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2017 6th International Conference on Innovations in
Chemical, Biological, Agricultural and Environmental
Engineering (ICIBCAE’ 2017)
May 3-4, 2017 Bangkok, Thailand
Feasibility of Biodiesel Business and
Oleochemicals Industrialization
Hassan I. El Shimi1, Hanem A. Sibak1, Nahed K. Attia2, Shakinaz T. El- Sheltawy1 1Chemical Engineering Department, Cairo University, Egypt
2Chemical Engineering and Pilot Plant Department, National Research Centre, Egypt
Presented by
Dr. Eng. Hassan I. El- Shimi Assistant Professor, Chemical Engineering
Department, Cairo University, Egypt Phone: +2 01024497780
E-mail: [email protected]
Bangkok, Thailand in May 4th, 2017
Outlines
Introduction
Thailand as a Case Study
Research Objective
Feasibility Study
Concluding Remarks
Acknowledgement
Author’ Biography
References
Introduction
What is Biodiesel ?
• Alternative fuel for diesel engines.
• Made from vegetal oil or animal fat.
• Lower emissions, High flash point (>300oF), Safer.
• Biodegradable, Essentially Non-toxic.
• Chemically, biodiesel is mono-alkyl esters produced from
triglycerides esters.
Be the Change !
Switch to clean, premium quality,
earth-friendly biodiesel
Biodiesel Production Process
“Transesterification”
• It is a reaction between the stockoil and alcohol (e.g. methanol) in
presence of catalyst to yield fatty acid alkyl esters (biodiesel) and
crude glycerol.
• FFA and moisture content of stockoil are critical issues.
Sustainable Feedstocks
Trans-esterification
Biodiesel Upgrading
Oleo chemicals
Biodiesel Global Policy
B2
Canada
1 billion gallons
USA
B20
Costa Rica
B10
Columbia B2
Peru
B5
Brazil
B1
Paraguay B2
Uruguay
B7
Argentina
6%
Renewable Energy in
Transportation
EU
Green Diesel
Thailand B5
Malaysia
B2
Australia
B2.5
Indonesia
B2
Philippines
B2
Taiwan
B2
South Korea
Thailand as a Case Study
Biodiesel Situation
Total area : 513,120 km2 (ranked 51st globally).
Total population : 69 million people (ranked 20th globally).
The diesel fuel spot is stable in Thailand (US$ 1.87/gallon,
December 2016).
There is a policy in Thailand since 2011 to blend at least 3% green-
diesel with petro-diesel (B3).
B7 is currently applied and mandated.
Biodiesel production/consumption rate is 3 ML/D obtained from 11
factories up to 2016, while the diesel usage is 55 ML/D.
Background of the case study
Thailand has a solid plan to mandate B10 by 2026;
Alternative Energy Development Plan (AEDP) 2015-2036
Biofuel Status and Policy
• Promote energy security of Thailand
• Support the 11th National Economic and Social Development Plan (AEDP 2015-2036)
Energy Security
• Establish sustainable whole-chain energy business
• Promote long-term country development
Economy
• Reduce negative impacts to the environment
Ecology
Thailand Integrated Energy Blueprint
Timeline of Thailand AEDP 2015-2036
20% 25%
2009 2011-2013 Now
30%
Biodiesel represents
25% of the Target
Bioenergy use by
2036
Targeting Biodiesel Consumption
Biodiesel
Percentage 10% 4% 5% 5% 25%
Diesel-Base
Demand (ML/D)
2013 2012 2015 2036 2026
54.7 55.9 56.4 51 57
2026
2036 14
5 ML/D
ML/D
Feedstock Sustainability
Non-edible
Cheap
Available
Investigation of a sustainable feedstock is
the initial point to commercialize the figure
industry.
Feedstock is the controlling factor
of the biodiesel industry and the
oleochemicals production as it
represents more than 80% of
production cost (PC).
