Biodiesel Process Economics AKGupta

7/30/2019 Biodiesel Process Economics AKGupta

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BIODIESEL: PROCESS ECONOMICSA K GuptaEx Scientist GIndian Institute of Petroleum, India

Introduction

Biodiesel is the name of a clean burning alternative fuel, produced from

domestic, renewable resources. Biodiesel contains no petroleum, but it can be

blended at any level with petroleum diesel to create a biodiesel blend. It can be

used in compression-ignition (diesel) engines with little or no modifications.

Biodiesel is simple to use, biodegradable, nontoxic, and essentially free of sulfur

and aromatics.

Biodiesel is produced from any fat or vegetable oil. The process involves areaction of the oil with an alcohol to remove the glycerin, which is a by-product of

biodiesel production. Fuel-grade biodiesel must be produced to strict industry

specifications.

Biodiesel can be used as a pure fuel or blended with petroleum in any

percentage. B20 (a blend of 20 percent by volume biodiesel with 80 percent by

volume petroleum diesel) has demonstrated significant environmental benefits

with a minimum increase in cost for fleet operations and other consumers.

The use of biodiesel in a conventional diesel engine results in substantial

reduction of unburned hydrocarbons, carbon monoxide, and particulate matter

compared to emissions from diesel fuel. In addition, the exhaust emissions of


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sulfur oxides and sulfates (major components of acid rain) from biodiesel are

essentially eliminated compared to diesel.

The use of biodiesel results in a substantial reduction of unburned hydrocarbons.

Emissions of nitrogen oxides are either slightly reduced or slightly increaseddepending on the duty cycle of the engine and testing methods used.

Biodiesel reduces net CO 2 emissions by more than 70 percent compared to

petroleum diesel. This is due to biodiesels closed carbon cycle. The CO 2

released into the atmosphere when biodiesel is burned is recycled by growing

plants, which are later processed into fuel. Is biodiesel safer than petroleum

diesel? Scientific research confirms that biodiesel exhaust has a less harmful

impact on human health than petroleum diesel fuel.

In general, the standard storage and handling procedures used for petroleum

diesel can be used for biodiesel.

Biodiesel can be operated in any diesel engine with little or no modification to the

engine or the fuel system. Biodiesel has a solvent effect that may release

deposits accumulated on tank walls and pipes from previous diesel fuel storage.

The release of deposits may clog filters initially and precautions should be taken.

Ensure only fuel meeting the biodiesel specification is used.

ECONOMIC FACTORS

Depending upon the price of feed vegetable oil presently, Biodiesel is 1.5 2

times costlier than petro-diesel; cost of vegetable oil accounts for about 75% cost

of production of biodiesel. Due to the higher cost biodiesel and biodiesel-diesel

blends have not penetrated the market. To have a greater impact on the IndianFarm/ Rural sector biodiesel may have to compete with petro-diesel. Availability

of non-edible vegetable oils, in large amounts, at reasonably lower price and

improvements in conversion technology would reduce the cost of biodiesel.

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Commercial Biodiesel Technologies

Currently used technologies for producing biodiesel can be classified into three

categories:

(i) Base catalyzed transesterification with refined oils

(ii) Base catalyzed transesterification with low fatty acid greases and fats

(iii) Acid esterification followed by transesterification of lower or high free

fatty acid fats and oils.

Other process under development include biocatalyzed transesterification,pyrolysis of vegetable oil/ seeds and transesterification in supercritical methanol.

The goal of all technologies is to produce fuel grade esters meeting standard

specifications (e.g. ASTM/ European/BIS). The key quality control issues involve

complete (or nearly complete) removal of alcohol, catalyst, water, soaps,

glycerine and unreacted or partially reacted triglycerides and free fatty acids

(FFA). Failure to remove these contaminants causes the biodiesel to fail one or

more fuel standards.

The basic process involves transesterification of vegetable oil/fats in presence of

a catalyst in batch or continuous mode. Continuous process may not be suitable,

if the variation in quality of feedstocks are wide.

There are numerous variations of basic technology:

Different catalysts e.g. NaOH, KOH, MeONa, Non alkaline catalysts,acids, metal complexes and bio catalysts etc. can be used.

Anhydrous ethanol, isopropanol or butanol can be substituted for

methanol.

Alcohols other than methanol may require additional process steps and

quality control.

