Mehdi Dej-Hosseini stated that these projects aim to complete the value chain of products, improve refining processes, address operational bottlenecks, drive digital transformation, and manage physical assets. Each megaproject includes over 20 sub-projects.

Dej-Hosseini explained that in recent months, a technology and innovation committee was formed at NIORDC, chaired by the CEO and including senior executives, as well as academic and industrial experts. The committee identified five mega projects to address key challenges and advance technology in the refining sector.

The projects focus on completing the value chain of products, enhancing refining processes, resolving operational constraints, implementing digital transformation, and managing physical assets, including preventive maintenance, resilience building, and clean fuels.

Each megaproject is divided into sub-projects, which are prioritized based on input from refineries and subsidiary companies. Priority projects approved by the technology and innovation committee move to the contract signing and execution phase.

Reliance on domestic capabilities

Dej-Hosseini highlighted NIORDC’s 20-year history of research and technology development, emphasizing efforts to meet industry needs through domestic expertise and national scientific capacity.

One notable achievement is the development of catalysts for the residue desulfurization (RCD) unit, which has reached commercialization and is now operational at the Shazand refinery.

Another key project involves the technical know-how for converting fuel oil to needle coke and sponge coke, developed by the Research Institute of Petroleum Industry.

Despite sanctions and limited access to foreign expertise, the Shazand and Bandar Abbas refineries successfully advanced this technology.

The Bandar Abbas refinery is currently building process units for mazutl quality improvement (sponge coke), while the Shazand refinery’s needle coke unit is set to begin operations after obtaining environmental permits.

Self-sufficiency in two imported products

Dej-Hosseini noted that these projects will eliminate the need for importing two products used in the aluminum and steel industries, saving foreign currency and boosting refinery profits while supporting domestic production.

He added that only one of the 12 types of catalysts required by the refining industry is not produced domestically. Producing hydrocracking catalysts is a key future goal for NIORDC, outlined under the mega projects for refining process improvement and operational bottleneck resolution. The company aims to collaborate with knowledge-based firms to address this need.

Quality improvement of mazut

Several research projects with knowledge-based companies are underway to enhance fuel oil quality, including oxidation (ODS) and hydrogenation (HDS) methods. A desulfurization project at the Lavan refinery, developed with a domestic company, has reached the testing phase.

After a 40-day trial, the pilot project achieved low-sulfur fuel oil standards at lower pressure and temperature compared to foreign models, marking a significant research milestone.

Focus on smart supply chain

Dej-Hosseini emphasized the importance of using hydrogen as a clean fuel, converting naphtha to gasoline, transforming sulfur into valuable products, and completing the carbon dioxide value chain.

In digital transformation, NIORDC is working to smarten the supply chain from refineries to transportation, storage, and distribution, aiming to minimize resource and energy waste through precise monitoring.

Support for domestic production, NTBFs

Under Note 18 of the 1401 budget, NIORDC introduced 11 new technology-based firms (NTBFs) to the Oil Research and Technology Fund and provided 150 billion tomans in facilities to support them.

Additionally, NIORDC is establishing a corporate venture capital fund to finance mega projects, leveraging refinery capacities to accelerate research initiatives.