1.

INTRODUCTION

1.1 Background of the study

Human existence and prosperity require energy and clean air. Increased population, industry, and
urbanization have been the primary drivers of increased energy consumption. Until recently, the
major energy source was provided by fossil fuels, which have finite resources and are fraught
with environmental issues. The burning of fossil fuels has several environmental implications,
including global warming, air pollution, acid rain, and ozone layer damage (Raqeeb and
Bhargavi, 2015). Fossil fuels are non-renewable and non-sustainable as a result of these
considerations. Because of these significant challenges, substantial research has been conducted
in the goal of developing alternative fuels that can augment fossil fuels. Solar, wind,
hydropower, hydrogen, geothermal, nuclear, and biomass energy sources may all be utilized to
create electricity. Biodiesel is recognized as a propellant to utilize with diesel and other
petroleum-derived fuels among many of the fuel alternatives. Biodiesel has received a lot of
attention as an excellent contender since it is safe, renewable, biodegradable, non-toxic, sulfur-
free, non-particulate matter pollutants, has a large decrease in greenhouse emissions, and is a
great lubricant. The advantages of utilizing biodiesel rather than fossil fuels cannot be
emphasized.

It is notable for its compatibility with diesel engines since it requires no further modifications or
has a negative impact on engine performance. In this regard, biomass, vegetable oils, algae,
microbial oil, and animal fats are examples of renewable biological sources that may be used as
Biodiesel feedstock’s (Vilas Bôas and Mendes, 2022). However, it should be emphasized that the
majority of the feedstocks are fundamentally edible and useful in the food chain. As a result,
non-edible oil has an advantage over edible oil since it does not disrupt the food chain. They can
decrease food competition, be more efficient, economical, and ecologically beneficial because
non-edible plants do not deplete important soil resources and do not promote deforestation
(Ansori et al., 2019). Waste vegetable oil adsorbed in spent bleaching earth (SBE) during the
crude oil refining process at the Hamaressa edible oil factory is a prospective candidate that has
been used for the fabrication of biodiesel from the aforementioned biomasses. Utilization of
disposed SBE from the edible oil factory for the synthesis of renewable energy (biodiesel) also
reduces the dumping of spent bleaching earth wastes, which in turn reduces the severe
environmental, social, and economic impacts of industrial wastes (Abdulkareem et al., 2010).

In this study, spent bleaching earth from the Hamaressa edible oil factory was utilized to make
fatty acid ethyl ester by transesterifying spent bleaching earth oil with ethanol. The manufactured
biodiesel was analyzed using physicochemical parameters to gain evidence for the creation of
desired and unwanted components.

1.2 Statement of the Problem

Energy consumption has grown dramatically in recent decades as a result of changing lifestyles
and population expansion. The growth in energy demand was generally met by the usage of
fossil fuel resources, which are otherwise scarce and generate major environmental issues.
Except for hydroelectricity and nuclear power, coal, petrochemical sources, and flammable
gaseous sources meet worldwide vital requirements. Oil reserves that are decreasing and at their
existing levels earth discarded from edible oil factories pollutes the environment and is a low-
cost raw material. The disposal of spent bleaching earth (SBE) in landfills might have major
environmental consequences because the rate of consumption will be exhausted soon (Demirbaş,
2006). Furthermore, the bleaching difficulties. It is combustible and, if not stored or disposed of
appropriately, might present a fire danger (Shekhawat and Agarwal, 2022). Furthermore,
dumping SBE without treatment leads in huge oil and money loss. This motivates us to develop a
convergent solution to the difficulties that arise from both the environmental and economic
perspectives. As a result, alternative and renewable fuels such as biodiesel are in high demand.
Biodiesel is a fuel that is renewable, non-toxic, biodegradable, and ecologically beneficial. As a
result, the current study focuses on the usage of leftover bleaching earth from edible oil factories
for the production of fatty acid ethyl ester. Furthermore, the project focuses on the
characterization and process improvement of fatty acid ethyl ester from SBE.
 1.3 Objectives

1.3.1 General objective

The general objective of this project work is fabricating and designing activated bleaching earth
based biodiesel production for Hamaressa edible oil factory.

1.3.2 Specific objectives

The specific objectives of the study is:

i. To reduce the environmental impact of biodiesel production by utilizing a more

sustainable and eco-friendly catalyst.
ii. To integrate the biodiesel production plant with the existing edible oil factory
infrastructure, maximizing resource utilization and minimizing additional
investment.
iii. To perform material and energy balance with evaluation of cost estimation.
 1.4 Significances of the Study

This research is significant in terms of ensuring the creation of an alternative type of

energy from SBE in determining the country's capability in delivering balanced feedstock
for biodiesel synthesis. This study provided a solution to the practicality of employing a
diverse range of raw materials, as well as cost reduction for biodiesel production, which
has been a struggle for more than 20 years, by searching for low-cost alternatives, such as
non-edible resources and animal-derived raw materials. As a result, employing waste oil
sources such as wasted bleaching earth for industrial-scale biodiesel synthesis is more
sustainable. The emergence of alternate energy sources helps to ease global petroleum
depletion while also providing economic benefits. Furthermore, environmental
contamination is posing health risks as a result of mass waste land filling surrounding
chemical businesses such as the oil sector. As a result, minimizing environmental
pollution in the oil industry by transforming the company's wastes into a useful product,
called biodiesel, and lowering costs by reusing is a smart solution to this problem.

