IndianOil Corp (IOC) is planning to set up three CDM (clean development mechanism) projects 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. To be built at an investment of Rs 24 crores, the three projects are in various stages of planning and implementation to generate carbon credits and savings in cost of production by more gainful use of energy. The project will generate revenue of around Rs 2 crore pa through trading of carbon credits plus savings on the use of the captured gas in boilers, replacing the costlier naphtha.
Haldia refinery generates approximately 9,000 standard cubic metres of gas an hour. Once the CDM project is commissioned by September-October this year, the flare quantities will be limited below 100 standard cubic metres an hour.
Gas is generated by refineries during the fluid catalytic cracking and crude distillation process. Most of it is used as captive energy source in fuelling boilers and others. However, 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.