2007, Recycle One, Inc., All Rights Reserved

Transcription

1 2007, Recycle One, Inc., All Rights Reserved

2 Contents 1. Introduction 2. Summary 3. Benefits 4. The resources that will be used for the project 5. Technical data of Jatropha curcas 6. The process of the project 7. Structure of project 8. Analysis of revenues 9. Advantages and Issues 10.Closing 11. Reference 1

3 1. Introduction 1.1 Background Information Bio-diesel is a chemical compound of methyl ester, which can be extracted from both plants and animal oil. Researches indicate that biodiesel as fuel can be perfectly burnt and do not release any toxic substance to the air, and it is a source of fuel. Biodiesel can be used as a pure substance as well as mixed with petro-diesel. Several industrial countries, such as Germany, USA, Austria, and France have used biodiesel as an alternative fuel instead of gasoline. 1.2 Market Prospect Considering the fact that biodiesel is a substitute for diesel fuel oil that its reserves have been exhausted, the market prospect for biodiesel is highly promising for the future. Besides, since biodiesel is also considered as an environmental friendly fuel because of its characteristics such as clean burning and non-toxic (fuel), the market of biodiesel is highly prospective in those countries that have major concerns with cleanliness of the environment. Although the price of biodiesel is still higher than that of diesel fuel oil, with the development of technology, advantage of biodiesel, and limited reserves of diesel fuel oil, the use of biodiesel will be surely increasing in the future. 2

4 1. Introduction 1.3 What is Jatropha? Jatropfa has been widely recognized today as the most suitable plant for bio-fuel production. The reasons are; Jatropha is a drought resistant perennial growing shrub, non demanding, tolerant to extremes, suitable to tropical and non tropical climate and considerable climatic changes, even upto light frost. Its plantation can be taken up as a quick yielding plant even in adverse land situations viz. degraded and barren lands under forest and non-forest use, dry and drought prone areas, marginal lands, even on alkaline soils and as agro-forestry crops. It grows considerably easily and lives producing seeds for nearly 50 years. Jatropha grows much faster than palm and bears crops 8 month after planting seeds. The output of oil from Jatropha seeds is about 5 ton per hectare, which is the same degree of production as from palm plantations. The residual shells of seeds after being squeezed can be utilized as a good fertilizer as well as an insect repellent. Jatropha curcas oil is not edible, therefore its price won t be affected by the market price of cooking oil. 3

5 2. Summary 2.1 Objectives and Purposes Objectives of the proposed project cover the following: To reduce imports of petroleum, particularly Automotive Diesel Oil To improve the security of biodiesel supply To create employment oppotunities To contribute to the prevention of global climate change. To contribute to the preservation and enhancement of environment in Sri Lanka. To contribute to the vitalization of local economies. To contribute to the development of new industries of Sri Lanka. 4

6 2. Summary 2.2 Summary of the project In this project, We wiill be planting Jatropha curcas in the south of Sri Lanka where the land is rough, and selling crude bio-diesel oil extracted from planted Jatropha crucas for use of generator and automobile fuels. As we implement this project, we will establish a merger company between Sri Lanka and Japanese Corporations. Cost of project operation will be covered by its own investment and other investments from Japanese governmental financial institutes. Several phases will occur in this project: 1. Developing Jatropha plantation in small scale to accumulate knowhow. 2. Using its know-how, we will expand the plantation to bigger scale. Jatropha plantation has gotten a lot of attention lately as next generation energy. To prove that, a big company like BP and Daimler Chrysler have already gotten into this kind of project in India. We believe It will be Sri Lanka s cutting edge industry 5

7 3. Benefits Benefits of this project are as follows Enhancement of the degree of self-sufficiency in oil. Vitalization of the economy, especially in the areas which land is so sterile that the agricultural industry is under developed. Improvement of the infrastructure in the plantation areas (roads, water, etc.) as well as the non-electric areas (power generators). Establishment of the position as a leading country for Jatropha oil production and refinery technology like Malaysia for palm. Development of the brand image of Sri Lanka as the most advanced country for contribution to the environment problems. Absorption of CO2 gas by growing Jatropha. Production and use of bio-fuel. Power generation by bio-fuel. 6

8 4. The resources that will be used for the project Necessary resources for this project Resource Land for Jatropha plantation Land for Oil Extracting Machine Land for BDF plant Human resource Facility Cost Minimum case Maximum case Employment at plantation Employment at Oil Extracting Plant Employment at BDF plant Oil Extracting Facility BDF plant Own Investment Financing 10000ha ha 1ha 1ha Investment from Japanese Companies Japanese governmental financial institutes 7