1.5 Scope of the Study

In this study, the preparation and characterization of raw material, fabricating and designing
activated bleaching earth based biodiesel production, conversion of extracted oil to the biodiesel
by transesterification and characterization of produced final product are dealt.
 2. LITERATURE REVIEW

Energy and clean air are critical for human life and success. For both continuation and progress,
society is directly dependent on fuel (Brahma et al., 2022). According to the studies, energy
demand will skyrocket by 2030, and there will be no fossil fuels for human use by 2060 (Shafiee
and Topal, 2008). As a result of rapid technological advancement and population expansion,
global demand for fossil fuels has skyrocketed (Hasan and Ratnam, 2022). In light of the current
deterioration, the scientific community is seeking for and developing alternative energy sources
to replace fossil fuels, with an emphasis on renewability and environmental friendliness.

Biodiesel has been contending as a viable alternative to fossil fuels for the last two decades due
to its qualities that are equivalent to petro-diesel (Nath et al., 2019). Biodiesel offers several
advantages over petroleum diesel, including low viscosity, high flash point, high cetane number,
good lubricity, biodegradability, non-toxicity, and the generation of less greenhouse gases. It also
has a shorter ignition delay time and higher combustion efficiency, which is advantageous for
engine longevity (Manigandan et al., 2020). Biodiesel may be used directly in diesel engines or
blended with petroleum diesel with little engine modifications (Gumus and Kasifoglu, 2010).
Thus, biodiesel is garnering the scientific community's attention, and several researchers are
attempting to make it viable for widespread use.

Biodiesel is a diesel fuel made from vegetable oil or animal fat that contains long chain alkyl
esters. It may be manufactured from both new and used vegetable and animal fats. Alkali
catalyst, acid catalyst, and enzymatic trans-esterification are the three basic ways of trans
esterification used to produce biodiesel from wasted bleaching earth oils (Ali and Tay, 2013).
Many researchers have investigated the recovery of residual oils adsorbed in SBE utilizing
solvent extraction, supercritical CO2, extraction or lye extraction in the past. Only a small
fraction of SBE generated worldwide is recovered and most of them are disposed at landfills.
 2.1 Energy and Bioenergy

Climate change feedback, biomass production, and land use are all examples of complex societal
and environmental interactions with bioenergy. Bioenergy's influence on social and
environmental concerns (for example, health, poverty, and biodiversity) can be favorable or bad,
depending on local conditions and the design and implementation of specific projects. In recent
years, the policy environment for bioenergy, particularly biofuels, has altered swiftly and
radically. The dispute over food vs fuel, as well as rising worries about other conflicts, are
generating a strong push for the development and implementation of sustainability criteria and
frameworks. Many conflicts may be mitigated, if not prevented, by fostering synergies in the
management of natural resources, agricultural, and livestock sectors as part of effective land
governance that promotes rural development, poverty reduction, and a secure energy supply.

Bioenergy is deeply interwoven in worldwide biomass systems for food, fodder, and fiber
production, as well as forest products; waste and residue management; and the daily lives of the
impoverished in developing nations. Bioenergy encompasses a variety of technologies with
applications in a variety of industries.

2.2. Biofuel

Biofuel is a fuel created in a short period of time from biomass, as opposed to the relatively slow
natural processes involved in the generation of fossil fuels such as oil. Plants or agricultural,
residential, or industrial bio waste can be used to make biofuel. Biofuel's ability to mitigate
climate change varies greatly, ranging from emissions equivalent to fossil fuels in certain
situations to negative emissions in others. Biofuels are mostly utilized in transportation, but they
may also be used to generate heat and power (Letcher, 2008). Biofuels (and, more broadly,
bioenergy) are recognized as a renewable energy source.

Types of Bio-fuel

Bioethanol and biodiesel are the two most popular kinds of biofuel. Bioethanol is a fermented
alcohol derived mostly from carbohydrates provided by sugar or starch crops such as maize,
sugarcane, or sweet sorghum. Cellulosic biomass is being explored as a feedstock for ethanol
production from non-food sources such as trees and grasses. BETO is working with industry to
produce next-generation biofuels from waste, cellulosic biomass, and algae-based resources.
(Irwin, 2023). Ethanol may be used as a vehicle fuel in its pure form (E100), although it is more
commonly employed as a gasoline addition to boost octane ratings and reduce car emissions.
Trans esterification is used to create biodiesel from oils or fats. It may be used as a pure fuel for
automobiles (B100), although it is most commonly employed as a diesel additive to lower levels
of particles, carbon monoxide, and hydrocarbons in diesel-powered vehicles (Bayetero et al.,
2022).
 2.3. Biodiesel

Biodiesel is a sustainable fuel that is biodegradable, has a high cetane number and flash
point, is non-toxic, and emits less pollution than fossil fuels (Gerhard Knothe, 2015). All
of these characteristics make it excellent for future fuels. Biodiesel feedstock have been
identified as possible feedstock from 350 accessible plants. The selection of feedstock is
critical in biodiesel manufacturing in order to keep production costs low. There are two
types of biodiesel feedstock: edible oil and non-edible oil. Non-edible oil offers greater
benefits than edible oil. They can decrease food competition, be more efficient,
economical, and ecologically beneficial because non-edible plants do not deplete
important soil resources and do not promote deforestation (Ansori et al., 2019).

