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Presentation on

“R&D in Petrochemicals – HPCLs perspective”

12th November, 2019

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R&DR&D❖ HPCL Business Portfolio

❖ Roadmap for HPCL Petrochemical Business

❖ HP Green R&D Centre

❖ R&D Global Scenario

❖ Scope for technology transfer

❖ Technology gaps and way forward

❖ Strategy for petrochemical R&D

Contents

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HPCL BUSINESS PORTFOLIO

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• Mumbai: Fuels (7.5 MMTPA) & Lubes (428 TMTPA) Refinery

• Visakh: Fuels (8.3 MMTPA) Refinery

• Green R&D Centre, Bengaluru

• 9 Cross country product

pipelines$

Retail

LPG

Direct Sales

Aviation

Operations & Distribution

Natural Gas

Partnerships in

• Refining & Petrochemicals, Marketing

Infrastructure, Emulsions and Natural Gas

Renewables

Lubes

* in 2018-19 including export$ (Liquid & LPG)

Refining

15.8 MMTPA

Marketing

38.7 MMT

Pipelines

3370 km

JVs & Subsidiaries

18 Numbers

Business Portfolio

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Visakh Refinery

Mumbai Refinery with

Lubes

HMEL Bathinda Refinery (JVC)

HRRL

▪ Stake in HMEL : 48.99%

▪ Stake in MRPL : 16.96%

Refineries in West Coast, East Coast & North

Refinery Throughput (MMT)

27.9 28.3 30.9

Refinery Capacities

•Mumbai Refinery – Capacity expansion from 7.5 to 9.5 MMTPA

•Visakh Refinery – Capacity expansion from 8.33 to 15 MMTPA

•HRRL – Grass root refinery of 9 MMTPA

Mangalore Refinery

Refining

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ROADMAP FOR

HPCL PETROCHEMICAL BUSINESS

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▪ Build Petrochemical complex

▪ 9 MMTPA Refining-cum-

Petrochemical complex at

Rajasthan

▪ Petrochemical complex at

Kakinada, Andhra Pradesh

▪ Niche Petrochemicals from existing

refineries

▪ Petrochemicals Marketing group

formed at corporate level

▪ Initiated ‘HPCL Petrochemical

Route To Marketing Strategy’

▪ Increasing Import dependence by

India due to Lack of investments

HPCL Plans in PetrochemicalsPetrochemicals

Strong Economic Growth

Rising

Income

Levels

Low per capita Petchem Consumption

High

growth in

Key

Industries

High demand growth

Petrochemicals Roadmap

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Short Term

• Seed the market

• Build sales capabilities

• Build Customer Base

• Trading Opportunity

• Basic research

Mid Term

• Ramp-up Volumes

• Market products from HRRL

• Additional manufacturing capabilities

• Potential partnership possibilities

• Advanced research & development

Long Term

• Strategic Expansion

• Integration of additional assets

• Partnerships for end uses in niche market

Transition Road Map

QuestionsRefinery Petrochemical Integration

Source: Foster wheeler

QuestionsRefinery Petrochemical Integration -Molecular management

Refinery Stream Petrochemical Stream Alternative Refinery Use

FCC,Coker off-gases Ethylene Fuel gas

Refinery Propylene (FCC)Polypropylene, Cumene, Isopropanol, Oligomers

Alkylation/polygasoline

Butylenes,Butenes (FCC & Delayed Coker)

MEK ( Methyl Ethyl Ketone), INA, 2-PH, PIB

Alkylation, MTBE

Light Naphtha (C5s)Isoprene, piperylene, isoamylene, cyclo pentane

Gasoline blend

Reformate Benzene, Toluene, Xylenes Gasoline blending

Naphtha & LPG Ethylene Gasoline blend/Domestic fuel

Refinery Benzene & Hydrogen Cyclohexane Gasoline blending

Kerosene n-paraffins, Speciality Solvents Refinery Product

FCC Light Cycle Oil Naphthalene, Aromatics Diesel blending

FCC Slurry CBFS Fuel Oil

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HP GREEN R&D CENTRE

QuestionsHP Green R&D Centre - Features

❖ Total Area: 104 acres

❖ Phase-I: 7 Labs (Built-up area: 3,06,000 sq. ft.)