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Basic transesterification is carried out at atmospheric pressure and

temperature around 60-70C.

Some technologies use higher temperatures and elevated pressure,

typically in super critical range of methanol.

For high FFA feedstocks acid catalysed esterification followed by base

catalysed transesterification is used or FFA can be removed first and the purified

oil is transesterified.

Majority of commercial processes use base catalysed reaction because it is most

economic for several reasons:

Low reaction temperature upto 100C and pressure up to 10 bar.

High conversion (~98%) and minimal side reactions and reaction time.

Direct conversion to methyl esters with no intermediates.

Exotic material of construction are not necessary.

Problems of Biodiesel Production

Both base and acid catalyzed processes are associated with several inherent

problems:

Free fatty acids interfere with transesterification deactivate the basic

catalysts loss of catalyst and biodiesel yield.

Water deactivates both basic and acidic catalysts. Drying of oil may be

required.

Soaps formed with basic catalyst form emulsion and foam and difficult toremove.

When processing feedstocks with high free fatty acids additional steps

must be taken.

After basic transesterification, the purification and adequate testing during

processing is required to produce fuel grade esters.

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Appropriate Technology

The selection of appropriate technology for production of biodiesel requires

careful selection of processing steps, catalyst and downstream process

integration. The quality of feed vegetable oil particularly FFA content plays and

important role in identifying the suitable technology.

The important factors to be considered include:

Must be able to process variety of vegetable oils without or minimum

modifications.Must be able to process high free fatty containing oils/ feedstocks.

Most of the non-edible oils available in India contains high FFA (2-12%)

For India non-edible oils obtained from plants which can be grown on

waste/ semi arid lands are more suitable. Species can be selected based on the

regional climatic conditions

Must be able to process raw both expelled and refined oil.

Process should be environment friendly almost zero effluents.

Able to produce marketable by products glycerine, fatty acids, soap if any.

Must be able to produce fuel grade esters; Biodiesel produced should

meet the standard specifications.

The process should be adaptable over a large range of production

capacities.

IIP Processes for Biodiesel India Institute of Petroleum has developed three processes for biodiesel from

non-edible oils and under exploited oils including Jatropha curcas, Pongamia,

Salvadora, Madhuca Indica and Mixed Oils.

Process I

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This process is suitable for feed stocks having FFA content >1% to about 20%.

The oil is pretreated before transesterification at moderate temperature (60-80C)

in presence of a base catalyst. FFA are also converted to biodiesel resulting in

higher yield of biodiesel. Pretreated oil is transesterified with methanol at

60-70C in presence of a base catalyst. Crude Biodiesel and glycerine are

separated and purified by distillation.

Main Features of IIP Process I

Flexibility for processing variety of vegetable oils separately or mixed

without any modification.

Tolerance of higher levels of free fatty acidsConversion of free fatty acids present in feed oils to biodiesel or

alternatively free fatty acids can be recovered as byproduct or soap.

Biodiesel produced meets the standard specification (ASTM, European or

proposed BIS).

Glycerine produced is ~ 99% pure.

Process can be adapted to wide range of production capacities.

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7

Crude glycerine Crude Biodiesel

GlycerineBiodiesel

Oil Pretreatment

Transesterification

Glycerinerefining

Refining

Methanolrecovery

Methanol +catalyst

Vegetable oil


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Figure 1: IIP Processes for Biodiesel Process

I

Process II

This process is suitable for feedstocks having FFA


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2. Transesterification runs

[A] Mode : batch without stirring

Temperature : ambient 10 25C

After separation of glycerin layer, biodiesel recovered by distillation,

bottoms recycled in next batch.

Vegetable Oil : Soya refined, Acid value ~ 1.0 mg KOH/g

Batch size : ~ 450 g (Fresh vegetable + recycle)

Solvent : Methyl ester of soya oil (10% of oil)

MeOH : Oil ratio : 4:1 (mole/mole)

Results Average of 7 consecutive runs

Conversion of oil : 99 + wt%

Yield of biodiesel : 97 wt%(based on oil fed)

[B] Jatropha curcas oil (Acid value 11.6 mg KOH/g)

Average of two runs

Conversion of oil : 92 %Yield of biodiesel : 84 wt%(based on oil )

