IOC to increase R&D spend by 50% in 5 years
New Delhi   26-Sep-2011


Dr. R K Malhotra,
Director (R&D), IndianOil

IndianOil (IOC) is developing a new knowhow at its research and development (R&D) centre to boost its refinery yield. The R&D team has taken up several projects that would help its refineries process cheaper and heavy sour crude that will improve refining margins.

The company will increase its spend on R&D projects by 50 per cent in five years from now. At the same time, IOC plans to commercially market catalysts globally to earn revenues. IOC has joined hands with National Renewable Energy Laboratory (NREL), run by the US department of energy (DOE), to carry out studies for converting agri-biomass into useful fuels. The pilot project has been kickstarted at its R&D centre in Faridabad.

“We are focusing on upgrading technologies that will help our refineries to reduce use of hydrogen and getting products with less sulphur content,“ IOC director (R&D) RK Malhotra told Financial Chronicle in an interview.

“We have developed a technology ­ IndAdept. This helps to reduce sulphur content in the crude oil and use less hydrogen,“ Malhotra said. This will be implemented on a trial basis at IOC's Guwahati refinery.

At the same time, IOC is trying to implement a technique for `co-processing' of non-edible vegetable oil that will improve diesel quality. “It will be done in the same refining process with diesel and the end product will have better lubricity,“ Malhotra said. The vegetable oil has to undergo two processes -de-gumming and de-metalisation -to be mixed with conventional diesel. There is no need for new infrastructure for this co-processing and the process can be implemented in the existing refinery. At present, IOC spends Rs 200-250 crore every financial year on its R&D initiatives. “It will go up to Rs 350 crore by 201516,“ Malhotra said.

After successfully developing several catalysts, IOC now plans to market them globally. The maharatna will spend more than Rs 100 crore to set up a catalyst-manufacturing base at Dahej. IOC itself buys catalysts worth Rs 500 to Rs 600 crore for using at its refineries.“The land has been acquired. We are looking for a joint venture partner who will help marketing our catalysts globally,“ Malhotra said. The company has successfully implemented catalysts such as Indmax and Inaline that helps increasing production of propylene and LPG.