❖ Crude Evaluation & Fuels Research

❖ Analytical

❖ Fluid Catalytic Cracking (FCC)

❖ Hydro-processing

❖ Catalysis

❖ Bioprocess

❖ Nano-Technology

❖ R&D Centre awarded:

✓ Platinum Rating – from IGBC (Indian Green Building Council)

QuestionsPhase-II Status

❖ 3 New Laboratories under construction:

✓ Petrochemicals & Polymers Lab (Temporary lab is

Operational)

✓ Tribology Lab

✓ Engine & Battery Research Lab

QuestionsPhase II - Petrochemicals Lab

❖ Polymer synthesis & catalysts (e.g. poly-olefins)

❖ Product development

❖ Specialty, high-value polymers & chemicals

QuestionsR&D Approach

HPGRDC

Development

of

Technologies

Development

of

Products

Collaborative

Research

Tech Support

to Refineries

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Petrochemicals & Polymers Lab: Focus Areas

Specialty polymers & high value products

Novel Technologies and Process

Alternative and cost-effective catalysts &additives

Technical support to Petrochemical Plants

Polymer product application developmentsupport to marketing

Petrochemicals & Polymers Lab: Focus Areas

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Polymer Testing

Polymer Processing

Polymer Synthesis

Petrochemicals & Polymers Lab: Capabilities

Petrochemicals & Polymers Lab: Capabilities

QuestionsR&D Global Scenario

❖Corporate funding on decline

❖R&D intensity measured not by expenditure but byeffectiveness

❖R&D driven by business needs

❖Cutback on R&D middle management; Empowercross functional teams with project responsibility

❖External technology sourcing as corporate strategy

❖Mega corporate R&D alliances

QuestionsScope for Indigenous Technology

Development

❖ Dependence on Foreign Countries

❖ Expensive Licensing fee

❖ Joint Ventures

❖ Protective Technologies

❖ Highly proprietary

QuestionsChemical Industry’s Transition: Sustainable Future

Production (Chemical/Design/Operational efficiencies)

❖ Directly stimulate investment in RD&D

❖ Establish and extend plant-level benchmarking schemes

❖ Pursue effective regulatory actions to reduce CO2 emissions

❖ Require industry to meet stringent air quality standards

❖ Fuel and feedstock selection & prices should reflect actual

market value

QuestionsChemical Industry’s transition: Sustainable Future

Use & Disposal:

❖ Reduce reliance on single-use plastics

❖ Improve waste management

❖ Raise consumer awareness

❖ Design products with disposal in mind

❖ Extend producer responsibility

QuestionsTechnology gaps and way forward

❖ Biodegradable and bio-based polymers for various

applications

❖ Polymer Composites & Nano-composites for Structural

components

❖ Separation & purification membranes : Cost-effective water

purification / desalination, gas separation etc.

❖ Energy efficient processes for innovative product design and

development

❖ Specialty applications to embrace newer, cutthroat

technologies and innovations for generating affordable and

qualitative products

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❖ To focus on a specific area and create a competency centre

for developmental activity in the identified areas

❖ To carryout R&D, Product & Process Development, process

equipment selection, testing facility, training for industry

❖ To disseminate the results of the R&D and other activities

through filling of patents, transforming the research proposal

into a business proposal to invest and commercialize

❖ Create skilled manpower competent to provide technical

consultancy and facilitate START-UP entrepreneurs, keeping

in view the larger interests of the society

❖ To develop association between academia and industry for the

benefit of the Petrochemical sector

Centre of Excellence (COE)

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❖ Refinery-Petrochemical Integration to valorize

intermediate refinery streams and improve petrochemical

feedstock availability

❖ R&D to focus on developing novel technologies for

petrochemical processes to reduce dependency & achieve

cost leadership

❖ Alliances for Collaborative R&D to fast pace applications

❖ Centers of Excellence in Petrochemical research &

development

Key Takeaways

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