Indian researchers show how Covid-19 PPE can turn into biofuel
Plastic from used personal protective equipment (PPE) can and should be transformed into renewable liquid fuels, according to Indian researchers. The study, published in the journal Biofuels, suggested a strategy that could help to mitigate the problem of dumped PPE – currently being disposed of at unprecedented levels due to the current Covid-19 pandemic – becoming a significant threat to the environment. The research from the University of Petroleum and Energy Studies (UPES) in Uttarakhand shows how billions of items of disposable PPE can be converted from its polypropylene (plastic) state into biofuels – which is known to be at par with standard fossil fuels. “The transformation into biocrude, a type of synthetic fuel, will not just prevent the severe aftereffects to humankind and the environment but also produce a source of energy,” said study lead author Dr Sapna Jain from UPES. There is high production and utilisation of PPE to protect the community of health workers and other frontline workers of Covid-19. The disposal of PPE is a concern owing to its material i.e. non-woven polypropylene. “The proposed strategy is a suggestive measure addressing the anticipated problem of disposal of PPE,” Jain said. During the current Covid-19 pandemic specifically, PPE is being designed for single-use followed by disposal. Once these plastic materials are discharged into the environment they end up in landfills or oceans, as their natural degradation is difficult at ambient temperature. They need decades to decompose. Recycling these polymers requires both physical methods and chemical methods. Reduction, reuse and recycling are the three pillars of sustainable development that can help to prevent the disposal of plastic in the environment. The research team reviewed many related research articles as they looked to explore the current policies around PPE disposal, the polypropylene content in PPE, and the feasibility of converting PPE into biofuel. In particular, they focused on the structure of polypropylene, its suitability for PPE, why it poses an environmental threat and methods of recycling this polymer. Their conclusive findings call for the PPE waste to be converted into fuel using pyrolysis. This a chemical process for breaking down the plastic at high temperature – between 300-400 degrees centigrade for an hour – without oxygen. According to the researchers, this process is among the most promising and sustainable methods of recycling compared with incineration and landfill. “Pyrolysis is the most commonly used chemical method whose benefits include the ability to produce high quantities of bio-oil which is easily biodegradable,” said study co-author Bhawna Yadav Lamba. “There is always a need for alternative fuels or energy resources to meet our energy demands. The pyrolysis of plastics is one of the methods to mitigate our energy crisis,” she noted.
Explained: How move to open up city gas distribution will benefit customers, impact incumbents
City gas distribution companies may soon face competition from third parties, with the Petroleum and Natural Gas Regulatory Board (PNGRB) set to notify regulations to allow competition for these companies, which have thus far enjoyed exclusive marketing rights in their respective geographies. Indraprastha Gas Ltd. in Delhi, Mahanagar Gas Ltd. in Mumbai and Gujarat Gas Ltd. are three city gas distribution companies set to be affected by the opening up of these markets and their pipeline infrastructure to third parties. What is the current scenario? These players currently have exclusive right to lay, operate and expand gas distribution infrastructure in their respective geographies as well as market both Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in these areas. The government had decided to grant exclusivity to gas distribution companies to incentivise them to invest in infrastructure to deliver PNG and CNG widely across cities. These companies supply PNG to household, industrial and commercial use and CNG for vehicles through retail sites of state-owned oil marketing companies Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporate Ltd. What is the proposed change? Under the proposal by the PNGRB, distribution companies would have to provide access to third-party companies to pay to use their infrastructure to market CNG and PNG based on a transportation tariff set by the incumbent players but regulated by the PNGRB in case of disputes. The PNGRB has sought comments from stakeholders on how the tariff for use of the pipeline network of the city gas distribution companies should be decided. What is the impact on consumers? According to experts, the end of marketing exclusivity may lead to some competition and lower prices for CNG. City gas distribution companies market CNG at the retail pump sites of state-run oil marketing companies. CNG sales are the most profitable market segment for city gas distribution companies with margins at around 30% of the retail price of the fuel, according to experts. OMCs which currently receive a commission on the sale of CNG sold through their retail points may seek to take some market share in the CNG distribution business by using the distribution network of the city gas distribution companies to retail CNG directly to customers.
