Making Diesel From Your Palm Oil Mill Waste

8/13/2019 Making Diesel From Your Palm Oil Mill Waste

http://slidepdf.com/reader/full/making-diesel-from-your-palm-oil-mill-waste 1/19

Prepared by :

Bob Soelaiman Effendi

Oktober 2013



Production of Biodiesel still 50%

• With Nasional consumtion of 3,3Million Kiloliter Biodiesel per yearfor for 10% blending for SubsidizeBiosolar.

• Current Biodiesel Production cansupply only 50% - Demand is stillhigh – see diagram (right above)

• Pertamina is buying Biodieselaround Rp 8400/liter. See diagram(right below)

• Current Price for Industrial Dieselis Rp 10.650/liter

There’s still 1,5

Million Kiloliterbiodiesel needed

Bob Soelaiman Effendi – okt’2013



Why CPO Feedstock is not economical

•Most Biodiesel production isusing CPO, with current CPOprice around Rp 7500/kgmaking production costquite high, close to Rp

8000/liter – So margin isvery small

•Feedstock component ofCPO based of biodiesel isvery high 80%, so makingproduction cost is verysusceptible to any fluction ofthe price of CPO. Which inpast years always above

crude price.

Analisa Cost Production Biofuel dari berbagai sumber Feedstock

Sumber : APEC 2010 Energy Working Group Report on Biofuel – hal 7.

Biomassa CPO

CPO Price

Trend isgoing upWithdemand stillhigh

With small margin, if CPO pricesincreases just slightly, then itbecome a loss.



Biomass as source of Fuel & Electricity• With total National Production of CPO around 24 Million ton/ year

– it means potentially there’s around 40 Million ton/ year biomass.

• If we use only empty fruit bunch (EFB) or called TANKOS, its around20 Million ton per year.

• Converting those to diesel through CCC technology we got (35%conversion) = 7 Million Kilo Liter Biodiesel, way above national

Biodiesel PSO consumtion of 3,3 Million KL. Equivalent to 120,000bbl oil perday = 10% daily Indonesian Fuel Consumption

• Indonesia Im

port 5 Mil KL diesel. Saving is more than USD 1,5Billion per year.

• If we use the EXCESS HEAT from the production of Biodieselthrough a ORC turbine to generate electricity then would getaround 1000 Mwe. That’s 50% of the total PLN power requirementfor 2021 from only BIOMASS.

• So Biomass potential for producing FUEL & ELECTRICITY IS HUGEand is not yet explore !!


1 tonbiomass =

300 liter

Diesel

Indonesia total

biomass = 147

Million/year,

translate = 44

Million KL Diesel.

Domestic diesel

consumption = 33Million KL

empty fruit bunch(tankos)



Biomass as Biodiesel feedstock


• Quantytatively there’s more biomass

than oil (90/10)

• Biomass : Palm Kernel Shell (PKS),

Empty Fruit Bunch (EFB) and Mesocarp

Fibre (MF) all can be used ad feedstock

(40%)

•MF is burned for BOILER for electricityand heat.

• PKS is sold around USD 15 – 20/ton

which way cheap compared to CPO

priced at USD 610/ton.

• So quantatively biomass is abundance

and its practically no value

EFB

(22%) currently has no economic value, they

are just GOT BURN as WASTE or sometimes use as

COMPOST.

empty fruit bunch(tankos)



Opportunity

Import =

opportunity

Consumption

Increase 12%

per year



Cold Catalytic Conversion ( CCC) Technology

• Cold Catalytic Conversion Technology is based on the Fischer-Tropsch process which was a proven technology develop inGermany in 1930’s. Then in the 80’s process was refined further using low temparture and catalyst by Prof Dr Ernst Bayer of

Tubigen Univeristy and was called Low Temprature Conversion (LTC). It was then pick up by Siemens in the 90’s thendiscontined and the reasearch was later continue independently with Siemens retired scientist and engineer. Two differentgroup successfully developed it into commercial and industrial plant in the past 8 years.

• CCC Technology convert any celulosic material into diesel through a process of hydrogenation. Feedstock is mixed with a specialpatended catalyst then put into a patended friction turbine which heated (not burn) at 250 – 300 deg C. - Within less than 10minutes out comes diesel.