By product Fatty acids

Note: This process allows simultaneous production of biodiesel and FFA

separation

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10

Glycerine separation

Biodiesel

Removal of FFA(Optional)

Transesterification

GlycerineBiodiesel

purificationSolvent

Recycle

Solvent

Oil Feed

MeOH + Catalyst

IIP PROCESS II

using solvent


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GENERAL COMMENTS ON PROCESS II

The studies carried out established the following:

- Transesterification, at ambient conditions, is feasible using the solvent

(Ester of fatty acids)

- Reaction proceeds well even at temperatures as low as 5-8C. Total

reaction and settling time 6-8 h. (depends upon temperature)

- No stirring is required; The reactant form a single phase, thus mass

transfer limitations are eliminated. Initial mixing of MeOH, oil, solvent and alkaliis however necessary.

- Experiments with various oils like soya refined oil, Jatropha curcas and

Mahua oil having upto acid no. 19.0 have been carried out.

- Vegetable oil containing FFA (acid no. upto about 12) could be processed

without any difficulty. At higher FFA the reactant mixture becomes viscous and

this hindered the separation of glycerin.

- NaOH/KOH suitable as catalyst.- Product separation and purification possible by distillation/ water washing.

Distillation preferred as it increased the yield of biodiesel, by converting recycled

distillation bottoms to biodiesel.

- If water washing is used additional step of biodiesel drying needed.

- Product biodiesel met the specifications.

- FFA, if present in oil is recovered as by product with glycerin.

- Process tested with fresh oil as well as with recycle of distillation bottoms

along with fresh oil in batch mode. 7 cycles of recycle have been tested.

Scale up issues

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Batch scale reactors may be large L/D tanks with external

circulating pump for initial mixing of reactants.

For larger plants continuous process may be desirable. (Feasibility

for continuous operation needs to be established). Static mixers /

CSTR followed by settlers.

Down stream separation steps can be designed using standard

available methods/ software packages.

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II

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II

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Process III

IIP heterogeneous Biodiesel Process

Indian Institute of Petroleum has developed a novel heterogenous catalyst and

process to produce biodiesel under a research programme partially funded by

The Department of Biotechnology. The process in ecofriendly and produces

biodiesel meeting the current International and National specifications.

This process is suited to feedstocks containing wide range of FFA or 100% FFA.

In this process esterification of FFA and transesterification of triglycerides is

carried out in a single step over a proprietary catalyst at moderate temperature

and pressure. The catalyst is recycled and glycerine is obtained as by product.

Biodiesel and glycerine are purified by distillation. The process is suitable for

producing both methyl or ethyl ester.

Table -1Comparison of Biodiesel produced by IIP Process with National &International Specifications

Characteristics ASTM-D6751-02

BIS,India

Jatropha CurcasMethyl Ester

Karanja OilMethyl Ester

Mahua OilMethyl Ester

Density, 15C, g/cc - 0.86-0.90 0.8887 0.98944 0.8808Kinematic Viscosity @ 40C cSt 1.9-6.0 3.5-5.0 4.55 5.07 5.13Flash Point, C, closed cup, min 130 120 135 174 150Sulfated Ash content Max., wt

%, max

0.02 0.02 0.008 0.002 0.002

Water content, mg/kg, max 500 500 250 200 275Sulphur max. mg/kg, max 50 50


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Acid Number, mgKOH/g, max 0.8 0.8 0.5 0.6 0.58Carbon residue, wt% max 0.05 0.05 0.013 0.025 0.014Cetane number, min -- 51 56.6 -- --Methanol, % mass, max - 0.20


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Esterification &

Transesterification

Methanol Recovery

Phase Separation

Glycerin Phase

Glycerin Refining

Glycerin

BiodieselPurification BIODIESEL

FreshVegetable Oil

FreshMethanol

RecycleMethanol

Figure 3 : Process Flow Scheme for Biodiesel ProductionHETREGENEOUS CATALYST


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Catalyst

The IIP process uses a unique heterogeneous catalyst which catalyses

transesterification and esterification simultaneously and provides improved

selectivity and unit flexibility and suppresses corrosion and by product formation.

No pretreatment of vegetable oil is necessary to remove FFA. The catalysts also

convert FFA into biodiesel.

