Post on 06-Jul-2018
8/17/2019 Biogas Digester for Hi Grade Feeds Full
1/68
Mapua Institute of TechnologySchool of Chemical Engineering, Chemistry, and Biotechnology
BIOGAS DIGESTER
FOR HI-GRADE FEEDS
A Design Proposal Submitted in Partial Fulfillment of the
Requirements for the Degree Science in
Chemical Engineering
Chang, Miriam Abigail G.
Calipes, Danica Mari D.G.
Mejia, Anne Margaret G.
Talampas, Alvin A.
May 2006
8/17/2019 Biogas Digester for Hi Grade Feeds Full
2/68
APPROVAL SHEET
This is to certify that we have supervised the preparation of and read the design report prepared
by Miriam Abigail G. Chang, Danica Mari Calipes, Anne Margaret G. Mejia, and Alvin A.
Talampas entitled “Biogas Digester for Hi-Grade Feeds” and that the said report has been
submitted for final examination by the Oral Examination Committee.
__________________________ ________________________
Winston B. Flora Teresita P. MadulidCourse Adviser Adviser
As member of the Oral Examination Committee, I certify that I have examined this designreport, presented before the committee on May 20, 2006, and hereby recommended that it be
accepted as fulfillment of the design report requirement for the degree in Program of Bachelor
of Science in Chemical Engineering.
________________________
Winston B. Flora
Panel Member
This design report is hereby approved and accepted by the School of Chemical Engineering,
Chemistry and Biotechnology as fulfillment of design report requirement for the degree in
program of Bachelor Science in Chemical Engineering.
________________________________
Prof. Luz L. LozanoDean, School of Chemical Engineering,
Chemistry and Biotechnology
8/17/2019 Biogas Digester for Hi Grade Feeds Full
3/68
LETTER OF TRANSMITTAL
PROF. LUZ L. LOZANO
DeanSchool of Chemical Engineering, Chemistry and Biotechnology
Mapua Institute of TechnologyIntramuros, Manila
Dear Prof. Lozano:
In accordance with your instructions, Our group has written the following design paper on the
topic “Biogas Digester for Hi-Grade Feeds”.
This paper aims to present a study on the production of biogas for Hi-Grade Feeds in BocaueBulacan together with the design of the digester. This report gives you a complete background ofthe project. Also included are executive summary, market study, technical study, environmental
study, financial study and our conclusion and recommendation.
Attached here with our final report is a compact disc which contains word file used in this design
project.
We hope that this report will satisfy the requirements for Plant Design (DESIGN313).
Respectfully yours,
________________________ ________________________
Chang, Miriam Abigail Calipes, Danica Mari
2002119509 2001132920
B.S. CCE B.S. CHE
________________________ ________________________
Mejia, Anne Margaret Talampas, Alvin2002128418 2002121809
B.S. CHE B.S. CCE
8/17/2019 Biogas Digester for Hi Grade Feeds Full
4/68
ii
ACKNOWLEDGEMENT
We would like to extend our gratitude and recognition to the following who help us
finished this study, Biogas Reactor for Hi-grade Farm. For without them, this study may not be
possible.
• Our families, for being our strength at times when we want to give up and for being
our inspirations to strive for the best.
• Ms. Theresita P. Madulid for giving us enough information regarding her Hi-grade
farm.
• Mr. Ric Perez for allowing us to visit his biogas digester.
• Mr. Ruben Mercado for his warm accommodation in his farm in Bulacan
• Engr. Felecitos Aguilar and Engr. Narciso Macaranas for joining in our farm visit
• Engr. Alvin Caparanga and Engr. Edwin Obra for supervising us in our equipment
design.
• Engr. Winston Flora for entertaining our questions during consultations and for
supervising us in our project.
• And most especially to the Lord Almighty for giving us the guidance and wisdom
To God be the glory!!
To all of you, we give our sincerest gratitude and love.
Abi, Nica, Mha-anne & Alvin
8/17/2019 Biogas Digester for Hi Grade Feeds Full
5/68
TABLE OF CONTENTS
LETTER OF TRANSMITTAL……………………………………………………………………i
ACKNOWLEDGEMENT............................................................................................................... i
INTRODUCTION.......................................................................................................................... 1
EXECUTIVE SUMMARY ............................................................................................................ 5
Objectives of the Project............................................................................................................. 5
SWOT Analysis .......................................................................................................................... 5
MARKET STUDY ......................................................................................................................... 6
Production Description ............................................................................................................... 6
Use of Product............................................................................................................................. 7User of the Product ..................................................................................................................... 7
Historical and Projected Demand ............................................................................................... 8Historical and Projected Supply.................................................................................................. 9
TECHNICAL STUDY ................................................................................................................. 10
Description of Raw Materials ................................................................................................... 10
Material Balance Major Assumptions ...................................................................................... 11
Overall Material Balance.......................................................................................................... 12Detailed Material Balance (10-day process)............................................................................. 13
Process Flowchart ..................................................................................................................... 14
Equipment Specification........................................................................................................... 15
ENVIRONMENTAL STUDY ..................................................................................................... 17
Material Safety Data Sheet ....................................................................................................... 23
FINANCIAL STUDY................................................................................................................... 28
CONCLUSION AND RECOMMENDATION............................................................................ 50
APPENDIX................................................................................................................................... 52
8/17/2019 Biogas Digester for Hi Grade Feeds Full
6/68
List of Tables
Table 6.1 GANTT Chart .............................................................................................................. 28
Table 6.2 Pre-operating expenses. ................................................................................................ 29
Table 6.3 Pre-operating salaries with benefits.............................................................................. 29Table 6.4 Administrative and Marketing expenses....................................................................... 30
Table 6.4 Construction Cost ......................................................................................................... 33
Table 6.6 Salary and wages projection ........................................................................................ 34
Table 6.7 Depreciation1 of all equipments................................................................................... 35
Table 6.8 Repair and maintenance of all equipments .................................................................. 36
Table 6.10 Projected revenue....................................................................................................... 38
Table 6.11 Inventory of finished goods ........................................................................................ 39
Table 6.12 Project cost................................................................................................................. 40
Table 6.13 Cost of production ...................................................................................................... 42
Table 6.14 Income statement....................................................................................................... 43
Table 6.15 Balance sheet ............................................................................................................. 45
Table 6.16 Cash flow. .................................................................................................................. 46
Table 6.17 Breakeven analysis .................................................................................................... 47
Table 6.18 Rate of investment ..................................................................................................... 48
Table 6.19 Payback period............................................................................................................ 49
List of Figures
Figure 3.1 Historical Demand......................................................................................................... 8
Figure 3.2 Projected Demand ......................................................................................................... 8
Figure 3.3 Historical Supply........................................................................................................... 9
Figure 3.4 Projected Supply............................................................................................................ 9
Figure 4.1 Overall Material Balance............................................................................................. 12
Figure 4.2 Detailed Material Balance........................................................................................... 13
Figure 4.3 Process Flowchart........................................................................................................ 14
Figure 4.4 Equipment Specification ............................................................................................. 15
8/17/2019 Biogas Digester for Hi Grade Feeds Full
7/68
1
INTRODUCTION
The use of biogas as a source of fuel is a practice only recently introduced in this century.
The process of bacterial decomposition has occurred in nature since life began plants and
animals die and are recycled to sustain life on the planet. In the presence of oxygen, organic
material "composts" (undergoes aerobic decomposition). When decomposition occurs in the
absence of oxygen (anaerobic conditions), biogas is produced, and the liquid remainder is rich in
nitrogen and other nutrients.
