Honeywell eyes opportunity from India’s emissions-cut push in petrochemical industry

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The Indian arm of US-based technology firm Honeywell International Inc sees opportunities in India for its newly launched technology that uses 50% less feedstock in petrochemical production and reduces emissions, according to Ranjit Kulkarni, Vice President and General Manager of Energy and Sustainability Solutions.

The NEP (Naphtha to Ethane/Propane) technology, currently in the demo stage, has garnered interest from both private and public sector oil companies in India, Kulkarni shared in an exclusive interview with Moneycontrol.

"They (Indian refiners) want the demo to be held wherever it is going on. They said if the demo is successful, we are interested in adopting it. Even the private players are quite keen to go for this. There are no agreements in place, but there are engagements," Kulkarni said, adding that the technology will be available for commercial use by the next year. The demonstration is currently held in a foreign country.

This new process lets companies produce adjustable amounts of ethane and propane from naphtha or LPG, which are then used to make important chemicals like ethylene and propylene, the key ingredients in producing plastics and fibres. Honeywell claims the NEP process increases the production of these chemicals while reducing the amount of less valuable byproducts usually created in older methods.

"The efficient molecular management means refinery can now make similar ethylene quantity with almost 50 percent lower feedstock, which is another significant savings for a country which heavily relied on importing hydrocarbon feeds. Using less feedstock and utilising each molecular with surgical precision avoids waste, reduces carbon footprint, and hence makes the process overall sustainable and profitable at the same time," Kulkarni said.

Honeywell International Inc, a Fortune 100 company, has a long-standing and significant presence in India's petrochemicals sector, with over 40 years of operations in the country. Its offerings, including process automation, control systems, and optimisation solutions, are designed to improve efficiency, safety, and productivity for petrochemical manufacturers.

The move comes as Indian state-run refiners are increasingly focusing on expanding into the production of more profitable petrochemicals. Major oil companies, including Indian Oil Corporation and LNG importer Petronet LNG, are shifting their strategy towards value-added petrochemicals as they seek to diversify away from lower-margin fuel.

Recently, state-run Hindustan Petroleum Corporation disclosed in its annual report that it is making significant investments to expand its petrochemical manufacturing capacities through joint ventures and by broadening its petrochemical portfolio. Another oil marketing company, Bharat Petroleum Corporation said it aims to increase its petrochemicals facility to 2.4 million metric tonne per annum (MMTPA) by FY28-29, from the current 0.83 MMTPA, and enhance petrochemical intensity up to 8 percent.

India is the sixth-largest producer of chemicals globally and the fourth-largest in Asia, contributing approximately 2.6 percent to the international chemical industry. The industry is projected to grow 9.3 percent, reaching $304 billion by 2025.