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Pratim Ranjan Bose

Kolkata, Aug. 15 IndianOil is planning a host of projects at Haldia refinery to reduce refinery flare, vent air emission and steam consumption as a measure to protect the environment, generate carbon credits and promote the captive use of waste energy.

Company sources told Business Line that as many as three CDM (clean development mechanism) projects worth Rs 24 crore are in different stages of planning and implementation to generate carbon credits and savings in cost of production by more gainful use of energy. A CDM project to reduce the refinery gas flare by 90 per cent, costing approximately Rs 10 crore, is currently under implementation.

Refineries generate gas during the fluid catalytic cracking and crude distillation process. While a bulk of it is used as captive energy source in fuelling boilers and others, a part of the gas is flared through an escape route created to prevent the possibilities of a blow-out arising out of dynamic imbalance in the quantities of gas production.

Haldia refinery generates approximately 9,000 standard cubic metres of gas an hour. The available technology allows the refinery to use 90 per cent of the same for captive purposes. The rest is flared. Once the CDM project is commissioned by September-October this year, the flare quantities will be limited below 100 standard cubic metres an hour.

The project is estimated to generate 17,500 CER (certified emission reduction) units. One CER (popularly known as carbon credit) is equivalent to one tonne of carbon dioxide emitted.

According to the company estimates, the project would bring home revenue of around Rs 2 crore a year through trading of carbon credits. This apart the company would also save on the use of the captured gas in boilers, replacing the costlier naphtha.

Plans are now being firmed up to commission another CDM project of Rs 12 crore for reduction of steam consumption. The refinery uses naphtha to generate steam. While the estimates of CER generation and the projected gains through sale of carbon credit are not known, sources say that the project would generate a savings of Rs 1 crore a year.

More Stories on : New Projects | Environment | Petroleum

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