Executive Summary

Fatty Acid Methyl Esters (FAME) is included in oleochemical group. Oleochemicals are biodegradable, low toxicity and environment friendly type of chemicals. We are planning to build a plant which produces 120 000 MTPA of FAME. We uses transesterification process with base catalyst, a homogenous sodium methoxide. Base catalyzed transesterification is chosen since it is faster than the acid catalyzed reaction, achieving 95% conversion.

Summary of Chapter 1FAME is esters of fatty acids that are famously obtain from vegetables or animal oil through transesterification of fat with methanol. The product of FAME can be divided into Light Cut, Middle Cut and Heavy Cut. Light Cut methyl Esters, commercially used in organic synthesis, manufacture of perfume, medicine, lubricating, grease, rubber, dye, plastics, greases and lubricants, food additives, pharmaceuticals industry, food and beverage and as natural antimicrobial ingredient in sanitizers for food contact surfaces and equipment, particularly in meat. Middle Cut Methyl Esters (Laura, 2014). The Heavy Cut Methyl Esters are basically industrialized as oils, surfactants and oil soluble materials. Apart from that, it is also widely applied as detergent, cosmetic, special lubricant and textile assistant (Aadi, 2014). Glycerol is also a valuable byproduct in biodiesel production by transesterification. some of its applications are applied in cosmetic, pharmaceutical, automotive, food pulp, and paper textile.

1.1 Market SurveyThe use of methyl ester has become increasingly widespread in the recent years, since they are readily biodegradable and are less environmentally harmful. This causes the demand and production of FAME to increase every year. The demand for these esters is going to rise in the Asia-Pacific region due to the region’s rapid economic growth and government regulations for the control of the content of volatile organic compounds (VOCs) in the environment (Transparency Market Research). The supply and demand was estimated to increase from 2005 till 2020. This increase is due to the demand for oleochemicals are swelling in end-user industries such as cosmetics, food, plastics, and rubber (Evyap, 2014). As global consumer preference for natural and environment-friendly products continues to rise, demand from markets such as China, India and the United States will drive the Southeast Asian oleochemicals market (Frost& Sullivan, 2014).

1.2 Synthesis RouteGenerally, there are 4 alternative routes to synthesize FAME and these routes involve catalytic process. They are the base catalyzed transesterification, acid catalyzed transesterification, lipase enzymatic catalyzed transesterification and lastly the supercritical method. The base Catalyzed Transesterification is chosen as it is the most advantageous. Methanol and palm oil in the ratio of 6:1 use sodium methoxide base-catalyzed transesterification of triglyceride with methanol to produce triglycerol and FAME. Reaction under favorable operating conditions should be able to achieve a maximum extent of reaction at the chemical equilibrium. Also, a higher conversion to be achieved within limited amount of time will be feasible if the operating condition occur at a relatively high reaction rate.

1.3 Objectives1) To design a plant with production rate of 120,000 MTPA.2) To produce methyl ester from base catalysed transesterification.

Summary of Chapter 2 Process Synthesis and Flow SheetingLevel 2 decision Focus on the input of raw materials and the output of product. Palm kernel oil and methanol is chosen as the raw material. The output of product are the heavy cut, middle cut and light cut of FAME (Adholeya & Dadhich, 2008). The EP are calculated based on 2 situations, using yield correlation, obtaining a constant EP2 and Varying EP2 with X and molar ratio. Given below is the formula in EP2.EP 2=Biodiesel value+GlycerolValue−PalmKernel OilCost−MethanolCost

Level 3 decisionThe level 3 is calculated by considering the recycled flow of the product stream. In this level, Lievenspiel plot is used to determine the size of reactor, cost of equipment and the cost of catalyst are also calculated in aiding the decision.

Level 4 Decision In this part, the whole PFD is constructed. In the process, the equipment involve are distillation column, reactor, decanter and flash tank. Three cstr is used as a reactor in series, converting the reaction of PKO and Methanol to Glycerin and FAME. Decanter is used to remove glycerin after the reactor and flash tank is used to remove the methanol in the first stage. Distilalation colum is used to separate the Methyl Esters product. The material balance is calculated by assuming the total input is equal to total output and no reactant/ product/catalyst accumulation in recycle streams (i.e. equilibrium of reaction achieved). Energy balance is also calculated for this part.

