ACTIVATED CARBON FROM COCONUT SHELL
Introduction
This project idea is for production and marketing of activated carbon from
coconut shell. Activated
Carbon is an amorphous form of carbon, which when treated, produces a highly
porous structure with a very large internal surface area. This gives the
ability to activated carbon to absorb gases and vapors in gaseous phase and
dissolve or disperse substances in liquid phase. It has a wide market and a
high demand in all the aspects of industry and agriculture, such as exhaust gas
treatment and gas purification in the environment protection industry and
filter cigarettes. The business idea is premised on production of 10 tonnes per
month which translates into 120 tonnes per year. The revenue potential is
estimated at US$500 per month, translating into US$180,180 per year with a
sales margin of 20% and total investment is US$111,520.
Production Process
Coconut shell activation at about 5000C with an equal amount of zinc chloride
yields a satisfactory vapour absorbent activated carbon. The process consists
of crushing the coconut shell in a hammer mill to required size and then
pulverizing in a ball mill. The shell powder is digested with zinc chloride.
The mass is then activated at elevated temperature. The activated pellets are
quenched and leached counter-currently by diluted hydrochloric acid and dried
in a tray drier.
Market Analysis
The activated carbon is widely used for the absorption of toxic gasses and
vapors, and for the purification of air and water refining of sugar and
production of electrodes etc. Therefore, this product has a good marketability
with proper linkages of the manufacturers, especially in the sugar industry,
and in the sewerage industry.
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit |
Amount |
|
Hammer mill |
No |
1 |
4000 |
4000 |
|
Pulverizers |
No |
1 |
1000 |
1000 |
|
Rotary Digester |
No |
1 |
2500 |
2500 |
|
Pelletizer |
No |
1 |
1000 |
1000 |
|
Tunnel dryer |
No |
1 |
2000 |
2000 |
|
Vibrating screens |
No |
1 |
750 |
750 |
|
Platform
type weighing |
No |
1 |
500 |
500 |
|
High pressure steam boilers |
No |
2 |
3750 |
7500 |
|
Rotary Activation kiln |
No |
1 |
400 |
400 |
|
Activated carbon storage silo |
No |
2 |
200 |
400 |
|
Non corrosive materials |
set |
1 |
600 |
600 |
|
Tank filters press. Etc |
No |
1 |
1500 |
1500 |
|
Total |
22150 |
Production and Operating Costs
Direct Materials, Supplies and costs in US$
|
Cost Item |
Units |
Unit |
Qty/ |
Prod cost/ |
Prod cost/month |
Prod |
||||||||
|
Direct costs |
||||||||||||||
|
Coconut shells |
Kgs |
0.1 |
385 |
38.5 |
1,001 |
12,012 |
||||||||
|
Zinc chloride |
Liters |
1.25 |
50 |
62.5 |
1,625 |
19,500 |
||||||||
|
Hydrochloric |
Liters |
2 |
30 |
60 |
1,560 |
18,720 |
||||||||
|
Sub-total |
465 |
161 |
4,186 |
50,232 |
||||||||||
|
General costs (Overheads) |
|
|||||||||||||
|
Rent |
150 |
1,800 |
||||||||||||
|
Labour |
2,000 |
24,000 |
||||||||||||
|
Utilities(power) |
150 |
1,800 |
||||||||||||
|
Other costs |
500 |
6,000 |
||||||||||||
|
Depreciation (Asset write off) Exp |
461 |
5,538 |
||||||||||||
|
Sub-total |
3,261 |
39,138 |
||||||||||||
|
Total Operating costs |
7,447 |
89,370 |
||||||||||||
Production costs assumed 312 days per year with a daily capacity of 385 Kilograms of activated carbon form coconut shells.
1. Depreciation (fixed asset write off) assumes _4_ years life of assets written off at _25% per year for all assets
2. Direct Costs include: materials, supplies and other costs that directly go into production of the product.
3. A production month is assumed to have 26 days.
Project Product costs and Price Structure in US$
|
Item |
Qty/ |
Qty/Yr |
Unit |
Prod/Yr |
Unit |
Total revenue |
|
Activated |
385 |
120,120 |
0.74 |
89,370 |
1.5 |
180,180 |
Profitability Analysis in US$
|
Item |
Per day |
Per Month |
Per Yr |
|
Revenue |
578 |
15,015 |
180,180 |
|
Less: Production and Operating Costs |
286.44 |
7,447 |
89,370 |
|
Profit |
291.06 |
7,568 |
90,811 |