NEED OF HYDROGEN FUEL

Primary Sources: Primary Data till date has been collected on the basis of the focus group discussion and face to face interviews.

FOCUS GROUP DISCUSSION

FGD was conducted to infer the attitude and viewpoints of target population towards introduction need of Hydrogen fuel in todays Scenario. FACE TO FACE INTERVIEWS They were conducted with the faculty members of IBS so as to have a deep insight in the opportunity. Secondary Sources: Secondary Data Sources being used in research include Manuals, Research Papers, Brochures Websites Journals and Publications

FOCUS GROUP DISCUSSION

A focus group is a qualitative data collection method in which one or two researchers and several participants meet as a group to discuss a given research topic.

OBSERVATIONS OF FOCUS GROUP DISCUSSION :

Most of the participants wish for a cleaner environment. People conscious about energy preservation. Prefer less travel through vehicles Believe in technology usage. .

People find renewable sourse as a savior for coming generation. They want to adopt the renewable sources for maximum products The time frame for development of such alternate resources is a major issue Talking about prices customers were willing to pay extra to avail this service however they said that if the base price increase then the demand will decrease.

Few people also suggested introduce such services in government aided vehicles buses. In addition it will help to reduce the the pollution. For such products ,initial step to be taken by government. Finally people were positive to adapt this service as they believe this will be a value added Product as it will provide them a healthy environment/

WHATS NEXT??
With depleting oil resources and degradation of atmosphere we are planning to go green. As an alternative to fuels the company decided to work on hydrogen fuel cell technology, production of hydrogen on mass scale through various processes, technological upgradations in the development and analysis of key physical component, the catalyst. TOTAL ENERGY CONSUMPTION (www.eia.doe.gov/oiaf/ieo) The average annual rate of energy consumption, and the gross domestic product have been growing at a significantly greater rate in India COUNTRY 1999 2005 2010 2020 % DAMAGE USA JAPAN 96.7 21.7 107 22.8 114.1 23.5 120.7 26 13 0.9

CHINA INDIA

32 12.2

43.2 15.5

55.3 18.4

84.1 26.1

4.7 3.7

In India , the 2 and 3 wheelers are mainly responsible for th airs poor quality.Conversion of some vehicles to run on hydrogen fuel wil improve the quality dramatically.With the advancement of industry towards a hydrogen economy production of such alternative sounds positive.

HYDROGEN ENERGY
Hydrogen holds the potential to provide a clean and reliable source of energy that can be used in a wide range of applications, including the transport sector and power sector mainly. The road map is to identify the path that would lead to gradual introduction of hydrogen energy in India. The road map also aims to accelerate commercialization efforts and facilitate creation of hydrogen energy infrastructure in the country. With the progress in technology , a lot of focus is being put on development and demonstration of hydrogen energy and fuel cell technologies. Hydrogen ProductionTechnologies Hydrogen does not exist by itself in nature.It has to be produced from hydrocarbon compounds.It can also be produced from available resources including natural gas and nuclear , Biomass and other renewable including solar , wind , hydro-electric or geothermal energy. The development of fuel from renewable sources clean , sustainable and cost-competitive hydrogen production processes.The production can be done frm three different process :
Thermal Processes Electrolytic Process Photolytic Process

WHY IOCL ?

In March 2010, IOC entered into a limited liability partnership agreement with Ruchi Soya Industries, a leading manufacturer of edible oils. The agreement sought to establish a model biodiesel value chain for production of bio-diesel in Uttar Pradesh and covered nursery management, contract farming and oil seed processing. Further in March 2010, IOC signed a MoU with Honeywell International for collaboration on research and development for a range of biofuels technologies and projects in India Hydrogen fuel : The product can be manufactured under GIP (Green Initiative for Power Generation) programme of the company with a tie up with IIT-Madras and SPIC-SF as they are the two major institutes which are working on hydrogen and fuel cell technology. It will involve the development and demonstration of fuel cell power packs (50-100 kW).
Product feasibility: Hydrogen-fuel-cell-powered cars are the best alternatives to polluting,

gasoline-powered cars for several reasons: o The cars are completely emission-free o The fuel cells have no moving parts o Hydrogen is renewable and abundant o The cars are compatible with cold weather o The fuel cells are compact and lightweight--not overly bulky or heavy o The cars are about 3 times as efficient as gasoline-powered cars o The cars will have incredible mile ranges o The tanks will be refueled quickly o Hydrogen is safe, has been tested rigorously for use in vehicles, and is being used in many vehicles already.

 Strong Research & Development Capabilities: IOCs R&D Centre has made successful

developments in lubricants formulation, refinery processes, pipeline transportation, and alternative fuels. Indian Oil Technologies, a wholly-owned subsidiary, commercializes the innovations and technologies developed by IOCs R&D Centre. The centre is also the nodal agency of the Indian hydrocarbon sector for developing hydrogen fuel usage in the country. The centre is setting up a commercial hydrogen-compressed natural gas (CNG) station at an IOC retail outlet in New Delhi. It holds 214 active patents, including 113 international patents.