Catalyst I Catalyst - II

Feedstocks

Vegetable oils having FFA content upto 5%. Methanol purity is normally at least

99.85 wt%, however oils with higher FFA can be readily processed and lower

purity methanol can be processed. Use of other alcohols e.g. Ethyl alcohol, Butyl

alcohol in place of methyl alcohol have been tested and established. The catalyst

also works with aqueous ethyl alcohol (azeotrope of EtOH-water)

Product & by product yields

Conversion of triglycerides and FFA is greater than 99%. Yields ester of over

98% based on Triglycerides and FFA present in the oil are obtained; unconverted

MeOH is recycled. The process is suited to feed stocks containing wide range of

FFA. The process can produce both methyl and ethyl esters. The reaction is

performed at higher temperature and pressure than in homogenous-catalysed

processes; excess alcohol is recovered by flash vaporization, glycerin isseparated in a settler and biodiesel is purified by distillation under vacuum.

Main Features of the process

Flexibility for processing variety of vegetable oils separately or mixed.


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Tolerance of higher levels of free fatty acids. Requires no pretreatment or

removal of FFA.

Conversion of free fatty acids present in feed oils to biodiesel

Tolerance of water in alcohol (aqueous ethanol can be used)

No emulsion or soap formation

Catalyst is recycled when operated in batch mode and is not deactivated

either with water or FFA.

Biodiesel produced meets the standard specification (ASTM, European or

proposed BIS).

Glycerin produced is ~ 99% pure

Process can be adapted to wide range of production capacities.

The process is ecofriendly with almost zero effluents.

Technological/ Economic Benefits

Use of heterogeneous catalyst has direct impact on the economics of biodiesel

production. Several neutralization and washing steps needed for processes using

homogeneous catalysts such as NaOH, KOH, MeONa etc. are eliminated. Cost

of alkali and associated waste streams are eliminated

Typical Results (Bench Scale, Catalyst I)

o Feed oil Jatropha Curcas Oil

Acid value : 11.6 mgKOH/gMoisture : 600-800 ppm

* oil was filtered before use; No pretreatment

o Alcohol Methanol (99.7%)Moisture : 0.2 wt%

Operating Conditions


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Oil to alcohol ratio : 1:10 mol/molCatalyst : 0.6 wt% of feed oil (fine powder, catalyst I )Reactor : 600ml stirred reactor (SS316)Mode of operation : Batch

o Unreacted methanol recovered by evaporation

o Glycerin separated in a settler

o Biodiesel recovered and purified by vac. Distillation

o Catalyst, recovered MeOH and unreacted/partially reacted vegetable oil

recycled.

Yields

o Average Biodiesel yield : 98% based on fresh oil (Expelled oil)

o Physico-chemical characteristics of Biodiesel conforms specifications

Typical Results (Bench scale, catalyst II)

Feed oil JC Oil Acid value : 13.0 mgKOH/g

Moisture : 600-800 ppm

Oil was filtered before use, no pretreatment

Alcohol Methanol (99.7%)

Moisture (0.2 wt%)

Operating Conditions

Oil to MeOH ratio : 1:10 mol/mol

Catalyst : 1 wt% of feed oil (fine powder)

Reactor : 600 ml stirred reactor (SS 316)


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Mode of Operation : Batch

Yields

Average biodiesel yield without recycle 88.0 wt% on oil

Continuous operation in Pilot Plant

Reactor : Fixed-bed, Externally heated; Down flow mode.

Material : SS-316

Catalyst : Catalyst II; extrudates; particle size (mesh 8 + 12)

Range of Operating Conditions

Temperature : 170 200Pressure : 15 25 kg/cm 2g

Vegetable oil flow rate : 60 135 g/h

Catalyst : 741 g

MeOH flow rate : mole ratio 10:1

Conversion (per pass) : 75 88%

Typical results

Temperature : 175C

Pressure : 22 kg/cm 2g

Oil flow rate (soya oil) : 125 g/h

Methanol/ oil ratio(mol) : 10:1

Conversion per pass : 86.8 wt% (without recycle)

(based on oil)

Aqueous Alcohol (Catalyst I)

Use of other alcohols e.g. Ethyl alcohol, Butyl alcohol in place of methyl alcohol

have been tested and established. The catalyst also works with aqueous ethyl

alcohol (azeotrope of EtOH-water)


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Typical Results

Alcohol : EtOH (with 8 wt% water)