2.4. Non-Edible Sources for Biodiesel Production

Biodiesel may be made from a variety of raw sources, including plants, algae, microbial oil, and
animal fats, yielding a biofuel with varying purities and compositions. As illustrated in Figure
below, the sources of biodiesel production may be separated into two categories: edible and non-
edible. The selection of raw materials is the most important stage in the manufacture of biodiesel
since it determines various parameters such as biodiesel purity, cost, composition, and
conversion.(2022, Vilas Bôas and Mendes) In comparison to edible oils, which compete for
people's dietary demands, non-edible oils might be viewed as major potential sources for the
manufacture of biodiesel. Sunflower oil, rapeseed oil, soybean oil, and mustard oil are among the
oils that have been widely utilized as raw materials for biodiesel in the past, but owing to adverse
outcomes from being widely employed in food plants, there has been a halt in usage as raw
materials for biodiesel. Meanwhile, waste from the oil plant sector, such as SABE, does not
compete with the food chain for biodiesel generation. One potential approach for overcoming the
current constraints of biodiesel production is to use non-edible agricultural oil as a feedstock.
The purpose of this study was to assess the feasibility and limitations of using non-edible oil as a
potential feedstock for biodiesel synthesis.
 Figure: 2.1 Sources for biodiesel

2.5. Spent activated bleaching earth

Before usage, all vegetable oils must be processed and refined to eliminate
contaminants (Fattah et al., 2014). Following extraction (oilseed milling), the crude oil
must be filtered to remove insoluble impurities, degumming (removal of water-swelling
phosphatides), neutralized (of free fatty acids), bleached with an adsorptive clay (to
discolor), hydrogenated (hardening, if necessary), and finally deodorized. The
bleaching stage is one of the refining processes. Bleaching earth (BE) (Sabour and
Shahi, 2018) is a natural absorbent with a high ability to adsorb undesired oil elements
(Abdelbasir et al., 2022).

BE's usage in vegetable oil refining has produced in a variety of challenges, including oil
retention, filtering, and environmental effects. Because of BE's oil retention qualities, if more BE
is utilized than is necessary, oil loss increases (Valenzuela Daz and Santos, 2001). Furthermore,
excessive usage of activated BE causes serious environmental problems and increases landfill
costs (Gunawan et al., 2010). The oil in SBE may self-ignite, posing a fire danger. Furthermore,
oil in dumped SBE may leach into the soil and damage water sources, posing an environmental
danger.

2.6. Spent bleaching earth characterization methods

2.6.1. Proximate analysis

Proximate analysis of spent bleaching earth (SBE) can give useful information for biodiesel
synthesis. SBE is a byproduct of edible oil refining that includes a high proportion of oil, making
it a possible feedstock for biodiesel generation. Some of the proximate analysis tests that may be
performed on SBE are as follows:

i. Moisture Content: This test indicates how much water is present in the SBE sample, which
might impact the quality and production of the biodiesel produced.

ii. Ash Content: The amount of inorganic material present in the SBE sample is determined by
this test, which might impair the efficiency of the biodiesel generation process.

iii. Volatile Matter: This test evaluates the quantity of flammable material in the SBE sample and
is used to assess the feedstock's calorific value.

iv. Fixed Carbon: This test identifies the quantity of non-volatile matter in the SBE sample and is
used to compute the feedstock's calorific value.

2.7. Biodiesel Production Process

Because of their high viscosity, poor volatility, and the presence of unsaturation in the carbon
chain, vegetable oils cannot be utilized in engines (Mishra and Goswami, 2018). Several
biodiesel manufacturing strategies have been developed to address these issues. Direct mixing
(dilution), pyrolysis, microemulsion, and transesterification are the most often employed
procedures (Baskar and Aiswarya, 2016). Transesterification is the most frequent process for
converting triglycerides to methyl or ethyl esters because it is more efficient than other
procedures. Transesterification is extremely appropriate for low-investment manufacturing,
according to research (Dash and Lingfa, 2017).

Block flow diagram of biodiesel production

Figure 2.2: Block flow diagram of biodiesel production

2.7.1. Transesterification

Transesterification is a process that converts triglycerides into methyl or ethyl esters and glycerol
by exchanging the alkoxy group of an ester for alcohol such as methanol or ethanol (acyl
acceptor) (Moazeni et al., 2019). In addition to being one of the most common routes to biodiesel
synthesis since it is simpler than other processes such as oil microemulsion, pyrolysis, or
catalytic cracking.

A triglyceride source, such as oil or fat, is utilized in the transesterification process to react with
methanol or ethanol in the presence of a catalyst. As previously stated, the conversion involves
breaking down the glycerides into a simpler form and generating the methyl or ethyl ester. In
general, the glycerol produced is considered a by-product; however, due to its economic
significance in the pharmaceutical, food, and cosmetic industries (Dash and Lingfa, 2017), the
glycerol can be refined to a higher purity.

Figure 2.3: Experimental procedures of transesterification reaction

 2.7.2 Process Parameters for Transesterification Reaction

Effect of molar ratio: The molar ratio of alcohol (methanol or ethanol) to oil (raw material) in
the transesterification reaction is determined by the catalytic activity of a certain catalyst. In a
reversible transesterification reaction, an excessive amount of alcohol influences the synthesis of
biodiesel. As a result, excessive alcohol use during the biodiesel process is not suggested, as it
might reduce yield owing to the diluting impact of the catalyst caused by the insolubility of the
alcohol in the oil, wasting resources. Furthermore, recovering unreacted alcohol at the
conclusion of the reaction requires more energy, raising the overall cost of the operation.Vilas
Bôas and Mendes (2002).