The Philippines has substantial biogas resources. Biogas accounts for a significant
proportion of renewable energy generation (99% of new and renewable energy demand
excluding geothermal and hydro power for 1996), mainly from wood fuel and charcoal. Large
amounts of agricultural residues and municipal solid waste are also produced, offering promising
resources for heat and power generation.1
With the present energy and pollution problem in the Philippines, conversion of livestock
wastes as source of energy and fertilizer, offers a great advantage for the livestock industry. A
program that suits the need of backyard livestock raisers to abate the worsening problem of
environmental pollution is now given high priority.
Biogas is one of the renewable sources of energy receiving popularity in rural areas and
has successfully met the cooking energy needs of families. The optimum utilization depends
1 www. emb.gov.ph
8/17/2019 Biogas Digester for Hi Grade Feeds Full
8/68
2
upon the successful physical installations, which in turn depend upon plant design and its
selection.2
Biogas is a zero waste technology. The products of biogas plants, like biogas and
digested slurry can be utilized economically for cooking and as manure for agriculture and
horticulture. Biogas is a non-poisonous and non-toxic gas which when mixed with air burns with
blue flame, without soot or any offensive smell. The slurry is rich in nitrogen, phosphorous,
potash and humus material. It has good applications in agriculture and horticulture.
Use of biogas technology improves the standard of living and can directly contribute to
economic and social development of a country.
However, there are hurdles to implementation of these systems, including high capital
costs, availability of economic and environmentally acceptable methods of gas processing, and
economic means for biogas utilization. Because of these limitations, agricultural biogas
production has remained a virtually untapped resource in the Philippines.
Considering the opportunities and problems on the biogas production the researchers
attempts to design a biogas digester for hog manure which is more efficient, economical and
environmentally accepted.
The complete design of the digester constructs a digester in larger scale for preheating of
water at Hi-grade feeds at Bocaue, Bulacan. In addition, it can minimize the amount of municipal
waste that can help in environmental preservation by utilizing that manure in more useful way.
2 www.encyclopedia.com
8/17/2019 Biogas Digester for Hi Grade Feeds Full
9/68
3
Digesters are not a new idea and have been around for a long time. Increasing
environmental pressures on waste disposal has increased the use of digestion as a process for
reducing waste volumes and generating useful byproducts. The purpose of all these digesters is
to produce combustible biogas which can be burned to provide energy for a whole range of uses.
In the United States an outreach program called AgSTAR designed to reduce methane
emissions from livestock waste management operations by promoting the use of biogas recovery
systems. A biogas recovery system is an anaerobic digester with biogas capture and combustion
to produce electricity, heat or hot water. Biogas recovery systems are effective at confined
livestock facilities that handle manure as liquids and slurries, typically swine and dairy farms.
Anaerobic digester technologies provide enhanced environmental and financial performance
when compared to traditional waste management systems such as manure storages and lagoons.
Anaerobic digesters are particularly effective in reducing methane emissions but also provide
other air and water pollution control opportunities. The AgSTAR Program has been very
successful in encouraging the development and adoption of anaerobic digestion technology.
Since the establishment of the program in 1994, the number of operational digester systems has
doubled. This has produced significant environmental and energy benefits, including methane
emission reductions of approximately 124,000 metric tons of carbon equivalents and annual
energy generation of about 30 million kWh.3
Our group was able to visit and see the digester of Mr. Ric Perez in Bulacan. The Perez
household has the simplest structure and model of the digester and this has been working for
almost 14 years. They use this digester to produce biogas using the pig and chicken manure as
3 www.agstar.com
8/17/2019 Biogas Digester for Hi Grade Feeds Full
10/68
4
their raw materials. The biogas produce was use as a replacement for LPG as a cooking gas for
their household. The equipment has also a safety measure. The cover of the digester is allowed to
rise but with a limit. When the limit is achieved, bubbles in water are visible for the pressure is
released through the water.
Also, Mr. Ruben Mercado uses biogas as a source of energy. The biogases produced by
the pigs are used to preheat the water for the boiler. In this case, he was able to minimize his
usage of banker oil for the water entering the boiler is already at elevated temperature. He is
using a lagoon which has been operating for almost five years. The design also includes safety
measures like u- tube.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
11/68
5
EXECUTIVE SUMMARY
Objectives of the Project
This study aims to design a Biogas reactor for Hi-grade farm that will produce biogas for
pre-heating water for the boiler of the mill. This project expects to achieve the following
objectives:
• To produce an efficient digester in which high profit will be achieved.
• To minimize the use of bunker fuel in the boiler
• To maximize the use hog manure to a useful product which is the biogas
SWOT Analysis
Strength
• Biogas is a zero waste technology
Weakness
• Not well-verse in the field of business- some financial elements may not be
considered which can affect in the financial reports
Opportunities
• High demand for Biogas
• Open to new trend and market
• New development/ techniques and technology
• Reduction of waste
• Peso depreciation – decrease of peso value will result to increase in savings due to
bunker fuel
Threat
• Peso appreciation – the increase of peso is a great effect in our company’s profit
8/17/2019 Biogas Digester for Hi Grade Feeds Full
12/68
6
MARKET STUDY
Production Description
There are varieties of gas useful as fuel. The three most commonly used worldwide are
Liquefied Petroleum Gas (LPG, propane, butane), Natural gas, and Biogas4. LPG is a mixture of
volatile fractions from petroleum refining; principally propane, butane, propylene and butylene.
Natural Gas is a fossil fuel that was created eons ago by the anaerobic decomposition of organic
materials. It is often found in association with oil and coal.
Biogas is produced when bacteria breakdown organic material in the absence of oxygen,
in a process known as anaerobic digestion. The same type of anaerobic bacteria that produced
natural gas also produced methane today. Anaerobic bacteria are some of the oldest forms of life
on earth.
Biogas is generally between 60% methane, with the remainder consisting of 39% carbon
dioxide, hydrogen sulfide and other trace gases5. Biogas burns well and can be used to provide
energy in the form of heat or electricity. Biogas can therefore not only off-set fossil fuel imports,
it can result in no increases, and even reductions in greenhouse gases. Methane is 30-times more
reactive than C02 in causing global warming6.
4Twidell, John et. al. Renewable Energy Resources, (an imprint of) Chapman & Hall, London 1986
5 Fulhage, Charles et. al. Generating Methane Gas from Manure, Department of Agricultural Engineering, College of Agriculture
6 Woods, Sandra, et. al. Methane Fermentation of Biomass, Seattle, Washington September 1980
8/17/2019 Biogas Digester for Hi Grade Feeds Full
13/68
7
Use of Product
It is used as a substitute for LPG in preheating the water upon feeding to the boiler. In
this way we will be able to lessen the use of bunker oil because the feed water is higher than
25ºC so heat required to convert water to steam will be lower.
User of the Product
It will be use by the Hi-grade feed located at Bocaue, Bulacan. The biogas will be use to
preheat the water that is required to the boiler.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
14/68
8
Historical and Projected Demand
Figure 3.1 Historical Demand
Figure 3.2 Projected Demand
The Historical and Projected Demand is based from the information given by Ms.
Teresita Madulid (Hi-Grade feeds Company owner) according to the demand in terms of amount
of water which is being fed to the boiler by 15% annually. The increase in production of feeds is
directly proportional to the amount of water used to the boiler.
