A Sustainable Waste Oil Solution

The Green Initiative: A Sustainable Waste-Oil Solution

Senior Engineering Design ProjectDecember 8, 2009

Anson Clawson · Josh Gordon · Matt Otis · Rob Simmons · Steven Srivastava

The Green Team


Matt OtisEngineering Management Technology, Mathematics minor

Anson ClawsonEngineering Management Technology

Josh GordonEngineering Management Technology, Plastics minor

Rob SimmonsEngineering Graphics and Design Technology, Automotive option

Steven SrivastavaEngineering Management, Supply Chain Management minor

2

Outline


Situational Background

3

Methodology

Development of Solution

Business Case

Conclusion

Matt

Rob

Josh

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

5

Situational Background Waste Oil


Cracker dough is ‘sheeted’ to 1/16” Oil is excreted from dough during ‘sheeting’

process Oil is not reusable Approximately 350 gallons/week Waste oil is sold for $0.76 per gallon

6

Catch Gutter

DoughSheeting Process

Waste Oil Collection

Problem Statement:

Find a sustainable use for waste oil

Outline



7

Methodology


Business Case

Conclusion

Matt

Rob

Josh

Steven

Anson

MethodologyAnalysis of Waste Oil


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Low linolenic soybean oil

Contaminates Wheat Salt Flour

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

Methodology Potential Uses for Waste Oil


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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

Methodology Biodiesel Production Research


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Industry practices Toured multiple biodiesel production plants

Standards and regulations

Possible end uses Company fleet vehicles Diesel generator Fuel heater

Transesterification process

Methodology Biodiesel Conversion Process


11

Glycerin

B-100Biodiesel

(140˚F)Waste Oil

KOH

Methanol

Methodology Project Parameters


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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



13

Methodology


Business Case

Conclusion

Matt

Rob

Josh

Steven

Anson

Development of SolutionDesign Concept

14The Green Initiative: A Sustainable Waste-Oil Solution

Development of Solution Base Unit from Evolution Biodiesel


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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 Solution Developing an Improved System

Pneumatic valves Pneumatic actuators


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


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Additional pump (3) Float sensors Temp. sensor



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KOH metering system Glycerin drain Programmable relay Control panel



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Complete system

Development of Solution Trial Processing


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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

KOH metering system

Development of Solution Ready for Production?


21

Successfully ran several batches

Lack of industrial heating element and chemically rated pump

Changes have been made in the full-scale design

Outline



22

Methodology


Business Case

Conclusion

Matt

Rob

Josh

Steven

Anson

Business Case

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Successful Business

Case

Socially Acceptable

Environmentally Responsible

Economically Profitable


Business CaseEnvironmental Analysis

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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

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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)



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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% [%]



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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 50 100 150 200 250 300$0

$5,000$10,000$15,000$20,000$25,000$30,000$35,000$40,000

Capital Cost

Batch Size [Gal/batch]



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

0 50 100 150 200 250 300$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

Unit Cost [$/Gal]

Batch Size [Gal/Batch]

0 50 100 150 200 250 3000

2

4

6

8

10

12

Payback Period

Batch Size [Gal/batch]

Yrs

Diesel Rate ($2.77/Gal)

3 yr Payback


Business CaseRecommendations

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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



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Methodology


Business Case

Conclusion

Matt

Rob

Josh

Steven

Anson

ConclusionExperience/Knowledge Gained

Project Management


Labor

Money

Materials

Time

ConclusionProject Summary Elements of project

Overall systems design Logic controller Programming Basic electrical installation Pneumatic components

Chemistry Economic/Energy analysis

Integrated a new sustainable practice


Conclusion Handing Off To Sponsor 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 Nic Hirzel Professor Joseph Petro Dr. Betsy Aller Professor Harold Hladky (WMU Chem. Eng.

Dept.) F&A Fabricating Bronco Biodiesel Michigan State Chemical Engineering

Department



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Questions?

Green Team

Thank You