Effect of catalyst concentration: The concentration of catalysts is directly related to biodiesel

generation. It is established that the conversion of biodiesel normally improves with the
concentration of the catalyst, but once an optimal value is reached, the conversion can drop or
remain constant with incremental catalyst increase (Hanif et al., 2018).

Effect of temperature: The temperature has a significant impact on the reaction and conversion
in the generation of biodiesel. The viscosity of the oils may decrease as the reaction temperature
rises. This leads to a faster reaction rate and a shorter reaction time (Hanif et al., 2018).The
process generally slows down during the initial stages of the reaction due to the mixing and
dispersion of methanol with high viscosity oil. The reaction temperature is typically determined
by the kind of alcohol employed, and it is kept below the boiling point of the alcohol to keep the
alcohol level constant in the reaction flask.

3. Fabricating biodiesel plant and designing process equipment

Human growth towards a more evolved civilization will be impossible without energy. Recently,
there have been significant advancements in the techniques and technology used to produce
energy, allowing to enhance the well-being of the majority of the world's population. However,
as people's well-being and comfort levels rise, so does the demand for the resources needed to
provide energy. Moreover, because energy is affordable, people tend to consume more than they
really need. The overall energy consumption will keep increasing along with the increase in
world population. This increase in consumption will become a serious issue as more and more
people will have purchasing power, the consuming more and more goods.

Transesterification, which refers to a catalyzed chemical process involving vegetable oil and an
alcohol to form fatty acid alky esters (i.e., biodiesel) and glycerol, is the most prevalent method
of producing biodiesel. After the vegetable oil was completely converted, the reaction was halted
and the mixture was left to stand for phase separation, with the ester mixture forming the upper
layer and glycerine forming the bottom layer. The exceptional benefits of pure plant oils are
related to their physicochemical features and manufacturing method, which comprises few
process stages and can be done affordably with small production units.

3.1 Design and fabrication considerations of biodiesel plant

Design and fabrication of a biodiesel plant involves several important considerations to ensure
the efficient and safe production of biodiesel. Some of the key considerations include:

Location: The location of the biodiesel plant should be carefully chosen, taking into account
factors such as proximity to raw materials, transportation infrastructure, and environmental
regulations.

Feedstock selection: The choice of feedstock (such as vegetable oils, animal fats, or waste
cooking oil) will impact the design of the plant, as different feedstocks require different
processing methods.

Process design: The process design of the biodiesel plant should be carefully planned to ensure
efficient conversion of feedstock into biodiesel. This includes consideration of reaction kinetics,
temperature and pressure requirements, and separation techniques.

Safety considerations: Safety should be a top priority in the design and fabrication of a
biodiesel plant. This includes the use of appropriate equipment, proper ventilation systems, and
emergency response plans.
Environmental impact: The design of the biodiesel plant should also take into account its
environmental impact, including measures to minimize waste and emissions.
Equipment selection: The selection of equipment for the biodiesel plant should be based on
factors such as capacity, efficiency, and compatibility with the chosen feedstock.

Quality control: Quality control measures should be integrated into the design and fabrication
process to ensure that the biodiesel produced meets industry standards and regulatory
requirements.
Automation and control systems: The use of automation and control systems can help to
improve the efficiency and reliability of the biodiesel production process.

Sizing parameters: The alcohol to oil molar ratio is one of significant factor to consider when
sizing the equipment. Six moles of methanol for one mole of oil is the commonly recognized
figure.

Gravity: The system's main characteristic and benefit is that it relies on gravity. This has several
advantages. First, because methanol and oil fluxes are quite tiny, utilizing valves is sufficient to
regulate them. As a result, it reduces material requirements because no pump or flow meter is
necessary. Second, it reduces the system's energy usage and makes it more energy efficient.
However, there are some drawbacks to using valve-regulated flows: it takes longer to set up an
experimental run, and flows may be less precise and variable.
Versatile: Another key aspect that has been examined is the system's adaptability.

Because this is a research unit, many different sorts of experiments must be easily done, and the
unit must be easily adjusted to accommodate different experimental setups. One of the most
important aspects is that each component may be bypassed. Connections and pipes have been
added to allow for simple flow redirection. This allows for the investigation of each component
and a thorough understanding of its impact on the overall conversion of oil to biodiesel.
Furthermore, the structural frame is made of slotted angles, allowing components to be readily
relocated or added.

Monitoring: Temperature monitoring is critical for understanding the system. Furthermore, the
temperature of the reactor must be kept constant at 55 to 60 degrees Celsius at all times. If any
noise is heard while operating, we must turn off the reactor.

By addressing these considerations, a biodiesel plant can be designed and fabricated to produce
high-quality biodiesel in a safe and efficient manner.
 3.2 Process development and design of biodiesel plant

3.2.1 Process Flow Diagram (PFD)

In this section, we will shed light on the proposed process flow diagram for our biodiesel
production pilot unit. The design is created using the software Edraw max.

Figure 2.4: process flow diagram of biodiesel production

 3.2.2 Material and energy balance

It is the process of balancing the materials used in manufacturing. Material and energy balances
are critical in industry, particularly for managing product outputs. Because of the growing cost of
energy, businesses are looking for ways to cut energy use in processing. Energy balances are
used to assess different phases of a process, the complete process, and the full production system
from raw materials to final product. Material balances are first calculated during the exploratory
stages of a novel process, then refined via pilot plant tests. When the facility is set up, these
balances are examined, modified, and maintained as a control tool during production. If the
procedure is altered, the material balances must be recalculated.