Comparison of Manual and Simulation (mass balance)

Stream Aspen (kg/hr) Manual (kg/hr) Error (%)1 14221 14202.4 -0.130962 1990.004 1993.39 0.169863 14221 14202.4 -0.130964 0.54 0.54 05 18349.883 17050.4 -7.621426 18350.287 17019.5 -7.819197 2034.169 2032.16 -0.098868 16316.117 17277.1 5.562189 1894.066 1824.8 -3.7958110 14422.051 15452.3 6.6672912 14317.88 15194.7 5.7705613 1161.883 1125.87 -3.1986814 13155.997 14068 6.4828215 8834.383 9174.5 3.707216 4321.614 4974 13.115917 2138.339 2289.75 6.61256

Comparison of Manual and Simulation (Energy balance)

Separators Reactor Flash Decanter DC1 DC2 DC3

Manual (kW) 1346.450944

40.50683 0 45.22 123.955

3 -29.3475

Aspen (kW) -1179.61 613.346 178.669 -977.525 -133.75 -123.42

Error (%) 214.1437377

93.39576 100 104.626 192.676

976.22144

Error happens when comparing the mass and energy balance for both simulation and manual calculation. These deviations tends to happens due to many reasons, such as, assumptions made on the purity of components in each stream, different relative molecular mass on both manual and aspen and different equipments used in both manual (CSTR) and simulation (stoichiometric reactor.

Summary of Chapter 3 Process Equipment Sizing & Piping3.1.1 Reactor (3 CSTR in series)

Reactor CSTR 1 CSTR 2 CSTR 3Dimension Volume(m3) =13.2

Diameter(m) = 2.38Height(m) = 3.57Residence time (hr) = 0.63Thickness(m) = 0.0073

Volume(m3) = 17.6Diameter(m) = 2.617091Height(m) = 3.925636Residence time (hr) = 0.84Thickness(m) = 0.0073

Volume(m3) =12.01Diameter(m) = 2.30Height(m) = 3.46Residence time (hr) = 0.57Thickness(m) = 0.006388

3.1.2Flash Drum and Decanter

Equipment Specification sheetFlash Drum DecanterDesign Type Vertical Vessel Horizontal VesselMaterial of Construction Stainless Steel Carbon SteelVesselDiameter(m) 2.89 1.595Height(m) 8.67 4.785Volume (m3) 56.87 9.556

3.1.3 Distillation Column

Equipment Specification SheetItem no DC-101 DC-102 DC-103Identification: Plate Column (Sieve Tray)Material Carbon

steelCarbon steel Carbon steel

Column Tray Spacing(m)Column Diameter, Dc(m)

0.610.46

0.610.542

0.611.171

Column Cross sectional Area, (m2)Column height, ht(mNo of trays

0.1513.1421

0.2316.8827

1.07821.534

Reflux Drum Diameter, Dt (m)Height (m)

0.973.89

0.963.85

0.682.69

Summary of Chapter 4 Utilities & Heat Integration4.1 UtilitiesIn this plant design, there is equipment such pump and reactor that required electricity to function. The Utilities involved electricity, cooling water, steam, hot water and also refrigeration.

Utilities Total Yearly Cost (RM)

Electricity 289,938.92

Cooling Water 152,285.5804

Steam 266,400,4.937

Hot Water 762,932,6.308

Refrigeration 651,64.05

4.2 Heat IntegrationThe process flow for Pinch Analysis is done by firstly identifying the hot and cold stream in the system and stream table construction. Secondly, the minimum approach temperature ii selected. Thirdly, the shifting of the stream data are done and the temperature interval diagram is constructed. The cascade diagram is also constructed. Lastly, the heat exchange network are design based on pinch analysis.

Summary of Chapter 5 Process Control and Safety Studies.5.1 Introduction

Safety system in industrial is a crucial countermeasure in any hazardous plants. Safety systems are demonstrated to protect human, plant, and environment in case the process goes beyond the control margins. Without process control, the operation or process may be unstable. Things like corrosion, explosion and fire might happen because of the unstable process that make the operation in dangerous state.

5.2 Identification of Hazard, (MSDS)

MSDS for all chemicals that are included in this process can be seen in the appendix. The chemicals that are listed are the raw materials, Palm Kernel Oil, Methoxide and Methanol. The DOW & FEI and Toxicity Index are done by referring the MSDS.

Chemicals Reactivity Hazard Flammability Hazard Health HazardMethanol 0 3 1Sodium Methoxide 2 2 3Palm Kernel Oil - - -ME8 0 1 1ME10 0 2 0ME12 0 1 1ME14 0 0 0ME16 0 0 0ME18 0 1 1

The products includes light cut methyl esters, middle cut methyl esters and heavy cut methyl esters. Table below shows the DOW &FEI and Toxicity Index for the Major Equipemnt.