Historical Demand
0
100
200
300
400
500
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Projected Demand
0
500
1000
1500
2000
2 0 0 6
2 0 0 7
2 0 0 8
2 0 0 9
2 0 1 0
2 0 1 1
2 0 1 2
2 0 1 3
2 0 1 4
2 0 1 5
2 0 1 6
8/17/2019 Biogas Digester for Hi Grade Feeds Full
15/68
9
Historical and Projected Supply
Figure 3.3 Historical Supply
Figure 3.4 Projected Supply
The Historical and Projected Supply is based from the information given by Ms. Teresita
Madulid (Hi-Grade farm Company owner) according to the supply which is for pigs increased by
10% annually.
Historical Supply
0
5000
10000
15000
1 9 9 6
1 9 9 7
1 9 9 8
1 9 9 9
2 0 0 0
2 0 0 1
2 0 0 2
2 0 0 3
2 0 0 4
2 0 0 5
2 0 0 6
Projected Supply
0
10000
2000030000
40000
50000
60000
2 0 0 6
2 0 0 7
2 0 0 8
2 0 0 9
2 0 1 0
2 0 1 1
2 0 1 2
2 0 1 3
2 0 1 4
2 0 1 5
2 0 1 6
8/17/2019 Biogas Digester for Hi Grade Feeds Full
16/68
10
TECHNICAL STUDY
Description of Raw Materials
There is a growing concern about the widespread problem brought about by the improper
disposal of animal manure in many tributaries in the Philippines. Recent outbreak of diseases in
some municipalities had been attributed to contaminated drinking water by the seepage of animal
manure in the drinking water supply. Recreational activities like swimming, fishing and camping
can be ruined. The long term consequence is the damage to aesthetic and intangible attributes of
the streams and destruction of the economic value of clean natural waters.
Hog production in the country has increased drastically in recent years due to rapid
increase in population and therefore meat requirements and the waste generated becomes
unmanageable. The Philippines produces 7.589 million metric tons of hog manure alone in
19997.
The raw material for biogas production must contain organically bound carbon and the
element nitrogen which is needed by the bacteria responsible for biogas production.
Animal manure contains a portion of volatile (organic) solids which are fats,
carbohydrates, proteins, and other nutrients that are available as food and energy for the growth
and reproduction of anaerobic bacteria. Pig manure is the commonly used principal raw material,
since more biogas can be generated from pig manure’s composition. Biogas generation from
these wastes has been proven to be technically feasible, economically viable and socially
desirable and since our study is mainly within Hi-grade Farm, pig manure is readily available.
7 Biomass Atlas of the Philippines, Philippine Biomass Energy Laboratory
8/17/2019 Biogas Digester for Hi Grade Feeds Full
17/68
11
Material Balance Major Assumptions
The following assumptions are used in the production of Biogas:
• Biogas obeys ideal gas behavior
• Input slurry (diluted manure) in one day will be completely digested after 10 days
producing total of 235.73 m3 gas based from the material balance
• The gas produced per day is uniform in volume meaning 23.573 m3 gas/day
These are assumed to simplify design computations.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
18/68
Overall Material Balance
Figure 4.1 Overall Material Balance
OVERALL MATERIAL BALANCE
FINAL OUTPUT
BG = 235.73 m3
Sludge = 94,254
INPUT
Solid = 9810 kg
Liquid = 29,430 kg
INPUT
H2O = 58,860 kgBasis: 10 days complete
digestion
8/17/2019 Biogas Digester for Hi Grade Feeds Full
19/68
Detailed Material Balance (10-day process)
Figure 4.2 Detailed Material Balance
DILUTION
TANKINPUTSolid = 9810 kg
Liquid = 29,430 kg
OUTPUT = 98100 kg
Diluted Manure
INPUT
H2O = 58,860 kg
DIGESTER
INPUT = 98,100 kg
Diluted Manure
OUTPU
Sludge
OUTPUT = 235.73
m3
Biogas
8/17/2019 Biogas Digester for Hi Grade Feeds Full
20/68
Process Flowchart
Figure 4.3 Process Flowchart
Diluted
Manure
Manure
DILUTION
TANK DIGESTER
WaterBiogas
8/17/2019 Biogas Digester for Hi Grade Feeds Full
21/68
Equipment Specification
P-1
V-2
P-2P-3
P-4
V-2
8/17/2019 Biogas Digester for Hi Grade Feeds Full
22/68
Displayed Text Material Diameter Length P-1 Polyethylene Pipe 50.95 mm 0.40 m
P-2 Polyethylene Pipe 20 mm 1.40 m
P-3 Natural Rubber 20 mm 0.40 m
P-4 Polyethylene Pipe 50.95 mm 1.40 m
Pipeline List Valve and Fittings LiDisplayed Text Line Size
V-1 20 mm
V-2 20 mm
5 Elbows 20 mm
8/17/2019 Biogas Digester for Hi Grade Feeds Full
23/68
17
ENVIRONMENTAL STUDY
Biogas Production for Hi-Grade Feeds
Consistent with the implementation of Presidential Decree 1586 (Philippine EIS
System Law) with an end view of attaining and maintaining an orderly balance between
socio-economic growth and environmental protection.
The goal is to minimize waste, to have a more economical source of energy and fuel
and to provide a better design for the recovery and utilization of gas in for water pre-heating
in Hi-grade feeds. .
I. Project Description
A. Basic Information
Upon proper approval, this project, the biogas production will be implemented on
July 2006 and it will be located in Bocaue, Bulacan. Generally, the people living within the
municipalities of Bulaon, Del Rosario, Dolores, Malino, Malpitic, Marmatad, San Nicolas,
Santo Nino, Quebiawan, and Telabastagan are the stakeholders or the persons who may be
significantly affected by the project. This project will be financed by the owners of the Hi-
Grade Feeds.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
24/68
18
B. Project Rationale
While maximizing biogas output from available waste materials is very significant,
maximizing the use and application of the gas deserve equal importance.
• For direct heating applications, biogas is used for cooking and brooding lamps
in heating chicks and piglets in livestock farms, for torch using fire
disinfectant in piggery pens to replace chemical disinfectant
• For typical family use, biogas can be used for ironing, and as a fuel for gas
mantle lamps, absorption-type refrigerator, in addition to cooking
• As fuel for internal combustion engines, biogas can be used as substitute for
diesel or gasoline. It has a higher octane rating than both conventional
petroleum fuels
Whereas the sludge component can be used in a given ways:
• As fertilizer for plants and agricultural crops,
• As feed for raising fish, for vermiculture (earthworms), and for pigs
• As dipping media for seed soaking
• As soil conditioner
Advantages
• Sludge is odorless and BOD effluent is reduced by 86%
• Organic wastes are reduced by 50% and relatively safe for disposal
• Effectiveness of the system all year round without the need of artificial
heating or expensive insulation of the digesters because of the
Philippine climate
• Construction of the plant is simple and the system is easy to operate
8/17/2019 Biogas Digester for Hi Grade Feeds Full
25/68
19
• Reduce dependence on foreign oil and fossil fuels
• It can help boost the economy
Disadvantages
• Reluctance to handle animal or human excreta and to use biogas from
these sources for pre-heating
• Cost of digesters, especially for most people in rural areas
This document describes the production of biogas by transporting piggery waste of
the Hi-grade Farm to Hi-grade feeds and thus, we aim to economically use this resource.
Also, this project would help in improving our lives by manure a commercial value.
D. Description of Project Phases
1. Pre – Operational / Construction phase
The estimated total construction area of the digester is 25 m2 land in
Bocaue, Bulacan. It will be located near the boiler of the feeds. There will be trial
run before the start of operation.
2. Operational phase
The digester operation will be everyday and is intended to promote biogas
technology in rural areas.