SEGMENTATION, TARGETING AND POSITIONING

SEGMENTATION
The fuel market has been segmented on the basis of various factors which are shown as follows:
ON THE BASIS OF RESOURCES USED

RENEWABLE RESOURCE RESOURCE

NON-RENEWABLE

ON THE BASIS OF GEOGRAPHY

EAST INDIA WEST INDIA FOREIGN COUNTRIES

NORTH INDIA SOUTH INDIA

CENTRAL INDIA

ON THE BASIS OF INDUSTRY TO BE SERVED

AUTOMOBILE INDUSTRY OTHERS

TELECOM INDUSTRY

POWER SECTOR

ON THE BASIS OF NATURE OF EXISTING RELATIONSHIPS

EXISTING COMPAMIES WITH STONG RELATIONS DESIRABLE COMPANIES

EXISTING COMPANIES

ON THE BASIS OF PURCHASING CRITERIA OF CUSTOMER

QUALITY

SERVICE

PRICE

ON THE BASIS OF SPECIFIC APPLICATION

AUTOMOBILE FUEL BATTRIES, ETC.

POWER GENERATOR

OTHER UTILITIES

ON THE BASIS OF ATTITUDE TOWARDS RISK

RISK SEEKER NEUTRAL

RISK AVERSE

RISK

THE BASIS OF SEGMENTATION Resources Used Geography

CATEGORIES Renewable Resource Non-renewable resource East India West India North India South India Central India Foreign Countries Automobile Industry Telecom Industry Power Sector Others Existing Companies with Strong Relations Existing Companies Desirable Companies Quality Service Price Automobile Fuel Power Generator Other Utilities Batteries, etc. Risk Seeker Risk Averse Risk Neutral

Industry to be Served

Nature of Existing Relations With Customer

Purchasing Criteria of Customers

Specific Application

Attitude Towards Risk

TARGETING
The highlighted part in the segmented market shows the target market of the company.
ON THE BASIS OF RESOURCES USED

RENEWABLE RESOURCE RESOURCE

NON-RENEWABLE

ON THE BASIS OF GEOGRAPHY

EAST INDIA WEST INDIA FOREIGN COUNTRIES

NORTH INDIA

SOUTH INDIA

CENTRAL INDIA

ON THE BASIS OF INDUSTRY TO BE SERVED

AUTOMOBILE INDUSTRY OTHERS

TELECOM INDUSTRY

POWER SECTOR

ON THE BASIS OF NATURE OF EXISTING RELATIONSHIPS

EXISTING COMPAMIES WITH STONG RELATIONS DESIRABLE COMPANIES

EXISTING COMPANIES

ON THE BASIS OF PURCHASING CRITERIA OF CUSTOMER

QUALITY

SERVICE

PRICE

ON THE BASIS OF SPECIFIC APPLICATION

AUTOMOBILE FUEL BATTRIES, ETC.

POWER GENERATOR

OTHER UTILITIES

ON THE BASIS OF ATTITUDE TOWARDS RISK

RISK SEEKER NEUTRAL

RISK AVERSE

RISK

The target market of IOCL is classified on the following basis: Industry: the hydrogen cell of IOCL will initially cater to the automobile industry as the company is already into the production of hydrogen fuel and targeting other sectors would require the advancement of technology. Geography: Initially the company is targeting the capital region of the country seeking the help of the government. However, the product will be made available at other metropolitan cities in the near future with the success of the project. The company is also making the presence of its product felt in the entire country by tying up with Mahindra & Mahindra and TATA Motors by implementing its hydrogen fuel cell kit in its certain specified models.

Resources used: the product will act as a substitute to the exhaustible sources of energy. Power structure: Serve companies that are engineering dominated. Nature of existing relationships: apart from just focusing on existing strong 3relationships the company would concentrate more on desirable companies. Purchasing criteria: Serve companies that are seeking quality and service? Specific application: focusing on a specific application initially rather than all applications. Size or order: Depending on the size of fuel cell required for specific application.

POSITIONING
As IOCL in itself has a great brand name and standing for itself in the market, its new product i.e. the hydrogen fuel cell will be able to bring revolution. Act of designing the companys offering and image to occupy a distinctive place in the minds of the target markets. The goal of positioning is to locate the brand in the minds of the consumer. IOCL has the biggest advantage of its name which it can use for capturing a huge chunk of the hydrogen fuel cell market. POSITIONING MAP

zero CNG LPG low (Pollution caused) medium Coal wood Petroleum Diesel kerosene

Hydrogen fuel

high Low Medium (Energy Efficiency) High

FUTURE PROSPECTS
The hydrogen fuel cell of IOCL has the potential of developing into a full fledged alternative to automotive fuel in the future. Studies say that As the research and development activities go on the cost of hydrogen is expected to be brought down to Rs. 70 / kg at the fuelling station or actual point of use. Studies say that by 2020 there will be large scale use of hydrogen based Engines and fuel cells for power generation. Also, there are expected to be one million hybrid vehicles on road by 2020.
All these findings point out that there is a huge scope of hydrogen fuel being used on a

large scale as an ultimate inexhaustible source of energy for power generation in the country, environment friendly automobiles and other energy requirements. This would further dominate in future as an energy resource decreasing the dependency of the country on International player for the same. Thus it can be said that development in hydrogen fuel can lead to great profit earnings for the company and so we can say that the hydrogen fuel cell of IOCL will prove to be a very successful product for the company.