Oil refineries shift to renewables and petrochemicals amid evolving energy demand

In response to growing global demand for environmentally friendly fuels, oil refineries have been progressively integrating renewable feedstocks into their traditional crude oil refining processes, Reuters reported on Friday. 

This strategic shift involves the incorporation of diverse renewable resources, with used cooking oil emerging as a prominent example, into the existing crude refining streams. 

This innovative approach not only advances the production of cleaner fuels but also aligns with the broader sustainability goals of the energy sector.

Demand for catalysts and additives to remove impurities from bio-feedstock has increased as a result of this, Maurits van Tol, chief executive of catalyst technologies provider Johnson Matthey, told Reuters on the sidelines of the India Energy Week conference on Friday.

In recent years, there has been a notable shift in the sourcing of materials for various industrial processes, particularly within the energy sector. 

This transition is primarily driven by a growing emphasis on sustainability and the search for renewable alternatives to traditional fossil fuels.

Alternative feedstocks

A key aspect of this shift is the increasing utilisation of alternative feedstocks, which are materials derived from sources other than conventional fossil fuels. 

These alternative feedstocks can include a wide range of options, such as biomass, organic waste, and agricultural byproducts.

Biofuels are renewable fuels that are derived from organic matter, and they can be used as a substitute for gasoline, diesel, and other fossil fuels. 

The use of alternative feedstocks in the production of biofuels can help to reduce greenhouse gas emissions and decrease dependence on fossil fuels.

van Tol said:

The pervasive use of cheaper heavy crude, which damages units due to its higher sulphur content, is also driving demand for catalysts and additives, van Tol added.

Another important application of alternative feedstocks is in the refining industry. 

Refineries are industrial facilities that process crude oil into various petroleum products, such as gasoline, diesel, and jet fuel.

In recent years, some refineries have begun to blend alternative feedstocks, such as biomass, with crude oil during the refining process. 

This blending can help to reduce the carbon intensity of the resulting petroleum products and improve their environmental sustainability.

The use of alternative feedstocks in the energy sector is still in its early stages, but it has the potential to play a significant role in the transition to a more sustainable energy system. 

Petrochemicals

The growth of electric vehicles has lowered the demand for transportation fuels.

Because of this, refineries are shifting their focus to producing more petrochemicals.

New age refineries will be configured to produce more lighter products, such as gasoline and naphtha, state-run Engineers India chairperson Vartika Shukla was quoted in the report.

Additionally, Bharat Petroleum intends to significantly increase its petrochemical production, Sanjay Khanna, director of refineries at the Indian company. 

The goal is to have petrochemicals account for over 40% of their portfolio, up from the current 2-3%, according to Khanna.

This expansion will be achieved through BPCL's new refinery in Southern India, he added.

The state of Andhra Pradesh will be the site of a new refinery with a minimum capacity of 180,000 barrels per day, according to Bharat Petroleum’s plans.