Press Releases
[New Delhi, 10th July, 2007]
GAIL (India) Limited
GAIL, Apollo Tyres sign accord for Steam Conversion Project through Waste Heat Recovery
New Delhi, July 10, 2007: GAIL and Apollo Tyres today signed an Agreement for a Steam conversion project based on Waste Heat Recovery system from GAIL’s gas turbines. This rare, multi-benefit project would not only utilize Clean Development Mechanism (CDM) for power generation but would also lead to conservation of gas as well as increased energy efficiency.
Shri B C Tripathi, Director (Marketing), GAIL and Shri Mahesh Sharma, Chief – Legal, Apollo Tyres signed the agreement for the Steam Conversion Project at GAIL’s office in New Delhi in the presence of Dr. U D Choubey, CMD, GAIL, Shri Onkar S Kanwar, CMD, Apollo Tyres Limited and Dr. Amit Mitra, Secretary General, FICCI and senior officials of both companies.
A first-of-its-kind project, this will be implemented by GAIL at its Vaghodia Compressor Station (near Vadodara) for supply of steam to Apollo Tyres within 24 months at a cost of around Rs. 35 crores. The duration of the Agreement is 15 years and the commercial supply will start from July 2009. The Annual Contracted Quantity is 4,36,800 MT.
Speaking on the occasion, Dr. U D Choubey, CMD, GAIL said that the project is going to be new chapter and a good beginning for not only GAIL but also in India where a public – private participation has been initiated for combating hazardous effects of greenhouse gases. He also emphasized the need to proactively address the issue of greenhouse gas emissions by corporates in the country.
Shri Onkar S Kanwar, CMD, Apollo Tyres Limited termed the development as historic for starting public – private partnership for addressing global environment issues and termed this as a new step in the direction of contributing to create clean environment and reduce emissions.
Describing the agreement as a new vista, Dr. Amit Mitra, Secretary General, FICCI congratulated the two companies for this example of public – private nitiative of combining technological expertise with human ingenuity for addressing environmental concerns.
The project, based on Waste Heat Recovery System from GAIL’s Gas Turbines exhaust, is conceived as a Clean Development Mechanism (CDM) project under Kyoto Protocol. The project would enable Apollo Tyres generate 4 MW of Power and enable the two companies save around 935 Million Kilo Calories of energy in producing process steam, thereby also avoiding formation of 55000 tonnes of CO2 per annum.
GAIL has already identified 10 projects, including Waste Heat Recovery projects as CDM projects. Once approved, GAIL will be entitled to avail CDM benefit, which in this case, is expected to be to the tune of 50,000 – 55,000 Certified Emission Reduction (CERs) as Carbon Credits.
Apollo Tyres plant, which is situated in close proximity of GAIL’s compressor station, will supply the required water and will be able to derive the benefit of Steam supply from GAIL for their tyre manufacturing and auxiliary power generation. Presently, Apollo Tyres’ plant is consuming approximately 74,000 SCMD of RLNG as fuel for their plant requirements. Once the project is implemented, the consumption of RLNG will reduce to 40 per cent which in turn, would provide cost saving as well.
GAIL is pursuing implementation of waste heat recovery projects of around Rs. 200 crore for power generation at two other compressor stations and has also initiated feasibility study for three locations along Hazira – Vijaipur – Jagdishpur (HVJ) Pipeline, Process Plants.
Dr. U D Choubey, CMD, GAIL and Shri Onkar S Kanwar, CMD, Apollo Tyres Limited exchanging documents after signing of an Agreement for a Steam conversion project based on Waste Heat Recovery system from GAIL’s gas turbines in the presence of Dr. Amit Mitra, Secretary General, FICCI (Extreme Left). Also seen is Shri B C Tripathi, Director (Marketing), GAIL (2nd from left).