INDIAN OIL CORPORATION LIMITED FEASIBILITY REPORT FOR ETHANOL PRODUCTION AT PANIPAT REFINERY

Transcription

1 INDIAN OIL CORPORATION LIMITED FEASIBILITY REPORT FOR ETHANOL PRODUCTION AT PANIPAT REFINERY 1.0 INTRODUCTION: 1.1 Indian Oil Corporation Limited (IOCL), a fortune 500 company, intent to set up an ethanol production plant to produce 128 KL per day ethanol using gas fermentation technology from Pressure Swing Adsorption (PSA) off gases (containing CO, H2 and CO2) at Panipat Refinery in State of Haryana. 1.2 In 2009, the National Biofuel Policy, was announced, which mandated a phased implementation of ethanol blending in petrol in various states. The blending level of bioethanol at 5% with petrol was made mandatory from October 2008, and the National Biofuel Policy set out an indicative target of 20% blending of biofuels, both for bio-diesel and bioethanol, by The practice of blending ethanol started in India in Government of India mandated blending of 5% ethanol with petrol in 9 States and 4 Union Territories in the year 2003 and subsequently mandated 5% blending of ethanol with petrol on an all-india basis in November 2006 (in 20 States and 8 Union Territories except a few North East states and Jammu & Kashmir). Ministry of Petroleum and Natural Gas, on 1 September, 2015, has asked OMCs to target 10% blending of ethanol in petrol in as many States as possible. Table-A shows the ethanol requirement in future for 5%, 10% and 20% blending in petrol. 1.3 The main reasons for the enhanced development of ethanol are its use as a favorable and near carbon neutral renewable fuel, thus reducing CO2 emissions and associated climate change. Whether first, second, or third generation feedstock is used, fermentation produces an alcohol-lean broth and to be distilled and concentrate in dehydration column to produce anhydrous fuel grade ethanol. 1.4 Indian Oil is exploring various technologies to develop capabilities of Ethanol generation and to meet the mandate of GoI. Accordingly, various options of producing ethanol using different feedstock like Cotton stalk, rice straw etc based on Bio-mass feedstock and Industrial Waste gases containing CO/H2/CO2 based Ethanol production technologies are being assessed. Presently at Panipat Refinery (PR), Ethanol Blending of ~ % is done at Panipat Marketing Terminal and ethanol is being purchased from market 1.6 Panipat Refinery (PR) is presently having two Crude Distillation units with a total capacity of 15 MMTPA with around 80% HS crude processing capacity. Panipat Refinery was originally commissioned with 6.0 MMTPA crude processing capacity along with secondary processing units like RFCCU, OHCU, DHDS, HGU, CRU & MEROX. Later on under Panipat Refinery Expansion projects, crude processing capacity was enhanced stage Page 1 of 5

2 wise up to 15.0 MMTPA with additional secondary units like DCU, DHDT, MSQ, HCU, HGU (76) & HGU (77) and further revamps of DCU and OHCU. 1.7 Modern hydrogen generation units (HGUs) in refineries use PSA to recover hydrogen from shift syn gas. PSA s are able to recover between 85-90% of the overall hydrogen in the syn-gas. Therefore, the rest of the hydrogen remains unrecovered, rejected in PSA off gas which is burnt as primary fuel in Reformer of Hydrogen unit. Potential of ethanol production exists in petroleum refineries using PSA off gases having substantial amount of CO+H2. 2 OPTIONS OF ETHANOL PRODUCTION: Bio-mass route: Sophisticated bio-refineries use state-of-the-art technologies to convert grains, corns, beverage and food waste, cellulosic biomass and other feed stocks into high-octane ethanol. Waste Gases route: The mixtures of Carbon mono-oxide and Hydrogen from Industrial waste gases (still mill, MSW syngas etc.) can be used to produce Ethanol using a biocatalyst based technology. Hydrogen unit PSA Off-gas containing CO+H 2 +CO 2 can be also used for Ethanol Production. 3 PRELIMINARY TECHNOLOGY ASSESSMENTS IOCL R&D had prepared an approach paper for Ethanol production from PSA off gas of Hydrogen generation unit, using the gas fermentation technology. Detailed data was compiled from various refineries and calculations were carried. It was observed that ethanol production using Gas fermentation Process can be implemented at IOCL refineries having off gases with CO concentration >3.0 mol%. This will help Indian Oil to move towards meeting GOI mandate for ethanol blending in gasoline. Further the technology also helps in CO 2 mitigation along with minimum water footprint per ton of ethanol produced. Based on the above, the process appears to be technically feasible in making ethanol from PSA off gases at our refineries. Further, the ethanol production will also support our refineries in meeting the ethanol blending mandate in MS. Since CO 2 is also consumed during the process, it will also help in reducing GHG emissions. 4 PROCESS The HGU PSA tail gas is compressed to 8-10 bar and is fed to a gas conditioning unit (another PSA), for increasing the CO content to > 5 %, before being sent to a Fermentation unit. The product from the fermenter is sent for product recovery where ethanol is recovered. The tail gas from the fermenter can again be utilized for reformer furnace firing in Hydrogen unit. Additionally, in this process some of the CO2 in PSA off gas also gets converted to ethanol in high H2: CO scenarios thereby being a true CO2 reduction process. Page 2 of 5

