PURPOSE OF STUDY:-
The purpose of this study was to provide Indian Oil Corporation Ltd. with
a foundation about future of investing in natural gas as per its merits over
other traditional fuel in emission reduction. The main motive behind the study
was to understand the sector wise emission reduction benefits achieved due
to emerging emission market.
Because of increasing use of natural gas instead of other fossil fuels in
some sectors the emission reduction of hazardous gases is taken place and
because of this emission markets are created in this field.
OBJECTIVE OF STUDY:-
• To analyze the scope of emission reduction through natural gas in power, fertilizer and transportation sectors in India.
• To study the emission reduction methodologies available in these three sectors.
• To analysis economical, environmental as well as social benefit arising
from natural gas.
• To study sector wise potential of Natural gas in emission trading.
The report explains the scope of emission reduction through natural gas in India, starting with analysis of emission reduction in power sector through natural gas, fallowed by same type of analysis in fertilizer and transportation sector.
ANALYSIS OF SCOPE OF EMISSION REDUCTION IN POWER SECTOR THROUGH NATURAL GAS
The power sector has registered significant progress since the process of
planned development of the economy began in 1950. Hydro -power and coal based
thermal power have been the main sources of generating electricity. India’s
predicted strong economic growth the country will need to add over 150,000
MW of additional installed power generation capacity by 2025. Gas is predicted
to account for about 20% of generation capacity in that year, up from its
current share of 10%.According to India’s Hydrocarbon Vision 2025 this
would translate into a gas demand for power generation between 56bcm/y and
76bcm/y, depending primarily on gas prices. The power sector would account
for about 50 percent of total gas consumption. In 2005 all of India’s
gas-fired power plants required 17bcm/y to operate at a plant load factor
of 90%. Other gas demand projections, including those made in the IEA’s
World Energy Outlook, are considerably more conservative. The differences
reflect the extent to which price sensitivity of demand and gas availability
were taken into consideration. Indian power sector has been dominated by coal
as the predominant fuel source of power.