India’s fuel demand may take 6-9 months to reach normal levels: IOC
India’s fuel demand may take 6 to 9 months to rebound to normal levels as several states impose lockdown to curb the spread of coronavirus, Indian Oil Corp (IOC) Director-Finance S K Gupta said on Tuesday. Fuel sales had fallen by a record 45.8 per cent in April when a nationwide lockdown was in place to check the coronavirus infections. Lockdown restrictions have been progressively eased beginning May but now several states are imposing lockdown to curb record daily infection rates. Speaking at an investor call on first-quarter earnings, Gupta said it was difficult to predict the demand recovery rate given the rising infections in India and around the world. “It may take 6 to 9 months to return to normal,” he said. After making a smart recovery in May, fuel sales have dipped from the second-half of June. Diesel, which accounts for two-fifths of the overall petroleum product demand in India, fell 13 per cent to 4.85 million tonne in July from the previous month and by about 21 per cent from a year earlier, according to provisional PSU sales data. Petrol sales fell 1 per cent to 2.03 million tonne in July from June, and by about 11.5 per cent from a year ago, while jet fuel sales in July rose 4 per cent from the previous month to about 218,000 but fell 65 per cent from July 2019 as air travel curbs continued. The only fuel that has consistently seen a rise in demand is cooking gas LPG which at 2.27 million tonne was 10 per cent more than June and 3.5 per cent higher than a year ago sales, the data showed. A tough initial lockdown was imposed beginning March 25 but dreams of a V-shaped recovery after it was eased in May have been obliterated by a surge in cases and new lockdowns. Last week, IOC Chairman Shrikant Madhav Vaidya had stated that demand would begin to rebound only by year-end. New lockdowns in India had knocked capacity utilisation at refineries down from 93 per cent in early July to 75 per cent by the end of the month but it was predicted to stabilise in the coming months. “The number of lockdowns states are now announcing, that is taking its toll on the demand numbers,” he had said on July 31. “One thing is sure, we aren’t going back to the normal times at least in the near future.” New lockdowns are hitting the country’s economic recovery as there appear no signs of the infection rate slowing. Gupta said a capital spending of Rs 262.33 billion is planned in fiscal year 2020-21 (April 2020 to March 2021). Of this, around Rs 42 billion is planned to be spent on refinery upgrades and pipelines, Rs 50 billion on marketing infrastructure, Rs 22 billion on petrochemical projects, and Rs 50 billion on group companies.
Minimum ₹5 billion net worth must for licence to sell petrol, diesel to retail, bulk users
The government on Tuesday said any entity with a net worth of at least ₹5 billion is eligible for obtaining the liberalised licence to sell petrol and diesel to retail and bulk consumers. Clarifying on the November 2019 liberalised fuel licensing regime, the Ministry of Petroleum and Natural Gas said any entity with a net worth of ₹2.50 billion can get a licence to retail petrol and diesel to either bulk or retail consumers. For those seeking authorisation for both retail and bulk should have a minimum net worth of ₹5 billion at the time of application, it said in a statement. Last year, the government had relaxed norms for retailing of auto fuels, allowing non-oil companies to venture into the business — a move that could help private and foreign firms to enter the world’s fastest-growing market. Prior to that, a company had to invest ₹20 billion in either hydrocarbon exploration and production, refining, pipelines or liquefied natural gas (LNG) terminals to obtain a fuel retailing licence in India. In the statement, the ministry said the government had on November 8, 2019, notified simplified guidelines for grant of authorisation for bulk and retail marketing of motor spirit (petrol) and high-speed diesel (diesel). “The simplified guidelines aim at increasing private sector participation in the marketing of petrol and diesel,” it said. “An entity desirous of seeking authorisation for either retail or bulk must have a minimum net worth of ₹250 crore at the time of making an application — ₹5 billion in case of authorisation for both retail and bulk.” Applications, it said, may be submitted in the prescribed form directly to the ministry. “For retail authorisation, the entity is required to set up at least 100 retail outlets,” the statement said adding that the new policy has opened up the marketing sector of petroleum products by removing the strict conditions applicable earlier. The other requirements as per the November 2019 notification include the need for companies to install facilities for marketing of at least one new generation alternative fuel, such as CNG, LNG and biofuels, or electric vehicle charging within three years of the start of operations. The retailers will necessarily have to set up 5% of the total outlets in rural areas within five years. The new policy liberalises fuel retailing by increasing private sector participation, including foreign players. “It will also encourage dispensing of alternate fuels and augmentation of retail network in remote areas and ensure higher levels of customer service,” the statement added. The government had last set fuel marketing conditions in 2002 and the November 2019 change was based on the recommendation of a high-level expert committee. The move will facilitate entry of global giants such as Total SA of France, Saudi Arabia’s Aramco, BP Plc of the U.K., and Trafigura’s downstream arm Puma Energy. Total SA in partnership with Adani Group had in November 2018 applied for a licence to retail petrol and diesel through 1,500 outlets. BP too has formed a partnership with Reliance Industries to set up petrol pumps. While Puma Energy had applied for a retail licence, Aramco was in talks to enter the sector. State-owned oil marketing companies Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) currently own most of the 69,924 petrol pumps in the country. Reliance Industries, Nayara Energy (formerly Essar Oil), and Royal Dutch Shell are the private players in the market but with limited presence. Reliance, which operates the world’s largest oil refining complex, has 1,400 outlets. Nayara has 5,756 pumps, while Shell has just 194. Currently, IOC is the market leader with 29,368 petrol pumps in the country, followed by HPCL with 16,707 outlets, and BPCL with 16,492 fuel stations.