II. Baseline Information
CLIMATE
November to April is generally dry while wet form May to October. The northeast
monsoon prevails over the sea from October to January bringing in moderated and light
rains, the east trade winds predominate from February to April but the step of Sierra Madre
8/17/2019 Biogas Digester for Hi Grade Feeds Full
26/68
20
Mountains interposes the free movement of air resulting to a dry with scanty rain during the
period. While from May to September, the southeast monsoon prevails strong winds and
abundant rainfall and generally associated with storm and typhoon
GEOGRAPHY
The western part of the province is generally flat and is drained by the Angat and
Pampanga Rivers. Part of the western boundaries touches the extensive Candaba Swamps
which mark the pronounced depression in range.
POWER SOURCE
Bocaue is fully dependent to MERALCO for its electrical power needs. Survey
results showed that 90% of the total households in the municipality are already serviced by
the said company.
III Environmental Impact
Life Cycle Assessment
Figure 3: Overall Material Balance of the Proposed Process
Solid = 9,810 kgLi uid = 2 0 k
BG = 235.73 m
Slud e = 2 . 8 k
H2O = 58,860 kg
8/17/2019 Biogas Digester for Hi Grade Feeds Full
27/68
21
1. Air Impacts
a. CH4
Methane (CH4) is a greenhouse gas that remains in the atmosphere for approximately
9-15 years. Methane is over 20 times more effective in trapping heat in the atmosphere
than carbon dioxide (CO2) over a 100-year period and is emitted from a variety of
natural and human-influenced sources. Human-influenced sources include landfills,
natural gas and petroleum systems, agricultural activities, coal mining, stationary and
mobile combustion, wastewater treatment, and certain industrial process.8
b. H2S
Hydrogen sulfide is a colorless gas with an offensive stench and is said to smell like
rotten eggs. The gas can be detected at a level of 2 parts per billion.. Just a few breaths
of air containing high levels of hydrogen sulfide gas can cause death. Lower, longer-
term exposure can cause eye irritation, headache, and fatigue.
c. CO2
Carbon dioxide is a colorless, odorless, faintly acidic-tasting, and non-flammable gas
at room temperature.
2. Water Impacts
a. NH4
Ammonia is a gas that occurs naturally in the environment and is also manmade.
From the biogas production, ammonia will come from the sludge withdrawn in the
8 Grolier Multimedia Encyclopedia. Grolier Interactive, Inc.1998
8/17/2019 Biogas Digester for Hi Grade Feeds Full
28/68
22
digester. Ammonia is irritating to the skin, eyes, nose, throat, and lungs. Exposure to
high concentrations can cause serious burns.9
IV. Impact Mitigations or Enhancement Plan
1. Air Impacts
a. CH4
Methane (CH4) in this process is directly used after production of biogas. Pipes from
digester to the burner will be periodically checked and make sure that there is no leakage
2. Water Impacts
These compounds can be used as liquid fertilizer for the field.
VI. Reference:
Books:
• Grolier Multimedia Encyclopedia. Grolier Interactive, Inc.1998
• Webster Family Encyclopedia. 1996
URL’s:
• http://asiatravel.com/manila/pampangamap.html
• www. askjeeves.com/glass/manufacturing.html
• www. emb.gov.ph
• www.encyclopedia.com
9 Grolier Multimedia Encyclopedia. Grolier Interactive, Inc.1998
8/17/2019 Biogas Digester for Hi Grade Feeds Full
29/68
23
Material Safety Data Sheet10
Methane(CH4)
Chemical Product and Company Identification
Material Name: Methane
Chemical Formula: CH4
Synonyms: Methyl hydride, natural gas, marsh gas, fire damp.
Composition/Information on Ingredients
Component
CAS Registry
Number
Molar (volume)
concentrationExposure Guidelines
Methane 74-82-8 100%
Simple Asphyxiant
(ACGIH)
Hazards Identification
Emergency Overview
Methane is a colorless and odorless gas. It is not toxic; the immediate health hazard is
that it may cause thermal burns. It is flammable and may form mixtures with air that are
flammable or explosive. Methane is violently reactive with oxidizers, halogens, and some
10 Webster Family Encyclopedia. 1996
8/17/2019 Biogas Digester for Hi Grade Feeds Full
30/68
24
halogen compounds. The concentrations at which flammable or explosive mixtures form are
much lower than the concentration at which asphyxiation risk is significant.
Potential Health Effects11
Routes of Exposure: Methane is not toxic by any route. Asphyxia may result if the oxygen
concentration is reduced to below 18% by displacement.
Lengths of Exposure: None of the available data indicate toxicity for exposures of any
duration.
Severity of Effect: No effect identified.
Target Organs: None identified.
Type of Effect: No effect identified.
Signs and Symptoms of Exposure: None identified.
Medical Conditions that may be Aggravated by Exposure: None identified.
Reported Carcinogenic and Reproductive Effects: None known to Voltaix, Inc.
First Aid Measures12
Asphyxiation
This is the primary health risk.
• Remove the affected person from the gas source or contaminated area. Note: Personal
Protective Equipment (PPE), including positive pressure, self contained breathing
apparatus, may be required to assure the safety of the rescuer. The concentration
required for asphyxiation is above the upper flammable limit. A boundary region, in
11 Webster Family Encyclopedia. 1996
12 Grolier Multimedia Encyclopedia. Grolier Interactive, Inc.1998
8/17/2019 Biogas Digester for Hi Grade Feeds Full
31/68
25
the flammable range, may exist between contaminated and uncontaminated areas.
Take appropriate precaution against ignition of the atmosphere in this region.
• If the affected person is not breathing spontaneously, administer rescue breathing.
• If the affected person does not have a pulse, administer CPR.
• If medical oxygen and appropriately trained personnel are available, administer 100%
oxygen to the affected person.
• Summon an emergency ambulance. If an ambulance is not available, contact a
physician, hospital, or poison control center for instruction.
• Keep the affected person warm, comfortable, and at rest while awaiting professional
medical care. Monitor the breathing and pulse continuously. Administer rescue
breathing or CPR if necessary.
Skin Contact
No detrimental effect of skin contact has been reported. Treat thermal burns by
assuring that affected area is cool by flushing with cool water, then apply dry sterile
dressings. If the patient is burned on the face, neck, head, or chest, assume that the airway
may also have been burned and obtain professional medical assistance immediately.
Eye Contact
No detrimental effect of eye contact has been reported.
Ingestion
Ingestion is not an observed route of exposure to gaseous hazardous materials.
Note to Physicians:
The combustion products of methane and air are water and carbon dioxide. Under
some conditions, carbon monoxide may also be produced.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
32/68
26
Accidental Release Measures
Containment
As these materials are gases at atmospheric conditions, the only means of
containment is the enclosure of the space into which the materials are released.
Evacuation
If the release is not contained in an appropriate device or system, all personnel not
appropriately protected must evacuate the contaminated spaces.
Handling and Storage
Handling
Handle this material only in sealed, purged systems. The design of handling systems
for hazardous materials is beyond the scope of this MSDS, and should be performed by a
competent, experienced professional. Consider the use of doubly-contained piping;
diaphragm or bellows sealed, soft seat valves; backflow prevention devices; flash arrestors;
and flow monitoring or limiting devices.
Storage
Gas is stored in the cover of the digesterin which its design is carefully studied.
Stability and Reactivity
Chemical Stability: Methane is stable.
Conditions to Avoid: Sources of ignition, exposure to air.
Incompatibility with Other Materials: Oxidizers, halogens and some halogen compounds.
