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BLUE CRUDE
An alternative fuel for
Automobile
by
GAURAV JAISWAL
RUSHIT VALERA
MBA ENERGY & INFRASTRUCTURE
SCHOOL OF PETROLEUM
MANAGEMENT
• India’s energy use will more than double to reach 1,900
million tonnes of oil equivalent (Mtoe).
• The share of fossil fuels in India’s energy mix will rise to
81% by 2040 from 72% in 2013.
• The IEA expects India’s oil demand to rise the
fastest—by 6.0 million barrels per day to 9.8 mb/d
in 2040.
• The transport sector alone is expected to account
for two-thirds of the rise in oil demand with 260
million additional passenger cars, 185 million new
two- and three-wheelers and nearly 30 million
new trucks and vans being added to the vehicle
stock.
• The shift from fuelwood to LPG for cooking in
households will also drive this demand.
 It has a rapidly growing economy, of
which the transportation sector is a
key component.
The number of vehicles on India’s
roads increased by 240 percent over
the past ten years .
Because of the magnitude of this
growth, India’s decisions in managing
its transportation sector will have
important impacts on the
environment, public health, global
warming, and the international
economy.
Vehicle emissions, in the form of
conventional pollutants (CO, NOX, PM,
HC, and others) and greenhouse gases
(CO2, CH4, and others), can have
adverse impacts.
INDIA TRANSPORTATION SECTOR OVERVIEW
The liquid energy carrier which is
generated from carbon dioxide, water, and
electricity with a process powered
by renewable energy source is called blue
crude (in contrast to regular crude oil) .Blue
crude can be further refined into e- diesel.
What is Blue Crude?
Hydrogen produced by
steam reformation costs
approximately two times the
cost of natural gas per unit of
energy produced i.e. if natural
gas costs 150Rs/million BTU,
then hydrogen will be
350Rs/million BTU.
Also, producing hydrogen
from electrolysis with
electricity at 3.5 Rs/kWh will
cost 250Rs/million BTU —
about 1.5 times the cost of
hydrogen from natural gas.
The assumed market price
for the synthetic diesel could
be between 75 Rs and 90 Rs
per liter.
HYDROGEN ECONOMY
Key Facts / Targets / Commitments
India’s current RE portfolio: 33.79 GW
RE generation potential from commercially
exploitable resources: 895 GW
India’s RE target for 2022:
Total generation capacity = 175 GW
Solar: 100 GW (60 GW Ground Mount,
40 GW Roof Top)
Wind: 60 GW
Others: 15 GW (Small-Hydro, Biomass)
Total investments expected by 2022: US$
100 Billion
Total no. of companies committed to India’s
RE growth: 293
Total commitment from RE developers: 266
GW
Total commitment from Mfg. sector: 23 GW
Debt funding commitment from Banking
sector: 78 GW
Government Steps for Climate
change
India promised to reduce the
“emissions intensity of its GDP by
33-35 % by 2030 from 2005 level”
To achieve about “40% cumulative
electric power installed capacity
from non-fossil fuel based energy
resources by 2030”
To achieve above target with the
help of transfer of technology and
low-cost international finance,
including from the Green Climate
Fund.
CONCLUSION
 Capital and fixed costs will be offset by the savings in health care expenditures and the
increased economic activity unleashed by improved air quality.
Cleaner fuel
Ease of transportation and storage
Storage for Renewable Energy Generation
One-time-only investments to upgrade refineries
No major alteration in engines of automobiles
Improved efficiency of automobiles
Thus, Blue Crude would be an effective future solution that can scale better than
electrical/hybrid cars and conventional automobiles for reduction in GHG emissions in India.