Oil : JC oil

Mode of Operation : Batch

Yield of biodiesel without recycle : 70% based on oil


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Typical Results

Catalyst : Catalyst II, extrudates

2.7 wt% of oil

Alcohol : MeOH

Alcohol to oil ratio : 10:1 mol/mol

Mode of operation : Batch

Yield of biodiesel : 88 % based on oil

without recycle

Continuous Operational Data (Pilot Plant)

o Heterogenous catalyst : Catalyst II

(extrudates : 8+12 mesh)

o Reactor fixed bed : 1 diameter, SS-316

o Flow : Down Flow

o Catalyst loading : 470 g

o Vegetable oil & methanol premixed and preheated to 150-170C and fed

to reactor top.

o Same catalyst load used for 7 months

o Typical results :

Effect of operating parameters :

TemperatureC

Pressurekg/m2g

Flow ratemethanol g/hr

Flow rate veg.Oil g/hr

Conversion wt%/ of veg oil

175 23 43 80 74.7190 23 43 80 87.3190 23 43 80 87.8175 23 29 80 75.32175 23 29 80 79.75

Note : Actual conversion of vegetable oil Per pass is more than given in the table

above. The figures of conversion in the least column are actual yields of biodiesel


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obtained after distillation without recycle of unreacted tiglycerides. For evaluation

purposes, over all conversion may be taken as 99% with yield of biodiesel as

98% based on vegetable oil, as obtained in batch runs (data given above).

Batch Distillation Data

Liquid product obtained from the reactor bottom was separated into two layers.

The upper layer containing biodiesel and unreacted oil was distilled under

vacuum (2-3 mm Hg abs. Pressure) in a one plate distillation setup. Top product

(170-200C) was collected as biodiesel. Bottom temperature was 220C max.

Bottom recycled back to reactor.

BIODIESEL PROCESSES :Economic analysis

COST ESTIMATES

Biodiesel Plant (Process I) (Alkali Process with Pretreatment)

CASE I

Annual Capacity TPA (330 Days a Year)= 660 Cost Index Type: CE Cost Index Value

Fixed Capital, CFC 20027000.0Direct Plant Cost

Purchased Equipment, (E) 7000000.0Installation % E 25 1750000.0Instrumentation % E 10 700000.0

Electricals % E 10 700000.0Piping % E 25 1750000.0Building % E 18 1260000.0Yard improvement % E 10 700000.0Service Facilities %E 22 1540000.0

Boiler/Hot water system 3Cooling tower system 1.5

Tube well 1Generator 5


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Miscellaneous 1.5 Piping 25% of above 3

Land %E 6 420000.0Total Direct Plant Cost (DPC)= 15820000.0

Indirect Plant CostEng. & Supervision %E 10 700000Costruction Exp. % E 15 1050000Total DPC+above two =(B) 17570000.0Contractor fees %E 10 700000Contingency % B 10 1757000Total Erected Cost (CFC) 20027000.0

Working Capital 15% CFC or 70% E (Higher) 4900000

Total Capital Investment, CTC, Rs. 24927000.0

Manufacturing Expenses Rs./Yr Rs./ tonDirect

Raw Materials & Cat & ChemicalsBio Oil tons per year 1683.7Bio Oil cost Rs./ton 20000.0 33673469.4 20408.2Methanol tons per year 215.5Methanol Cost Rs./ton 10000.0 2155102.0 1306.1Catalyst tons per year 8.42Cat Cost Rs./ton 25000 210459.2 127.6

By-products Credit GlycerineGlycerine produced, ton/yr 121.22Glycerine Cost Rs./ton 54000 -6546122.4 -3967.3

Operating Labour (3 shifts, 4 men per shift, 3000 p.m/men) 432000.0 261.8

Supervisory & Clerical, 25% labour 108000.0 65.5Utilities 3300000.0 2000.0

ElectricityCooling water

Maintenance & repair (3% of DPC/annum) 822416.4 498.4Operating supplies (15% of maint. & repairs) 123362.5 74.8Laboratory Charges (15% optg labour) 64800.0 39.3Patents & Royalties (1% of total expenses) 171940.0 104.2