Research Objective
Sustainable
Feedstock
Biodiesel
Production
2008
B2 (Optional)
March 2010
B3 (Optional)
Jan 2012
B5 (Mandate)
Jan 2014
B7 (Mandate)
Oleo chemical
Development Mandate B10
Jan 2026
B10
(mandate)
Techno-economic assessment of 1.0 MT
biodiesel production from different
feedstocks via heterogeneous
transesterification using Na4SiO4 to enrich
the biofuel blending ratio and mandate B10 in
Thailand by 2026.
Research Objective
Process Results
• Heterogeneous catalysts are
extensively used in biofuel
synthesis to minimize the
production cost.
• The transesterification reaction
conditions are kept in optimum
levels to produce 1.0 MT of
biodiesel per year;
Oil
Tank
Catalyst
Storage
Methanol
Tank
E-10
P-3P-6
P-7
P-11
Transesterification
Reactor
P-14
Decanter
Crude
Glycerol
layer
P-6
Filtration Drying
Distillation
Recovered
Methanol
E-25
P-29Extraction
Column
Heater
WaterP-30
P-31
P-32
Biodiesel
Drying
P-33
P-34
Biodiesel
Tank
Extraction
Column
Dryer
P-35
P-36
Glycerol
Tank
Water
Hydrocyclone
P-41
Recovered
catalyst
Product
mixture
P-44
FAME layer
V-3
P-47
P-48
Catalyst loading is 5.87% (wt/wt oil)
Methanol-to-oil is 6 mol/mol
Reaction time is 3h
Catalyst recyclability is 5 times
Reaction temp. 65oC
Stirring rate: 350 rpm
Biodiesel yield: 97%
Products purity: min. 98%
Property Unit WCO
Biodiesel
Jatropha
Biodiesel
Algal
Biodiesel
Palm
Biodiesel
Petro-diesel
standards
Biodiesel
ASTM-D 6751
Density @ 15oC g/ml 0.86 0.88 0.864 0.86-0.90 0.85 0.86-0.90
Kinematic viscosity
@ 40oC
cSt 4.3 4.84 12.4 3.5-5.0 1.6-7.0 1.9-6.0
Esters content %wt. 98.3 96.7 98.1 96.5 min. - >96.5
Flash point oC 167 162 189 120 >60 >101
Cloud point oC 9 -1 -3 31 13 -3 to14
Pour point oC 5 -6 -9 23-40 8 -15 to 6
Diesel index - - 67 - >48 -
Cetane index 60 51.6 70 38-40 40-55 48-65
Calorific value MJ/kg 43.4 37.2 45.63 36.9 >40.8 38-45
Total sulfur %wt. 0.003 Nil Nil 0.02 0.57 <0.05
Water content %wt. 0.04 Nil 39 (ppm) <0.065 0.00 <0.1
Ash content %wt. 0.001 0.025 Nil 0.01 0.02 <0.02
Acid index mg KOH/g oil 0.12 0.24 0.75 0.5 max. - <0.8
Free glycerol %wt. 0.005 Nil Nil 0.02 - <0.02
Total glycerol %wt. 0.17 0.17 Nil <0.25 - <0.24
Oxidation stability
@110oC
h 1.2 3.95 11 min. 10 min. - 3 min.
Qualifications of biodiesel produced from the investigated feedstocks
FEASIBILITY STUDY Thailand as a Case Study
Item Unit cost (US$/t) Quantity (t/yr) Total Cost (US$/yr)
WCO JCO MAO
Process Inputs
Crude Oilstock * 1030927.8 412371134 618556701 618556701
Methanol 500 ** 417323189 422515275 426401513
H2SO4 (esterification) 1000 10309.3 10309278 10309278 10309278
Catalyst (Na4SiO4) 250 60515.5 15128866 15128866 15128866
Raw materials
855,132,467
1,066,510,120
1,070,396,358
Process Outputs
Methyl esters "Biodiesel" 1000 1000000 1000000000 1000000000 1000000000
Glycerol (98% purity) 400 100000 40000000 40000000 40000000
Recycled catalyst (97%) 200 58700 11740000 11740000 11740000
Recovered alcohol 500 *** 146063116 147880346 149240530
Revenues
1,197,803,116
1,199,620,346
1,200,980,529
WCO JCO MAO
* Unit cost (US$/t) 400 600 600
** Methanol quantity (t/yr)
Esterification 618556.7 618556.7 618556.7
Transesterification 216089.7 226473.8 234246.3
** Total alcohol amount
required
834646.4 845030.5 852803.0
*** Recovered methanol
(35%)
292126 295761 298481
Materials Flow Cost Accounting Sheet
Equipment Units
No.