The energy balance assessments are also done to calculate the process's energy requirements,
such as heating, cooling, and electricity. An energy balancing (energy audit) on the plant is
supposed to reveal the pattern of energy use and propose possibilities for conservation and
savings in this plant operation. The following equation is the underlying basis for both material
and energy balance:

Input + Generation = Output + Consumption + Accumulation

3.2.3 Material Balance

All mass balance calculations assume no mass buildup during the design process. Because the
mass balance involves reaction, it is computed using the mole flow of each chemical when the
process includes reaction. Because all reactions are considered to be in equilibrium, the
conversion of each reaction and the amount of moles used in the reaction are important.

∑ (Fi) input + ∑ (Fi) generated = ∑ (Fi) output + ∑ (Fi) consumed

Assumptions

The factory has an annual capacity of 80,000kg and

Runs 340 days per year.

The process chosen for biodiesel generation is a continuous process. The laboratory results
reveal that 53g (0.053kg) of oil yields 48.588g (0.048588kg) of biodiesel. To scale this up into
an agro-processing enterprise with overall estimates of 320 kilogram biodiesel output per day,
we require 349 kg oil supply per day. Because the factory runs 340 days per year, the yearly
biodiesel output will be: 320kg/day * 250 days per year = 80,000kg/yr. Since the expected daily
production of biodiesel is 320kg, we can use a scale up factor to multiply all of the laboratory
scale results to determine the daily demands of all of the process's inputs and outputs. This may
be accomplished by dividing 320kg of biodiesel per day by 0.048588kg of biodiesel. As a result,
the scale up factor for daily biodiesel production is 6,585.988. As a result, the factor material
balance is provided below.

Given data
Density of Petroleum ether (ρpet) = 0.7 g/ml Mass of Petroleum ether (Mpet) = Vpet* ρpet
Volume of Petroleum ether (Vhex) =500ml Vpet = 500ml*0.7g/ml
Mass of SBE (MSBE) = 250g=0.25kg Mpet =350g =0.35Kg
MSBE = 0.25kg* 6,585.988=1,647kg/day
Mpet=0.35Kg*6,585.988=2,305kg/day
Material Balance on Mixer (M1)

Where,

MF = mass of filtrate (oil+ Petroleum ether)

MRSBE = mass of residual spent bleaching earth
Solution: From overall material balance
In put = Output

MSBE + Mpet= MRSBE + MF

MF = MSBE + Mpet - MRSBE

MF = 1,647kg/day +2,305kg/day -1,317kg/day = 2,635kg/day

 Material Balance on the Separator

 Assume 1% of mass of Petroleum ether inputed is lost

Then the mass of Petroleum ether lost is,

g∗1
ML=330.3 =3.303 g ( 0.003303 kg )=0.003303 kg∗6585.988=¿ 23.05kg/day is lost
100
And the total mass of Petroleum ether recovered is, Mhrc = Mpet - ML
Mhrc =2,305kg/day -23.05kg/day = 2,282kg/day
The total mass of oil recovered is, Morc = MF - Mhrc
Morc = 2,505kg/day -2,282kg/day = 223 kg/day

Volume of ethanol used Veth =14ml

Density of ethanol ρeth = 0.792g/ml
Mass of ethanol Meth = Veth * ρeth
Mmeth = 14ml * 0.792g/ml =11.088g (73kg/day)

Material Balance on the Mixer (M2)

 Where, MGB= mass of glycerol biodiesel from overall material Balance:

In put = Output

Morc + MNaOH + Mmeth = MGB,

MGB = 349kg/day +3.29kg/day +73kg/day, MGB =425.29kg/day

The mass of biodiesel and glycerol after separations were found to be 48.588g and 16g respectively,
but after scaling up the biodiesel produced was 319.94kg/day and that of glycerol was
105.35kg/day.

3.2.4 Energy Balance

Energy balance on water bath

It is the energy required to increase the temperature of the oil from room temperature 25 0C to
600C.

Q= mcp (∆T) =mcp (Tf –Ti)

Q= 349Kg/day *1.95J/Kg K (333K -298K)
Q= 23819.25J/day = 23.82KJ/day is the approximate electrical energy required to heat the oil.

Energy Balance on Dryer

It is the energy required to dry raw material SBE on the temperature of 1100C.
Q= mcp (∆T) =mcp (Tf –Ti)
Q = 1647 kg/day * 2.1 J/kg K (383K - 298) = 293,989.5 KJ/day is the approximate electrical
energy required to dry SBE.
 3.3 Equipment sizing and selection

This early process evaluation's equipment design entails evaluating the size of the equipment in
terms of volume, flow per unit time, or surface area. The equipment capacity per hour is
calculated using the usual assumption of 340 working days per year with two shifts.

