BLUE CRUDE An alternative fuel for Automobile

byGAURAV JAISWAL RUSHIT VALERA

MBA ENERGY & INFRASTRUCTURESCHOOL OF PETROLEUM

MANAGEMENT

• India’s energy use will more than double to reach 1,900 million tonnes of oil equivalent (Mtoe).

• The share of fossil fuels in India’s energy mix will rise to 81% by 2040 from 72% in 2013.

• The IEA expects India’s oil demand to rise the fastest—by 6.0 million barrels per day to 9.8 mb/d in 2040.

• The transport sector alone is expected to account for two-thirds of the rise in oil demand with 260 million additional passenger cars, 185 million new two- and three-wheelers and nearly 30 million new trucks and vans being added to the vehicle stock.

• The shift from fuelwood to LPG for cooking in households will also drive this demand.

It has a rapidly growing economy, of which the transportation sector is a key component.

The number of vehicles on India’s roads increased by 240 percent over the past ten years .

Because of the magnitude of this growth, India’s decisions in managing its transportation sector will have important impacts on the environment, public health, global warming, and the international economy.

Vehicle emissions, in the form of conventional pollutants (CO, NOX, PM, HC, and others) and greenhouse gases (CO2, CH4, and others), can have adverse impacts.

INDIA TRANSPORTATION SECTOR OVERVIEW

The liquid energy carrier which is generated from carbon dioxide, water, and electricity with a process powered by renewable energy source is called blue crude (in contrast to regular crude oil) .Blue crude can be further refined into e- diesel.

What is Blue Crude?

Hydrogen produced by steam reformation costs approximately two times the cost of natural gas per unit of energy produced i.e. if natural gas costs 150Rs/million BTU, then hydrogen will be 350Rs/million BTU.

Also, producing hydrogen from electrolysis with electricity at 3.5 Rs/kWh will cost 250Rs/million BTU — about 1.5 times the cost of hydrogen from natural gas.

The assumed market price for the synthetic diesel could be between 75 Rs and 90 Rs per liter.

HYDROGEN ECONOMY

Key Facts / Targets / Commitments

India’s current RE portfolio: 33.79 GW

RE generation potential from commercially exploitable resources: 895 GW

India’s RE target for 2022: Total generation capacity = 175 GW Solar: 100 GW (60 GW Ground Mount, 40 GW Roof Top) Wind: 60 GW Others: 15 GW (Small-Hydro, Biomass)

Total investments expected by 2022: US$ 100 Billion

Total no. of companies committed to India’s RE growth: 293Total commitment from RE developers: 266 GWTotal commitment from Mfg. sector: 23 GWDebt funding commitment from Banking sector: 78 GW

Government Steps for Climate change

India promised to reduce the “emissions intensity of its GDP by 33-35 % by 2030 from 2005 level”

To achieve about “40% cumulative electric power installed capacity from non-fossil fuel based energy resources by 2030”

To achieve above target with the help of transfer of technology and low-cost international finance, including from the Green Climate Fund.

CONCLUSION

Capital and fixed costs will be offset by the savings in health care expenditures and the increased economic activity unleashed by improved air quality.

Cleaner fuel

Ease of transportation and storage

Storage for Renewable Energy Generation

One-time-only investments to upgrade refineries

No major alteration in engines of automobiles

Improved efficiency of automobiles

Thus, Blue Crude would be an effective future solution that can scale better than electrical/hybrid cars and conventional automobiles for reduction in GHG emissions in India.

References

www.gizmag.com/audi-creates-e-diesel-from-co2/37130/

http://wgbis.ces.iisc.ernet.in/

https://www.quandl.com/data/MOSPI/NUM_MOTOR_VHCL_20_1-NUMBER-OF-MOTOR-VEHICLES-REGISTERED-IN-INDIA-TAXED-AND-TAX-EXEMPTED

http://indiaenergy.gov.in/

http://www.sciencealert.com/audi-have-successfully-made-diesel-fuel-from-air-and-water

http://www.livemint.com/Opinion/Lc6lOXOiSwzSWPWF1yTvTI/Five-charts-that-show-how-Indias-dependence-on-fossil-fuels.html

http://oilprice.com/Energy/Energy-General/Indias-Oil-Consumption-Primed-For-Growth-As-Economy-Thrives.html