Hazardous Decomposition, Reaction and Oxidation (other than burning) Products:
None.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
33/68
27
Toxicological Information
Acute Data (by route): None, methane is a simple asphyxiant.
Chronic and Subchronic Data: No information on its carcinogenicity or other effects is
included.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
34/68
FINANCIAL STUDY
GANTT Chart
No. Activities 2006
Feb March April-June July August
1 Completion of Study
2 Proposal and Approval
3 Purchasing of Materials
4Recruitment and Hiring of Laborer (EquipmentConstruction)
5 Land Development
6 Equipment Construction
7 Recruitment and Hiring of Personnel
8 Trial Run
9 Start of Operation
Table 6.1 GANTT Chart1
1 A Gantt chart is a popular type of bar chart that aims to show the timing of tasks or activities as they
when the project terminal elements start and finish.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
35/68
PRE - OPERATING EXPENSES
May
Trial-run cost (raw materials,salary & wages) 22742
Pre-operating salary and wage (design team) 180000
Total 202742
Amortization 40548
Table 6.2 Pre-operating expenses.
Trial run cost is based on 10 days period
Pre-operating salaries with benefits
Qty Days Salary/day Benefits Total Compen
Project design team (Students) 4 60 400 100 120000
Project consultant 1 10 6000 60000
Total Employees 5
Total Pre-optg & fringe 180000
Table 6.3 Pre-operating salaries with benefits
The project consultant will approve the design proposed by the students
1 Amortization is the distribution of a single lump-sum cash flow into many smaller cash flow installments, as determ
Amortization is chiefly used in loan repayments (a common example being a mortgage) and in sinking funds. Payments ar
duration of the loan, making it the simplest repayment model.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
36/68
Administrative and Marketing
A&M 2006 2007 2008 2009 2010 2011 2012
office supplies 1100 1111 1122.11 1133.33 1144.664 1156.11 1167.67 Amortization pre-op 40548 40548 40548 40548 40548
TOTAL 41648 41659 41670 41682 41693 1156 1168
Table 6.4 Administrative and Marketing expenses.
Office supplies increases 1% per annum.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
37/68
CONSTRUCTION COST
MATERIALS
Quantity Amount/unit Cost Specification
Gravel 4.56 m3 P969 4419
Portland cement 571 bags P165/bag 94215 40 kilo/bag
Plywood (formers) 20 P320/pc 6400 (1/4 x 4 x 8 ft)
Others:
Stainless Steel(Cover)
3 pcs P3,500 10500 1 plate (4x8 ft)
Drums (boiling
water &transportationmanure)
150 pcs P300/pc 45000 200 L
Gas Burner 4 pc P3,000 12000
Sand 11.4125ton
P350/ton 3994
Reinforcement bar 51 pcs P350/pc 17850 25-70kg/m2
Total Amount 194378
8/17/2019 Biogas Digester for Hi Grade Feeds Full
38/68
PIPES
Quantity Amount/unit Cost Specification
Flexible Hose 1 P210/10ft 210 2 inchesdiameter
PE Pipe 3 P180/10ft 540 2 inchesdiamter
P100/pc (2”diameter)
Valves 2
P150/pc (4”
diameter)
300 2 and 4 inchesdiameter
Elbows 5 P25/pc 125 90 degrees 2inches diameter
Total Amount 1175
Grand Amount (Materials and Piping) 195553
Labor Cost
Qty Days Salary/day B
Supervisor 1 22 406
Laborer 10 22 325
cover
8/17/2019 Biogas Digester for Hi Grade Feeds Full
39/68
Equipment Cost
Volume (m3) Area (m2) Length (m) Witdth (m) Height (m)
Digester 173 25 9 9 2
TOTAL * digester's cost in 2014 make use of CPI (Consumer Price Index), Source NSO (National Statistics Office)
Vehicle rent (truck) Cost
2006 360000
2007 396000
2008 435600
2009 479160
2010 527076
2011 579784
2012 637762
2013 701538
2014 771692
2015 848861*Vehicle rent is 30000/month for the 1st year and 10% incereaseevery year
Table 6.4 Construction Cost
8/17/2019 Biogas Digester for Hi Grade Feeds Full
40/68
Salary and Wages
2006
Personnel Rate/day Benefits Total/day No. ofDays
No. ofPersonnel
Salary/yr
Laborer 325 81 406 22 2 214500
Driver 325 81 406 22 2 214500
Supervisor 406 102 508 22 1 134063
assumption 3% increases/yr
2006 2007 2008 2009 2010 2011 2012
Laborer 214500 220935 227563 234390 241422 248664 256124 Driver 214500 220935 227563 234390 241422 248664 256124
Supervisor 134063 138084 142227 146494 150889 155415 160078
TOTAL 563063 579954 597353 615274 633732 652744 672326
*25% BENEFITS INCLUDES 13TH MONTH BONUS,SSS & VACATION LEAVE
Table 6.6 Salary and wages projection
8/17/2019 Biogas Digester for Hi Grade Feeds Full
41/68
DEPRECIATION
Qty ASSET(2006) COST ESTIMATED LIFE DEPRECIATION/YR
Biogas
Digester 1 304100 50 6082
Assets (2014) ESTIMATED LIFE
Digester 1 397319 42 9460
Table 6.7 Depreciation1 of all equipments
1 Depreciation is an accounting and finance term for the method of attributing the cost of an asset across the useful life of thof applying the matching principle as per generally accepted accounting principles.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
42/68
Repair and Maintenance
digester digester(2014) truck truck(2014) TOTAL
2006 3041 3600 6642007 15205 7200 2240
2008 15965 7560 2352
2009 16764 7938 2470
2010 17602 8335 2593
2011 18482 8752 2723
2012 19406 9189 2859
2013 20376 9649 3002
2014 21395 3973 10131 7717 3549
2015 22465 7946 10638 15434 4104
*for the first 1% of cost equipment
*for the 2nd yr = twice the first year cost
*for 3rd yr to end of life = increase od 5% annually
Table 6.8 Repair and maintenance of all equipments
8/17/2019 Biogas Digester for Hi Grade Feeds Full
43/68
Transportation of raw material
Year km no. of trips/day no. of truck used/day Cost/L Cost/da
2006 40 5 2 31 954
2007 40 5 2 33 1011
2008 40 5 2 35 1070
2009 40 5 2 37 1128
2010 40 5 2 39 1187
2011 40 5 2 40 1245
2012 40 5 2 42 1304
2013 40 5 2 44 1363
2014 40 10 4 46 5686
2015 40 10 4 48 5920
2016 40 10 4 50 6155 *1Ldiesel/10km
Table 6.9 Cost of transportation of raw material
8/17/2019 Biogas Digester for Hi Grade Feeds Full
44/68
Revenue
Year Sales(m3/day) Selling Price(php/L) Sales(Php/day) Sales(Php/
pre-operation 25 5344 1389505
2006 24 25 5344 1389505
2007 24 26 5664 1472582
2008 24 28 5992 1558023
2009 24 30 6321 1643465
2010 24 31 6650 1728906
2011 24 33 6978 1814348
2012 24 34 7307 1899789
2013 24 36 7636 19852312014 47 37 15928 4141345
2015 47 39 16585 4312228
Table 6.10 Projected revenue
8/17/2019 Biogas Digester for Hi Grade Feeds Full
45/68
Inventory of Finished Goods
Year Beginning Inventory Production Sales(m3/day) Ending Inventopre-operation 0 26
2006 26 24 24 26
2007 26 24 24 26
2008 26 24 24 26
2009 26 24 24 26
2010 26 24 24 26
2011 26 24 24 26
2012 26 24 24 26
2013 26 24 24 26
2014 26 47 47 512015 51 47 47 51
*213.77 L/day bunker fuel is saved using 24 m3 in pre-heatingwater
Table 6.11 Inventory of finished goods1
1 In business management, inventory consists of a list of goods and materials held available in stock.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
46/68
Project cost
2006
Fixed Capital Expenditures
Equipment
Production Equipment
Total
Pre-Operating Expenses
Trial-run cost
Pre-operating salary and wage (design
team)
*No working capital is included in the project cost because on the fist day of operation we already have a savings
*No working capital is included in the project cost because on the fist day of operation we already have a savings woperation.
