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PRESENTATION ON BEST CLEAN DEVELOPMENT MECHANISM PROJECT

in KSRTC

INDIAN TRANSPORT EMISSION SCENARIO••Transport sector accounts for 25% Transport sector accounts for 25% energy consumptionenergy consumption

••1212--15% of GHG emission 15% of GHG emission

••Apart from CO2 substantial Apart from CO2 substantial amounts of other pollutants such amounts of other pollutants such as SPM, HC, as SPM, HC, NOxNOx and CO are and CO are also emitted also emitted

••Expected growth in the sector Expected growth in the sector poses a serious threat to climate poses a serious threat to climate changechange

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• KSRTC was the first STU to take up alternate fuels like bio-diesel and ethanol blended diesel in more than 750 buses in Mysore divisions.

• The ethanol diesel blend proposed will be the first of its kind in the entire South East Asia.

• This project has been approved by the World Bank under the Clean Development Mechanism for purchase of carbon credits.

Promoting the use of cleaner Promoting the use of cleaner technologiestechnologies

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• Project carried out by Karnataka State Road Transport Corporation (KSRTC), a Public Sector Undertaking with 7,000 bus fleet

• Technology provider - Energetics Pte Ltd., Singapore• Fuel is also known as EnerDieselTM • Started in 2006, trail run with 126 buses• Currently, 2160 buses are in operation in 17 depots running with

EnerdieselTM• Proposed use of ethanol-diesel blend in the entire fleet.

PROJECT IN KSRTC

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What is Ethanol Diesel?

A premium ethanol diesel fuel blend with:

> 7.7 vol% Fuel Ethanol > 0.5 vol% Multi Patented Proprietary Additive> 91.8 vol% Regular Diesel> Enhanced Lubricity> Improved Cetane> Improved Corrosion Resistance> Outstanding Static Properties> Compatible with High Sulphur Diesel,

Low Sulphur Diesel, Biodiesel and ULSD> Less polluting> Excellent response > No Power/Torque loss

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Reduction of pollutants

Increased Demand for

EthanolSugarcane: Cheapest source of

manufacturing

Sugarcane: Cheapest source of

manufacturingDirect

correlation with oil prices

Direct correlation

with oil prices

Cheaper, renewable

environmentally cleaner

fuel

Cheaper, renewable

environmentally cleaner

fuel

Reduces fossil fuel

dependence and import bill

Reduces fossil fuel

dependence and import bill

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Visibly cleaner air

> Ethanol Diesel substantially reduces:

– White smoke caused by incomplete combustion during ignition of cold engines

– Black smoke composed of carbon particles containing oil

••No engine modifications requiredNo engine modifications required

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Computerised Blending Equipment and ethanol storage tank installed

It offers high accuracy and homogenous blending of all components

Fully automatic- No need for human intervention Ethanol diesel blend is extremely clear and stable

Instant effect on reducing black & white smoke emissions

[

No material compatibility issues

Engines are observed to be running as normal

ONSITE DIESEL ETHANOL BLENDING

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Technology for the future

> High competitiveness– Low cost compared to other

alternatives– Ample environmental benefits– Proven immediate effects

> Compatibility with other technologies– New engines– Diesel Oxidation Catalysts – Diesel Particulate Traps – Bio-diesel– Hybrid bus

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Latest Cost of Ethanol Diesel

Rate %

Diesel 42.29 0.918 38.82

Ethanol 21.51 0.077 1.66

Solubliser 151 0.005 0.76

Rate of Mixture 41.23

Savings in Rs 1.06 per lts

Latest Cost of Bio Diesel

Rate %

Diesel 42.29 0.9 38.06

Bio Diesel 32.5 0.1 3.25

Additive 0 0 0.00

Rate of Mixture 41.31

Savings in Rs 0.98 per lts

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Rollout of EnerDiesel across KSRTC fleet 7000 buses will reduce the following emissions annually by:

Particulate Matter 25,912 Metric TonnesNitrogen Oxides 29,174 Metric TonnesCarbon Monoxide 49,744 Metric TonnesCO2 33,180 Metric Tonnes

KSRTC Ethanol Diesel Evaluation

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CO2 per L diesel 2.63 kg/L

km per bus per year 120450 km/yr

avg baseline fuel eff. 5.28 km/L

Co2 Emission per liter of Diesel

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Year Total HSD Ethanol EnerDiesel HSD Solubilizer % Enerdiesel

2006/07 140868000 60000 779220 715324 3896 0.55

2007/08 156706000 140000 1818180 1669089 9091 1.16

2008/09 159892000 736440 9564146 8779886 47821 5.98

2009/10 181592000 163963 2129387 1954778 10647 1.17

1100403 14290934 13119077 71455

Ethanol Diesel consumption in KSRTC

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CDM - Benefits

Cost Benefit Analysis of Using Ethanol Blended Diesel (EnerdieselTM) by KSRTC

Cost of regular HSD = Rs.39.25 Per liter --------------A91.8% of Rs.36.60 = Rs.36.03 ------------ BCost of Ethanol = Rs.21.51 Per liter ------------- C7.7% of Rs.21.51 = Rs. 1.65 -----------------DCost of Solubilizer to treat 1 liter of HSD (0.5 ml) = Rs.0.75 --------- ENet cost of Ethanol-Diesel Blend = Rs. 38.43 ( B+D+E ) -------F

Cost savings per liter of HSD = Rs. 0.82 (A-F)Annual consumption of HSD =15 crore litersNet cost savings =Rs 12.30 crores

Carbon credits generated per annum = 44000 tonsEarnings from sale of credits = 44000 X $12/ton X50(1USD = Rs.50)

= Rs.2.64 croresNet Cost savings to KSRTC per annum= Rs 14.94 crores

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A cleaner burning diesel fuel for the Indian Transport Industry

Thank You!