refining india 2024
Strategies for cost-effective decarbonisation: Future-proofing Indian refineries
Raju Chopra TOPSOE
approach does not help refiners decarbon- ise their existing assets, which can only be achieved through co-processing, revamping existing units to process bio-feedstocks, or implementing carbon capture technologies. Exploring Production of Green Products Refineries can also explore diversification into green hydrogen, produced using elec- trolysis powered by renewable energy. This zero-emissions hydrogen can be used in various refining processes, replacing con- ventional hydrogen produced from fossil fuels. Most refiners have already planned to install small-scale green hydrogen pro- duction units. As touched upon above, SAF is cru- cial for decarbonising the aviation sec- tor. Producing eSAF involves capturing CO₂ from biogenic sources, such as bio- mass, and converting it into aviation fuel. The SAF market is primed for significant growth. In 2023, SAF volumes doubled to more than 600 million litres (0.5 Mt), and in 2024 production is expected to triple to 1.875 billion litres (1.5 Mt). This is still only 0.53% of aviation’s fuel need, and 6% of renewable fuel capacity. The HEFA route for SAF production is seen as the cheap- est and most readily available route, with alcohol-to-jet another attractive option given the future availability of ethanol. One of the important pathways to grow produc- tion of SAF over the short-to-medium time- line will be eSAF, with production expected to ramp up over the next decade to meet global demand. Methanol is a versatile chemical and fuel, and producing it from biogas, using renew- able fuel, can add to the decarbonisation journey. Converting biogas to methanol involves capturing methane emissions and transforming them into a valuable prod- uct. This not only reduces greenhouse gas emissions but also creates a renewable fuel source. Conclusion Indian refineries face the dual challenge of maintaining economic viability while reduc- ing their environmental impact. By optimis- ing current operations, diversifying into decarbonisation, and exploring the pro- duction of green products, refineries can achieve substantial emission reductions and contribute to India’s net-zero goals. These strategies offer practical, cost- effective solutions that not only help in mitigating climate change but also future- proof refineries in an evolving energy land- scape. As the industry moves forward, Topsoe’s combination of proven technol- ogy, high-performing catalyst library, and decades of experience in the refinery busi- ness and green- and low-carbon solutions can ensure Indian refineries embrace the correct pathways to future-proof their unique operations.
In the face of global climate change and increasing environmental regulations, Indian refineries must adopt innovative strategies to reduce carbon emissions and ensure long-term sustainability. As India strives towards net-zero emissions, refineries have a crucial role to play in this transition. This article explores three main strategies that Indian refineries can con- sider optimisation of current operations, including emission-sensitive petrochemi- cal expansion, diversification into decar- bonisation opportunities, and exploration into the production of green fuels. These approaches offer practical, cost-effective solutions that can help refineries navigate in what is frequently a tight investment environment while minimising business risks and ensuring sustainable growth in this fast-growing world. In July 2023, India’s oil refining capac- ity reached 253.92 million metric tons per annum (MMTPA), making it the second- largest refiner in Asia. Through the private sector-led growth, there was a refinery capacity addition of almost 90 million met- ric tons in 2022. These numbers under- score the growth and significance of India’s refining industry. However, they also mean that cost-effective and simple methods of decarbonisation can have a significant impact on the environment and can point the way towards future-proofed and eco- nomically profitable operations. Optimisation in current operations Energy efficiency is a fundamental aspect of reducing carbon emissions and is often a low-hanging fruit for Indian refineries. Refineries can adopt various schemes to enhance energy efficiency, such as imple- menting heat recovery systems that can significantly reduce energy consumption. By capturing and reusing waste heat from processes, refineries can lower their energy requirements and emissions. Reducing fuel usage and process losses can lead to sub- stantial energy savings. This involves opti- mising combustion processes, improving insulation, and minimising flaring. Transitioning from steam to electric driv- ers for pumps and compressors and/or the addition of power recovery turbines and usage of electric heaters are prime exam- ples of how refineries can enhance effi- ciency and reduce emissions. Electric drivers are often more efficient and have lower maintenance costs, so benefits in terms of emission reductions and reduced costs are achievable. Usage of advanced process controls for major equipment, such as furnaces, reactors, columns, large pumps, and compressors, can also deliver benefits. Catalysts play a vital role in refining pro- cesses, and using the latest generation cat- alysts can optimise operations. Advanced catalysts can improve hydrogen utilisa- tion, which is crucial for desulphurisation and other processes. Optimising hydro-
Refineries in India have a crucial role to play in the transition to net zero
gen usage reduces the need for addi- tional hydrogen production, thus lowering emissions. Modern catalysts can operate efficiently at lower pressures and temper- atures, reducing energy consumption. New catalysts allow refineries to process a wider range of opportunity crudes, including those with higher impurities, without compromis- ing efficiency or increasing emissions. The third straightforward tool available when it comes to operational optimisation and emission reductions is the upgrading of refinery hardware. Enhancing reactor inter- nals can improve mass transfer and reaction rates, leading to higher efficiency. Installing high-efficiency column trays, packings, and special types of heat exchangers can recover additional heat from high-tempera- ture streams and special types of reboilers, further improving energy efficiency. As one of the only countries expected to experience refinery growth in the coming years – driven in a large part by petrochem- ical diversification – Indian refineries will need to be a focus on using technologies to ensure that emissions are minimised. Diversification of operations As the demand for sustainable aviation fuel (SAF) continues to rise, refineries are seek- ing ways to transition into renewable refin- eries. While this transformation typically requires significant financial investment and time, co-processing offers a simpler, cost-effective alternative. By introducing renewable feedstocks directly into exist- ing diesel hydrotreaters, refineries can pro- duce a combination of renewable and fossil diesel, reducing CO₂ emissions from fossil- based feedstocks. The cost of converting a conventional refinery into an SAF/hydrotreated vegeta- ble oil (HVO) facility through co-processing can vary significantly depending on sev- eral factors. These factors include excess hydrogen availability, current refinery infrastructure, logistics for acquiring and storing renewable fuels, refinery layout, and utilisation rate. In some cases, by lev-
eraging existing infrastructure and making minor modifications, refineries can start producing SAF quickly and efficiently. For example, a conventional refinery with a kerosene hydrotreater unit operat- ing at moderate pressure, sufficient cata- lyst volume, and excess hydrogen supply, may require only a change of catalysts (hydrodeoxygenation and dewaxing cata- lysts) for co-processing up to 5% volume. In this scenario, the production of SAF can be achieved with minor Capex (capital expend- iture) investment and no revamp or minor revamp of the kerosene hydrotreater. Additionally, utilising biogas as a feed- stock in hydrogen production can reduce the carbon footprint of hydrogen production in plants. Biogas is a renewable resource, and its use in hydrogen production can help lower overall emissions. Finally, the implementation of carbon reduction technologies, such as carbon capture and storage (CCS), can be a method for refineries aiming to lower their carbon footprint. CCS technology captures carbon dioxide (CO₂) emissions from industrial pro- cesses and stores them underground, pre- venting their release into the atmosphere. Refineries can integrate CCS to signifi- cantly cut their carbon emissions. It is also worth noting that India currently has ethanol blending and biodiesel blending policies in place to decarbonise its fuel mix, but refiners need new ethanol production plants to meet these targets. However, this Indian refineries face the dual challenge of maintaining economic viability while reducing their environmental impact
Contact: rach@topsoe.com
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