The head of engineering at Tehran Oil Refining Co. (TORC), Babak Forouzesh Asl, said with the completion of the gasoline quality-upgrading project expected to come on stream next calendar year, Euro-5 gasoline production capacity at TORC would reach 8 ml/d. Furthermore, by setting about construction of a 500MW solar power plant and upgrading environmental infrastructure, the Tehran refinery is turning into a model where industry, clean energy and social responsibility meet.
€250mn Investment
Forouzesh Asl told “Iran Petroleum” that the gasoline quality- upgrading project started at the Tehran refinery in 2021 to enhance the quality of output to Euro-5 standards. This EPC project is underway by Iranian companies with €250 million investment.
Once completed, this project would bring the refinery’s gasoline production capacity from 6.5 ml/d to 8 ml/d. In addition to upgrading the quality of fuel, it would be a key step in line with legal obligations and boosting the environmental standing of the Tehran refinery.
He said to reduce sulfur pollutants; fuel oil sweetening is under study as a key project. It is designed in collaboration with the “Research Institute of Petroleum Industry” (RIPI), whose construction work is expected to start next calendar year to March 2026.
Due to the extent of the project, this project has potential to absorb both domestic and foreign investment. Acceptable economic indicators including a seven-year rate of return on investment have pushed international companies to join this project.
Electricity Infrastructure
Regarding management of resources, two basic projects for linking the refinery’s power supply network to national grid and recycling urban wastewater are on the agenda.
Connecting the Tehran refinery to national grid is a strategic project aimed at boosting the refinery’s power network stability and security, particularly at peak times. This project can help supply electricity needs under critical conditions while reducing dependence on gas for electricity generation to enhance energy efficiency and reduce pollution.
TORC is also planning to design, install and operate an urban wastewater treatment’s filtration system to supply up to 10,000 cubic meters a day of water to industrial sectors (cooling towers of the Tehran refinery) and also contribute to the water crisis management by earmarking about €14 million in the purchase sector and IRR 1,200 billion in the construction sector.
Officially, drinking water consumption in Tehran stands at 3.3 mcm/d, which would be cut when the previously mentioned project becomes operational.
Under this project, the refinery, in collaboration with the Water and Wastewater Authority, would use the urban wastewater treatment station for industrial purposes. In addition to reducing dependence on urban water, this measure would save water consumption in Theran by 1.5%. Both projects are expected to come online in the current calendar year.
500MW Solar Plant
TORC has signed a 500MW power plant construction agreement with the Ministry of Energy’s Renewable Energy and Energy Efficiency Organization (SATBA) to diversify energy resources and play an active role in clean energy development. TORC would be the first oil refining company in the country to build 4 solar farms with a total capacity of 500MW. This project is under construction at three locations around Tehran and one location in Yazd. The project is valued at $250 million. All necessary environmental permits, as well as technical licenses for linkage to the national grid have been obtained. Forouzesh Asl has said the project may be implemented within two years, noting its attractiveness to local and foreign investors due to selling electricity to the government in hard currency. He said it was a beginning of the Tehran refinery’s involvement in renewable energies, adding long-term plans were underway for further development in this sector.
Regular Renovation
The now decades-old Tehran oil refinery regularly implements major overhauls to improve the efficiency and safety of its units. These overhauls aim to increase reliability, reduce long-term maintenance costs, reduce emergency repairs of equipment and units, increase the useful life of components and equipment, reduce safety and environmental risks, and improve the efficiency of processes. Among the impacts of these repairs on the environment, which these days seem to be much more important than in the past, we can mention the improvement of the performance of treatment units, such as desulfurization, reducing the emission of sulfur and nitrogen compounds, which reduces the volume of suspended particles produced, and overall pollutant emissions are reduced as a result of this action.
Forouzesh Asl said: “Renovation in this refinery is a daily process. Depending technical and operational needs, the equipment is replaced or optimized.” He added that more than 90% of equipment needed at the Tehran refinery was supplied by domestic manufacturers, adding that some specific equipment like compressors or instruments were imported.
With a refining capacity of 250,000 b/d, the Tehran refinery is a main pillar of fuel supply in Iran. By implementing transformative projects in quality upgrading, development of renewables, managed consumption of water and power and equipment renovation, the refining facility is growing into a leading, sustainable and technological refinery. Increasing the Euro-5 gasoline output capacity to 8 ml/d, operating a solar power plant and reducing dependence on the urban water resources are just part of plans depicting the future of this refinery.
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