The Energy Start-Up Summit 2021 saw experts discuss new innovations and possibilities in the area of fuel distribution.
Story by team CV
A little known Pune-based company Repos Energy made news last year because of its unique business model to deliver fuel to the doorstep of those who need it to run their machines — CVs, tractors, etc. On May 01, 2020, the company kicked off an initiative to deliver diesel fuel to the doorstep of farmers in Pune district for their farm equipment. In five talukas of Pune district, Repos Energy’s four mobile petrol pumps (bowsers) dispensed diesel to over 10,000 farmers in a brief span of 18 days. It pressed into service truck (on Tata Ultra 1014 chassis) bowsers to support the farmers during the lockdown, and against the backdrop of the fast approaching sowing season. Since then, much water has flown under the bridge. When the experts in the field of fuel distribution met recently at the Energy Start-Up Summit 2021, they discussed the challenges and opportunities in the fast-emerging business sector. They discussed how the initiative of doorstep fuel distribution would support mechanisation of agricultural and construction equipment among others. They also discussed about how such
an initiative could help curb CO2 emissions.
Taking heed of the rapid shift in fuel distribution, Sateesh Machiraju, Head – Sales & Marketing, ILCV Trucks, Tata Motors, expressed that he expects more start-ups to enter. “Over 80 per cent of the supply of pure liquid fuels would be on wheels in the next five years,” he stated. Of the opinion that the future of energy distribution in India is bright, Machiraju mentioned that the demand for diesel fuel has been rising steadily. He added that Tata Motors is helping Repos Energy to build an ecosystem. Matt Powers, Business Development Manager, Gilbarco Veeder-Root, averred that a significant shift in fuel distribution began in 2018 with the advent of electric vehicles. In 2019, the trend to supply fuel to the doorstep of those who find it difficult to get their machines to the fuel station was quite evident, he quipped.
Praising the development of mobile fueling in India, Powers informed that new technology is finding its way into gas stations, and in the area of fuel distribution. Mobile fuel distribution trend is catching up the world over, he said. With an ability to bring about a big change in bowser and fuel dispensing technology, the aspect of mobile fuel distribution is leading to new experiments and prototypes every now and then, Powers added. He remarked further, that the benefit of this would further enhance the efficiency of fuel distribution. Of the view that companies could act as a hub or portal fuel site where the bowser could deliver it to the point of use, Powers pointed at a distribution model
that would well-serve businesses like mining and construction companies.
Stating that mobile fuel distribution companies will profit from trends like rising farm mechanisation, Powers mentioned that it would lead to a considerable reduction in carbon footprint. About carbon footprint reduction, John Eichberger, Executive Director, Fuels Institute, USA, stressed on the need for efficient fuel distribution. Drawing attention to the rising momentum of carbon pricing, Eichberger averred that some past major oil companies have expressed a preference for carbon pricing mechanism to address emissions since it is much more transparent and easier to understand. He added, “About 20 per cent of global greenhouse gas emission in 2020 was governed by carbon pricing mechanism.” Of the opinion that some markets like India will take time to move away from liquid fuels despite a big push towards electric vehicles, Eichberger said that diesel fuel distribution should be done such that its quality is not lost while being transmitted.
Said Manish Sinha, Deputy General Manager (C&PJ), Indian Oil Corporation Ltd. that his company has funded around 15 start-ups connected to different aspects of the energy sector. Many applications were for fuel delivery bowsers, he informed. Announcing that Indian Oil is working with many start-ups, Sinha averred significant progress has been achieved after delivery at the door step was given permission in 2019. Pointing at a series of changes made in the policies and regulations governing fuel retailing in the country, he explained that his company was working with start-ups to take to the market new business ideas that would elevate business prospects of the entire value chain. Expressed Amitabh Kant, Chief Executive Officer, NITI Aayog, that energy demand over the past few decades has steadily increased across all sectors. He informed that India’s per capita energy consumption stands at 30 per cent of the world’s average, which is 0.44-tonnes of oil equivalent consumption per capita versus the global average of 1.9-tonnes of
oil equivalent.
Highlighting the need for energy transition to electric mobility, Kant said that new and emerging growth areas need to be looked at. Founder and Chairman of Praj Industries Ltd., Pramod Chaudhari, said that biofuel would help India reduce carbon footprint. He expressed that India is the third-largest energy-consuming country. It has more than 80 per cent import of crude oil and 40 per cent of LNG, added Chaudhari. Tarun Kapoor, Secretary, Ministry of Petroleum and Natural Gas, Government of India, said that the energy demand of the country was complemented by energy transition. He quipped that the energy transition taking place was however different from those in the other markets. Stating that developed countries have reached the level where they don’t need more energy, and are focusing on renewable energy and fossil fuel-based energy, India is seeking more energy from fossil fuels even as it looked at renewable energy sources and moves over to them over the years. Of the opinion that mobile fuel dispensing sector will grow, Kapoor said that start-ups should be supported for their ability to bring new ideas to the table. “Budding entrepreneurs should track the international market and brainstorm new ideas,” he signed off.
