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PSO’s BIODIESEL INITIATIVE

Presented by:Syed Tariq Hassan RazviSyed Tariq Hassan Razvi

General ManagerNew Business Development

19th February 2009

Pakistan State Oil

19th February 2009

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Global energy crisis has led to tremendous t it f d ti f bi f lopportunity for production of biofuels

» The reserves of fossil fuels are declining.g» Ever-fluctuating prices of petroleum products.» Concerns over security of assured supplies.

E i t l ff t» Environmental effects.

Energy from agriculture is not only financially Energy from agriculture is not only financially viable, but strategically & environmentally

important

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important.

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Diesel & Furnace Oil Consumption & GoP Directives

Diesel & Furnace Oil Consumption:» Pakistan consumes around 8 million tons of diesel & 7.2 million tons of

furnace oil per year. » Around 9 million tons of diesel & furnace oil is imported and PSO alone p

imports 3.4 million tons of diesel & 4 million tons of furnace oil. » If 10 % of the total diesel & furnace oil consumed by Pakistan (i.e. 0.80

million tons of diesel & 0 72 million tons of furnace oil ) is switched to million tons of diesel & 0.72 million tons of furnace oil ) is switched to blended fuel the country’s import bill can decline by ~ US $ 1.00 Billion

GoP DirectivesECC’s Decision of 15th Feb, 2008:

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Pakistan State Oil

» 5% biodiesel blending with petro-diesel by 2015.» 10% biodiesel blending with petro-diesel by 2025.

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Biodiesel

» Biodiesel is a renewable, environmentally» Biodiesel is a renewable, environmentallyfriendly substitute for petro-diesel fuel.

» It is produced from edible & non-edibleoils and animal fatsoils, and animal fats.

N ll Bi di l bl d b d i» Normally Biodiesel blends can be used indiesel engines without any alteration.

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Benefits of biodiesel

Economic» Saving of precious Foreign Exchange.» Poverty alleviation by providing

approx. 150,000 jobs.

National Security» Reduces Dependence on Imported Oil.» Sustainable, Renewable Resource grown domestically.

Environmental» Approx. 80% less carbon dioxide emissions.» Almost 100% less sulphur dioxide. » Over 90% reduction in total unburned hydrocarbons» Over 90% reduction in total unburned hydrocarbons.» Approx. 75-90% reduction in aromatic hydrocarbons.» Significant reduction in particulates & carbon monoxide.

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Mechanical» Provides superior lubricating properties.

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Possible Sources of Biodiesel & PSO’s Focus

Bio diesel can be extracted from following plants: -Possible Sources of Biodiesel

Edible• Sunflower• Canola

Non-edible• Pongame (Sukh-Chaien) • Castor Seed

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Canola • Rape seeds• Soya-bean

• Jatropha• Jojoba

PSO’s Focus is on :» Non-edible plant seeds as feed stock.

A id f titi ith F d C» Avoidance of competition with Food Crops.

» Utilization of country’s ample Marginal / Barren Land.

» Plants needing less Water

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» Plants needing less Water.

» Biofuel which requires minimum oil extraction & transesterification cost.

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PSO’s Journey to Bio-Diesel

Visits Nursery Selection of land Land Preparation

Jatropha Plantation5 month old PlantPlantation overviewSite Visit

Fruiting Transesterification unit B-100,HSD & B-10 Van runing on B-10

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Initial knowledge acquiring by exploring others working on Jatropha

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Nursery Set up

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Barren/marginal land selected for Jatropha plantation

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Leveling & Dressing of Ground

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Jatropha Plantation

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Jatropha Plantation

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Jatropha Plantation

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Site visit of Dr. Asim (Advisor of MoP&NR) dated 23.11.2008

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Fruiting After 6 months

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Transesterification(3)

Biodiesel Production Unit

Oil Expeller(1)Oil filterOil filter

(2)

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Biodiesel, HSD & B-10

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Filling of B-10 in MQTU Fuel Tank

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Environmental Benefits (If 10% of Country’s total petro-diesel & furnace oil consumption will be blended with biodiesel)

BIODIESEL BLENDED-FO

Plant type Jatropha JatrophaPlant type Jatropha JatrophaNumber of green shrubs will be added to our environment.

675 M trees 600 M trees

Annual Biofuel production. 800 K tones 720 K tones

Annual emissions reductions 2 5 M t 2 3 M t Annual emissions reductions. 2.5 Mn tones CO2

2.3 Mn tones CO2

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Assumption:Land requirement (1,200 shrubs / acre): 1.06 M Acres 3.12 tones of CO2 reduction per tone of B-100

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Tha k YThank You

Pakistan State Oil