Storage tanks for spent bleaching earth

Solid to be handled is spent bleaching earth (SBE)
Density of SBE 0.70g/ml (0.0007kg/ml)
Temperature of solids 250C
Capacity
m 1.647 kg/day
v= = =2352837.14ml=2.4m3
ρ 0.0007 kg/ml
Required storage volume
3
v 2.4 m
Vr= 0.75 = =3.2m3
0.75
Storage tank for oil
Liquid to be handled is oil

Density of Oil 920kg/m3

Temperature of liquid 250C

Capacity
m 349 kg/day
v= = =0.38m3
ρ 920 kg/m3
Required storage volume
3
v 0.38 m
r=¿
v
¿ = =0.5m3
0.75 0.75
Storage tank for Methanol
Liquid to be handled is methanol
Density of Methanol 0.792g/ml (0.000792kg/ml)
Temperature of liquid 250C
Capacity
 m 73 kg /day
v= = =0.092m3
ρ 0.000792 kg/ml
Required storage volume
v 0.092 m3
V r= = =0.12m3
0.75 0.75
Storage tank for Sodium hydroxide
Solid to be handled is NaOH
Density of NaOH is 1.515g/ml (0.001515kg/ml)
Temperature of solids is 250C
m 3.29 kg/day 3
Capacity ƍ= = =0.0022m
v 0.001515 kg /ml
3
v 0.0022 m 3
Required storage volumeVr= = =0.0028 m
0.75 0.75

Storage tank for Biodiesel

Liquid to be handled is Biodiesel
Density of Biodiesel is 0.88g/ml (0.00088kg/ml)

Temperature of liquid is 250C

m 319.94 kg /day 3
Capacity, ƍ= = =0.36 m
v 0.00088 kg/ml
3
v 0.36 m 3
Required storage volume Vr= = =0.48 m
0.75 0.75
Storage tank for Glycerol
Liquid to be handled is Glycerol
Density of Glycerol is 1261.3kg/m3

Temperature of liquid is 25℃

m 105.35 kg /day 3
Capacity, ƍ= = =0.083 m
v 1261.3 kg /m 3

3
v 0.083 m 3
Required storage volume Vr= = =0.11 m
0.75 0.75
 4. COST ANALYSIS AND ECONOMICAL FEASIBILITY

This section is focused on analyzing the economic viability of producing a biodiesel from waste
Spent Bleaching Earth. In the previous sections, the technical feasibility and process routes were
already established. For this economic study, the mass balance information was used, and the
evaluation was based on a daily utilization of 1647kg of SBE. The cost estimation of the plant
was determined by calculating the percentage of delivered equipment cost, which is typically
used for preliminary studies. The total cost estimation is broken down into two main parts:
capital investment and production cost.

Economic basis for this analysis are:

 Start of construction: January, 2025

 Completion of construction: October,2026

 Commencement of processing: February, 2027

 Plant operation: 12 hours / day

 Processing mode: Continuous process

 Plant production rate: 80,000 kg/year

 Working period: 340 days

 Selling price of product =80 birr/liter

4.1 Total Capital Investment

To put a plant into operation, capital is needed to buy and install machinery and equipment, as
well as to cover the cost of land and services. It is also necessary to build the plant with all its
necessary piping, controls, and services. Additionally, the necessary capital for the plant's
 operation and manufacturing must be provided, which is divided into two categories: the fixed
capital investment, which includes direct and indirect costs, and the working capital which is
necessary for the initial phase of the plant's operation.

The sum of the fixed capital investment and the working capital is known as the total capital
investment. The total capital investment is determined by percentage of delivered equipment cost
estimation in this report.

Year 2007 2008 2009 2010 2011 2014 2016 2017

CEPCI 525.4 575.4 521.4 550.8 585.7 690.4 760.2 795.4

The index for 2017 is determined by extrapolation:

2014= 690.4
2016= 760.4
2017=x
(2016-2014) / (760.4-690.4) = (2017-2016)/(X-760.4) X
X = 795.4

4.1.1 Fixed capital investment (FCI)

The total cost of the plant, including the necessary components, control systems, and services,
required to be in place for the plant to commence operations is referred to as Fixed Capital
Investment (FCI). This cost covers the purchase and installation of the plant, as well as any
additional working capital to get the plant running.

FCI includes:

I. Direct (manufacturing) fixed capital investment: The direct fixed capital investment
necessary for the manufacturing process involves the cost of purchasing and installing all the
necessary equipment and auxiliary components needed for the process to function correctly. This
includes the cost of instruments, control systems, piping, electrical equipment and materials,
building and services, yard improvements, service facilities, and land.
II. The fixed capital investment: is the capital needed to supply the necessary manufacturing and
plant facilities (peter et al). It can also be defined as the total cost of the plant ready for startup.

From purchase equipment cost we can determine initial fixed capital investment. I.e. Purchased
equipment cost (PIC) = (15-40 %) fixed capital investment (FCI).by Choosing average value
27.5% in our project.
PIC=27.5%FCI
FCI=PIC/0.275= $57626/0.275 = $209550
Cost equipment TFCI for 2017= FCI (cost index2017/cost index2014) $209550
795.4/690.4 = $241419.56

Table 4.1: Purchased equipment cost

Types of equipment Quantity Capacity Cost In ($)

SBE storage 1 3.2 m3 2778

Storage tank for oil 1 0.5 m3 4200
Storage tank for methanol 1 0.12 m3 3560
Storage tank for NaOH 1 0.0028m3 1200
Mixer tank 2 4.6375m3 3238
Dryer 1 2500 kg/hr 5000
Storage for biodiesel 1 0.48 m3 4200
Storage tank for Glycerol 1 0.11 m3 850
Grinding 1 2000
Distillation 1 2500 kg/day 7600
Sieve 1 1500
Boiler 1 360kw 7500
Condenser 1 400.6kw 8000
Filter 1 2500kg/day 6000

I. The direct fixed capital investment

In addition to the cost of the necessary equipment, installation of the piping, and the
development of the site are all factors that must be taken into account in order to accurately
calculate the total capital investment for the process plant. The direct-cost items that are incurred
in the construction of a plant, in addition to the cost of the equipment items are Purchased-
equipment erection, installation, Piping, Electrical equipment and materials, power and lighting,
Instrumentation and controls, Process buildings and structures, Yard improvements, Service
facilities, Land.