• The Quality of Diesel produced is even better than regular Diesel (from Crude Oil) or even from CPO, with high 65 Cetane indexand low sulfur and CO2. The Quality of tht Diesel is up to any European and American Standard.

• The process doesn’t produced any emission or waste.

• Currently there are several CCC plant around the world :

• Boston, USA : CCC 500; City Waste feedstock, producing 500 liter/hour Biodiesel

• Tarragona, Spain : CCC 2000 ; City Waste, 2000 liter/ hour Biodiesel

• Surrey, Canada : CCC 1000 ; electronic waste, 500 liter/hour

• Monterrey, Mexico : Waste Oil , 2000 liter/Hour

• Oppendorf, Germany : CCC 150 demo plant.

• Fuerth, Germany : CCC 2000, City Waste, 2000 liter/hour

• Bad Zurzach, Swiss : CCC 500, Farm waste, 500 liter/ hour

• Lesmierz, Poland : CCC 1000, City Waste, 1000 liter/hour


• Eventhough CCC a new technology but it is a proven technology, some of the

plant has been operating 5 years without any problem.



PROJECT SUMMARY CCC 1000 : 8 Million Liter/year


PILOT PROJECT

Financial Highlight :

operation hour/day : 20 hour/day

: 22.500 ton/year

: 1.000 liter/ hour

: 8.000.000 liter / year

Turnkey CCC plant (US$) : 10.800.000(excluding permits,

building, infrastructure)Production Cost/liter (US$) : 0.32

Selling Price/liter (US$) : 0.80 (pertamina buying price)

Operating Cost/year (US$) : 854.000

Profit/year (US$) : 3.084.000

Payback Period : 4.3 yearIRR : 22.04 %

Feedstock (ton/year)

Gross Production per Hour

Gross Production per Year

CCC 1000

Bankable !



Double your revenue from your mill

• Market price of CPO and Biodiesel is almost the same for past 15year and will continue.

• Volume of CPO produce is approx 18 – 20% of the Fresh Fruit Bunchand so is volume of Empty Fruit Bunch (tankos) is around 22 – 25%,so Volume between CPO and Tankos from 1 ton of FFB is close.

• But Cost production to produce Biodiesel is lower than to produceCPO.. So the Mill gets double the revenue but HIGHER PROFIT sinceproduction cost is lower.

This is MoneyGoing to waste

Now is still a waste




2 Stream RevenueFrom the Feedstock

its generating 2

higlhly demanded

product :

FUEL & ELECTRICITY

Potential Revenue :

USD 2,2 Million/year

Potential Revenue :

USD 3,3 Million/yearFeed-in-tariff

1,450 – 1,798/kwh

Pertamina buying

Price : Rp 8400/liter

Phase 1 Phase 2



LARGE SCALE: CCC 15000(125,000 KiloLiter Diesel /year + 25 MWe)

CPOPlant

200,000 ton

DIESEL : 125,000 ton/year

Cost : USD 0.27/liter

ELECTRICITY : 25 MW

CCC 15000

CCC 15000 Plant

(incl. Power generation)

Feedstock : 200,000 ton/ yr

Diesel : 125,000 ton/ yr

Electricity : 25 MW

Capital Cost : $143 MM


Comparison w/ F-T process

Input : 146,000 ton biomass

Output : 87.000 ton/yr Diesel

Capital Cost : $100 MM

www.ensyn.com

CCC Technology is more efficient than F-T technologies

tankos



CONCLUSION : NOW IS THE TIME

• There’s a high demand for Biodiesel.

• Biodiesel production from Biomass has a higher margin than from CPO.

• Biomass has no economic value and only used as compost

• Phase I : a small pilot with 1000 liter per hour (8 mill/ year) with aroundUSD 10.3++ Million turnkey then Phase II start with 2,5 MW electricgeneration from CCC excess heat.

• Even if 25,000 ton biomass waste is sell as Biomass/Compost at USD15/ton Revenue only USD 375,000/year or making USD3.3MILLION/year making BIODIESEL – I guess the the answer is obvious. –

This is NOT including the sell of electricy

• Don’t wait. Act now.




