BioDiesel
Mission |
Satish Lele lelebiodzl@gmail.com |
First Stage: The marketing study of the project: Analysis of the target market: In India, the market is very limited. Compared to the consumption of Petroleum Diesel, it is a very tiny fraction. Determine the volume of demand and supply: The demand can be very high due to blending mandates, but supply is very small as used cooking oil is practically not available. Used cooking oil is best raw material, as it is best quality oil, when used for frying. It can produce biodiesel, which can meet American, European or Indian Standard. Since it is not available in India, Biodiesel producers use Palm Stearine and Animal Tallow. When these are used, 3 properties (Cloud Point, Pour Point and Cold Filter Plug Point) cannot be met. It cannot produce Biodiesel confirming to American, European or Indian Standard. Determine the marketing share: The share of your company, can be in few percentage points, if you have a capacity of 30,000 liters per day or more. If plant is smaller, you have no significant share. Study the most important competitors: There are number of units scattered all over country. However large number of units are in Gujrat, where Palm Stearine is easily available as raw material, and in Uttar Pradesh, where animal tallow is easily available as raw material. Identify opportunities: In India, criteria for buying Biodiesel is not its environment friendly use but its price. Challenges in the market: In India, Oil Marketing companies are the major buyers. They float tender documents from time to time, which specify the purchase price, among other things. They offer transport charges for Biodiesel, but not for raw materials. Hence it is advisable to set up a plant next the source of raw materials, Palm Stearine or Animal Tallow. The price in first tender document was Rs. 106 per liter, but then it steadily dropped to Rs. 86 per liter. It was the raised to Rs. 100 per liter and brought down to Rs. 80 Per liter in next tender document. Strengths and Weaknesses: There is not much strength and only weaknesses as described above. Analysis of market trends: Market depends on Country’s commitments made in Climate conferences. All countries make commitments, but never follow them. Economic factors: The price of crude oil is affecting price of Biodiesel. Lower crude price will reduce price of Biodiesel. However it is not the case in India. Second Stage: Technical study of the project through the study and evaluation of the technical aspects: Determining the needs of the project of equipment: If Palm Stearine and Animal Tallow is used as raw material, equipments are simple. If Used cooking oil or Acid Oil is used, pretreatment (Glycerolysis or Esterification) is required. It depends on amount of free fatty acids, in the oil. It is less in used cooking oil, hence it can be easily reduced by Glycerolysis. In case of Acid Oil, it can be as high as 50%. In this case it has to be reduced, by esterification, using Sulphuric Acid as catalyst. Sulphuric Acid is corrosive for equipments and need to be neutralized by solution of alkaline salt. This leads to water pollution. It also adds Sulphur content in final product. Technology: Alkali metal catalyst is used, for Trans-esterificaton process, if Palm Stearine, Animal Tallow or Used Cooking Oil is used as raw material. If acid oil is used as raw material, Esterificaton process, using Sulphuric Acid as catalyst is used. The appropriate location of the project: It should be next to the source of raw materials, Palm Stearine, Animal Tallow, Acid Oil or Used Cooking Oil. Around 1,050 liters of one of these raw materials is required to produce 1,000 liters of Biodiesel. The required human resources: Very skilled manpower is not required, hence it can be managed with local population. The stages of the executive process: Initially a team of engineers is required to set up the plant. It can comprise Mechanical and Electrical Engineers. Later a team of Chemists and plant operators need to be set up. Production capacity: Capacity solely depends on local availability of raw material, Palm Stearine, Animal Tallow, Acid Oil or Used Cooking Oil. Quantity of Methanol required is 17% of oil, and can be procured from a bit faraway place. The necessary equipment for the project from the establishment expenses: These are fabrication and erection equipments, normally available with a Chemical Process Plant Fabricator. The requirements of executive resource: Once plant starts running, management team to handle the plant is required. Manager, Engineer, Chemist, Accountant etc. All basic implementation costs: These are project costs and cost of technical staff required. Timetable for the implementation of the project: It may take 6 months to 1 year to implement the project. Third Stage: Communicate with specialized companies and obtain technical and financial quotations for the needs and equipment of the project. This can be done by talking to local fabricators based on design and drawings given to them. Fourth stage: Financial feasibility study, which includes the most appropriate invested capital for the project, the size of annual revenues, implementation costs, fixed and variable costs, financial selling, preparation of main lists, the size of financial flows, the statement of financial position, rates of return, financial analysis of the project in light of different cases, the final report and the statement of the investment decision, the organizational and administrative study of the project. This is done by chartered accountant based on basic inputs provided to him. Fifth stage: The organizational and administrative study of the project, which includes the organizational structure, job description and tasks. Sixth stage: Prepare the executive summary, final report and investment decision statement. |
My mission is to assist people who want to set up BioDiesel Plants. By now it is clear that you need to manufacture BioDiesel in order to purify, Used Cooking Oil (UCO), frying oil (of potato wafers etc.) or yellow greases (Animal fat used for frying). Palm Stearin, Acid Oil, waste Animal Tallow and non edible oils, which can be used as raw material. Only these oils are available throughout the year at low price. Disposal of these oils in sewer, is also a problem.
Many people want to set up BioDiesel plants. Most of them try the Process of BioDiesel at Home or in Laboratory. Then they want to set up a full scale plant. There are many plant suppliers, who offer turn-key plants at a very high price, based on oils having restrictions on Free Fatty Acid (FFA) content. In practice you will get oil having a wide range of FFA, and you will have to set your own parameters based on FFA of oil.
I sell designs and drawings to set up your own Biodiesel plant. With my designs and drawings, you can fabricate and erect the Biodiesel plant, in your own town at much lower cost. You can set up Biodiesel plant on your own. Any local fabricator can fabricate BioDiesel Plant for you, if he is given my Detailed Engineering Package. The equipments, bought out items and instruments are simple, which are easily available in developing countries of Asia and Africa. Maintenance of these can be done locally, with local skills. Most of the people who buy the Detailed Engineering Package, have done number of trials for manufacture of Biodiesel on small scale. Based on their experience, they have already formulated their own process parameters. Hence, they do not need process knowhow and they do commissioning themselves.
Batch BioDiesel Plants: I have prepared Detailed Engineering Packages for Batch type BioDiesel plants, for different capacities. These have smaller capacities, and hence, these are based on Batch process. Detailed Engineering Package comprises of Catalyst cum Biodiesel Reactor, Settling Tanks and Dry Washing Columns. Detailed Engineering Package also includes special pre-treatment vessel to reduce free fatty acid content. These are of following capacities : 400 liters per day, 1,000 liters per day, 2,000 liters per day, 5,000 liters per day, 10,000 liters per day, 20,000 liters per day, and 30,000 liters per day.
Continuous BioDiesel Plants: I have also prepared Detailed Engineering Packages for Continuous BioDiesel Plants, with capacities of 10,000, 30,000, 50,000 and 100,000 liters per day. These are designed as Automatic BioDiesel Plants, based on Ultrasonic mixer and Centrifuge (or Settling Tanks). These packages contain
for Information about drawings of Plants.Project Reports: You can buy basic Project Reports of these Biodiesel plants, in Word and Excel format with full financial analysis. These Biodiesel reports form the basis for Report to be submitted to Bank which is generally prepared by Chartered Acountant associated with the particular bank. These Biodiesel project reports are available for US$ 10 or 
750. These are available in US$, any other currency or Indian Rupees.