Total, ADME 34515427.0 20918.4

IndirectOverhead (payroll and plant packaging,

storage, 60% of sum of optg lab,supervision & maint) (Assumed nil) 0.0 0.0

Local Taxes (Nil) 0.0 0.0Insurance (0.5 % on DPC/ annum) 137069.4 83.1Interest on Capital (70% fixed capital loaned)

^@7.5% per annum 2267740.3 1374.4Total AIME 2404809.7 1457.5


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Total Manufacturing expenses, AME 36920236.7 22375.9Depreciation (10% of DPC), ABD 2741387.9 1661.4

General ExpensesAdministrative costs (15% sum of optg lab, 204362.5 123.9

supervision & maint)Total Expenses, AGE 39865987.0 24161.2

Manufacturing cost @Rs/kg 24.2Revenue from sales as @ Rs./kg 30.20 49832483.7 30201.5Net Annual Profit, ANP 9966496.7Income Tax (Assumed zero)Net profit after tax, ANNP 9966496.7After tax rate of return,

i=((ANNP+ABD)/CTC)*100 29.42Payout period, years 3.40

CASE II



Purchased Equipment, (E) 12130034.8Installation % E 25 3032508.7Instrumentation % E 10 1213003.5Electricals % E 10 1213003.5Piping % E 25 3032508.7Building % E 18 2183406.3Yard improvement % E 10 1213003.5Service Facilities %E 22 2668607.6

Boiler/Hot water system 5.20

Cooling tower system 2.60 Tube well 1.73Generator 8.66 Miscellaneous 2.60 Piping 25% of above 5.20


Indirect Plant CostEng. & Supervision %E 10 1213003.5


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Costruction Exp. % E 15 1819505.2Total DPC+above two =(B) 30446387.2Contractor fees %E 10 1213003.5Contingency % B 10 3044638.7Total Erected Cost (CFC) 34704029.4

Working Capital 15% CFC or 70% E (Higher) 8491024.3









Total, ADME 34515427.0 20918.4







supervision & maint)


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Total Expenses, AGE 39865987.0 24161.2Manufacturing cost @Rs/kg 24.2Revenue from sales as @ Rs./kg 30.20 49832483.7 30201.5Net Annual Profit, ANP 9966496.7Income Tax (Assumed zero)Net profit after tax, ANNP 9966496.7After tax rate of return,


CASE III




Boiler/Hot water system 7.88

Cooling tower system 3.94Tube well 2.63Generator 13.13Miscellaneous 3.94Piping 25% of above 7.88


Indirect Plant CostEng. & Supervision %E 10 1838569.5Costruction Exp. % E 15 2757854.2Total DPC+above two =(B) 46148093.5Contractor fees %E 10 1838569.5

Contingency % B 10 4614809.4Total Erected Cost (CFC) 52601472.3



Manufacturing Expenses Rs./Yr Rs./ ton


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DirectRaw Materials & Cat & Chemicals

Bio Oil tons per year 3367.3Bio Oil cost Rs./ton 20000.0 67346938.8 20408.2Methanol tons per year 431.0Methanol Cost Rs./ton 10000.0 4310204.1 1306.1Catalyst tons per year 16.84Cat Cost Rs./ton 25000 420918.4 127.6






Total, ADME 67796088.9 20544.3











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OST ESTIMATES

Biodiesel Plant (Process II) (Solvent Process)

CASE I



Purchased Equipment, (E) 5100000.0Installation % E 25 1275000.0Instrumentation % E 10 510000.0Electricals % E 10 510000.0Piping % E 25 1275000.0

Building % E 18 918000.0Yard improvement % E 10 510000.0Service Facilities %E 30 1530000.0

Boiler/Hot water system 3.00 Cooling tower system 1.50

Tube well 1.00 Generator 5.00 Miscellaneous 1.50 Piping 25% of above 3.00


Indirect Plant Cost

Eng. & Supervision %E 10 510000.0Costruction Exp. % E 15 765000.0Total DPC+above two =(B) 13209000.0Contractor fees %E 10 510000.0Contingency % B 10 1320900.0Total Erected Cost (CFC) 15039900.0






By-products Credit Glycerin


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CASE - II

Annual Capacity TPA (330 Days a Year)= 1650 Effective Date to which estimate applies Jun-04

