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The Multi-billion Dollar Barsu Refinery Undermines India’s Net-Zero Commitments 

By Aayushi Sharma

Hundreds of villagers in Ratnagiri district of Maharashtra are protesting against the proposed Ratnagiri Refinery and Petrochemical Limited at Barsu. A multi-billion dollar Ratnagiri Refinery and Petrochemicals Limited (RRPCL) project is proposed in the Ratnagiri district of Maharashtra. It is implied that this project has the potential to be the world’s largest single location refinery complex. 

Recently, the Maharashtra government started conducting soil tests at the Barsu village in the Ratnagiri district to check if the site was suitable for the proposed project. The project, according to the residents, would affect their livelihood and damage the Konkan region’s terrestrial and marine biodiversity. 

About the project:

The project, which is a joint venture between Indian Oil Corporation Limited, Abu Dhabi National Oil Company (ADNOC), Bharat Petroleum Corporation Limited, Saudi Aramco, and Hindustan Petroleum Corporation Limited, is anticipated to have an annual capacity of 60 million tonnes. The project was first proposed in 2014, and it is expected to cost about Rs. 3 lakh crore. A 2018 MoU between Indian PSU Oil companies with Saudi Aramco and ADNOC describes the shareholding pattern as follows: Aramco and Adnoc are to hold 50 per cent in the project, while IOC has a 25 per cent stake. The remaining 25 per cent is split equally between BPCL and HPCL. Additionally, they decided to work together to construct and expand the refinery and petrochemical complex. To address India’s rapidly expanding petrochemical demand, the project also aims to create a variety of downstream petrochemicals. Initially, Nanar, which is roughly 20 kilometers from Barsu, was where the project was scheduled to start but later the site shifted to Barsu. 

The image shows the site of Barsu protest

Why are villagers protesting against the project?

Many locals from Barsu-Solgaon and surrounding villages are protesting the government’s choice because they are worried about the possible effects on the environment and the way of life in their neighborhoods. The project’s location is in an ecologically delicate area with a number of indigenous plant and animal species. Large mango orchards, jackfruit, and cashew farms can all be found in the Konkan region. The project would require 6,200 acres of land from Ratnagiri and neighboring Sindhudurg districts. The refinery and petrochemical complex, which is anticipated to generate a significant amount of pollutants, have raised concerns among the villagers regarding potential health risks.

Many farmers expressed worry that if their land is taken for the project, they would lose their main source of income. Locals argue that the project should be relocated to areas of the State that are more arid, such as Marathwada and Vidarbha.

People protesting against the proposed oil refinery project in Ratnagiri district. Image : Google

 What is the state’s opinion on this issue?

The residents of six villages began receiving land acquisition letters from the Shinde-Fadnavis administration in November 2022 in order to acquire the first 2,220 acres of property under Chapter 6 of the Development Control Rules of the Maharashtra Industrial Development Corporation (MIDC). It has been a prominent proponent of the project and stated that it will help reduce India’s reliance on crude oil imports, enhance the economy, in addition to creating direct and indirect jobs for more than a lakh people. While the BJP has remained silent regarding the recent events in Barsu, Chief Minister Eknath Shinde declared that the project would not be carried out without the approval of the local populace.

What are the possible Environmental Hazards due to petroleum refineries?

Refineries are considered a major source of pollution in areas where they are situated. They are regulated by a number of environmental laws related to air, land and water. 

• Air pollution hazards: Petroleum refineries are a major source of hazardous and toxic air pollutants such as BTEX compounds (benzene, toluene, ethylbenzene, and xylene). They are also a major source of criteria air pollutants: particulate matter (PM), nitrogen oxides (NOx), carbon monoxide (CO), hydrogen sulfide (H2S), and sulfur dioxide (SO2). Less hazardous hydrocarbons like natural gas (methane) and other light volatile fuels and oils are also released by refineries. These gasses has high global warming potential and contribute to climate change.

 Some of the chemicals released are known or suspected to be carcinogens and to be the cause of reproductive and developmental issues. 