Unit cost
(US$)
Total cost
(US$)
Capital Investment
Category
% of TEC Cost US$
Oil storage tanks (200 m3) 120 50000 6000000 Physical Plant Cost (PPC)
Methanol storage tanks (200 m3) 97 50000 4850000 Total equipment cost (TEC) 100 29117000
H2SO4 storage tanks (100 m3) 3 25000 75000 Equipment delivery cost 10 2911700
Grinders (Ball or vertical roll mills,
10ton/hr capacity, 46kW)
2 300000 600000 Installation cost 20 5823400
Splitters/Mixers (Propeller, 10 hp) 40 10200 408000 Piping 20 5823400
Esterification reactors (Jacketed &
Agitated 50 m3)
20 113000 2260000 Buildings 10 2911700
Transesterification reactors
(Jacketed & Agitated 50 m3)
15 113000 1695000 Utilities 15 4367550
Filters (Hydrocyclone, 1m
diameter, 25-50 m3/h)
6 50000 300000 Instrumentation & Control 15 4367550
Decanters/Centrifuges (bottom
driven 3m diameter)
6 37000 222000 Site Development 10 2911700
Pumps (progressive cavity type,
30gallon/min)
60 11000 660000 Auxiliary buildings 5 1455850
Extraction columns/Distillation
Towers (3m Diameter,15m Height)
6 500000 3000000 PPC 59689850
Biodiesel storage tanks (200 m3) 116 50000 5800000
Glycerol storage tanks (200 m3) 12 50000 600000 Indirect Plant Cost (IPC)
% of PPC
TEC 26,470,000 Design and Eng. 20 11937970
110% TEC 29117000 Contractor' fee 20 11937970
Contingency 10 5968985
Legal expenses 10 5968985
IPC 35813910
Fixed Capital Investment (FCI) = PPC+IPC 95503760
Working Capital Investment (WCI): 15% FCI 14325564
Capital Investment (CI) = FCI+WCI 109,829,324
Total Equipment Cost (TEC) and Capital Investment (CI)
Category Unit cost (US$) Cost (US$)
WCO JCO MAO
Direct Production Cost (DPC)
Raw Materials 855132468 1066510121 1070396358
Miscellaneous materials 10% M&O 573023 5730226 5730226
Electricity US$0.1/kWh & 100kWh/ton
biodiesel
10000000 10000000 10000000
Shipping & Packaging 1% TEC 291170 291170 291170
M&O 6% Fixed capital investment (FCI) 5730226 5730226 5730226
Operating labor US$10000/employee/year 5000000 5000000 5000000
Depreciation Straight-line depreciation over 15 y 1747020 1747020 1747020
Plant overheads 50% of labor and M &O 5365113 5365113 5365113
Interest 2% TEC 582340 582340 582340
Property insurance cost 5% TEC 1455850 1455850 1455850
Rent 2%TEC 582340 582340 582340
886459549 1097837202 1101723439
Indirect Production Cost (IPC)
Research and Development 5% of DPC 44322977 54891860.08 55086172
General expenses 25% of operating labor and M&O 2682556 2682556 2682556
Packaging & storage 10% of operating labor and M&O
costs
10730226 10730226 10730226
48078556 58647439 58841751
Biodiesel Production Cost (BPC) = DPC + IPC 934,538,105 1,156,484,641 1,160,565,190
Gross earnings, US$/year 263265011 43135706 40415339
Net Profit (NP), US$/year 236938510 38822135 36373805
Return on Investment (ROI), % 215 35 33
Pay-back time, year 0.4 2.3 2.5
Biodiesel Production Cost (BPC) and Profitability Indicators
Summary of Feasibility Study
WCO JCO MAO
Oilstock Demand, MT 1.031 1.031 1.031
Raw Materials , US$ 855,132,467 1,066,510,120 1,070,396,358
Revenues , US$ 1,197,803,116 1,199,620,346 1,200,980,529
TEC , US$ 26,470,000
Capital Investment (CI), US$ 109,829,324
BPC, US$ 934,538,105 1,156,484,641 1,160,565,190
Net Profit (NP), US$/year 236,938,510 38,822,135 36,373,805
Return on Investment (ROI), % 216 35.3 33.1
Pay-back time, year 0.4 2.3 2.5
Break-even cost , US$/ton 643 640 637
Verification of Thailand Target in 2026
The irrigated land is about 6,415 hectare and the total renewable water
resources were estimated to be 438 cubic kilometers
The arable land occupies 30.7% of the total land
Geography of Thailand and its climate change are critical issues
Jatropha Curcas Biodiesel
For a 1.0 MT Jatropha biodiesel project, a 3.8 MT of Jatropha seeds
(35% lipids).