Major Equipment Fire and Explosion Index

Toxicity Index

Reactor 42.24 (Light) 1.6 (Light)Flash Column 115.44 (Intermediate) 3.8 (Low)Decanter 38.72 ( Light) 9.5 (Moderate)Distillation Column 1 103.3 (Intermediate) 6.4 (Moderate)Distillation Column 2 83.48 (Moderate) 3.4 (Light)Distillation Column3 40.47 (Light) 3.7 (Light)

5.3 HAZOP of Major EquipmentThe major equipments that are involve in the process are three CSTR in series, decanter, flash tank and three distillation column. These equipments must be control as to avoid any leakage, explotion or any accidental release. The HAZOP analysis are done by identifying the FEI & DOW and Toxicity Index of each equipment. The guide words are used to provide a systematic and consistent means of brainstorming potential deviations to operations. These guide words are applied to flow rate, liquid level, temperature, pressure, pH and other variable that can affects the process and trigger incident.

5.4 Major Equipment ControlThe control for major equipment are listed in the table below.

Equipment CSTR 1,2 and 3 Flash Tank Decanter Distilation 1 and 2 Distillation 3Controllers Flow Controller,

Level Controller,Temperature Controller

Flow Controller, Level Controller,Temperature

Flow Controller, Level Controller,Pressure

Flow Controller (recycle top distilate), Level Controller (reflux drum),

Flow Controller (recycle top distilate), Level Controller (reflux drum),

Controller, Pressure Controller

Controller Temperature Controller (condenser), Flow controller (Feed), Level controller.

Temperature Controller (condenser), Flow controller (Feed), Level controller,Analyzer controller.

Summary of Chapter 6 Waste Management and Pollution Control

6.1 IntroductionIn this part, the only waste identified is water and PKO impurities such as fiber that are discharged by the sedimentation centrifugal. The amount of waste that are discharged is 711.05 kg/hr.

6.2 JAS schedule B (liquid materials - BOD and COD) In this process it does not involve any gaseous. The raw material is given in the table below.

Parameter StandardA B

BOD5 at 200C (mg/L) 20 50COD(mg/L) 50 100

6.3 Process flow diagram of Waste treatment system based on the type of waste

The first stage of the waste treatment is the equalization tank which is mainly used for damping of flow rate variations so that a constant or nearly constant flow rate is achieved. The second stage is the biological treatment in the aeration tank to to reduce COD and BOD level of wastewater. The third stage is the activated carbon adsorption tank to remove refractory organic

materials from wastewater. The last stage is the filtration where it remove particulate and colloidal matter, removal of suspended solids,

Summary of Chapter 7 Site Selection and Plant Layout

7.1 Site SelectionThe location that are chosen for this project is in Tanjung Langsat Industrial Area, Pasir Gudang, Johor. There are many factors why Pasir Gudang is selected. Some of the reasons is because of its location that are just 15.7 km away from the Johor Port which makes it easier for exportation. Apart from that, its location from Sehcom Industries, one of the top major companies providing palm kernel oil, is just 3.7 km away, which makes it convenient to build the site there. The price per square feet are one of the cheapest ratings at RM 17-30 which is quite reasonable. Lastly the incentives provided by Johor state is quite advantageous to build a plant there.

7.2 Plant Layout

Summary of Chapter 8 Economic Analysis

8.1 IntroductionIn this economic analysis, capital cost, manufacturing cost, engineering economy analysis and profitability are basically included. Apart from that, the fixed and total capital investment cost, cash flow analyses are performed. The basic components of the manufacturing costs of a process cover fixed capital investment, cost of operating labor, cost of raw materials, cost of utilities and cost of waste treatment. For engineering economic analysis, interest, annuities, discount factors are covered. Lastly, the part of profitability analysis is extended to evaluate the profitability of chemical processes. Profitability criteria using non-discounted is presented.

8.2 Fixed and Total Capital Investment Cost

Fixed capital investment includes direct and indirect cost without land. Direct cost represents the manufacturing fixed capital investment whereas indirect cost represents the non-manufacturing fixed capital investment. Direct cost is the capital necessary for the installed process equipment such as piping, instruments, foundations and auxiliary facilities. For indirect cost, it is the cost of land and construction overhead. The total Capital Investment are calculated as below formula.

