The Green Initiative: A Sustainable Waste-Oil Solution

Transcription

1 The Green Initiative: A Sustainable Waste-Oil Solution Anson Clawson Rob Simmons Steven Srivastava Senior Engineering Design Project December 8, 2009

2 The Green Team Anson Clawson Engineering Management Technology Rob Simmons Engineering Graphics and Design Technology, Automotive option Steven Srivastava Engineering Management, Supply Chain Management minor 2

3 Outline Situational Background & Methodology Development of Solution Business Case Conclusion Rob Anson Steven Anson 3

4 Situational Background Sustainability IME Department and design team sought out a sustainability project Byproducts of our existence reach a state of equilibrium with the environment Designing for tomorrow s world today 4

5 Situational Background Industry Sponsor Major Food Manufacturer Crackers Cereal Problem Statement: Wants to integrate sustainable practices into their manufacturing culture Find a sustainable use for waste oil Produce 350 gallons of waste oil weekly 5

6 Methodology Analysis of Waste Oil Low linolenic soybean oil Contaminates Wheat Salt Flour Mass Spectrometry less than 0.1% total fixed solids volatile organic acid content of 391mg/L 6

7 Methodology Potential Uses for Waste Oil SynGas (Synthetic Gas) Fuel source / Chemical Manufacturing Gasification of biomass requiring extreme temperatures Animal Feed Little benefit to sponsor Little benefit to SEDP Biodiesel Common industry practice Potential for economic benefit Offset diesel consumption 7

8 Methodology Biodiesel Production Research Industry practices Toured multiple biodiesel production plants Standards and regulations Possible end uses Company fleet vehicles Diesel generator Fuel heater Transesterification process 8

9 Methodology Biodiesel Conversion Process KOH Methanol B-100 Biodiesel Waste Oil (140 F) Glycerin 9

10 Methodology Project Parameters Semi-automated system Minimal user interaction Safe (minimal contact with harmful chemicals) Minimal operator training required Budget of $15,000 1 Batch = 8 hour shift 8 x 4 footprint Functional pilot scale processor by graduation 10

11 Outline Situational Background & Methodology Development of Solution Business Case Conclusion Rob Anson Steven Anson 11

12 Development of Solution Base Unit from Evolution Biodiesel Mega-Ester 40 gallon processor ($3,668) Up to 14 hours to process Manual operations Operator training required Modifications necessary to minimize operator interface Increase production throughput Minimize labor costs Improve process safety 12

13 Development of Solution Design Concept 13

14 Development of Solution Developing an Improved System Pneumatic valves Pneumatic actuators 14

15 Development of Solution Developing an Improved System (Cont d) Additional pump (3) Float sensors Temp. sensor 15

16 Development of Solution Developing an Improved System (Cont d) Glycerin drain Programmable relay Control panel 16

17 Development of Solution Developing an Improved System (Cont d) Complete system 17

18 Development of Solution Trial Processing Wet testing for leaks and basic functionality (H 2 O) Debugging Fix leaks Calibration of program coding (WindLGC) Organizing sequence of events Setting the timers appropriately Establishing fail-safe 18

19 Outline Situational Background & Methodology Development of Solution Rob Anson Business Case Conclusion Steven Anson 19

20 Business Case Environmentally Responsible Socially Acceptable Economically Profitable Successful Business Case 20

21 Business Case Environmental Analysis Year 2012: Federal Cap & Trade Program 1 carbon credit = 1 Tonne CO2-equivalent Total Equivalent GHG s Tonne/Gal 230 Tonne/yr European Union Market Value 14.6/Tonne = $21.7/Tonne $4,991/yr Potential GHG exchange 21

22 Business Case Economic Analysis Cost Considerations Capital cost Parts, trade labor (electrician, programmer, fabricators) Variable by batch size Operational cost Reaction materials (KOH, methanol), labor cost, energy cost Variable by batch size Current diesel fuel rate $2.77/Gal Current revenues for disposing the waste oil $0.76/Gal Depreciation MACRS (10 yrs life) 22

23 Business Case Economic Analysis Sponsor s Financial 3 yr or less payback period 10% return on investment Current Economic Figures (230 Gal/batch, $2.77/Gal) Capital $31,919 [$] 10 yr Savings $53,178 [$] Payback [yr] NPV (10%, 10 yr) $29,367 [$] IRR (10yr) 8% [%] 23

24 Business Case Economic Analysis Two variables in profitability Batch size [Gal/batch] Current diesel rate [$/Gal] Further Analysis Batch sizes from 40 Gal to 260 Gal/batch Diesel rate from $2.77/Gal to $4.95/Gal Capital Cost $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $ Batch Size [Gal/batch] 24

25 Business Case Economic Analysis Sponsor s Criteria IRR met by $3.00/Gal Payback period met by $3.25/Gal active constraint $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 Unit Cost [$/Gal] Batch Size [Gal/Batch] Y r s Payback Period Batch Size [Gal/batch] Diesel Rate ($2.77/Gal) 3 yr Payback 25

26 Business Case Recommendations Full-Scale Implementation: $3.25/Gal Meets both, payback and IRR criteria Processor Size: From Gal/batch Oil Volume is constant Potential for revenues remains constant Economies of scale achieved Larger processor has lower per unit cost Additional capacity increases capital cost and payback period Pick a size to meet time and labor constraints 26

27 Outline Situational Background & Methodology Development of Solution Rob Anson Business Case Conclusion Steven Anson 27

28 Conclusion Experience/Knowledge Gained Project Management Information Time Money Materials 28

29 Conclusion Project Summary Practical Engineering Skills Applied Mechanical design Design for manufacturability/serviceability Electrical wiring Logic control programming Performance testing Design adjustments Scale modeling Business case 29

30 Conclusion Deliverables Proof-of-Concept Processor Training Documents Operations manual Safety protocol Logic relay program Business Case Recommendations for Full Scale Processor Components to use Implementation at $3.25/Gal Volume of 100 to 230 Gal per batch 30

31 Acknowledgements Company Sponsor Professor Joe Petro (WMU - IME Dept) Dr. Betsy Aller (WMU - IME Dept) Professor Harold Hladky (WMU Chem. Eng. Dept.) F&A Fabricating Bronco Biodiesel Michigan State Chemical Engineering Department 31

32 Green Team Questions? 32

33 Thank You 33