Table 6.12 Project cost
8/17/2019 Biogas Digester for Hi Grade Feeds Full
47/68
Manufacturing Cost
Cost of Production
2006 2007 2008 2009 2010 2011 2012
Raw Materials
Manure 248000 262828 278077 293327 308577 323826 339076
Manpower
Supervisor 134063 138084 142227 146494 150889 155415 160078
Driver 214500 220935 227563 234390 241422 248664 256124
Laborer 214500 220935 227563 234390 241422 248664 256124
otal 563063 579954 597353 615274 633732 652744 672326
lectricity 17520 18396 19316 20282 21296 22360 23478
Repair andMaintenance
Digester 3041 15205 15965 16764 17602 18482 19406
Vehicle RentTruck) 3600 7200 7560 7938 8335 8752 9189
otal 6641 22405 23525 24702 25937 27233 28595
Depreciation
Digester 6082 6082 6082 6082 6082 6082 6082
ehicle renttruck) 360000 396000 435600 479160 527076 579784 637762
8/17/2019 Biogas Digester for Hi Grade Feeds Full
48/68
otal 366082 402082 441682 485242 533158 585866 643844
icenses &nsurance
Registration 10000 10000 10000 10000 10000 10000 10000
otal 10000 10000 10000 10000 10000 10000 10000
otalManufacturing
ost 1211305 1295665 1369953 1448826 1532699 1622030 1717320
eginningnventorynished goods 0 4659 4983 5269 5572 5895 6239
nding
nventorynished goods 4659 4983 5269 5572 5895 6239 6605
OST OF SALES 1206647 1295341 1369668 1448522 1532376 1621686 1716953 5% INCREASE INLECTRICITY
Table 6.13 Cost of production
1 Cost of sales is an economical term describing the sum of all expenses that directly contribute to the generation omerchandising firm typically includes the cost of the inventory sold, warehouse and transportation costs, and other costs a
stores. It does not include costs associated with retail stores, and wages for retail employees.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
49/68
INCOME STATEMENT
2006 2007 2008 2009 2010 2011 2012
Revenue 1389505 1472582 1558023 1643465 1728906 1814348 1899789
Cost of Sales 1206647 1295341 1369668 1448522 1532376 1621686 1716953 Operating Profit 182858 177241 188356 194942 196530 192662 182836
Administrativeand Marketing 41648 41659 41670 41682 41693 1156 1168
Profit beforeIncome Tax 141210 135582 146685 153261 154837 191506 181669
Income Tax 49424 47454 51340 53641 54193 67027 63584
Profit afterincome Tax 91787 88128 95345 99620 100644 124479 118085 *35% INCOME TAX
Table 6.14 Income statement 2
1 Revenue is used worldwide to measure increase of assets or decrease of liabilities during an accounting period. Aterminology is income.
2 Income statements for companies indicate how Net Revenue (money received from the sale of products and services before
as the "top line") is transformed into Net Income (the result after all revenues and expenses have been accounted for, als
purpose of the income statement is to show managers and investors whether or not the company made or lost money during t
8/17/2019 Biogas Digester for Hi Grade Feeds Full
50/68
Balance Sheet
2006 2007 2008 2009 2010 2011 2012
ssetsCash 185287 319138 464885 613313 761005 904254 102481
ventories
Finished Goods (EI) 4659 4983 5269 5572 5895 6239 6605
thers
Equipment
digester 304100 304100 304100 304100 304100 304100 304100
Total 304100 304100 304100 304100 304100 304100 30410
Depreciation
digester 6082 12164 18246 24328 30410 36492 42574Total 6082 12164 18246 24328 30410 36492 42574
ook Value
digester 298018 291936 285854 279772 273690 267608 261526
ther assets pre-opxpense 162193 121645 81097 40548 0
otal assets 650157 737702 837105 939205 1040590 1178100 129295
abilities
Income Tax 49424 47454 51340 53641 54193 67027 63584 Accounts payable 2105 3493 3664 3843 4031 4229 4437
otal 51529 50946 55003 57484 58224 71256 68021
8/17/2019 Biogas Digester for Hi Grade Feeds Full
51/68
ock's holder equity 506841 506841 506841 506841 506841 506841 506841
alance,beginning 0 91787 179915 275260 374880 475524 600003
et profit (loss) 91787 88128 95345 99620 100644 124479 11808
alance, end 91787 179915 275260 374880 475524 600003 718087
otal stockholder's
quity 598628 686756 782102 881721 982365 1106844 122492
otal Liabilities andtock holders equity 650157 737702 837105 939205 1040590 1178100 129295
Table 6.15 Balance sheet 5
. Other pre-operating expense includes amortization. Accounts payable includes electricity with 5% incre
maintenance, and office supplies.
1 Asset is anything owned which can produce future economic benefit, whether in possession or by right to take possession, by a person or a group acting tog
which can be expressed in monetary terms. Asset is listed on the balance sheet. It has a normal balance of debit.2 Net Book Value is the original acquisition cost, less accumulated depreciation, depletion or amortization. Book value is therefore relevant insofar as it for
nominal capital gains (current value divided by book value), of amortized value (book value adjusted for depreciation) and of several financial ratios (e.g. pr3 A financial liability is something that is owed to another party. This is typically contrasted with an asset which is something of value that is owned. The b
liability, and capital in the form of equity:4 the shareholders' equity refers to the amount of assets that are owned by a company's shareholders. However, there is much more to this value. Stockhold
concept to grasp in terms of the accounting equation when compared to its counterparts: assets and liabilities.5 A balance sheet , in formal bookkeeping and accounting, is a statement of the book value of a business or other organization or person at a particular date,
distinct from an income statement, also known as a profit and loss account (P&L), which records revenue and expenses over a specified period of time.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
52/68
Cash Flow
2006 2007 2008 2009 2010 2011 2012
Profit 91787 88128 95345 99620 100644 124479 118085Add back:
Depreciation 6082 6082 6082 6082 6082 6082 6082
amortization of pre optgexpense 40548 40548 40548 40548 40548
Increase (decrease) in currentliabilities 51529 -582 4057 2481 740 13032 -3235
Decrease (increase) in non-cashcurrent assets -4659 -324 -286 -303 -323 -344 -367
Total cash receipt from
operations 185287 133852 145747 148427 147692 143249 120565
Less disbursements
additional equipment
Total capital expenditures
Net cash inflow (outflow) 185287 133852 145747 148427 147692 143249 120565
Cash balance, beginning 0 185287 319138 464885 613313 761005 904254
Cash balance, end 185287 319138 464885 613313 761005 904254 1024819
Table 6.16 Cash flow1.
Additional equipment includes digester which will be bough in year 2014.