Total Capital Investment (TCI) = Fixed Capital Investment + Working Capital

Onsite

Component FCI range Cost (RM)

Purchase equipment 0.15 3349464.08Purchase equipment installation 0.06 1339785.63

Instrumentation & control installation 0.02 446595.21Piping installation 0.03 669892.82

Electrical system installation 0.02 446595.21Offsite

Building 0.03 669,893Yard improvements 0.02 446,595

Service facilities 0.08 1,786,381Land 0.01 223,298Total direct costs 9,378,499

Component FCI range Cost (RM)Engineering and supervision 0.04 893,190

Construction expenses 0.04 893,190Contractor's fee 0.02 446,595

Contingency 0.05 1,116,488Total indirect cost 3,349,464

total direct indirect plant cost   12727963

Considering the onsite, offsite and components, the TCI calculated is 40,316,383.

8.3 Manufacturing cost and total production costFixed manufacturing cost is the sum of the cost of the plant overheads, local taxes, insurance as well as depreciation. The manufacturing cost calculated by adding up the cost of raw material, waste treatment, utilities, operating labor, direct supervision & clerical labor, maintenance and repairs, operating supplies and laboratory charges.

Plant overhead cost 0.5(COL+CDS+CM& 736,977

R)Local taxes and insurance 0.14FCI 490,808

Depreciation 0.1FCI 3,505,772Total Fixed Manufacturing Cost 4,733,558

8.4 Cash Flow AnalysisThe cash flow are done for twenty years, for both discounted and non discounted. from the analysis, the payback period is 2 years.

8.5 Financial Ratios (profitability analysis)

8.6.1 Operating Margin Ratio (EBIT) Operating Margin is the proportion of revenue remaining after paying the costs of operating the business. It is also known as operating income margin, operating profit margin, return on sales (ROS) and EBIT (Earnings before Interest and Taxes). Operating margin ratio = ((Revenue – Direct Manufacturing Cost)/Revenue)*100

=25%

8.5.2 Gross Profit Margin The gross profit margin is a measure of the gross profit earned on sales. The gross profit margin considers the firm’s cost of goods sold, but does not include other costs. Gross profit margin = ((Revenue – Fixed Manufacturing Cost)/Revenue)*100 =33%

8.5.3 Net Profit Margin Net profit margin measures how much of each dollar earned by the company is translated into profits. Low profit margin indicates a low margin of safety. The higher the margin is, the more effectively the company is converting revenue into actual profit. Net profit margin = ((Revenue – Total Production Cost)/Revenue)*100

=17%

Summary of Chapter 9 Conclusion and Recomendation

Our plan is targeted to produce 120 000 MTPA of FAME from palm kernel oil through transesterification of fat with methanol. The product of FAME can be divided into Light Cut, Middle Cut and Heavy Cut. The chosen route to produce FAME is the base catalyzed transesterification because it is more advantageous compared to the others. In our plant the major

equipment consist of is 3 CSTR in series, 3 distillation column, 1 flash and 1 decanter. For minor equipment there are 3 condenser, 3 reboiler, 6 pumps, 2 heater and 2 cooler. Heat integration is conducted based on pinch technology and this allows 94.06% of energy saving. To operate this plant at full capacity, utilities such as electricity, steam, hot water and cooling water are required. Based on the completed PFD, necessary equipment control were identified and placed onto major equipment. The resulting P&ID allows HAZOP studies to be carried out. Possible deviations, causes and consequences were identified through HAZOP. Fire and explosion index and also toxicity index of major equipments are done based on the given guideline. Several types of waste were identified as a result of the production of FAME. The waste treatment cost is RM 3,981,628. The plant will be located at Tanjung Langsat Industrial Area, Pasir Gudang, Johor. This decisions are made based on the location, transportation, road facilities, and land prices as well as the incentives that are provided by Johor State Government. Based on the thoroughly inspected economic analysis, the payback period was found to be 2 years. The gross profit margin is 0.33 and operating profit margin is 0.25 respectively while the net profit margin is expected to be 0.17. The plant will generate yearly revenue of RM 524,691,717. All in all, important elements such as safety and economic consideration have been taken extensively to ensure that the plant is safe while economically feasible and viable. For future works, from an economic point of view, additional revenue may be generated by purifying and selling the glycerol by-product or enhancing the methanol recovery to lower operational costs. Capital cost may be reduced with used equipment and obtaining government funding. The utility cost also could be reduced so that the energy saving can be achieved as high as possible.

Appendix