The Green Initiative: A Sustainable Waste-Oil Solution · Variable by batch size ... The Green Initiative: A Sustainable Waste- Oil Solution. ... The Green Initiative: A Sustainable

The Green Initiative: A Sustainable Waste-Oil Solution

Senior Engineering Design ProjectDecember 8, 2009

Anson Clawson · Rob Simmons · Steven Srivastava

The Green Team


Anson ClawsonEngineering Management Technology

Rob SimmonsEngineering Graphics and Design Technology, Automotive option

Steven SrivastavaEngineering Management, Supply Chain Management minor

2

Outline


Situational Background & Methodology

3

Development of Solution

Business Case

Conclusion

Rob

Anson

Steven

Anson

Situational BackgroundSustainability


IME Department and design team sought out a sustainability project

Byproducts of our existence reach a state of equilibrium with the environment

Designing for tomorrow’s world today

4

Situational Background Industry Sponsor


Major Food Manufacturer Crackers Cereal

Wants to integrate sustainable practices into their manufacturing culture

Produce 350 gallons of waste oil weekly

5

Problem Statement:

Find a sustainable use for waste oil

MethodologyAnalysis of Waste Oil

The Green Initiative: A Sustainable Waste-Oil Solution 6

Low linolenic soybean oil

Contaminates Wheat Salt Flour

Mass Spectrometry less than 0.1% total fixed solids volatile organic acid content of 391mg/L

MethodologyPotential Uses for Waste Oil


SynGas (Synthetic Gas) Fuel source / Chemical Manufacturing Gasification of biomass requiring extreme temperatures

Animal Feed Little benefit to sponsor Little benefit to SEDP

Biodiesel Common industry practice Potential for economic benefit Offset diesel consumption

MethodologyBiodiesel Production Research


Industry practices Toured multiple biodiesel production plants

Standards and regulations

Possible end uses Company fleet vehicles Diesel generator Fuel heater

Transesterification process

MethodologyBiodiesel Conversion Process


Glycerin

B-100Biodiesel

(140˚F)Waste Oil

KOH

Methanol

MethodologyProject Parameters


Semi-automated system Minimal user interaction Safe (minimal contact with harmful chemicals) Minimal operator training required

Budget of $15,000

1 Batch = 8 hour shift

8’ x 4’ footprint

Functional pilot scale processor by graduation

Outline



11


Business Case

Conclusion

Rob

Anson

Steven

Anson

Development of Solution Base Unit from Evolution Biodiesel


Mega-Ester 40 gallon processor ($3,668) Up to 14 hours to process Manual operations Operator training required

Modifications necessary to minimize operator interface Increase production throughput Minimize labor costs Improve process safety

www.evolutionbiodieselkits.com

Development of SolutionDesign Concept

13The Green Initiative: A Sustainable Waste-Oil Solution

Development of Solution Developing an Improved System

Pneumatic valves Pneumatic actuators


Development of Solution Developing an Improved System (Cont’d)


Additional pump (3) Float sensors Temp. sensor



Glycerin drain Programmable relay Control panel



Complete system

Development of Solution Trial Processing


Wet testing for leaks and basic functionality (H2O) Debugging Fix leaks

Calibration of program coding (WindLGC) Organizing sequence of events Setting the timers appropriately Establishing fail-safe

Outline



19


Business Case

Conclusion

Anson

Steven

Anson

Rob

Business Case

20

Successful Business

Case

Socially Acceptable

Environmentally Responsible

Economically Profitable


Business CaseEnvironmental Analysis

21

Year 2012: Federal Cap & Trade Program 1 carbon credit = 1 Tonne CO2-equivalent

Total Equivalent GHG’s 0.016 Tonne/Gal 230 Tonne/yr

European Union Market Value €14.6/Tonne = $21.7/Tonne $4,991/yr – Potential GHG exchange


Business CaseEconomic Analysis

22

Cost Considerations Capital cost

Parts, trade labor (electrician, programmer, fabricators) Variable by batch size

Operational cost Reaction materials (KOH, methanol), labor cost, energy cost Variable by batch size

Current diesel fuel rate $2.77/Gal

Current revenues for disposing the waste oil $0.76/Gal

Depreciation MACRS (10 yrs life)



23

Sponsor’s Financial 3 yr or less payback period 10% return on investment

Current Economic Figures (230 Gal/batch, $2.77/Gal)

Capital $31,919 [$]

10 yr Savings $53,178 [$]

Payback 7.025 [yr]

NPV (10%, 10 yr) $29,367 [$]

IRR (10yr) 8% [%]



24

Two variables in profitability Batch size [Gal/batch] Current diesel rate [$/Gal]

Further Analysis Batch sizes from 40 Gal to 260 Gal/batch Diesel rate from $2.77/Gal to $4.95/Gal

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

0 50 100 150 200 250 300

Batch Size [Gal/batch]

Capital Cost



25

Sponsor’s Criteria IRR met by $3.00/Gal Payback period met by $3.25/Gal – active constraint

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

0 50 100 150 200 250 300

Batch Size [Gal/Batch]

Unit Cost [$/Gal]

0

2

4

6

8

10

12

14

0 50 100 150 200 250

Yrs

Batch Size [Gal/batch]

Payback Period

Diesel Rate ($2.77/Gal)

3 yr Payback


Business CaseRecommendations

26

Full-Scale Implementation: $3.25/Gal Meets both, payback and IRR criteria

Processor Size: From 100-230 Gal/batch Oil Volume is constant

Potential for revenues remains constant Economies of scale achieved

Larger processor has lower per unit cost Additional capacity increases capital cost and payback period Pick a size to meet time and labor constraints


Outline



27


Business Case

Conclusion

Rob

Anson

Steven

Anson

ConclusionExperience/Knowledge Gained

Project Management


Information

Money

Materials

Time

ConclusionProject Summary Practical Engineering Skills Applied Mechanical design Design for manufacturability/serviceability Electrical wiring Logic control programming Performance testing Design adjustments Scale modeling Business case


Conclusion Deliverables Proof-of-Concept Processor Training Documents Operations manual Safety protocol Logic relay program

Business Case Recommendations for Full Scale Processor Components to use Implementation at $3.25/Gal Volume of 100 to 230 Gal per batch


Acknowledgements Company Sponsor Professor Joe Petro (WMU - IME Dept) Dr. Betsy Aller (WMU - IME Dept) Professor Harold Hladky (WMU Chem. Eng. Dept.) F&A Fabricating Bronco Biodiesel Michigan State Chemical Engineering Department



Questions?

Green Team

Thank You
