US Petcoke Industry to Lose Big Bucks as India Decides to Ban Imports

Many Indian industries are heavily dependent on petcoke imported from the US, even as American companies themselves do not use the “dirty” fuel, which emits more greenhouse gases than coal.

New Delhi (Sputnik) — Dealing a blow to US companies that heavily export Petroleum Coke (Petcoke) to India, the Narendra Modi-led government has decided to ban the import of this "cheap and dirty by-product of heavy crude" that fuels many Indian industries. Filing an affidavit on Monday before the country's apex court that has been hearing a petition seeking a blanket ban on the use of petcoke by industries, the Indian government said it was willing to ban the import of this product on environmental grounds.

Petcoke generates more heat than coal but emits 11 percent more greenhouse gases. Burning it also emits several times more sulfur dioxide, which causes lung diseases and acid rain. According to official statistics, last year India imported more than 8 million metric tons of petcoke from US refiners even as the US has banned domestic companies from using this by-product of heavy crude. 

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India's Ministry of Petroleum and Natural Gas has admitted in its affidavit that petcoke should not be used as fuel. The ministry has, however, sought an exemption for the cement and lime industry that uses petcoke as a desulphurizing agent and not as fuel and the power industry that uses the product only once or twice a year.

The court had banned the use of petcoke in Delhi and the National Capital Region in October this year to curb air pollution, which hovered at life-threatening levels. The Supreme Court of India will continue to hear the current matter on December 13 during which it is expected to deliver its final order on banning the use of petcoke across the country.