卡内基国际和平基金会-Petroleum-Coke-Use-in-India-and-South-Asia-Recent-Trends-and-Emerging-Policy-Options_14页_568kb

Petroleum Coke Use in India and South Asia: Recent Trends and Emerging Policy Options

Core Content

This report examines the use of petroleum coke (petcoke) in India and South Asia, focusing on its environmental impacts, market trends, and potential policy interventions. It outlines the challenges and opportunities associated with petcoke as a fuel source and highlights the need for a coordinated, transparent, and environmentally responsible approach to its management.

Main Points

What is Petcoke and Its Environmental Impacts

• Petcoke is a solid residue produced during the refining of heavy crude oils, particularly those high in sulfur and heavy metals.
• It is often used in power generation and industrial applications, especially in the cement industry.
• Fuel grade petcoke is more polluting than coal and emits particulates, sulfates, and other air contaminants.
• Environmental impacts include degradation of air quality and public health risks, with higher greenhouse gas emissions compared to coal and natural gas.

Global Petcoke Market Trends

• The U.S. was the world's largest petcoke producer in 2016, producing 60 million metric tons (MMT).
• U.S. petcoke exports reached 38 MMT in 2016, second only to diesel and gasoline.
• Petcoke production is increasing due to the refining of heavier oils from Canada, Mexico, and California.
• The global petcoke market is expected to grow from $11 billion in 2016 to over $25 billion by 2024.
• Sulfur content is a key determinant of petcoke prices, with lower sulfur petcoke commanding a premium.

Indian Petcoke Market

• Petcoke consumption in India has been rising since the 1990s, driven by economic growth and the cement industry.
• In 2016, India imported 14 million tons of petcoke, a 40% increase from the previous year.
• India is a major destination for U.S. petcoke exports, accounting for 22% of U.S. petcoke exports in 2016.
• Saudi Arabia is also increasing its petcoke exports to South Asia, with two large refineries in Jubail and Yanbu contributing to the supply.

Evolving Indian Petcoke Management Efforts

• Petcoke is currently not subject to environmental levies in India, unlike coal.
• The Environmental Pollution Control and Prevention Authority (EPCPA) has raised concerns about petcoke's contribution to pollution in the Delhi/NCR region.
• In 2017, the Supreme Court of India ordered the development of a pollution control plan and proposed a ban on petcoke in the NCR.
• The National Green Tribunal (NGT) requested a determination on whether petcoke should be classified as an "approved fuel" or "hazardous waste."
• The Coal India Limited (CIL) has advocated for an environmental tax on petcoke, highlighting its high sulfur content.

Key Information

• Petcoke is a byproduct of refining heavy crude oils and is increasingly used in South Asia due to its low cost and favorable logistics.
• Environmental risks associated with petcoke are significant, including air pollution and greenhouse gas emissions.
• India's petcoke imports have surged, especially from the U.S. and Saudi Arabia, due to the decline in Chinese imports and the economic advantages of petcoke.
• Policy options include establishing a lifecycle emissions framework, integrating petcoke into U.S.-India dialogues, creating a South Asia Energy Data Center, and promoting public-private partnerships for innovation.

Emerging Policy Options

1. Establish a Framework for Lifecycle Emissions Accounting

• Implement a neutral and objective taxation system based on the actual environmental impact of petcoke.
• Allow individual governments to prioritize certain pollutants depending on policy and societal goals.

2. Integrate Petcoke into the U.S.-India Strategic and Commercial Dialogue

• Enhance policy coordination between major petcoke producers and consumers.
• Start with data sharing and expand to include regulatory and environmental coordination.

3. Create a South Asia Energy Data Center

• Develop a regional data-sharing initiative to improve transparency in petcoke and other energy markets.
• Include Bangladesh, Bhutan, India, Pakistan, Sri Lanka, and Nepal in the initiative.
• Model the data center after ECOWAS Center for Renewable Energy and Energy Efficiency (ECREE) in West Africa.

4. Develop Public-Private Partnerships to Accelerate Innovation

• Promote technological innovation in petcoke utilization, such as gasification and carbon capture.
• Example: Reliance Industries plans to install petcoke gasifiers at the Jamnagar complex, using "e-gas" technology.
• U.S. projects like the petcoke-to-methanol initiative include carbon capture mechanisms, which could be a model for India.

Conclusion

Petcoke is a growing energy source in South Asia, particularly in India, due to its low cost and availability. However, its environmental impacts are substantial, and there is a need for transparent monitoring, effective regulation, and policy harmonization to ensure sustainable and responsible use. The report outlines several actionable steps to address these challenges and align petcoke management with broader environmental and climate goals.