Developing Energy Conservation Strategies

Sachin Gupta, S.Jayakar, Soham Chattopadhyay

8th semester, Electrical & Electronics Engineering, SSCET Bhilai
E-mail:

It has been recognized globally that advances in environmental energy technologies are now playing
a critical role in helping organizations face the complex and rapidly changing dynamics of market
scenario world over. These technologies are aimed at reducing energy consumption, and decreasing
harmful emissions to meet the environmental standards, and in turn enhancing the marketability of
products and processes. Competing and succeeding in today’s business environment requires clear
strategies on managing cost by improving energy efficiency. Energy management, the process of
understanding and managing energy cost to energy efficiency and energy generation strategy has
become a significant management issue. Energy management involves organizations and people as
much as technology. The regime of sustainable development represents activity in which
environmental and social impact are fully incorporated into the economic decision process at the
designing and planning stage itself. It requires that the resources be treated on the basis of their
mutual as well as their present value. The hydrocarbon industry also faces an increasing pressure to
reduce green house gas emission. It is important therefore for the industry to develop and implement
effective strategies that would result in environmentally responsible activities along with conserving
energy and cost saving. The paper objectively aims at evolving technologies for natural gas and
hydrogen economy to sustain future industrial growth on the concept of zero discharge or emission,
with well-defined energy benchmarking for exploring the economic dimensions of energy
generation, consumption, conservation and environment protection. It further emphasizes on the
benefits derived from technology development in all these sectors, by comparing cost effectiveness
on energy and environment through emerging technologies verses more conventional technologies
using fossil fuels. Conclusively, the paper will provide an overview of technologies required to
ensure that the hydrogen and natural gas economy become the environmental energy technology of
the future – a paradigm shift to conserve energy and preserve the environment.

Introduction : Energy Conservation Strategies

The application of best energy management techniques is one of the easiest ways to reduce energy
cost, improve profitability and contribute to a cleaner environment. It has become imperative to
devise energy auditing and accounting system as a measure of energy conservation strategy to
become competitive. Petroleum as a non - renewable source of energy is highly versatile and most
widely consumed in its natural form and as a feed stock for numerous industries. Its ever
increasing demand and dwindling reserves is a clear pointer that the world be devoid of petroleum
in foreseeable future. The need of hour is for the industry to adopt practices based on the
sustainable development concept with a definite objective to conserve this precious reserve,
protect the environment and ensure sustainability of Hydrocarbon energy business. The use of
different energy technology options are key to diversifying the energy mix for conserving energy
and reducing environmental impacts of energy production and use. Increasing energy efficiency
and using a mix of sources, will support energy security, conservation, economic growth and
environmental protection. Governmental agencies and National Oil Companies can play a vital
role in supporting research and development of advanced energy efficiency and renewable energy
technologies, as energy conservation strategies for sustainable growth. With World's increasing
dependence on road transportation, the need to develop alternative fuels and technologies have
become a major concern. In majority of industrialized countries we cannot simply drill our way
out of oil dependency. At the centre of the stability and growth questions in a highly
interconnected world, is energy, especially oil and gas. Now, the basis for oil and gas demand
growth has moved to a developing world destined for large gains in population and energy use.
The changing dimensions of global interdependency, are re-orienting the oil and gas industry, to
adopt energy conservation strategies for energy conservations growth frame work as depicted
below :
 The Energy Conservation Growth Framework

In the older less interdependent world, the essential purpose of oil, gas and energy was to fuel
was machines. In the modern, increasingly interdependent world, the essential purpose of energy
is to feed people.

Developing Technology For The Gas Economy

The world's plentiful gas supply sources, continued technological innovation, the desire for less
carbon - intensive fuels, and the need for cleaner air in urban areas, will continue to ensure an
increase in the importance of natural gas to the development of world, regional and country
economies. It is increasingly possible to obtain both economic and environmental benefits from
use of natural gas and this trend is expected to accelerate as gas - based technology for power
generation, space heating, chemicals manufacture, and road transport continues to advance.
Looking into the future one can now envision an economy powered principally by natural gas.
This Gas Economy would be supplied from a truly global market consisting of large gas
reservoirs geographically spread but linked to consumers by low cost pipelines and/or cheap and
scaleable LNG facilities, and possibly through long distance high voltage electricity conduits or
large tankers carrying liquid products manufactured from gas. In this world gas would be the
principle fuel for electricity generation in high efficiency combined cycle gas turbines
supplemented by gas - powered micro-turbines or fuel cells providing off-grid distributed power.
The chemicals industry would in large part be based on gas feed stock using gas to liquids and/or
gas to chemicals process technology. Gas could also power the road transport sector, firstly as
compressed natural gas (CNG) in applications such as busses and taxis, then as clean synthetic
diesel, diesel alternatives such as DME and fuel additives, and later as the primary feed stock in
the form of methanol, DME or synthetic hydrocarbons for onboard fuel cells. The hydrogen
required to power fuel cells could initially be manufactured as clean diesel and/or methanol in
gas-to-liquids plant. Later gas could be used as the fuel to generate hydrogen for direct use in
onboard fuel cells. The technologies for delivering this vision of the Gas Economy have now
largely been invented, although not all have been demonstrated at scale and many technical
issues remain to be solved. Nevertheless implementation of the vision has already started and the
rate of gas market share growth will likely progress firstly for heat and power generation,
secondly for gas-to-chemicals and lastly gas for road transport fuels.

