The Green Initiative: A Sustainable Waste-Oil Solution
Senior Engineering Design ProjectDecember 8, 2009
Anson Clawson · Josh Gordon · Matt Otis · Rob Simmons · Steven Srivastava
The Green Team
The Green Initiative: A Sustainable Waste-Oil Solution
Matt OtisEngineering Management Technology, Mathematics minor
Anson ClawsonEngineering Management Technology
Josh GordonEngineering Management Technology, Plastics minor
Rob SimmonsEngineering Graphics and Design Technology, Automotive option
Steven SrivastavaEngineering Management, Supply Chain Management minor
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Outline
The Green Initiative: A Sustainable Waste-Oil Solution
Situational Background
3
Methodology
Development of Solution
Business Case
Conclusion
Matt
Rob
Josh
Steven
Anson
Situational BackgroundSustainability
The Green Initiative: A Sustainable Waste-Oil Solution
IME Department and design team sought out a sustainability project
Byproducts of our existence reach a state of equilibrium with the environment
Designing for tomorrow’s world today
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Situational Background Industry Sponsor
The Green Initiative: A Sustainable Waste-Oil Solution
Major Food Manufacturer Crackers Cereal
Wants to integrate sustainable practices into their manufacturing culture
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Situational Background Waste Oil
The Green Initiative: A Sustainable Waste-Oil Solution
Cracker dough is ‘sheeted’ to 1/16” Oil is excreted from dough during ‘sheeting’
process Oil is not reusable Approximately 350 gallons/week Waste oil is sold for $0.76 per gallon
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Catch Gutter
DoughSheeting Process
Waste Oil Collection
Problem Statement:
Find a sustainable use for waste oil
Outline
The Green Initiative: A Sustainable Waste-Oil Solution
Situational Background
7
Methodology
Development of Solution
Business Case
Conclusion
Matt
Rob
Josh
Steven
Anson
MethodologyAnalysis of Waste Oil
The Green Initiative: A Sustainable Waste-Oil Solution
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Low linolenic soybean oil
Contaminates Wheat Salt Flour
Mass Spectrometry less than 0.1% total fixed solids volatile organic acid content of 391mg/L
Methodology Potential Uses for Waste Oil
The Green Initiative: A Sustainable Waste-Oil Solution
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SynGas (Synthetic Gas) Fuel source / Chemical Manufacturing Gasification of biomass requiring extreme temperatures
Animal Feed Little benefit to sponsor Little benefit to SEDP
Biodiesel Common industry practice Potential for economic benefit Offset diesel consumption
Methodology Biodiesel Production Research
The Green Initiative: A Sustainable Waste-Oil Solution
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Industry practices Toured multiple biodiesel production plants
Standards and regulations
Possible end uses Company fleet vehicles Diesel generator Fuel heater
Transesterification process
Methodology Biodiesel Conversion Process
The Green Initiative: A Sustainable Waste-Oil Solution
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Glycerin
B-100Biodiesel
(140˚F)Waste Oil
KOH
Methanol
Methodology Project Parameters
The Green Initiative: A Sustainable Waste-Oil Solution
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Semi-automated system Minimal user interaction Safe (minimal contact with harmful chemicals) Minimal operator training required
Budget of $15,000
1 Batch = 8 hour shift
8’ x 4’ footprint
Functional pilot scale processor by graduation
Outline
The Green Initiative: A Sustainable Waste-Oil Solution
Situational Background
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Methodology
Development of Solution
Business Case
Conclusion
Matt
Rob
Josh
Steven
Anson
Development of SolutionDesign Concept
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Development of Solution Base Unit from Evolution Biodiesel
The Green Initiative: A Sustainable Waste-Oil Solution
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Mega-Ester 40 gallon processor ($3,668) Up to 14 hours to process Manual operations Operator training required
Modifications necessary to minimize operator interface Increase production throughput Minimize labor costs Improve process safety
www.evolutionbiodieselkits.com
Development of Solution Developing an Improved System
Pneumatic valves Pneumatic actuators
The Green Initiative: A Sustainable Waste-Oil Solution
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Development of Solution Developing an Improved System (Cont’d)
The Green Initiative: A Sustainable Waste-Oil Solution
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Additional pump (3) Float sensors Temp. sensor
Development of Solution Developing an Improved System (Cont’d)
The Green Initiative: A Sustainable Waste-Oil Solution
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KOH metering system Glycerin drain Programmable relay Control panel
Development of Solution Developing an Improved System (Cont’d)
The Green Initiative: A Sustainable Waste-Oil Solution
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Complete system
Development of Solution Trial Processing
The Green Initiative: A Sustainable Waste-Oil Solution
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Wet testing for leaks and basic functionality (H2O) Debugging Fix leaks
Calibration of program coding (WindLGC) Organizing sequence of events Setting the timers appropriately Establishing fail-safe
KOH metering system
Development of Solution Ready for Production?
