Iran Looks at Saving Fuel

Iran’s Fuel Conservation Organization plans to spend over $16bn on improving energy efficiency projects to save $170bn – over ten times more – in fuel.

According to official documents which have been obtained by NGE, fuel conservation projects will also reduce greenhouse gas emissions by 1188mn mt over the implementation period (see table 1).

At present, Iran consumes as much as 1.6bn barrels of oil equivalent/yr, 70% of which is natural gas. In all oil products and gas account for 96% of Iran’s total energy use.

Huge costs of energy and high subsidies cost the government $80bn/yr, while air pollution costs another $16bn/yr based on the World Health Organization’s report. These costs have forced the government to accelerate the implementation of fuel conservation projects.

Greenhouse gas emissions in Iran amount to 600mn mt/yr, making it the world’s seventh largest.

Table 1

Iran is in talks with European companies, especially from Germany and Spain, on energy-saving projects, but no important deal has been signed yet. Most of the projects that are underway have been transferred to domestic companies. With the lifting of sanctions in January, deals may follow.

According to the documents, the Iranian Fuel Conservation Organization’s measures taken to save energy or replace dirty sources with cleaner alternatives, have led to the following achievements: 

Table 2

Source for both tables: government

Iran desk