3 The process will also generate approximately kg/h of dry biomass. These solids can be concentrated and removed from the water discharge to valorize. This biomass can be used as a fuel or carbon source in a gasifier or boiler. The remaining waste liquid stream water (~ 8 m3/hr) can be sent to Bio-Digester (anaerobic reactor) for partial treatment of the waste water generated from this plant The resulting flow rate & composition of the stream from Bio-Digester is expected to be small compared to the capacity of the existing ETP facilities and can be treated in the existing ETP of Panipat Refinery. The typical flow scheme for the process is given below: It may be noted that tail gas from fermentation reactor is recycled back and used as fuel for reformer. Only part of the energy of PSA off gas is utilized in the fermentation process for conversion to ethanol and remaining is recycled back to the reformer furnace. 5 CAPACITY REQUIREMENT Based on HGU (76/77) PSA off gas composition and considering 90% operating Capacity of PR HGU. Ethanol plant capacity is estimated at 33.5 KTPA ethanol production. 6 INTEGRATION WITH EXISTING HYDROGEN GENERATION UNIT Under the existing system, entire HGU PSA off gases consisting of CO, H2, CO2 and CH4 are routed to reformer as a primary fuel. The subject proposal envisages routing of the HGU PSA off gases as a feed to the Ethanol plant, after feed treatment. After the conversion of PSA off gases to Ethanol, the vent gases will return as a fuel to the reformer. 7 PROJECT LOCATION The Plot Area requirement as estimated by for the ISBL facilities is around 4900 M 2 (70m x 70 m). Due to the space constraint near the existing HGU Reformer area, the plant is proposed at two locations. The PSA & Compressor would be installed near existing HGU unit (76/77) with area availability of 30 m x 25 m within battery limit of the existing Hydrogen Generation Unit, while the balance of the plant will be located in area available (110m x 35 m) near proposed BS-VI units. The Ethanol Storage tanks will be installed near existing HSD tanks. Page 3 of 5

4 8 PROJECT COST The total project cost has been estimated to be Crore (with ±30% accuracy) inclusive of foreign exchange component of Crore based on exchange rate of per USD and financial cost of Crore. The financial cost considers debt / equity ratio of 50:50. 9 PHASING OF EXPENDITURE Phasing of expenditure of the project is given as under: Year Percentage of Project Cost Crore 1 st Year 35.0% nd Year 65.0% Total 100% PROJECT SCHEDULE It is envisaged to execute the project at Panipat Refinery with following milestone activities of the project. S.No Activities Activity Cumulative Remarks Time(months) Time(months) 1. Stage 1 FR Approval 0 0 Apr Award of Job to Licensor for BDEP preparation BDEP preparation Procurement & Award of Purchase Order of LLI (Off gas Compressor +PSA) 20(1P+19) Tendering and Award of Job to EPCM (parallel activity to be ensured) up-to DFR 3 (P) 25 scope 6. DFR (including +10% cost estimate) + MR for balance LLI by EPCM 3 (P) DFR proposal put up & board approval (Investment Approval) after PEC 2 (P) 25 recommendation 8. Award of job to EPCM (post DFR scope) & Detailed engineering, Plant 16 (13P+3) 28 Construction & Mechanical Completion Page 4 of 5

5 9. Commissioning 1 29 Plant is scheduled to be commissioned in December JUSTIFICATION FOR PROJECT India is adopting a cleaner and greener economic growth pathway today, with the Government running one of the largest renewable capacity expansion programs in the world. The implementation of the National Smart Grid Mission, along with new programmes for increasing energy capacities from wind and waste conversion, are key elements of this vision. This vision is inextricably linked to the principle of need-based consumption which follows the need to maximize on existing resources and decarbonize everyday activities. The potential impact of using off-gases from the refining sector in India is considerable. This Ethanol will support the requirements for motor spirit blends set by the Government of India while enabling IndianOil to add value by reducing its emissions. The Biomass produced has potential of high nutrition value which can be utilized as fodder for cattle. The bio mass can also be utilized as a fuel or carbon source in a gasified or a boiler. Further this project has potential of greenhouse gas (GHG) reductions required to limit global climate change. Low-carbon and sustainable energy must begin to phase out current fossil fuel-based energy requirements. Page 5 of 5