3.15 ton seeds/acre by year three, in which 2.4 ton are hulls that can be
utilized as a feedstock for biogas production with US$120 per ton.
The seedcake can be used as a fertilizer
owing to the rich ratio of N:P:K 12:24:12 (200
kg of fertilizer/ 1 ton Jatropha seeds).
50420 hectares and 51 million cubic meters
irrigation water are necessary for Jatropha
curcas plantation, which is a formidable
figure.
Verification of Thailand Target in 2026
Oil palm plantation area: 504,200 km2
(320% arable land)
Verification of Thailand Target in 2026
Algal Biodiesel
Algal cultivation area depends on
the cultivation system (open ponds
or photobioreactors), the strain type
and its lipid content.
For Nannochloropsis sp. of 44% lipid
content and biomass productivity of
135mg per liter per day, the open pond
area necessitated is about 38,000
hectares.
Algae cultivation area: 380,000 km2
(241% arable land !!!)
Verification of Thailand Target in 2026
Palm Biodiesel
In 2016, a 1.0 MT of palm oil was used for edible
purposes in Thailand
Practically 25% can be collected as a
waste for biodiesel production.
Oil palm plantation area: 7,520 km2
(4.77% arable land)
Biodiesel
Production
Domestic
Consumption
Year End
Stock
Export
1.0 MT 0.83 MT 0.2 MT 0.25 MT
Oleo chemicals Production
It is the time…
Oleo chemical Industry
24 million tons in 2016, and will grow with
a rate of 7% in 2017
Malaysia and Thailand represent 70% of global
market
Fatty Acids
Fatty Alcohols
Fatty Amines
Fatty Acids Methyl Esters “Biodiesel”
Glycerol
Fatty alcohols
(Detergents) 55%
Fatty acids (Soaps)
30%
Biodiesel and
Lubricants 15%
Oleo chemical is the sum of the transesterification and hydrolysis processes to
convert the natural oils into sustainable products.
NA
TU
RA
L O
ILS
Fatty Alcohols
Glycerin
Fatty Acid Methyl Esters
“Biodiesel”
Fatty Acids
Transesterification
Sp
litting
E
ste
rificatio
n
Dire
ct
hyd
rog
ena
tion
Am
inatio
n
Hyd
rog
ena
tion
Neutralization
Esterification
Ethoxylation
Esterification
Amination Fatty Amines
F.A. ethoxylates
F.A. esters
F.A. liquid soap
Triacetine
Partial glycerides
Non-ionic surfactant
Este
rs
F. O
H s
ulfa
tes
F. O
H e
tho
xyla
tes
Alk
yl c
hlo
ride
s
Alk
yl e
the
r su
lfate
Alk
yl e
tho
xyla
te
Alk
yl e
the
r
ca
rbo
xyla
te
Am
ine o
xid
e
F.A
. Alk
ano
lam
ide
s
Hyd
rog
ena
ted
lano
lin
Plant Source Seed oil content
(% oil by wt in
biomass)
Oil yield
(L oil/ha year)
Land use
(m2 year/kg
biodiesel)
Biodiesel
productivity
(kg biodiesel/ha year)
Corn 44 172 66 152
Soybean 18 636 18 562
Jatropha C. 28 741 15 656
Sunflower 40 1070 11 946
Castor 48 1307 9 1156
Palm oil 36 5366 2 4747
Microalgae
(medium oil content)
50 97 800 0.1 86 515
• Biodiesel is the fastest growing sub-sector of the
Oleochemicals industry.
