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Set-up a Rice Straw Pulp Mill
Dr Rushdan bin IbrahimPulp and Paper Laboratory,
Forest Research Institute Malaysia (FRIM)
STPK 202010 November 2020
Outline• Introduction
• Problem statement
• Objectives
• Methodology of set-up pulp mill
• Producing pulp
• Producing moulded product
• Biodegradable test
• Toxicity test
• Target market
• Operation & revenue
• Conclusion
Introduction
• Due to the environmental effect caused by deforestation, interest in utilizing non-wood material for pulp production is increasing.
• Rice straw, non-wood material, is produced globally as a by-product of rice cultivation.
• The greatest producers of rice are mainly in Asia, particularly China and Indonesia. It is estimated that 600 million tons of rice are produced in 2004.
Problem Statement
•Annually, 400,000 tons of rice straw is generated in the area of Muda Agricultural Development Authority (MADA).
• The options for the disposition of rice straw are limited by the great bulk of material, slow degradation in the soil, harbouring of rice stem diseases, and high mineral content.
• Field burning is fast, economical and removes disease organisms, but is now tightly regulated.
• In the possibility utilization of rice straw, Muda Agricultural Development Authority (MADA), Alor Setar, Kedah, and Forest Research Institute Malaysia (FRIM) had carried out technical review and laboratory trial in producing pulp, paper pulp moulding from rice straw since 2007.
Novelty
The results indicated that rice straw possess great potential as a pulping raw material for pulp and moulded & papermaking. A patent was filed by FRIM (PI 2014703372: Method of Producing Pulp from Rice Straw) and was granted in 2019.
Chronology of rice straw fibre pulp for packaging productsresearch project
2007 2008 2014 2015 2016 2017 20182009 2010 2011 2012 2013
1st Meeting with MADA
• MOU with MADA• R&D grant RM 40,000
• FRIM ID 15/2014• PI 20144703372• Free the Seed (FTS) Sdn. Bhd. Interested to
commercialise this R&D through consultation RM 25,000
2015 - Gold Medal and Best Award at MTE
2016 - MOU for pre-commercialization between MOSTI and FTS Sdn. Bhd.
2018 – a mill was set up at Gurun, Kedah by FTS Sdn. Bhd.
2017 - Licensing RM 50,000 and Royalty 3% for FTS Sdn. Bhd.
2019
2019 – a patent was granted MY-171898-A
Objectives
1. To further develop the production method for producing rice straw pulp for packaging products to be commercially viable, and
2. To produce 10 tonnes per day (1 shift – 8 working hours) of unbleached mechanical pulp for packaging products.
Methodology of set-up pulp millOrder equipments & construction materials
Erection of insfracture – civil, electrical, instrumentation, mechanical, utilities & offsite facilities
Commissioning
Optimization
Pulp production
Pulp molded product trial
Data analysis
End of report
Installation
Location of Free The Seed Sdn. Bhd., Gurun Industrial Area, Gurun, Kedah
Site
Site preparation
Building erection
Machinery shipping
Machines installation
Pulp mill ready
Producing pulp Soaking
Refining
Press screening
Pulp oversize
Pulp washing & thickening
Moulding machine
Cutting
Effluent treatment
Rice straw
Recycle water storage
Moulded product
Rice straw collection from rice field.
Storage and transportation of rice straw
Rice straw cutting
Rice straw soaking
Rice straw Refining
Rice straw Press screening
Pulp washing & thickening
Producing moulded product
Moulded products
• Biodegradable Packaging products for F&B Industry (Food-Service industry & etc.)
• Biodegradable Packaging products for Medical Industry (Biodegradable Bed-Pans, Bowls, Urinal Containers & etc.)
• Biodegradable Packaging products for Industrial Packaging Products (Electronic packaging & etc.)
(Freedonia Custom Research. 2018. 2018 Global Molded Pulp Market Outlook)
TARGET MARKET
Bio-degradable
Products…in 180days!
Day-120
Day-60 Day-100
Day-180
Validated by
European
Testing
Bodies
Toxicity test
• Compliance to Regulations of European Food Safety Standards 1935/2004
• Compliance to Regulations of European Heavy Metal Standards GB/T 20770-2008
• Compliance to Regulations of European Chloromequat Standards AN14-09318
• Compliance to Regulations of European Food Sensory Test Standard DIN10955
Operation• Annual rice straw orders to Persatuan Peladang Kedah (PPK)
from Free The Seed is 1,000 ton first year. Every year increase by 30%.
• 1 ton rice straw PPK sell RM100 + RM 30 transportation
• 3.0 ton rice straw (m.c. = 50%) = 1 ton pulp
• 1 ton rice straw pulp = 10,000 pcs Biodegradable Plates
• Customers: COOP UK, Marks & Spencer UK
• Order per year = 40 container x 20ft per year, 15 ton per container, 600 ton per year @ RM6 million per year sales contract
YEAR 1 YEAR 2 YEAR 3
Sales (RM) 5,304,000 5,304,000 5,304,000
Production (ton) 3,120 3,120 3,120
Gross Profit (RM) 1,656,426 1,646,739 1,636,568
Net Profit (RM) 670,208 646,748 643,479
Selling Price/ton (RM) 1,700 1,700 1,700
Total Fixed Costs (RM) 953,089 967,056 960,358
Variable Cost/ton (RM) 1,180 1,183 1,186
Gross Profit Margin (%) 31% 31% 31%Net Profit Margin (%) 13% 12% 12%Breakeven Point (Year) 5 Years NPV (based on 8% Interest p.a.) RM 9.3 MillionIRR 108.0%
REVENUE PROJECTION
• The waste rice straw cellulose fiber is be mechanically pulped to extract the cellulose fibers in mill scale.
• A biodegradable, compostable and toxic free product, can be made from 100% waste rice straw’s cellulose fiber.
• More than 200,000 hectares of rice field in Peninsular Malaysia.
• Generating about 2.6 million tonnes of rice straw annually.
• RM150/t rice straw - RM390 million to farmers.
• 80% yield - 2 million tonnes of pulp.• RM1,700/t pulp – RM 3.4 billion
Conclusion
FOR YOUR ATTENTION
THANK YOU