1 In finance, cash flow refers to the amounts of cash being received and spent by a business during a defined period of time, sometimes tied to a specif
8/17/2019 Biogas Digester for Hi Grade Feeds Full
53/68
Breakeven
2006 2007 2008 2009 2010 2011 2012
Cost of sales 1206647 1295341 1369668 1448522 1532376 1621686 171695
Revenue
Sales bunker (L/day) 214 214 214 214 214 214 214
Selling price 22 23 25 26 28 29 31
Break-even price 22 23 25 26 28 29 31
Revenue
Selling Price 25.00 25.00 26.49 28.03 29.57 31.11 32.64Sales bunker (L/day) 186 199 199 199 199 201 202
Break-even volumebunker (L/day) 186 199 199 199 199 201 202
Break-even volume BG(m3/day) 12 11 11 11 11 10 10
Break even no. of pigs 6000 5750 5650 5450 5400 5300 5250
Table 6.17 Breakeven analysis1
1 The breakeven point in economics is the point at which cost or expenses and income are equal - there is no net lo
8/17/2019 Biogas Digester for Hi Grade Feeds Full
54/68
ROI
2006 2007 2008 2009 2010 2011 2012
PAIT 91787 88128 95345 99620 100644 124479 118085
i 0.175
(1+i)^n 1 1 2 2 2 3 3
78116 63832 58774 52263 44937 47301 38188
sum 503188
diff (equity and PAIT) -3,654
Interest (%) 17.5
Table 6.18 Rate of investment 1
1 In economics the rate of return on investment refers to the benefits to an investor (the profit ) relative to
investment. It is similar to the rate of profit as a measure of profitability.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
55/68
Payback Period
Equity 506841
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014
91787 88128 95345 99620 100644 124479 118085 107461 44116
Profit to date 91787 179915 275260 374880 475524 600003 718087 825548 12667
Payback period 4.4 yrs
Table 6.19 Payback period 1
1 PBP is a measure of the speed with which an investment is recovered by the cash inflows it produces
8/17/2019 Biogas Digester for Hi Grade Feeds Full
56/68
50
CONCLUSION AND RECOMMENDATION
The decrease in bunker fuel usage of Hi-grade feeds for the boiler is our major concern in
our study. In accordance with this, we have made a proposal study which considers all
factors of the farm and present technology that they are using.
After our market, technical and financial study of biogas from pig manure we came up
the following conclusions:
• Hi-grade farms could increase the value of there waste by converting it to biogas
• Biogas can be used to save bunker fuel usage by pre-heating the water entering
the boiler
• The profit on the biogas system is good because it will save amount of bunker
fuel
• We bought additional equipment on year 2014 to maximize the use of hog’s
manure since the demand in the feeds and supply in farms increases.
For further enhance the proposed study, we recommend the following:
• Removal of sulfur and carbon dioxide in the biogas which will increase its value
because it can be stored in a tank and can be sold
• Use of biogas as a substitute to produce electricity.
• Assessment of health problems. This could be done by providing proper suits to
the employees of the feed mill to prevent them from having diseases due to the
hog’s manure. The employees should also maintain cleanliness and orderliness
around so they could do their jobs accordingly without hassle and worrying about
their health.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
57/68
51
• Building a digester that will meet the demand of year 2010 at the start of the
project. The purpose of building an additional digester is to meet the demand on
the feed mill as well as the supply of hog manure. The demand and supply is
based on the information given to us by Engr. Teresita P. Madulid. At this year
the number of hogs are already doubled, resulting to a 24,000 number of hogs.
• Possibility of transferring the boiler to the farm which means that some part of the
process in the feed mill will also be transferred.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
58/68
52
APPENDIX
MATERIAL BALANCE
Number of pigs: 12,000Manure per day of pig: 3.27 kg
Basis: 1 day operationWeight manure = 39,240 kg
Pre-treatment (Dilution)- Dilution occurs in pig pens
Manure contains25% solid and 75% liquid
Wt. of solid (A) = (39,240 kg)(0.25)= 9,810 kg
Wt. of liquid (B = (39,240 kg)(0.75)= 29,430 kg
- Diluted solution must only have 10% solids
Solid Balance:9,810 = 0.10x
x = 98,100 kg
X = A + B + C
98,100 = 9,810 + 29,430 + C
C = 58,860 kg
Digestion
Biogas Computation:
- Volatile solids (VS) is 80% of total manure solids- Only 49% of VS is broken down by bacteria- 0.0613 m3 gas per kg volatile solid
C (H2O)
A B A B C
X = A + B + C
Digester
BG
X
Sludge (Y)
8/17/2019 Biogas Digester for Hi Grade Feeds Full
59/68
53
VS = (9,810 kg)(0.8)= 7,848 kg volatile solid
Amount broken down by bacteria = (7,848 kg VS)(0.49)
= 3,845.52 kg
Volume of Biogas produced = (3,845.52 kg)(0.0613 m3 /kg)
= 235.73 m3
Y = (A – broken down by bacteria) + B + C= (9,810 – 3,845.52) + 29,430 + 58,860
= 94,254.48 kg
8/17/2019 Biogas Digester for Hi Grade Feeds Full
60/68
54
Volume Computation of Digester
Digester contains:- Biogas- Diluted Manure- Sludge
Biogas
- Conversion of volatile solid broken down by bacteria to Biogas is estimatedlycomplete after 10 days. So a total of 9.82 m3 is produced 10 days after the manure
is fed to the digester
- Assuming the amount of biogas produced per day is uniform, 0.982 m3 biogas isproduced everyday.
VBG = (235.73 m3) / (10 days) = 23.573 m
3 /day
Diluted Manure
ρmanure = 993.3 kg/m3
ρH2O = 1000 kg/m3
Volume of diluted manure:
= 39,240 kg x 1m3___
=39.50 m
3
993.3 kg
Volume of H2O= 58,860 kg x 1m3___ = 58.86 m3
1000 kg
total volume = 98.36 m3
density of diluted manure (40% manure & 60% water):
= (0.6) (1000 kg/m3) + (0.4) (993.3 kg/m
3)
= 997.32 kg/m3
Sludge
amount of sludge = 94,254.48 kg
volume of sludge = 94,254.48 kg x __m3__
997.32 kg= 94.508 m3
8/17/2019 Biogas Digester for Hi Grade Feeds Full
61/68
55
Computation of dimension of digester
Slurry volume= Sv 78.45m3
:=
Volume of slurry holder = Vd Sv 1.5⋅:=
with⋅ 50%a( )allowance Vd 1.177 10
5× L=
Height of slurry holder = Hs 3.05m:=
Length of slurry holder = Lh
Vd
Hs
:=
Lh 6.211m=
Width of slurry holder = Wh Lh:=
Lh 6.211m=
Volume of biogas = Vbg 23.5 1.5⋅ m3
:=
with 50% allowance
Height of biogas holder = Hbg
Vbg
Lh Wh⋅( ):=
Hbg 0.914m=
8/17/2019 Biogas Digester for Hi Grade Feeds Full
62/68
56
Computation on savings of bunker fuel
Information regarding Hi-grade farm
Distance of Hi-grade farm to feeds 20 km
Amount of water used to feed the boiler 430 kilo/hr
Amount of bunker fuel used for boiler 50 L/hr
Assumptions
Time value of money is not considered
Minimum wage is P325 per person
Operation Schedule
Mondays through Fridays (22 days a month)
Sixteen hours work per day
Basis of computation
Transportation:A diesel engine will use 1L per 13 mDiesel price is P31/L
Bunker fuel is P23/L
Computation for final temperature upon pre-heating
Given:
23.573 m3 BG/day
Basis: 1 hourSolution:
23.573 m3 BG x 0.6 parts CH4 x 1kg CH4 x 1 kmol CH4 x 1000 mol
1 part BG 0.68 m3 CH
4 16.043 kg CH
4 1 kmol
= 1,296.497 mol CH4
∆Hrxn methane = -890.4 kJ/mol
q = -890.4 kJ/mol CH4 (1,296.497mol CH4)= -1,154,400.929 kJ
considering heat loss of 50%,
Since qmethane = qwater,
qwater = mcp∆T577,200.465 kJ = (430 kg/hr)(16hr/day)(4.186 kJ/kgK)(T-25)
T = 45.04 C
Therefore the possible temperature that the water can be heated isT = 45.04 C
Computation of the bunker fuel used
Existing process (without pre heating)
q = mcp∆T + latent heat
= (430 kg/hr)(16hr/day)(4.186 kJ/kgK)(100-25) + 88.0 kJq = 2,160,064 kJ/day
This amount of heat consumes 800 L/hr bunker fuel or 2,700.08 kJ/L.