Table 4.2: The direct cost items that are incurred in the construction of a plant

Purchased equipment 15- 40 % FCI 27.5%*209550 57626.25

cost
Purchased equipment
6-14%FCI 10%*209550 20955
installation cost
Instrumentation and 2-8% FCI 5%*209550 10477.5
control cost
Piping cost 3-20%FCI 10%*209550 20955
Cost of electrical 2-10%FCI 6%*209550 12573
system
Cost of building 3-18%FCI 10%*209550 20955
and
structures
Purchased equipment 15- 40 % FCI 27.5%*209550 57626.25
cost
Cost of yard 2-5%FCI 3%*209550 6286.5
improvement
Service facility and 8-20%FCI 12%*209550 25146
utility cost
Cost of land 1-2%FCI 1.5%*209550 31432.5
Total $235,744

II. The indirect fixed capital investment

In addition to the direct capital investment, the capital investment of a project will include the
indirect capital investment of the process plant.
The indirect-cost items that that are incurred in the construction of a plant are: engineering and

supervision construction expense contractor’s fee and Contingency.

Table 4.3: Indirect capital investment calculation

Engineering and 4-21%FCI 12.5%209550 26193.75

supervision
Construction 4-16%FCI 10%209550 20955
expense
Contractor’s fee 2-6%FCI 4%209550 8382
Contingency 5-15%FCI 10%209550 20955
Total $76485.75

A. Working capital (WC): Working capital is required to keep the plant operational until the
point when revenue is generated. This capital is in addition to the capital required to set up and
install the necessary equipment. This consists of the total amount of money invested in Startup ,
Raw material and supplies carried in stock, Finished and semi-finished products in stock,
Accounts receivable and payable, Cash kept on hand for monthly payment of operating expenses
and Taxes payable. It is estimated that working capital is approximately 15% of total capital
investment.
By adding the direct plant cost, indirect plant cost and working capital, the total investment
required can be estimated. The total capital investment for this project is:

4.2 Total capital investment (TCI)

Total capital investment (TCI) = Total fixed capital investment +Working capital (WC)

𝑇𝑜𝑡𝑎𝑙 𝑓ixed capital investment =TDC+TIDC= 209550

Working capital (WC) = 15 %( TCI)

Thus, Total capital investment (TCI) $ = 0.15TCI + FCI

 TCI-0.15TCI= FCI but FCI= 0.85TCI

TCI=FCI/0.85= 209550/0.85 = $247000

4.2.1 Estimation of Total Production Cost

Determining the necessary capital investment is only a part of a comprehensive cost and
evaluation estimate. Operating costs are also a significant factor in the overall production cost.
The expenses associated with the manufacturing process or the physical equipment of the
process plant are categorized under manufacturing costs, which include fixed operating costs,
variable operating costs, and overhead costs. Additionally, general expenses related to any
company's operations are also taken into consideration. All of these costs are combined to
calculate the total production cost on an annual basis.

4.2.2. Direct production cost calculation

A direct production cost comprises about 60% of total product cost.
1. Raw materials (l0-50%of total product cost)

2. Operating labor (10-20%of total product cost)

3. Direct supervisory and clerical labor (10 -25%of operating labor).

4. Utilities (10-20%of total product cost).

5. Maintenance and repairs (2-10%of fixed -capital investment)

6. Operating supplies (10 -20%of cost for maintenance and repairs, or 0.5-1%of fixed capital
investment).

7. Laboratory charges (10-20%of operating labor).

Patents and royalties (0-6%of total product cost) 9. Raw material (10 -40%) 0f total production
cost.

Operating labor:

The total human resource requirement of the plant will be 66 persons. The total annual cost of
human resource is estimated at $83,932.144. Details of human resource and salaries are
presented in the following table.
Table 4.4: Details of human resource and salaries

Annual
NO. Description Number of Monthly(birr)salary Total salary
salary(birr)
operator for one person

1 General 1 18000 18000 216000

manager

2 Finance 1 9000 9000 108000

manager

3 Technical 1 9500 9500 114000

manager

4 Commercial 1 12000 12000 144000

manager

5 Accountants 2 5600 11200 134400

6 Sales/purchase 2 4000 8000 96000

7 Store keeper 2 2700 5400 64800

8 Secretary 1 2400 2400 28800

9 Production 1 12600 12600 151200

manager

10 Operators 14 5000 70000 840000

11 Mechanic 2 5000 10000 120000

12 Electrician 3 3000 9000 108000

and
 instrument

13 Production 3 3600 10800 129600

supervisors
14 Assistant 10 3000 30000 360000
operators
15 Unskilled 11 1200 13200 158400
workers
16 Time keeper 3 1200 3600 43200
17 Messenger 4 1000 4000 48000
and cleaner
18 Guard 4 1600 6400 76800

birr∗1 $
Operating labor=2,941,200 =$ 54,466.67
54 birr

operating labour
TPC = =54466.67 /0.15=$ 363,111.13
15 %

Raw material cost = 0.1* 363,111.13 = $ 36,311.11

I. Direct supervisory and clerical labor

Direct supervisory and clerical labor is taken as 10-25 % of operational labor. For this plant we
take 17 %. i.e. Direct supervisory and clerical labor=17% of operating labor.

