Vehicles

Three Wheelers Two Wheelers

Source: SIAM

Emissions/Safety Regulations Progression in India

1996 2000 2005 2010 2014 20171992

EURO1

EURO2EURO3

EURO4EURO5

EURO6b

BS1

BS2BS3

BS4

Major cities

Emission

BS4 OBDII

2013

2020 2022 2024 2026

EURO6c

BS1BS2

BS3Nationwide

FE Regulation 1

FE Regulation 2

Nationwide for

M1 Vehicles

BS4 OBDII BS5

Fuel Consumption

Safety

Full FrontalOffset Crash

Side Impact

BS6

Fuel Specifications Improvement

Fuel and Emission improvement have gone hand in hand thru series of Emission legislations in

India

Emission Limit Progression in India – CV’s

0.00

0.10

0.20

0.30

0.40

1.02.0

3.55.0

7.08.0

PM

g/k

Wh

NOx g/kWh

Emission Norms Nox Vs PM

BS 1

BS 2

BS 3

BS 4

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.01.5

2.14.0

4.5

HC

g/

kW

h

Emission Norms CO Vs HC

BS 1BS 2

BS 3

BS 4

In last decade PM emission of Trucks have been reduced by 94%.

CO

4.5

HC

1.1

NOx

8.0

PM

3.6

CO

1.5

HC

0.46

NOx

3.5

PM

0.02

% Reduction from BS-I to BS-IV

NOx – 56 %

PM – 94 %

CO – 67 %

HC – 58 %

4.5CO g/kWh

Progression - Mass Emission Standards – 2&3W

90%

Emission Standards for 2&3 Wheelers have been India specific, with

• Indian Driving Cycle

• Norms derived for Indian conditions

• DF of 1.2 is applicable from year 2000.

90~96% reduction of emissions achieved since 1991

800

1000

1200

, mg

/km

THC+NOX Gasoline

THC+NOX Diesel

Emission reduction of Light duty Vehicles

120

140

160

180

200

PM

, m

g/k

m

PM-Diesel

PM-Diesel

0

200

400

600

BS-1 BS-2 BS-3 BS-4

TH

C+

No

x, m

g/k

m

Emission Norm

SIAM

0

20

40

60

80

100

BS-1 BS-2 BS-3 BS-4P

M,

mg

/km

Emission Norm

> 84~86% Reduction of emissions of PM and THC + Nox achieved since 2000

S/W group 1

Vehicle Emissions

S/W group 2

Auto exhaust

S/W group 3

S/W group 4

Logistics

Chairman

Auto Fuel Policy 2025 Committee

Member

Status of Auto Fuel Policy 2025

S/W group 3

Refinery

Expected Release of Auto Fuel Policy 2025 (2014 end)

Final Report Submitted to

Minister of Petroleum for

approval.

Uploaded for stake

holders comments

(July 2014 )(May 2014 )

2 /14

Bharat Stage IV Emission Norms Extension

2010 : 13 cities(Delhi NCR, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad, including Secunderabad, Agra, Pune,

Ahmedabad, Surat, Kanpur, Lucknow & Sholapur).

2014 : Extended to 20 more cities(Puducherry, Mathura, Vapi, Jamnagar, Ankaleshwar, Hisar, Bharatpur, Daman, Diu,

Silvassa, Unnao, Rae Barielly, Aligarh, Karnal, Valsad, Yamuna Nagar, Kurukshetra,

Nizamabad, Medak & Mehboobnagar)

2015 : Northern India,

Except Eastern UP & Madhya Pradesh

2016 : Southern India

Some regions in Tamil Nadu & Kerala

may not get covered.