Gas To Liquid Technology Options

Over the last few years, there has been a great deal of attention focused on technologies to
convert natural gas or carbon bearing feed stocks into liquid fuel. An increase in world energy
demand is the main reason for the recent development on Gas to Liquid (GTL) technology. The
paper discusses the salient process features, techno-economics and environmental aspects of two
main GTL products viz.

(1) Fischer - Tropsch (FT) Synthesis Process Products and

(2) Dimethyl Ether (DME)

Fischer - Tropsch synthesis process is one of the leading GTL technologies to convert natural gas
into high value, clean-burning fuel. The main FT products are Naphtha, Gasoline, Kerosene, Jet
Fuel and Diesel. All FT products are free of sulphur, metals, asphaltenes and aromatics. Almost
100% paraffinics in the Naphtha produced by FT synthesis is making it an ideal petrochemical
feedstock. FT diesel has a Cetane number of more than 75, which is another attraction of FT
synthesis process. Another important GTL technology is the process to convert natural gas into
DME. DME is a clean fuel and it can be used as a substitute for power plant fuel. Due to its
vapour pressure characteristics, which are similar to LPG, it can be used as a household fuel to
replace LPG. Also, since DME has a high Cetane number, it is a good diesel substitute. Keeping
the potential of DME in mind, BP Amoco, Gas Authority of India Limited (GAIL), Indian Oil
Corporation Limited (IOCL) and Indian Institute of Petroleum (IIP) have joined hands to
determine the techno - economics of developing DME project for marketing of DME in India. It
is expected that DME will meet the increasing fuel requirement of the Indian market.
Development of GTL technologies allow for monetisation of stranded natural gas and
development of small & remote gas fields by production of readily transportable liquid products.
GTL products will also provide significant environmental benefits as compared to other
conventional liquid fuels.

Economics & Dynamics Of Hydrocarbon Energy Business

Projecting the availability of Hydrocarbon and cost of oil over 20 - 40 years out is an important
but uncertain task. Periodically experts project a significant shortfall of oil availability within a
few years. It has been observed that OPEC over estimated its reserves by a significant amount
beginning in the late 1980s, and they note the falling rate of world-wide oil discovery. Again the
historic production rate data are inadequate to predict a future peek in oil production. Demand
and supply will determine the peek out put of world oil production. A simple mathematical
equation states that the growth rate is proportional to the amount of the material already present
or utilized as shown in the following rate and integrated equation:

The two equations require only two parameters, an initial amount or concentration, Q start, and a
growth rate constant r. It is another matter to state that the rate of natural resource consumption is
proportional to the amount of that resource previously consumed. Empirically exponential
growth has been shown to be true in the early stages of consuming a natural resources. Several
supporting statements could be made that are consistent with this empirical observation of an
exponential increase in consumption rate, including Consumption of the resource itself builds the
infrastructure that results in increased consumption of the resources.
New technologies build on past technologies.
New technologies spread from their place and time of origin in an apparent exponential manner.
No matter the rational about exponentially increasing natural resource consumption rates, they
are
empirical observations, not a result of mathematics. The great convenience of oil as a source of
both energy and petrochemicals makes the medium-term constraint on oil production rates the
amount of the resource that is ultimately available. This situation is in contrast to the present
short-term situation, where the world oil supply exceeds demand for oil. The medium and long -
term constraint for oil production is the amount of the resource that is ultimately available, as
limited by economics and technologies. This amount has been termed Q¥ .
Before Edwin Drake drilled the oil well at Titusville, Pa., in 1859, Q¥ for oil was essentially
zero.
This Q¥ -achievable is a function of technologies available to recover the resource and a function
of
geology. For this reason, the Q¥ -achievable increases as technology develops. At the turn of the
20th century people would never have considered drilling to 20,000 ft or in more than 3,000 ft of
water. Q¥ -achievable is considerably less than the absolute amount of a resource that exists on
the planet. Given an estimate of the Q¥ -achievable, this limit on oil availability must be included
in
the production rate equation.
No theoretical way exists to include this available quantity in the oil production rate equation, so
a
simple function may be used in the following equation :
In this equation, the term in parentheses starts at a value of 1 and decreases asymptotically to
zero as the resource is consumed. By this means, resource consumption is mathematically
limited
to the amount of the resource available.
A rise in the price of oil relative to industrial construction costs will evoke several responses.
Some
responses will sustain the rate at which oil can be produced :
Application of significantly more expensive exploration and production technologies.
Application of advanced enhanced oil recovery (EOR) processes.
Major increases in the production of heavy oil.
Application Of More Expensive E & P Technologies:At relatively constant oil prices the
technologies for exploration and production of oil have improved to an extent that was not
expected. We have sustained the success of exploratory wells, demonstrated the capabilities to
produce oil in hostile environments, and further improved the fraction of oil produced before
field
abandonment. Real increased oil prices, or even a confident expectation of increased prices, will
result in further improvements in oil exploration and production technologies.
Application Of Advanced EOR Processes: Sophisticated EOR processes have been developed
in laboratory and field-tested to a limited degree. These field-tested to a limited degree. These
technologies include surfactants, in situ combustion, microbial, caustic and alcohol flooding, and
others. Some of these technologies may become attractive with increased oil prices. Present day
EOR techniques can be further improved and applied in circumstances that are not now
economic
when there is a real increase in oil prices.
Major Increases In Production Of Heavy Oil: Most estimates of oil availability are for
conventional oil and so exclude heavy crude and tars. Tars and heavy oils are estimated to total a
similar volume. Tar and heavy crude are produced in Canada, Venezuela, and other countries.
Other
responses to increased oil prices will moderate the demand for oil :
Increased liquid fuel yields at refiners
Alternatives to liquid hydrocarbon fuels
Displacement of liquid fuels from stationary usage to transportation usage
Reduced transportation fuel requirements by consumers
Non-petroleum sources of hydrocarbon liquids will become more attractive as the real cost of oil
increases. Conversion of natural gas to liquid fuels may be the next source of liquid fuels,
particularly for natural gas in remote locations. Shell is already accomplishing this conversion,
and
other companies such as Exxon are considering the opportunities. If and when gas prices rise in
parallel with oil, other fossil fuels will become attractive sources of liquid fuels. South Africa has
demonstrate gasification of coal followed by Fischer-Tropsch synthesis of liquids. Tennessee
Eastman is gasifying coal for production of "petrochemicals" at Kingsport, Tenn. Synthesis gas,
from gasification of coal and - or reforming natural gas, provides options for non hydrocarbon
fuels,
methanol and dimethyl ether. Pyrolysis of coal to recover hydrocarbon liquids prior to the
combustion of the residual char for generation of electric power is another potential sources of
hydrocarbon liquids.
Several other coal liquefaction processes have been developed. Oil shale is a very large resource
of
liquid hydrocarbons that may prove difficult to implement due to environmental constraints.
Significant increases in oil prices and -or international political unrest will make some of these
technologies for non petroleum liquid fuels attractive. At some point in the future, liquid fuel
needs
will be most economically supplied by these non petroleum sources. This competition with
alternative fuels will place an upper bound on oil prices. Oil production rates will decrease
rapidly
when this limiting price for oil is reached. The decreased production rates will not mean we have
run out of oil on Earth. It will mean that we have run out of oil that is price competitive with
non-petroleum sources of liquid fuels.
Exploring Economic Dimensions Of Energy Conservation & Environment Management
It has been recognized globally that just the instruments of state intervention and regulation (in
popular parlance command and control) are neither sufficient nor efficient tools to improve
energy conservation and environmental management practices at the regional, national, and
