The Hindu Business Line : BPCL-Kochi Refinery to set up ‘bottoms upgradation project’

Kochi, Sept. 10 BPCL-Kochi Refinery is planning to set up refinery bottoms upgrading facilities on its premises to facilitate upgradation of heavy fuel oils to value-added products such as LPG, diesel and naphtha.

The Bottoms Upgradation Project, which is estimated at an investment of Rs 8,000 crore, will consist of a delayed coker unit, downstream processing units and other associated facilities for upgradation of vacuum residue generated at Kochi and Mumbai refineries of BPCL.

Petcoke will be a new product that will be produced from the refinery on implementation of this project, senior officials said.

Several Kerala-based public sector companies, such as Kerala Minerals and Metals Ltd, Hindustan Newsprint Ltd, Malabar Cements and Travancore Cements, will benefit from petcoke, which is considered to be a cheaper fuel.

Other industries can also shift to coke against importing coal to improve their profitability, the officials said.

The cost of power generation from a petcoke-based plant is competitive and is said to be comparable with that of a coal-based power plant, which is much lower than power generated from other thermal sources.

The additional sulphur production through this project, which is estimated at 130,000 tonnes, will benefit industries like FACT and Travancore Titanium. Besides, the project will enable availability of additional quantity of diesel, to the tune of 1,670,000 tonnes, for meeting the growing demand and production of additional LPG to 105,000 tonnes so as to reduce dependence on imports. The project, therefore, will help promotion of supporting industries in the area, the officials added.

The project is under feasibility consideration and the company has initiated steps to get environmental clearance. It is expected to be completed in three years from the date of getting all approvals, the officials said.

Socio-economic benefits

If implemented, it will be the largest project executed by the Kochi refinery and one of the single biggest investments in the industrial sector in Kerala. It will be the largest single investment in the State and will trigger overall positive socio-economic development. The benefit of the project is that it provides cleaner environment for the community due to production of better quality fuels and reduced usage of high sulphur fuel oils.

The project will also facilitate providing employment to more than 7,000 people during the construction period — 3 to 4 years — by providing direct employment to more than 300 people, the officials said, adding that they have made a presentation before the State Industries Department highlighting the benefit of the project to the State.

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