2017 :Rest of the country

Important Alternative Fuels in India at Present

Benefit

s

Issues

• Clean burning, •Lower tendency for smog formation•Negligible sulphur/toxic HC content

• Volumetric efficiency less • Dispensing Infrastructure• Heavier than air

LPG

Ethanol

CNG• Clean burning• Abundant availability• Negligible sulfur/toxic HC content

• Less volumetric efficiency leading to power loss• Infrastructure for filling fuel

10

• Lower emission • Easier implementation

• Flammability• Material compatibility and durability • Storage and handling

• Reduces CO2 emissions • Can be used in conventional

diesel engines • Fewer particulate emissions

of CO and sulfur dioxide

• Increase in NOx emissions

• Cold weather concerns

Important Alternative Fuels in India in the Future

Benefits Issues

Biogas• Clean burning• Abundant availability• Negligible sulfur / toxic HC content

• Less volumetric efficiency leading to power loss• Infrastructure for filling fuel

• Low minimum ignition energy• Better combustion efficiency • Lower fuel consumption• Lower HC, CO and CO2 emissions

• Safety considerations higher• Reduction in knock resistance characteristics +

HCNG

11

• Reduces Air Pollution• Carbon less Fuel• Higher Energy Content on Weight Basis• Higher Octane Rating

• Need of Infrastructure & resources for development, suitability & evaluation of such vehicles.• Hydrogen and Fuel Cell Safety

H2 Fuel

DME• Very low NOx emissions • Next to zero emissions of particulate matter

• MPFI Combustion is relatively sensitive to operating conditions• High HC, CO emissions • At high loads, knocking & noise is present

Need to develop multiple options

• IC Engine Optimization

• Weight and Friction reduction

• Gasoline

• Diesel

• CNG

• Hybrids and Evs

No single option is

either an absolute or

12

• Hybrids and Evs

• LPG

• Biofuels

• Hydrogen

12

either an absolute or

complete solution for

India

Alternative Fuels Available in India

CNG : Mostly methane stored at a pressure

of 200 bar – Distributed by GAIL/IGL/MGL

Auto LPG : Mixture of Propane and Butane

stored at pressure of 10 bar – Distributed by

HPCL/BPCL/RIL HPCL/BPCL/RIL

Ethanol: Government has recently notified to use of

10 % blend in Gasoline

• Govt. of India has issued draft

Notification for use of Ethanol as

ED 95% for CI engine & E 85% for SI engine

Technology availability with all major OEMs, some launched others waiting

Tata Motors Toyota

Tata Motors

Toyota

Product technology exists

Maruti Suzuki

Maruti Suzuki

Tata Motors

General Motors Tata Motors

Maruti Suzuki



Bajaj Auto

Bajaj Auto

Bajaj Auto

TVS Motors

PIAGGIO

PIAGGIO


Eicher Eicher Tata Motors

Tata MotorsTata MotorsMahindra


MahindraAshok Leyland

Eicher Eicher Eicher

Ashok Leyland

Tata Motors

Gas Utilization Policy

• The large gap between demand and available supplies prompted the government to develop a Gas Utilization Policy and to go back to administrative control over prices and over volumes to be allocated to end-consumers.

• Therefore, in 2008, the government introduced new guidelines called the Gas Utilization Policy, which effectively took away gas producers' rights to sell the gas they discover on the open market.

• These guidelines were applicable for five years and be reviewed afterwards.

Gas Utilization Policy (2)

• Currently, the rules of the General Policy for the gas market imply that gas will be allocated according to sectoral priorities set up by the government.

• This does not imply that the gas is “reserved”: if • This does not imply that the gas is “reserved”: if one customer is not in a position to take the gas, the next one on the list becomes eligible.

• As per reports, the Government will give city gas projects selling CNG to automobiles and piped cooking gas to households’ top-most priority for receipt of domestically produced gas.

Sectorial Snapshot

• CGD infrastructure is available in 46 cities in India

• Delhi, Mumbai, Ahmedabad, Surat and Pune are some major cities covered by CGD infrastructure.

• India had 925 CNG stations at the end of March 2014

• Gujarat has the maximum number of stations: 326, followed by Delhi NCR with 295 stations

• Total numbers of Piped Natural Gas Consumers are 24.6 million while CNG serves a vehicle population of 1.97 million vehicles.