8/17/2019 Biogas Digester for Hi Grade Feeds Full
63/68
57
Applying to the proposed process
The heat needed for the process is 2,160,064 kJ/day. The source of heat is from the biogas
which gives 577,200.465 kJ/day and 1,582,863.535 from combusting the bunker fuel.
Amount of bunker fuel used = (1,582,863.535 kJ)/(2,700.08 kJ/L)
= 586.23 L/daySavings in amount of bunker fuel = 800 L/day – 586.23 L/day = 213.77 L/day
FINANCIAL STUDYPRE-OPERATING EXPENSES
Trial run = (62*10) + [(406+406+508) * 10= 13,823
Pre-operating salary and wages:= total compensation design team + total compensation of project consultant= 180000 + 120975
= 300975
TOTAL:
= Trial run + Pre-operating salary and wages
= 13823 + 300975
= 314798
AMORTIZATION:
= Total/5= 314798/5
= 62960
ADMINISTRATIVE AND MARKETING
For year 2006:
Office Supplies = 1200Amortization (Pre-Operation) = 62960
TOTAL:
= Office Supplies + Amortization= 1200 + 62960
For year 2007:
Office Suppplies = (12000)*(1.01) = 1212Amortization = 62960
TOTAL = 64172
PRE-OPERATING SALARIES WITH BENEFITS
8/17/2019 Biogas Digester for Hi Grade Feeds Full
64/68
58
Project Design Team (Students)
Quantity = 4Days = 60
Salary/day = 600
Benefits = (0.25)*(600) = 150
Total Compensation = (60)*(600+150)*(4) = 180000
Project ConsultantQuantity = 1
Days = 12
Salary/day = 10000Benefits = 81
Total compensation = (12)*(10000+81)*(1) = 120975
Total Pre-operating and Fringe:
= total compensation design team + total compensation of project consultant= 180000 + 120975
= 300975
LABOR COST
Engineer/SupervisorQuantity = 1
Days = 22
Salary/day = 406
Benefits = (406)*(0.20) = 81.2 = 81Total Compensation = (22)*(406+81)*(1) = 10725
LaborerQuantity = 10
Days = 22
Salary/day = 325Benefits = 81
Total Compensation = (22)*(325+81)*(10) = 89375
Cover = 20000
Digester
Volume (m3) = 173
Area (m2) = 25
Length (m) = 9
Width (m) = 9Height (m) = 2
Cost (2006):
= total compensation of supervisor + total compensation of labourer + grand amount(material and pipings) + cover
= 10725 + 89375 + 206553 + 20000
8/17/2019 Biogas Digester for Hi Grade Feeds Full
65/68
59
= 326653
Truck = 2000000
TOTAL = Cost (2006) + Truck = 326653 + 2000000 = 2326653
Cost (2014)= Cost (2006)/ [(CPI 2014/CPI 20006)]
= 2326653 / [(275.961/211.215)]= 426785
TOTAL = 426785
DEPRECIATION
For year 2006
BIOGAS: DigesterQuantity = 1
Cost = 326653Estimated Life = 50Depreciation (per year)
= cost / estimated life
= 326653/50= 6533
BIOGAS: Delivery Truck
Quantity = 1Cost = 2000000
Estimated Life = 10
Depreciation (per year)= cost / estimated life
= 2000000/10
= 200000
For year 2014
Digester
Quantity = 1Cost = 426785
Estimated Life = 50
Depreciation= cost / estimated life
= 426785/50
= 8536
REPAIR IN MAINTENANCE
For year 2006:
Digester
8/17/2019 Biogas Digester for Hi Grade Feeds Full
66/68
60
= digester cost * 0.01
= (326653)*(0.01)= 3266.53
Truck
= cost delivery truck * 0.01
= (2000000)*(0.01)= 20000
TOTAL = 3266.53 + 20000 = 23266.53
BUNKER FUEL FOR BOILER
For year 2006
Consumption(L/year) = 37
Cost per liter = 23
For 2007
Cost per liter= (23)*[(CPI 2007/CPI 2007)]= 24.38
INVENTORY OF FINISHED GOOD
For year 2006
Sales (m3/day) = 24
Ending inventory= volume of biogas + volume of digester
= 23.57 + 2.0025
= 25.595Selling price (Php/L) = 23
Sales (Php/day)
= (amount of bunker fuel saved)*(selling price)= (213.77)*(23)
= 4917
Sales (Php/year)
= sales(Php/day)*52*5= (4917)*(52)*(5)
= 1278345
PROJECT COST
Fixed Capital ExpendituresEquipment:
Production Equipment = 326653
Transport Equipment = 2000000TOTAL = production cost + transport equipment
= 326653 + 2000000
8/17/2019 Biogas Digester for Hi Grade Feeds Full
67/68
61
= 2326653
COST OF SALES
For the year 2006
Raw Materials:Manure = 16368
Manpower:
Supervisor =134063
Driver = 107250Labourer = 107250
TOTAL = summation of manpower = 348563
Electricity= 25*20*12*365*10/1000
= 21900
Repair and Maintenance:
Digester = 3267
Truck = 20000TOTAL = summation of repair and maintenance = 23267
Depreciation:
Digester = 6533Truck = 200000
TOTAL
= summation of depreciation = 6533 + 200000 = 20653Licenses and Insurance
Registration = 10000
Insurance = (production equipment)*(0.01)+(10000)= (326653)*(0.01) + (10000)
= 13267
TOTAL = summation of licenses and insurance = 10000 + 13267 = 23267
Total Manufacturing Cost
= manure + summation of manpower + electricity + summation of repair and
maintenance + summation of depreciation + summation of licenses and insurance= 16368 + 348563 + 21900 + 23267 + 20653 + 23267
= 639897
Beginning Inventory of finished good = 0Ending Inventory = total manufacturing cost / (52*5)
= 639897 / (52*5)
= 2461Cost of Sales
= total manufacturing cost + beginning inventory of finished good – ending inventory
8/17/2019 Biogas Digester for Hi Grade Feeds Full
68/68
= 639897 + 0 – 2461
= 637435
INCOME STATEMENT
For year 2006
Revenue = 1278345Cost of Sales = 637435
Operating Profit = Revenue – Cost of Sales
= 1278345 – 637435= 640910
Administrative and Marketing = 64160
Profit Before Income Tax = operating profit – administrative and marketing
= 640910 – 64160= 576750
Income Tax = (0.35)* profit before income tax= 201862Profit after income tax = profit before income tax – income tax
= 576750 – 201862
= 374888