international
sphere. In this context, policy makers, academics, industry, NGOs and other stakeholders are
exploring different tools, policy options and innovative mechanisms in order to achieve the
desired
objective. As part of such exploration, economic instruments seen as alternatives that need to be
incorporated and encouraged along with State regulation for improving environmental
management
and energy conservation practices.
The political economy of development makes environmental and energy issues a low priority
area,
though developing countries are the ones that are more dependent on environment for their
sustenance. Increasing population, low levels of literacy, poor development infrastructure, weak
regulatory institutions, etc. make it difficult to enforce the environmental and energy
conservation
regulations. In view of all these, implementation of economic instruments requires careful
consideration before its implementation. Basically, the issues that need to be addressed will come
under the following :
Technological Issues
Managerial Issues
Policy Issues
Economic Issues
Legal Issues
Philosophical Issues
Multiple Concerns In Applying Economic Instruments
Technical & Commercial Viability Of Alternate Energy Sources
Fuel Cells: Automobile manufacturers have been working seriously to develop a suite of new
engine technologies that offer significant environmental benefits along with the engineers and
scientists for a long time. One of the most promising/revolutionary result is the development of
Fuel
cell, which promises high performances, near zero regulated emissions, flexibility to choose the
desired fuel and upto twice the fuel economy of today's internal combustion engine. Generally,
fuels
that are directly suited to fuel cell are the most difficult, costly to produce and distribute, hence
the
choices of fuel for these new vehicles would be a very important decision. The leading
contenders
for fuels are hydrogen, methanol, and gasoline. All the fuels have their own promises and
pitfalls.
Hydrogen as a fuel has limitations of its use in personal vehicles because of its high cost, low
energy density and safety concerns. The use of methanol as a transportation fuel extends the
responsibility of safe handling in all the steps of dispensing system methanol's impact on ground
water contamination and the potential for accidental ingestion needs to be clearly understood and
measures instituted to mitigate any health and environmental hazards. Gasoline fuels make the
best use of an existing and highly efficient infrastructure. Their long time supply is assured in the
foreseeble future as the resources of oil and gas that can be economically recovered have
historically increased rather than declined.
DME As A Power Generation Fuel: A new ultra-clean fuel for gas turbines - a blend consisting
primarily of dimethyl ether with lesser amounts of methanol and water - has been indentified by
BP Amoco. High purity DME is currently used as an aerosol propellant due to its
environmentally
benign characteristics. BP Amoco, the Indian Oil Corporation Limited (IOCL), the Gas Authority
of
India Limited (GAIL) and the Indian Institute of Petroleum signed a commercial and technical
agreement in 1998 to collaborate in the development, production and marketing of DME as a
multipurpose
fuel for India. BP and Haldor Topsoe A/S (Topsoe) have jointly pursued the application of
DME as a clean fuel since the mid-nineties - BP as a major energy company with a global gas
strategy to supplying power generation plants and clean fuels, and Topsoe as developer of a new
technologi to produce DME in large quantities at competitive cost.
Geothermal, A Viable Eco-friendly Alternate Source Of Energy For India: The geothermal
"boom" continues in the world since its development has minimum environmental impact
compared
to the development of oil and gas. Therefore, the geothermal energy plays an important role as a
renewable source of energy for producing power and for direct heat applications. The world's
total
installed capacity for geothermal power generation has increased from 5,830 MW in 1990 to
6800
MW in 1995 and is projected to further increase to 10,600 MW by the end of year 2000. India
too
has about 340 hot springs localities spread over its length and breadth. Each of these localities
has
capability of being developed into centers of value added activities through the use of geothermal
heat. However, concerted efforts for integrated development of one of the promising geothermal
areas in India is Tattapani in Surguja Distt. (MP). The area promises on electric power potential
of
about 300 Kwe through Organic Rankine cycle based Binary Power plant since the present five
geothermal wells drilled upto a depth 500 m, produces a cumulative geo-fluid at the rate of 1800
lpm at the surface temperature of 105oC. The eventual resource could be of the order of 20 MWe
when the deeper part of the reservoir at a depth of about 1500 m is tapped. Besides, many direct
heat applications are envisaged from the Tatapani geothermal field. With the existing
environmental problems associated with coal, hydrocarbon & nuclear based mega power projects
the Indian geothermal industry like elsewhere in the world can provide a viable eco-friendly
alternate source of energy in the country.
Conclusion - A Paradigm Shift To Environmental Energy Technology
Each ecosystem has a specific tolerance limit. Energy changes continue to occur within and
outside
the various ecosystems, but it has its limitations. Loading any system beyond its carrying
capacity
results in failure of the system. In case of environmental carrying capacity, overloading of the
ecosystems sometimes leads to devastation. Most of the time, the industrial projects consider
only
the environmental impacts of that individual project, but ignore the cumulative impacts of other
ancillary projects on the same environmental resource base. To overcome this lacuna, the
carrying
capacity based development planning will be a great help in today's industrial scenario for
sustainable development.
The economic benefits resulting from power to heat ratios, the wide range of system integration
options and attractive cogeneration (sequential production of necessary heat and power) system
performance, are the technological advancement towards a paradigm shift to environmental
energy
technology. With rapid changing fuel costs, the fuel conservation aspects of cogeneration and
related technology are the major drivers for the development of environmental energy
technologies.