Additionally, they might make some respiratory conditions worse, like asthma in children. In addition to the potential health consequences of exposure to these substances, locals may become anxious and afraid of them. In a petroleum refinery, air emissions can come from a variety of places, such as equipment leaks (from valves or other components), high-temperature combustion processes during the actual burning of fuels to produce electricity, the heating of steam and process fluids, and the movement of products. Over the course of a year, these pollutants are typically released into the environment through regular emissions, fugitive releases, unintentional releases, or plant upsets. One of the most significant issues with air pollution is ozone generation. Ozone generated from ground level is found in smog. It is a result of the interaction of volatile hydrocarbons and nitrogen oxides.

The diagram shows how pollutants from the refinery accumulate to form compounds that leads to ozone depletion, toxicity in the environment and ultimately is a cause of climate change

Water pollution hazards: Refineries are also potential major contributors to groundwater and surface water contamination. The wastewater produced inside the facilities is sometimes disposed of by refineries via deep injection wells, and some of these pollutants wind up in aquifers and groundwater. Given the variety of sources wastewater in refineries might come into touch with during the refining process (such as equipment leaks and spills and the desalting of crude oil), wastewater in refineries may be highly polluted. This polluted water may be stormwater, distillate, desalting process wastewaters, cooling tower water, or cracking wastewaters. It might include hazardous pollutants like oil residues and many others. Before being discharged into surface waters, this water undergoes numerous treatment procedures, including a wastewater treatment facility, during the course of the refining process.  Water Prevention and Control of Pollution Act, 1974 apply to the wastes that are released into surface waters. The levels of sulfides, ammonia, suspended particles, and other compounds that may be present in the wastewater are constrained by these discharge criteria. Even though these regulations are in place, there may occasionally be severe contamination from previous emissions in surface water bodies. 

Soil pollution hazards:  In comparison to air and water pollution, soil contamination from refining operations is often a less serious issue. The refinery’s premises may have experienced spills as a result of previous manufacturing procedures, which now need to be cleaned up. In contrast to many other pollutants, natural microorganisms that may eat the petroleum products are frequently efficient at cleaning up petroleum spills and leaks. During the refining processes, a lot of residuals are created, and some of them are recycled at different stages of the procedure. Other leftovers are gathered and dumped in landfills, or they could be salvaged by additional facilities.

Leaks, accidents, or spills on or off site during the shipping process might contaminate the soil with some hazardous wastes, used catalysts or coke dust, tank bottoms, and sludges from the treatment operations.

One of the protesters, Satyajit Chavan of the Konkan Vinashkari Prakalp Virodhi Samiti said, “Once the project commences, mango orchards, cashew and other plantations in the region will be destroyed within months due to chemicals. Our opposition to the project is on bigger issues concerning the environment and the possible damage this project would do to the Konkan coastline”.

What is the expert’s opinion on the issue?

Dr. Nandini Das, Energy research and Policy Analyst told CFC India that, 

“India’s NDCs emphasize the development and deployment of renewable energy sources. Investing in oil refineries would divert financial and other resources away from renewable energy projects, slowing down the transition to cleaner energy. To achieve India’s NDCs and transition to a net-zero economy, it is crucial to prioritize investments in renewable energy, energy efficiency, and sustainable infrastructure while phasing out fossil fuel-based projects like new oil refineries.”

“1.5°C compatible scenarios require a phase-out of fossil fuels by 2040 for India. Oil refineries typically have a long lifespan, often lasting for several decades. However, in a net-zero transition, there will be a reduced demand for fossil fuels, including refined oil products, over time. Investing in new oil refineries may result in stranded assets – facilities that become obsolete or unprofitable due to changing market conditions. This can lead to financial losses and economic inefficiencies. As a global leader, India has committed to achieve bet zero by 2070. By aligning with the Paris Agreement’s goals and striving for net-zero emissions, India can demonstrate its commitment to addressing climate change and inspire other nations to follow suit. Investment in oil refineries could undermine this leadership role and hinder progress toward a sustainable future.”, Dr. Nandita Das added. 

References:

Image Source:https://www.transcontinentaltimes.com/proposed-oil-refinery-project-barsu/

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