• Oleochemicals industry is still a new business, growing
throughout the world and only survives by being a part of the
government policy.
• Feedstock is the controlling factor of biodiesel and oleochemical
industry.
Oleochemical Business Environment
• Considerably new business.
• Growing throughout the world.
• Environment / Energy security / Self sufficient.
• Only survive by government policy.
• Capacity way over demand.
• Availability of feedstock.
• Food vs. Fuel.
• FAME has its limitations.
• Sustainability.
Concluding Remarks
• Thailand has a solid plan to go.
• Local feedstock is enough for domestic consumption.
• Blending ratio has not been stable.
• The master plan of Thailand to mandate B10 by 2026 can be
achieved by investigating the waste cooking oils and
microalgal oils as feedstocks for biodiesel production besides
Jatropha curcas oils.
• Biodiesel business has been growing all over the world.
• Export market is an opportunity.
• Sustainability as key of success.
Concluding Remarks
• In this research, techno-economic appraisal of methyl esters
production approved the use of WCO, JCO and MAO as feedstocks
when their cost maintained below US$643, US$640 and US$637
per ton, respectively, for US$1000 per ton of biodiesel.
• Providing of 1.0MT biodiesel from waste palm oil and algal oil
besides Jatropha C. oil will achieve approximately 66% of the
targeting biodiesel consumption in 2026.
• Jatropha biofuel commercialization in Thailand is a tempting
alternative due to many risks related to environmental issues.
• Investigation of a sustainable feedstock is the focus point to develop
the oleochemical industries as their commercialization is still a new
business.
ACKNOWLEDGMENT
The authors are gratefully acknowledged Chemical Engineering Department, Cairo University, Egypt for providing the financial support of this research, and Department of Chemical Engineering and Pilot Plant, National Research Centre of Egypt, for the valuable advice to carry out this work.
Author’ biography
• Hassan I. El Shimi is a Ph.D. Holder and working as
Assistant Professor at Chemical Engineering Department,
Faculty of Engineering, Cairo University, Giza, Egypt. He has
completed B.Sc. in 2010, M.Sc. in 2013 and Ph.D. in 2016
from Cairo University. Dr. El Shimi born on October 1st, 1988.
The research area includes Renewable energy "Biofuels",
Storage of energy from renewable sources, Environmental
engineering "Solid waste management and Wastewater
treatment", Process and Plant Design, Process Economics,
Industrial Biotechnology, Experiments Statistics and
Environmental Impact Assessment (EIA) studies. He has
published more than 17 papers in reputed journals and
conferences. For citations and copies of some of El Shimi'
papers, please visit my Cairo Scholar and ORCID pages.
• Hassan El Shimi is a member in the federation of Arab
Engineers. He is an Environmental Specialist responsible for
the preparation of environmental impact assessment (EIA)
studies for all types of industrial projects and a principle
engineer for preparing of feasibility studies and performance
improvement. His experience includes also the design of
wastewater treatment units.
• Dr. El Shimi has many key skills such as campaign planning,
project team leadership, presentation development, team
builder, perfect communication skills and working under
pressure, and whose skills helping him to achieve the
research goals.
Dr. Hassan El Shimi Assistant Professor
Department of Chemical Engineering,
Cairo University, Egypt
Address: 3rd Floor Chemical Building,
Faculty of Engineering, Gamaa Str., Giza
Square, Giza, Egypt
E-mail: [email protected]
E-mail: [email protected]
Tel./Fax.: +201024497780
Hassan El Shimi
http://scholar.cu.edu.eg/?q=hassanelshimi/
Any questions?