Cost Index Type: CE Cost Index Value




Tube well 1.73Generator 8.66 Miscellaneous 2.60 Piping 25% of above 5.20


Indirect Plant CostEng. & Supervision %E 10 883759.7Costruction Exp. % E 15 1325639.5Total DPC+above two =(B) 22889375.6Contractor fees %E 10 883759.7Contingency % B 10 2288937.6Total Erected Cost (CFC) 26062072.8


Total Capital Investment, CTC, Rs. 32248390.5Manufacturing Expenses Rs./Yr Rs./ ton





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Total, ADME 33458107.3 20277.6











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CASE III






Tube well 2.63Generator 13.13Miscellaneous 3.94Piping 25% of above 7.88








By-products Credit Glycerine


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Glycerine produced, ton/yr 242.45Glycerine Cost Rs./ton 54000 -13092244.9 -3967.3





Total, ADME 65793958.2 19937.6











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COST ESTIMATES

Biodiesel Plant (Process III) (Heterogeneous Catalyst)

CASE I



Purchased Equipment, (E) 5950000.0Installation % E 25 1487500.0

Instrumentation % E 10 595000.0Electricals % E 10 595000.0Piping % E 25 1487500.0Building % E 18 1071000.0Yard improvement % E 10 595000.0Service Facilities %E 26 1547000.0

Boiler/Hot water system 3Cooling tower system 1.5

Tube well 1Generator 5 Miscellaneous 1.5 Piping 25% of above 3


Indirect Plant CostEng. & Supervision %E 10 595000Costruction Exp. % E 15 892500Total DPC+above two =(B) 15172500.0Contractor fees %E 10 595000Contingency % B 10 1517250Total Erected Cost (CFC) 17284750.0




Raw Materials & Cat & ChemicalsBio Oil tons per year 673.5Bio Oil cost Rs./ton 20000.0 13469387.8 20408.2Methanol tons per year 86.2


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CASE II






Tube well 1.73Generator 8.66 Miscellaneous 2.60 Piping 25% of above 5.20







By-products Credit GlycerineGlycerine produced, ton/yr 121.22


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Glycerine Cost Rs./ton 54000 -6546122.4 -3967.3Operating Labour

(3 shifts, 4 men per shift, 3000 p.m/men) 432000.0 261.8Supervisory & Clerical, 25% labour 108000.0 65.5Utilities 2805000.0 1700.0



Total, ADME 33732839.7 20444.1











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CASE III






Tube well 2.63Generator 13.13Miscellaneous 3.94Piping 25% of above 7.88









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Total, ADME 67261161.1 20382.2











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Effect of Capacity on Economics

IIP Process - I

ItemCapacity, TPD

2.0 5.0 10.0

Capital Investment (Rs. Crore)

- Plant & Machinery (Rs. Crore)

- Working Capital (Rs. Crore)

2.49

2.00

0.49

4.32

3.47

0.85

6.55

5.26

1.29

Processing cost (Rs./kg biodiesel) 6.61 4.2 3.0

Payout Period (years) at 25% Profit 4.17 3.4 2.83


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TABLE 3B :


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IIP Process - II

ItemCapacity of Plant, TPD

2.0 5.0 10.0




2.15

1.73

0.42

3.72

3.00

0.72

5.56

4.47

1.09Processing cost (Rs./kg biodiesel) 5.47 3.20 2.50Payout Period (years) at 25% Profit 3.85 3.11 2.52

TABLE 3C :


46/46


IIP Process - III

Item

Capacity of Plant, TPD

2.0 5.0 10.0




1.86

1.50

0.36

3.22

2.61

0.61

4.89

3.95

0.94Processing cost (Rs./kg biodiesel) 4.76 2.70 1.80Payout Period (years) at 25% Profit 3.53 2.82 2.32

Economics

Based on IIP processes, for a 2 TPD biodiesel plant the capital investment andproduction cost were estimated and summarized in Table-2. The cost analysis

indicates that cost of oil is major component (about 75-90%) of total cost of biodiesel.

Use of lower cost feedstocks would have tremendous impact on the biodiesel

economics. Another approach which leads to reduction in operating cost is

improvement in technology; this is clearly indicated for the improved IIPs Processes

II and III.

The capacity of production affected the processing cost (Table 3a, 3b, 3c). At 10

TPD capacity for process II and III the processing cost reduce to Rs. 2.50 and Rs.

1.80 per kg biodiesel respectively.

14

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Biodiesel Process Economics AKGupta

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