References
www.gizmag.com/audi-creates-e-diesel-from-co2/37130/
http://wgbis.ces.iisc.ernet.in/
https://www.quandl.com/data/MOSPI/NUM_MOTOR_VHCL_20_1-NUMBER-OF-
MOTOR-VEHICLES-REGISTERED-IN-INDIA-TAXED-AND-TAX-EXEMPTED
http://indiaenergy.gov.in/
http://www.sciencealert.com/audi-have-successfully-made-diesel-fuel-from-air-and-water
http://www.livemint.com/Opinion/Lc6lOXOiSwzSWPWF1yTvTI/Five-charts-that-show-
how-Indias-dependence-on-fossil-fuels.html
http://oilprice.com/Energy/Energy-General/Indias-Oil-Consumption-Primed-For-Growth-
As-Economy-Thrives.html

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Blue Crude 19-2

  • 1.
  • 2. BLUE CRUDE An alternative fuel for Automobile by GAURAV JAISWAL RUSHIT VALERA MBA ENERGY & INFRASTRUCTURE SCHOOL OF PETROLEUM MANAGEMENT
  • 3. • India’s energy use will more than double to reach 1,900 million tonnes of oil equivalent (Mtoe). • The share of fossil fuels in India’s energy mix will rise to 81% by 2040 from 72% in 2013.
  • 4. • The IEA expects India’s oil demand to rise the fastest—by 6.0 million barrels per day to 9.8 mb/d in 2040. • The transport sector alone is expected to account for two-thirds of the rise in oil demand with 260 million additional passenger cars, 185 million new two- and three-wheelers and nearly 30 million new trucks and vans being added to the vehicle stock. • The shift from fuelwood to LPG for cooking in households will also drive this demand.
  • 5.
  • 6.  It has a rapidly growing economy, of which the transportation sector is a key component. The number of vehicles on India’s roads increased by 240 percent over the past ten years . Because of the magnitude of this growth, India’s decisions in managing its transportation sector will have important impacts on the environment, public health, global warming, and the international economy. Vehicle emissions, in the form of conventional pollutants (CO, NOX, PM, HC, and others) and greenhouse gases (CO2, CH4, and others), can have adverse impacts. INDIA TRANSPORTATION SECTOR OVERVIEW
  • 7. The liquid energy carrier which is generated from carbon dioxide, water, and electricity with a process powered by renewable energy source is called blue crude (in contrast to regular crude oil) .Blue crude can be further refined into e- diesel. What is Blue Crude?
  • 8.
  • 9. Hydrogen produced by steam reformation costs approximately two times the cost of natural gas per unit of energy produced i.e. if natural gas costs 150Rs/million BTU, then hydrogen will be 350Rs/million BTU. Also, producing hydrogen from electrolysis with electricity at 3.5 Rs/kWh will cost 250Rs/million BTU — about 1.5 times the cost of hydrogen from natural gas. The assumed market price for the synthetic diesel could be between 75 Rs and 90 Rs per liter. HYDROGEN ECONOMY
  • 10. Key Facts / Targets / Commitments India’s current RE portfolio: 33.79 GW RE generation potential from commercially exploitable resources: 895 GW India’s RE target for 2022: Total generation capacity = 175 GW Solar: 100 GW (60 GW Ground Mount, 40 GW Roof Top) Wind: 60 GW Others: 15 GW (Small-Hydro, Biomass) Total investments expected by 2022: US$ 100 Billion Total no. of companies committed to India’s RE growth: 293 Total commitment from RE developers: 266 GW Total commitment from Mfg. sector: 23 GW Debt funding commitment from Banking sector: 78 GW Government Steps for Climate change India promised to reduce the “emissions intensity of its GDP by 33-35 % by 2030 from 2005 level” To achieve about “40% cumulative electric power installed capacity from non-fossil fuel based energy resources by 2030” To achieve above target with the help of transfer of technology and low-cost international finance, including from the Green Climate Fund.
  • 11. CONCLUSION  Capital and fixed costs will be offset by the savings in health care expenditures and the increased economic activity unleashed by improved air quality. Cleaner fuel Ease of transportation and storage Storage for Renewable Energy Generation One-time-only investments to upgrade refineries No major alteration in engines of automobiles Improved efficiency of automobiles Thus, Blue Crude would be an effective future solution that can scale better than electrical/hybrid cars and conventional automobiles for reduction in GHG emissions in India.