ZERO WASTE SOLUTION for Palm Oil Mill

Palm Oil

Mill

WASTE

Palm

Kernel

Shell (PKS)

Fiber

Empty

Fruit Bunch

(EFB)

POME

Boiler

Current practice

CCC

Plant

Diesel

HeatORC

Turbin

e

Electr

icity

Electr

icityPlasma

Arc

Synga

s NO Liquid

Waste

NE W P R OD U C T F R OMWA S T E

Proposed Plant

electricity

TANKOS

CANGKANG




Second Generation Biodiesel

• Fuel product from CCC is technically is called Synthetic Fuel notBiodiesel eventhough its feedstock is biological (organic); its moreto diffrentiate from Biodiesel FAME (Fatty Acid Metyl Ester), or FirstGeneration Biodiesel whereas Synfuel is Second GenerationBiodiesel.

Synthetic fuel or synfuel is a liquid fuel obtained from coal, natural gas, oil

shale, or biomass. It may also refer to fuels derived from other solids such as

plastics or rubber waste. It may also (less often) refer to gaseous fuels

produced in a similar way. Common use of the term "synthetic fuel" is to

describe fuels manufactured via Fischer Tropsch conversion, methanol to gasoline conversion, or direct coal liquefaction. -- Wikipedia : Synthetic Fuel

http://en.wikipedia.org/wiki/Oil_shale










http://en.wikipedia.org/wiki/Biomass


http://en.wikipedia.org/wiki/Plastic

http://en.wikipedia.org/wiki/Syngas

http://en.wikipedia.org/wiki/Gas_to_liquids







http://en.wikipedia.org/wiki/Coal_liquefaction





http://en.wikipedia.org/wiki/Fischer%E2%80%93Tropsch_process

http://en.wikipedia.org/wiki/Syngas

http://en.wikipedia.org/wiki/Plastic

http://en.wikipedia.org/wiki/Biomass


http://en.wikipedia.org/wiki/Natural_gas

http://en.wikipedia.org/wiki/Coal

http://en.wikipedia.org/wiki/Liquid_fuel



Quality of Synthetic DieselDiesel product from CCC process technically is called Synthetic Diesel, not Biodiesel,

eventhough its made from organic feedstock material also

Synthetic Diesel is superior in every aspect to petrol and aven biodiesel. Its has passed

every US & Euro standard.



EVEN THE AIRLINES START USING SYNTHETIC FUEL,THEN IT MUST BE GOOD FOR YOUR CAR

4 airlines company startedusing synthetic jet fuel frombiomass to reduce cost andreduce carbon emission



Note on CCC & FTP Technology• CCC was developed The well known Fischer-Tropsch Process (FTP), infact during World War II, Germany

was using FTP to convert Coal to Diesel.

• So to understand CCC technology you need only to google “Fischer-Tropsch Process”, here is fromWikipedia :

The Fischer – Tropsch process is a collection of chemical reactions that converts a mixture of carbonmonoxide and hydrogen into liquid hydrocarbons. It was first developed by Franz Fischer and HansTropsch at the "Kaiser-Wilhelm-Institut für Kohlenforschung" in Mülheim an der Ruhr, Germany in

1925. The process, a key component of gas to liquids technology, produces a synthetic lubrication oiland synthetic fuel , typically from coal, natural gas, or biomass.[1] The Fischer – Tropsch process hasreceived intermittent attention as a source of low-sulfur diesel fuel and to address the supply or cost of

petroleum-derived hydrocarbons. ( http://en.wikipedia.org/wiki/Fischer%E2%80%93Tropsch_process )

• CCC is the 3rd generation of Fischer-Tropsch Process, it differ in 2 major difference :

1. Where FTP uses pressurized vessel for the reaction to take place, whereas CCC reaction takes in un-

pressureized vessel, thus making CCC the equipment much cheaper than FTP.2. FTP need very high temparture around 500 – 1000 deg C, whereas CCC operating temprature is

under 300 deg C. So there is no buildup of resin and residue in the vessel making in close to zerowaste.

3. Thus in conclusion CCC operates more efficiently than FTP making in lower production cost.






Contact• Bob Soelaiman Effendi

• Oil& Gas/Renewable EnergyConsultant

• M : +62 811 939 013

• E : [email protected]

THANK YOU

Making Diesel From Your Palm Oil Mill Waste

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