• Average sale of CNG in India is 6.5 MMSCMD.

CNG Infrastructure as on March 2014

Plan to add 52 more cities by 2022

Delhi

Noida

Greater Noida

Ghaziabad

Delhi NCR

Ahmedabad

Gujarat

Guragaon

Faridabad

Sonepat

Panipat

Haryana

Kota

Rajasthan

Amritsar

Punjab

Kanpur

Bareilly

Agra

Meerut

Lucknow

Mathura

Shahjahanpur

Uttar Pradesh

Ahmedabad

Anand

Ankleshwar

Bharuch

Banaskantha

Bhavnagar

Daman

Gandhinagar

Kheda

Mehsana

Morbi

Navsari

Panchmahal

Patan

Rajkot

Sabarkantha

Silvassa

Surat

Surendranag

ar

Vadodara

Valsad

Mumbai

Pune

Thane

Maharashtra

Ernakulam

Kerala

Shahjahanpur

Agartala

Tripura

Raigarh

Chattisgarh

Vijaywada

Hyderabad

Kakinada

Rajahmundry

Rangareddy

Nalgonda

Khammam

Andhra Pradesh

Indore

Gwalior

Dewas

Ujjain

Guna

Madhya Pradesh

Daman

Dadar

& Nagar-

Haveli

Daman & Diu

Existing CNG infrastructure

Upcoming CNG infrastructure

Map not on scale

Natural gas pipelines in India (as on December 2013)

Nangal

Ludhiana

New Delhi

Bareilly

Jagdishpur

PhoolpurKota

Assam regional P/LDadri

PatnaBarauni

Hisar

Srinagar

Jammu

Jodhpur

Bhilwara B

F

P

S

U

J

KChainsa

H

Auraiya

Lakwa

Natural gas infrastructure in India (as in Dec 2013)

Existing pipelines

A HVJ- Hazira-Vijaipur-Jagdishpur (GAIL)

B GREP-GAIL

C DUPL/DPPL–Dahej-Uran-Panvel (GAIL)

D East-West PL (RGTIL)

E VKPL– Vijaipur Kota (GAIL)

F Dadri Nangal (GAIL)

G Dabhol Bangalore (GAIL)

H Dadri-Panipat (GAIL)

I Hazira- Ankleshwara (GSPC)

J Gujarat RegionalNetwork (GSPC)

K AssamRegionalNetwork (AOC)

Map labeling

VijaipurMehsana

Tripura regional P/LKuchh Bhuj

JamnagarSurat

Dahej

Hazira

Dabhol

Bangalore

Kakinada

UranMumbai

Kochi

Kottanad

Mangalore

Kolkata

Haldia

Durgapur

Paradip

Srikakulam

Nagapattinam

Ennore

Shahdol

GangavaramMallavaram

Pipavav

Mundra

A

C

D

E

G

Q

T

R

W

Y

X

VJ

L

Under construction gas pipelines

Planned LNG terminals

Existing gas pipelines

Proposed gas pipelines

Operational LNG terminals

Planned FSRU

N

I

OCNG infrastructure

Dhamra

Gas-based Petrochemical plants

Gas processing plants

Gandhar

Nagothane

Jaigarh

Chhara

Vaghodia

M

Digha

Chittorgarh L TripuraRegionalNetwork (GAIL)

M Mumbai RegionalNetwork (GAIL)

N KakinadaRegionalNetwork (GAIL)

O Cauvery Basin Network (GAIL)

Under Construction pipelines

P Chainsa-Jhajjhar-Hisar (GAIL)

Q Kochi-Kottanad-Mangalore-Bangalore (GAIL)

R Surat-Paradip (GAIL)

S Mehsana-Bhatinda-Srinagar (GSPC)

T Mallapuram-Bhilwara (GSPC)

U Jagdishpur-Haldia (GAIL)

V Shahdol- Phoolpur (RGPL)

Proposed pipelines

W Durgapur-Kolkata

X Kakinada-Srikakulam

Y EnnoreNagapattinum

Vehicle Population Running on CNG

The vehicles have grown at a CAGR of 30.8 % during 2002 to 2013.

