From Fuel Quality to Business Ecosystem Changes
Environmental challenges and compliance with environmental standards in the petroleum industry were another topic to be discussed at the 5th annual Iran Petroleum and Energy Club (IPEC) Congress.
Within a panel on this issue, Ali-Reza Sadeq-Abadi, CEO of National Iranian Oil Refining and Distribution Company (NIORDC), said the fuel produced in Iran was in compliance with standards.
Meantime, the head of Center for Knowledge-Based Companies and Institutes affiliated with the Office of Vice-President for Science and Technology said the criteria for assessing knowledge-based companies had been toughened. He added that the government pays special attention to the development of startups and knowledge-based companies.
Standard Fuel
Startup Panel at IPEC 2019
Startup actors attended in large numbers in a panel dedicated to startups and innovation in the petroleum industry at the 5th annual Iran Petroleum and Energy Club (IPEC) congress.
The main reason for the strong presence at this panel was the novelty of the issue of startups in the petroleum industry and the special attention paid by Petroleum Ministry to this issue this year. IPEC 2019 was the first event to specifically focus on oil startups.
Saeed Mohammadzadeh, deputy minister of petroleum for engineering, research and technology, said Iran needed to boost its knowledge and innovative services under the present circumstances amid complicated market conditions.
He said: “67% of our academic work in Iran is related to the petroleum and energy industry, while only 1.2% of investment funds are active in the oil and energy sector.”
Mohammadzadeh said in modern work, development projects are accelerated by innovation, adding that in Iran’s petroleum industry, hiring elites and experts along with application of innovation ecosystem would produce significant results.
“Iran possesses a high global ranking in creative outputs, knowhow and technology, development of knowledge, intangible assets, impact of knowledge, public infrastructure, academic education, human capital and research,” he added.
Mohammadzadeh said major oil companies had been among top companies over the past 10 years, but they are now being replaced by new companies.
4,600 Knowledge-Based Companies
Mohammad Sahebkar, director of Center for Knowledge-Based Companies and Institutes at the Office of Vice President for Science and Technology, said knowledge-based companies were being assessed based on their technological potential.
He said: “So far, 4,600 knowledge-based companies have been confirmed to be active in various sectors of industry and technology. Every two to three years, the criteria for evaluation of these companies become tougher.”
Sahebkar said necessary conditions had to be provided for a more prominent presence of knowledge-based companies and startups in the oil and energy sector.
New Ideas to Enhance Value-Added
Mohammad Mostafavi, CEO of Oil Industry Investment Company, said startups started up in the United States and Western Europe in the 1990s.
“Oil actors changed technologies when they stepped into this field,” he said.
Mostafavi said new ideals developed by the youth could create high value-added.
“Startups do not appear like cor
Zangeneh Welcomes Innovation
Ali Sadeqi Mojarrad, CEO of Samatech accelerator company, said Petroleum Minister Bijan Zangeneh had recently met with startups and accelerators.
He said: “I realized that Mr. Zangeneh was looking for an approach towards development of new ideas and innovation in the petroleum industry.”
He added: “Furthermore, it has to be taken into consideration that startups and oil elites have long been focusing on some issues which may not be important today, but would become key issues in the oil sector in the future. That can introduce a new approach for the entry of new ideas into the petroleum industry.”
Overcoming Challenges
Rashid Qanei, chairman of Aban accelerator company, said startups had gained a new meaning.
“Startups are incorporated with a creativity that would overcome many of existing challenges, while creating new business in parallel. Even though they need no big investment, they can generate big revenue,” he said.
Qanei said the future of startups was bright, adding that biomethods were being used across the globe for oil exploration.
“Over recent years, a petrochemical company has relied on startups and developed a new inexpensive product, and made big profits,” he added.
Experts participating at the panel entitled “Environmental challenges; step forward or backward?” exchanged views on fuel consumption and relevant pollution.
In Iran, experts remain divided about the real cause of air pollution in mega cities. However, in light of global issues and growing anxiety with environmental pollution and life threats, tough laws have been enforced on fossil fuel production. That is why over recent years, activity in the renewable energy sector has been widely welcomed. However, the Petroleum Ministry has over the past five years concentrated on upgrading the quality of refineries in a bid to upgrade the quality of fuel produced and distributed in mega cities.
Another cause of concern that was discussed at the panel was flaring gas. Mohammad-Reza Sediqi, director of incorporate planning at National Iranian Gas Company (NIGC), said in 2014, in Assaluyeh about 3 bcm of associated gas was flared, which has been lashed to 800 mcm now.
At the same time, he added, more units are coming online on a daily basis.
Sediqi said: “Currently, IRR 200 billion worth of gas is being produced in the country. That amounts to about $50 billion (4 mb/d) a year. Without such gas, liquid fuel would have to be used.”
Sadeq-Abadi said air pollution did not stem merely from fuel, adding that he had figures to prove his conclusion.
“It is not acceptable for me to claim that the fuel we produce is the main cause of pollution. Currently, the sulfur content of fuel variations produced in the country has been cut significantly. Our fuel meets global standards and has no problem,” he said.
Sadeq-Abadi said the Bandar Abbas gas condensate refinery was producing about 45 ml/d of Euro-5 gasoline, whose pollutant particles are 0.5 ppm. That is while global standards accept up to 10 ppm, he added.
He said: “We are producing 17 ml/d of clean gasoline at the Arak refinery, 12 ml/d at the Isfahan refinery and 3 ml/d at the Tabriz refinery. We are totally producing 79 ml/d of clean gasoline.”
Sadeq-Abadi said: “That is while the refining process clears Euro-grade standards. So how can we say sulfur, benzene and aromatics are not removed from this gasoline? Undoubtedly, we have to look for the problem in the substandard combustion systems of cars.”