0.17 × $ 54466.67= $9259.33

II. Utilities
This will include the cost of electricity, process cooling water, and other forms of utility that is
required to keep the plant in operation. This is Utilities (10-20% of total product cost). We take
the average value.
15%TPC = 0.15 × 363111.11= $54466, 66

II. Maintenance and repairs

If a plant is to be kept in efficient operating condition, a considerable amount of expenses is
necessary for maintenance and repairs.

Maintenance and repairs= (2-10% of fixed -capital investment)

6%FCI= 0.06 209550 = $12573

IV. Operating supplies

This includes the cost of items such as lubricants; test chemicals, charts etc., and required to keep
the plant functioning efficiently.
Operating supplies= (10 -20% of cost for maintenance. = 15% × 105,475.481 = $15,821.3222
V. Laboratory Charges
This involves cost of laboratory tests for control operation and product quality control. It is taken
as 10-20% of operating labor.
15 %∗54466.67=$ 8170
VI. Patent and royalties
It is taken as 0- 6% of total production cost. Take 3%of TPC
3% 363111.11= $10893.33
Direct production cost = $389,180.327

4.2.3. Fixed charges

Fixed charges Costs that are invariant with the amount of production

Fixed charges (10-20% of total product cost)

1. Depreciation (depends on life period, salvage value, and method of calculation-about 10% of
fixed-capital investment for machinery and equipment.
2. Local taxes (1-4% of fixed-capital investment).
3. Insurance (0.4-1% of fixed capital investment)

Depreciation= 0.1 × 209550 = $20955

Local taxes = 0.025 *209550 =$5238.75
Insurance = 0.007 × 209550 = $ 1466.85
Total fixed charges = $27660.6

4.2.4. Plant-overhead costs

(50-70% of cost for operating labor.

Take 60% of opl = 0.6 54466.67= $32680
Total manufacturing cost = $368,273.907
Total manufacturing cost = Fc + plant overhead cost + direct production cost
TMC = 27660.6+ 368,273.907 + 389,180.327 = $ 785,114.834

4.3 Financial evaluation

4.3.1 Profitability

Based on the projected profit and loss statement, the designed and fabricated plant will generate
a profit throughout its operation life.

4.3.1.1 Break-even Analysis

The break-even analysis establishes a relationship between operation costs and revenues. It
indicates the level at which costs and revenue are in equilibrium.

4.3.1.2 Pay-back Period

The pay -back period, also called pay – off period is defined as the period required for recovering
the original investment outlay through the accumulated net cash flows earned by the project.
Accordingly, based on the projected cash flow it is estimated that the project’s initial investment
will be fully recovered within years.

4.3.1.3 Revenues for the Biodiesel production process

The revenues of the Biodiesel production process options mainly come from the direct sales of
biodiesel. Based on the usage of 320 kg biodiesel per day.

4.3.1.4 Selling price

Total income=selling price of product∗productioncapacity

1$
Total income of Biodiesel selling =80birr/lit* *296250lit/year=444,375$/year
54 birr
Table 4.5: Selling Price

Types of Amount Amount Cost of product Total cost of the

product produced /day produced /year in dollar products in
dollar

Biodiesel lit1185 /day 296,250 lit/year 1.5 $ 444,375$

4.3.1.5 Simple estimate on return on investment (ROI)

Simple return on investment ROI is calculated as a measure of annual rate of return on capital
employed in production of Biodiesel from SBE before performing the detailed economic
evaluation.
In engineering economic evaluation, it is usually defined as the percent ratio of average yearly
profit (net cash inflow) over the productive life of the project, divided by total initial investment.
A positive ROI means the annual revenue is larger than the production cost; in other word, the
plant is profitable.

Annual profit
ROI= ∗100 %
Total capital investiment
Calculation

Total income = $1,570,452.55

Total Expense = TPC= $1,098,566.59

Gross profit = Total income − expenses

= 1,570,452.55 – 1,098,566.59 =471885.96

Profit tax = 34% Χ 471,885.98 = $160,441.233
Net profit after tax = net profit before tax – profit tax
= 471,885.98 – 160,441.233 = $311,444.75

a. Before taxes
 Net Profit 471,885.98
ROR= ∗100 %=¿ ∗100 % =19%
TCI 2472,000
b. After tax
Net Profit After Taxes 311,444.75
ROR= ∗100 %= ∗100 % =12.59%
TCI 247,2000

4.4 Pay Out Period

FCI 2095500
Pay Out Period= = =1.43 years
Net profit +depreciation 10857.535+ 471885.98
FCI 2095500
Breakeven analysis= = =1.87years
TPC −WCI 1098566.59−37050
Table 4.6: General cost summary

Fixed capital investment(FCI) $209550

Working capital(WC) $37050
Total capital investment(TCI) $247000
Total production cost(TPC) $1098566.59
Net profit 1,08574.535
Total income 1,570,452.55
Gross profit 471,885.98
Rate of return(ROR) before 19%
tax
Rate of return(ROR)after tax 12.59%
Payback period 1.43year

Breakeven point 1.87