The Green Initiative: A Sustainable Waste-Oil Solution
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Successfully ran several batches
Lack of industrial heating element and chemically rated pump
Changes have been made in the full-scale design
Outline
The Green Initiative: A Sustainable Waste-Oil Solution
Situational Background
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Methodology
Development of Solution
Business Case
Conclusion
Matt
Rob
Josh
Steven
Anson
Business Case
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Successful Business
Case
Socially Acceptable
Environmentally Responsible
Economically Profitable
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Business CaseEnvironmental Analysis
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Year 2012: Federal Cap & Trade Program 1 carbon credit = 1 Tonne CO2-equivalent
Total Equivalent GHG’s 0.016 Tonne/Gal 230 Tonne/yr
European Union Market Value €14.6/Tonne = $21.7/Tonne $4,991/yr – Potential GHG exchange
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Business CaseEconomic Analysis
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Cost Considerations Capital cost
Parts, trade labor (electrician, programmer, fabricators) Variable by batch size
Operational cost Reaction materials (KOH, methanol), labor cost, energy cost Variable by batch size
Current diesel fuel rate $2.77/Gal
Current revenues for disposing the waste oil $0.76/Gal
Depreciation MACRS (10 yrs life)
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Business CaseEconomic Analysis
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Sponsor’s Financial 3 yr or less payback period 10% return on investment
Current Economic Figures (230 Gal/batch, $2.77/Gal)
Capital $31,919 [$]
10 yr Savings $53,178 [$]
Payback 7.025 [yr]
NPV (10%, 10 yr) $29,367 [$]
IRR (10yr) 8% [%]
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Business CaseEconomic Analysis
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Two variables in profitability Batch size [Gal/batch] Current diesel rate [$/Gal]
Further Analysis Batch sizes from 40 Gal to 260 Gal/batch Diesel rate from $2.77/Gal to $4.95/Gal
0 50 100 150 200 250 300$0
$5,000$10,000$15,000$20,000$25,000$30,000$35,000$40,000
Capital Cost
Batch Size [Gal/batch]
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Business CaseEconomic Analysis
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Sponsor’s Criteria IRR met by $3.00/Gal Payback period met by $3.25/Gal – active constraint
0 50 100 150 200 250 300$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
Unit Cost [$/Gal]
Batch Size [Gal/Batch]
0 50 100 150 200 250 3000
2
4
6
8
10
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Payback Period
Batch Size [Gal/batch]
Yrs
Diesel Rate ($2.77/Gal)
3 yr Payback
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Business CaseRecommendations
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Full-Scale Implementation: $3.25/Gal Meets both, payback and IRR criteria
Processor Size: From 100-230 Gal/batch Oil Volume is constant
Potential for revenues remains constant
Economies of scale achieved Larger processor has lower per unit cost Additional capacity increases capital cost and payback period Pick a size to meet time and labor constraints
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Outline
The Green Initiative: A Sustainable Waste-Oil Solution
Situational Background
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Methodology
Development of Solution
Business Case
Conclusion
Matt
Rob
Josh
Steven
Anson
ConclusionExperience/Knowledge Gained
Project Management
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Labor
Money
Materials
Time
ConclusionProject Summary Elements of project
Overall systems design Logic controller Programming Basic electrical installation Pneumatic components
Chemistry Economic/Energy analysis
Integrated a new sustainable practice
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Conclusion Handing Off To Sponsor Proof-of-Concept Processor Training Documents
Operations manual Safety protocol Logic relay program
Business Case Recommendations for Full Scale Processor
Components to use Implementation at $3.25/Gal Volume of 100 to 230 Gal per batch
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Acknowledgements Nic Hirzel Professor Joseph Petro Dr. Betsy Aller Professor Harold Hladky (WMU Chem. Eng.
Dept.) F&A Fabricating Bronco Biodiesel Michigan State Chemical Engineering
Department
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Questions?
Green Team
Thank You
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