GAIL, Apollo Tyres sign accord for Steam Conversion Project

New Delhi, July 10 (UNI) 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 project would utilise Clean Development Mechanism (CDM) for power generation and also lead to conservation of gas as well as increased energy efficiency, said a statement.

A first-of-its-kind project, 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 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, said the statement.

Speaking on the occasion GAIL CMD U D Choubey, 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 emphasised the need to proactively address the issue of greenhouse gas emissions by corporates in the country.

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 55,000 tonnes of CO2 per annum, said the statement.

GAIL is also 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.

UNI