18,23,927

700

800

900

1,000

14,00,000

16,00,000

18,00,000

20,00,000

No

. o

f V

eh

icle

s

94,671

3,75,591

8,74,091

10,37,320

-

100

200

300

400

500

600

-

2,00,000

4,00,000

6,00,000

8,00,000

10,00,000

12,00,000

2002 2007 2011 2012 2013

No

. o

f C

NG

Sta

tio

ns

No

. o

f V

eh

icle

s

Cars LCV/HCV Autos Buses CNG infrastructure

Key Highlights for CNG Infrastructure during

Q1 (Apr 14-Jun 14)

• The total number of CNG stations in the country added in Q1 2014-15 were

8 as compared to 18 in Q4 2013-14.

• CNG consumption during Q1 FY 2014-15 for around 1.7 million

• IGL had the largest market share with 45% of total gas sales volume

followed by Gujarat Gas Company with 10% market share.

Growth in CNG infrastructure

Global Ranking based on number of CNG vehicles

Country wise, CNG vehicle parc

2.86 2.85

1.90

1.692

3

3

4

Mil

lio

ns

1.69 1.65

1.00

0.78

0.39 0.35 0.30

-

1

1

2

2

Source: IANGV and Industry estimates, 2011

Evolution of Gaseous Fuel Kit Technology

Throttle body Injection

Direct Injection

Sequential Injection

BS-V

BS-IV

BS-III

1998-2003

Venturi System

Gas Air Valve

BS-I

BS-II

2003-2005 2005-2010 2010-2015 2015-2020

INDIAN SCENARIO

• Indian Government permitted use of LPG for automotivepurposes in August 2001.

• Amendment to Motor Vehicles Act, 1988, SMPV rules, LPGControl Order etc. permitted the use of LPG as auto fuel

• Auto LPG was permitted to be marketed by Govt. OilCompanies as well as parallel marketers by importing/ importCompanies as well as parallel marketers by importing/ importsubstitution.

• IS: 14861 standard was drafted for Specifications of Auto LPG

• The overall no of ALDS in the country ie. Of Govt oilmarketing companies and parallel marketers in the markettoday is close to 1100 spread over 300 cities with an annualsales of about 320 TMT.

AUTOGAS CONSUMPTION AND

VEHICLE FLEET – INDIA

PRESENT SITUATION

• Stagnant market with low consumption

• Increase in both OPEX and CAPEX costs

• Vulnerability to Foreign exchange variations & seasonalinternational price fluctuations

• Stand alone ALDS – no longer a viable businesspropositionproposition

• Price intervention by government distorting fuel choice-present decontrol may help

• Substitutes like CNG : driven by low pricing whichhopefully may not last

• Lack of enforcing fuel quality standards affectingindustry

• LPG conversions on the wane

PRESENT SITUATION……

• Flat/ negative growth leading to low / nilinvestment on new stations/ facilities.

• Govt. appears to be focused more on CNG asautomotive green fuel and ALPG yet to get itsrightful place.rightful place.

• Untapped potential of rural areas, cannot berealized due to existing cost structure anduncertainty on future potential.

• Sales which have shown signs of revival post6 cylinder cap on domestic LPG now fallen torecord lows on doubling of cap to 12 cylinders.

Challenges Today for Alternative Fuels in India

• Inadequate distribution infrastructure

• Technology up gradation for kits/Fuel systems

• Harmonization of regulations

• Development of vehicle I&M programs• Development of vehicle I&M programs

• Promotion of Safety Consciousness

• Stricter enforcement on the field

• Elimination of Spurious Kits

• Stringent environmental regulations

• Fire Safety

SIAM - Members

Thank you……[email protected]@siam.in

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