New Models for CNG Stations Development in India
Natural gas presents a cost advantage over petrol and diesel, aiding in emission reduction goals. India aims to increase natural gas usage with a focus on CNG stations. Initiatives like the DODO model and LCNG stations are being implemented to boost the natural gas supply chain and promote eco-friendly vehicles.
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NEW MODELS FOR NEW MODELS FOR CNG STATIONS CNG STATIONS DEVELOPMENT DEVELOPMENT Presentation by : Shivnarayan Pareek 15thAnnual Conference on CITY GAS DISTRIBUTION IN INDIA 24,25 Feb 2020
NEW MODELS FOR CNG STATION DEVELOPMENT Natural Gas Economy Natural gas is giving about 40 to 50% cost advantage over petrol and diesel, thus a net forex saver for same amount of energy India is the biggest emitter of greenhouse gases after the US and China. It aims to achieve the emission reduction targets pledged at twenty-first session of the Conference of the Parties (COP) in Paris. Promoting the use of natural gas as alternative to petrol and diesel to achieve the emission reduction targets Natural gas comprises only about 6.2% of India s primary energy mix, far behind the global average of 24%. The government plans to increase this share to 15% City Gas Grids (CGD) and Automotive use of CNG are key drivers of natural gas demand in addition to fertilizer, power, and steel sectors India s overall energy demand is expected to grow at 4.2% per year over the next 25 years 2
AVERAGE EMISSION VALUES OF DIFFERENT DIESEL AND CNG ENGINE CONCEPTS (MEASURED IN THE 13-STEP TEST ACCORDING TO ECE-R49) 3
NEW MODELS FOR CNG STATIONS - DODO DODO MODEL FOR CNG STATIONS With increasing demand for CNG, Minister of Petroleum and Natural Gas & Skill Development and Entrepreneurship Dharmendra Pradhan launched the Dealer Owned Dealer Operated (DODO) model for setting up CNG stations. Under the general guidelines for the scheme, the entire earmarked dealer plot shall be developed exclusively for setting up of CNG station and allied commercial activities at the discretion of City Gas Distribution (CGD) activities. As more and more CNG stations open up, more than 10% of them may be based on DODO model The commerce ministry s department of industrial planning and promotion (DIPP) is working on ways to expedite security and other approvals needed from the Petroleum and Explosive Safety Organization (PESO) to set up new CNG and LNG retail outlets. The government has begun talks with commercial vehicle makers, through GAIL (India) Ltd, the country s largest gas distributor, to incentivize the development of such eco-friendly vehicles. 6
NEW MODELS FOR CNG STATIONS - LCNG LCNG (LIQUID TO COMPRESSED NATURAL GAS) STATIONS The volume of liquefied natural gas (LNG) is only around 1/600th of the volume of gaseous natural gas In terms of downstream gas market development, the L-CNG concept offers a unique opportunity for all stakeholders as it bypasses the need for a conventional gas pipeline and can result in rapid development of LNG corridors along India's Golden Quadrilateral, North-South corridor, East-West corridor and National Highway network LCNG refueling systems provide forward distribution of regasified CNG from liquid natural gas, this suits as LCNG hub and spoke station 7
NEW MODELS FOR CNG STATIONS LCNG (LIQUID TO COMPRESSED NATURAL GAS) STATIONS Proof-of-concept is existing globally, players such as Chart Industries, Cryostar, Inox, Vanzetti, etc. already operating either in specific module or as package L-CNG offers a risk diversification since dispensing of CNG or LNG is not only limited to four-wheelers and long-haul transport but can also pretty much cover railways, waterways and industrial consumption through hub-and-spoke model Interestingly, the Indian Railway Organization for Alternate Fuels (IROAF) is spearheading diesel substitution technology to push CNG and LNG as locomotive fuel. All the same, the Inland Waterways Authority of India (IWAI) along with Petronet LNG are targeting National Waterway - 1 (Ganga) for launching LNG barges. 8
NEW MODELS FOR CNG STATIONS DEVELOPMENT OPPORTUNITIES FOR BIO-METHANE Bio-methane produced from organic residues is most environment friendly option Over 99% of road freight transportation and the majority of commercial traffic on roads is fueled by diesel engines. Their dangerous exhaust emissions were responsible for lots of negative headlines in the last few years. With the consequences for environment and climate largely known for internal combustion engines, electric mobility is often emphasized. For electric vehicles, particle emissions are simply removed from inner cities but not from the atmosphere. The burden of pollution is simply shifted, not decreased 10 10
NEW MODELS FOR CNG STATION DEVELOPMENT FIRST AND SECOND GENERATION OF BIO FUELS Biomass is typically composed of Carbohydrates, Starch, Lipids, Proteins (grouped as polysaccharides), Cellulose, Hemi cellulose and Lignin. Depending on the source of biomass, Bio Fuels are classified in different generations. First Generation Bio-Fuels When bio fuel is derived from digestion of polysaccharides (sugar, starch, vegetable oil or animal fats, and seeds or grains) Second Generation Bio-Fuels When Bio fuel is produced from digestion/processing of Cellulose, Hemi cellulose (non-food crop and bio-degradable wastes) 11 11
NEW MODELS FOR CNG STATION DEVELOPMENT CNG AND BIO-CNG While in CNG, Methane co-exists with other heavier hydrocarbons i.e. Ethane, Propane, Butane, Hexane (the end application Stoichiometry air fuel ratio is not adjusted) Bio CNG has only Methane in it. 12 12
BEST OPTIONS FOR FUTURE ENERGY SECURITY BIO-CNG LCNG CNG SOLAR ELECTRIC MOBILITY HYDROGEN 13 13
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