Detailed Project Report (DPR) on Fatty Acid from Palm Oil

FATTY ACID FROM PALM OIL 

[EIRI/EDPR/4194] J.C.: 2354US$

INTRODUCTION

OLEOCHEMICALS

Oleo Chemicals are chemicals derived from Plant and Animal Fats. They are analogous to petrochemicals derived from petroleum. The formation of basic oleochemical substances like Fatty Acids, Fatty Acid Methyl Esters (FAME), Fatty Alcohols, Fatty Amines and Glycerol are by various chemical and enzymatic reactions.

Fatty Acids

Fatty acids are basic oleochemicals, formed through the splitting of vegetable oils into fatty acids and glycerin. The refined fatty acids are used in production of natural chemicals, which in turn are used in the manufacturing of paper chemicals, lubricants, detergents, plastics, and more. Fatty acids may also be used in the production of tires and candles.

This section will concentrate on Fatty Acids produced from natural fats and oils (i.e. not those derived from petroleum products). Firstly though, we will recap briefly on Nomenclature. We spent some time clarifying the structure of oleochemicals and we saw how carbon atoms link together to form carbon chains of varying length (usually even numbered in nature, although animal fats from ruminant animals can have odd-numbered chains).

A fatty acid has at least one carboxyl group (a carbon attached to two oxygens (-O) and a hydrogen (-H), usually represented as -COOH in shorthand) appended to the carbon chain (the last carbon in the chain being the one that the oxygen and hydrogen inhabit). We will only be talking about chains with one carboxyl group attached (generally called “monocarboxylic acids”).

The acids can be named in many ways, which can be confusing, so we will try and keep it as simple as possible. The table opposite shows the acid designations as either the “length of the carbon chain” or the “common name”. While it is interesting to know the common name for a particular acid, we will try to use the chainlength in any discussion so you do not have to translate. Finally, it is usual to speak about unsaturated acids using their chainlength suffixed with an indication of the number of double bonds present. Thus, C16=1 is the C16 acid with one double bond; C18=2 is the C18 acid with two double bonds and so on.

SELECTING RAW MATERIALS 

FOR FATTY ACID PRODUCTION

In principle, fatty acids can be produced from any oil or fat by hydrolytic or lipolytic splitting (reaction with water using high pressure and temperature or enzymes). In practice, only around eight or so fats/oils contribute to the bulk of fatty acid production, with some variation depending on geography.

EUROPEAN UTILISATION NORTH AMERICAN UTILISATION

Tallow Type 69% 55%

Coconut/Palm Kernel 9% 15%

Soya 7% 4%

Tall Oil Fatty Acid 11% 24%

Other 4% 2%

The utilisation of different oils produces acids with differing carbon chainlength distributions which allows the market to characterise a fatty acid into groups according to the major chainlength featuring in the acid.

COST ESTIMATION

Plant Capacity            210 MT/Day

Land & Building (30,000 sq.mt.)    US$ 23.00 Lac

Plant & Machinery                    US$ 11.79 Lac

Working Capital for 2 Months    US$ 1.77 Cr

Total Capital Investment          US$ 2.13 Cr

Rate of Return                          52%

Break Even Point                      24%

CONTENTS

INTRODUCTION

OLEOCHEMICALS

FATTY ACIDS

SELECTING RAW MATERIALS FOR FATTY ACID PRODUCTION

THE PRODUCTION PROCESS

POST HYDROLYSIS PROCESSES

USES OF FATTY ACIDS

PROPERTIES

COMPOSITION

USES & APPLICATION

B.I.S. SPECIFICATION

MARKET POSITION

MARKET HIGHLIGHTS

COMPANIES PROFILED

MANUFACTURING PROCESS

OLEOCHEMICALS

FATTY ACID/GLYCERINE & ACID OILS

FATTY ACID PLANTS

PROCESS DESCRIPTION

A) DE-AERATION

B) SPLITTING

C) FATTY ACID DRYING

D) GLYCERIN-WATER PRE-CONCENTRATION

TO PRODUCE HIGH PURITY FATTY ACID FRACTIONS PROCESS DESCRIPTION

A) DE-AERATION

A) FRACTIONATION (2-COLUMN SYSTEM) FATTY

REMOVAL OF LOW & HIGH BOILING COMPONENTS FROM FATTY ACIDS

DISTILLATION

GLYCERIN PLANTS

GLYCERINE REFINING PROCESS

GLYCERINE REFINING PROCESS INVOLVES THE FOLLOWING STEPS:

PROCESS DESCRIPTION

A) DEAERATION

B) DISTILLATION

C) CONDENSATION

A) BLEACHING

B) SALT REMOVAL

ACID OIL PLANT

PROCESS DESCRIPTION

GLYCERIN REFINING PLANT

DETAILED CONCEPTS OF GLYCERINE RECOVERY PLANT

GLYCERINE RECOVERY PROCEDURE

PURPOSE OF LYE TREATMENT

METHOD OF LYE TREATMENT

THE TESTS PERFORMED AT THIS STAGE ARE AS FOLLOWS:

TREATMENT OF SWEET WATER

FIRST TREATMENT

SECOND TREATMENT

EVAPORATION

CONTINUOUS FINISHER

PURIFICATION/REFINING OF CRUDE GLYCERINE

THE IMPURITIES PRESENT IN THE CRUDE GLYCERINE INCLUDE:

NOTE ON REFINING OF CRUDE GLYCERINE

REFINING OF CRUDE GLYCERINE

SOME PLANTS FOR REFINING CRUDE GLYCERINE ARE LISTED BELOW:

MANUFACTURERS/SUPPLIERS/EXPORTERS 

RAW MATERIAL SUPPLIERS

MANUFACTURERS OF FATTY ACID

PLANT & MACHINERIES SUPPLIERS ADDRESS

VACUUM DISTILLATION PLANT

BOILER

STORAGE TANK

WEIGHING MACHINES

PACKAGING MACHINE

D.G. SET

LABORATORY TESTING EQUIPMENTS

PRINCIPLES OF PLANT LAYOUT

PLANT LOCATION FACTORS

PRIMARY FACTORS

1. RAW-MATERIAL SUPPLY:

2. MARKETS:

3. POWER AND FUEL SUPPLY:

4. WATER SUPPLY:

5. CLIMATE:

SPECIFIC FACTORS

6. TRANSPORTATION:

A. AVAILABILITY OF VARIOUS SERVICES AND PROJECTED RATES

7. WASTE DISPOSAL:

8. LABOR:

9. REGULATORY LAWS:

10. TAXES:

11. SITE CHARACTERISTICS:

12. COMMUNITY FACTORS:

13. VULNERABILITY TO WARTIME ATTACK:

14. FLOOD AND FIRE CONTROL:

EXPLANATION OF TERMS USED IN THE PROJECT REPORT

1. DEPRECIATION:

2. FIXED ASSETS:

3. WORKING CAPITAL:

4. BREAK-EVEN POINT:

5. OTHER FIXED EXPENSES:

6. MARGIN MONEY:

7. TERM LOANS:

8. TOTAL LOAD:

9. LAND AREA/MAN POWER RATIO:

UTILITIES 

WATER TREATMENT PLANT

STEAM GENERATING SYSTEM

POWER

WORKING 

TOTAL MANPOWER AND PAYROLL 

UTILITIES

WATER

WATER QUALITY PARAMETERS FOR PROCESSED WATER:

STEAM

POWER

EFFLUENT TREATMENT AND DISPOSAL

THE WASTE FROM THE FOOD PROCESSING OPERATIONS MAY BE CLASSIFIED ON THE BASIS OF:

STANDARDS

TOLERANCE LIMITS FOR INDUSTRIAL EFFLUENT DISCHARGE

WASTE TREATMENT

PRIMARY TREATMENT

ANAEROBIC TREATMENT

ANAEROBIC TREATMENT HAS THE ADVANTAGES OF

SECONDARY TREATMENT

TERTIARY TREATMENT

SOLIDS CONCENTRATION

TYPICAL WASTE SOLIDS CHARACTERISTICS

EQUIPMENT REQUIREMENTS 

LIST OF MAJOR FOREIGN INDUSTRIES FOR RAW MATERIALS

PALM OIL:-

CAUSTIC SODA:-

SODIUM CARBONATE (SODA ASH):-

PHOSPHORIC ACID:-

HYDROCHLORIC ACID:-

SULPHURIC ACID:-

BLEACHING EARTH/ACTIVATED CARBON:-

FERRIC CHLORIDE:-

ALUMINIUM SULPHATE:-

SODIUM CHLORIDE:-

HYDROGEN PEROXIDE:-

SODIUM CHLORIDE:-

MAJOR INDIAN INDUSTRIES

MACHINERY PHOTOGRTAPH

QUALITY CONTROL 

PACKAGING TYPES

DOCUMENTS REQUIRED FOR LICENSES 

LIST OF DOCUMENTS:

ORGANIZATION CHART

PLANT LAYOUT

TURNKEY CONSULTANT

SWOL ANALYSIS

STRENGTHS

OPPORTUNITIES

WEAKNESS

LIMITATIONS

IMPLEMENTATION SCHEDULE

PLANT LOCATION (AN OVERVIEW OF THAILAND)

CAPITAL: 

AREA

CLIMATE

APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSESTS

05. FIXED CAPITAL

06. RAW MATERIAL

07. SALARY AND WAGES

08. UTILITIES AND OVERHEADS

09. TOTAL WORKING CAPITAL

10. TOTAL CAPITAL INVESTMENT

11. COST OF PRODUCTION

12. TURN OVER/ANNUM

13. BREAK EVEN POINT

14. RESOURCES FOR FINANCE

15. INSTALMENT PAYABLE IN 5 YEARS

16. DEPRECIATION CHART FOR 5 YEARS

17. PROFIT ANALYSIS FOR 5 YEARS

18. PROJECTED BALANCE SHEET FOR (5 YEARS)