9 5.1 BASIC FACTS 5. Technical data of Jatropha curcas A seedling will start yielding seeds after a year of its plantation It is planted 2m x 2m and 2500 plants can be grown in 1 hectare 20 % of the plants transferred from a nursery that would need to be replaced, considering the usual rate of mortality of plantations Seeds have 37% of oil in it. One expeller required for minimum 100 ha Jatropha One esterification plant is required for 1000 ha Jatropha Jatropha Oil can be combusted as fuel without being refined. It burns with clear smoke and no flame It was proved successfully as use of fuel for simple diesel engine Jatropha can survive with minimum inputs and propagates easily Flowering occurs during the wet season and two flowering peaks are generally seen. The seeds mature in three months after flowering Kg of oil is required to produce 1 kg of biodiesel 8

10 5. Technical data of Jatropha curcas 5.2 Trans-esterifiacation Process How to make BDF It is the displacement of alcohol from an ester by another alcohol in a similar process to hydrolysis. Vegetable Oil, i.e. the triglyceride, can be easily trans-esterified in the presence of alkaline catalyst at atmospheric pressure and at temperature of approximately 60 to 70oC with an excess of methanol. If 100 gm of vegetable oil is taken, 1 gm of the alkaline catalyst (Potassium Hydroxide) and 12 gm of Methanol would be required. As a first step, the alkaline catalyst is mixed with methanol, and the mixture is stirred for half an hour for homogenization. This mixture is mixed again with vegetable oil, then the resultant mixture is made to pass through reflux condensation at 65oC. The mix at the end is allowed to settle. The lower layer becomes glycerin and it is drain off. The upper layer of bio-diesel (a methyl ester) is washed to remove entrained glycerin. The excess methanol is recycled by distillation. This reaction works well with high quality oil. If the oil contains 1% Free Fatty Acid (FFA), then difficulty arises because of soap formation. If FFA content is more than 2% the reaction becomes unworkable. Methanol is inflammable and Potassium Hydroxide is caustic, hence proper and safe handling of these chemicals are must. 9

11 6. The process of the project Total area of the plantation is planned to be 110,000 hectares. The project will be divided and executed by 3 phases; Phase 1: Year 1 :Feasibility survey & Field test Development of 1000 hectares area for the plantation (of 1000 hectares.) Construction of oil mill. Main object in this phase is confirming the potential of Jatropha plantation in Sri Lanka. Phase2 :Year 2 to 4 :Production of crude oil In this phase, project will start in full swing. Development of hectares area of the plantation. Production of crude oil. Selling crude oil and electric power plants. Providing non-electric regions with diesel generators and crude oil. 10

12 6. The process of the project Phase 3: Year 5 to 7 :Production of Bio-diesel fuel Development of plantation for another 60,000 hectares. Construction of Bio-Diesel-Fuel (BDF) plant. Production of BDF. Selling BDF for the use of automobiles in the country. Next Phase Start exporting crude oil and BDF to foreign countries after the stabilization of cropping and plant operation are stabilized. 11

13 7. Structure of project It is necessary to establish a merger company between Sri Lanka and Japanese companies to manage and implement this project. (Required Investment: $1 million ) The cost of this project is expected to be supplied from own investment and investments from Japanese governmental financial institutes (or ODA). The land would be leased to the company free for charge for 15 years by Sri Lanka government or a local government. After the expiration of leasing period, the plantation and the factories would be transferred to Sri Lanka government or a local government. 12

14 9. Advantages & Issue Advantages In addition to its function as a source of net income, Jatropha curcas plantation can also function as a raw material source for biodiesel and create employment opportunities. Besides, this proposed project can create new centers of economic developments, particularly in the eastern part of Sri Lanka. Issues Jatropha curcas has high expectation as next generation fuel like coconut oil and oil palm. Currently, Jatropha curcas oil is considered that it has much better properties as oil than coconut oil and oil palm. Therefore, the issue here is the lack of plantation experience in Sri Lanka, and we will need to confirm Sri Lanka s plantation capability sooner than later. Other issue is that the oil has some toxic substances. 16

15 10. Closing Though the development of Jatropha curcas plantation is less prospective than that of other businesses, this plantation can grow well in the areas with dry climate, where other crops hardly survive. Therefore, Jatropha curcas can function as pioneer or land-conserving crop. In order to gain additional income from this plantation, a mixed cropping pattern can be developed. For example, during the rainy season we can grow annual crops such as maize and sorghum in between the main crops. For this project, financial support from Japanese funding agencies is highly required, particularly those with low interest rate. 17

16 11. Reference Extracting Jatropha oil 18

17 11. Reference Jatropha plantation Jatropha seedling Jatropha Seeds 19

18 11. Reference Jatropha Plantation (1,500ha) pods of oil seeds Jatropha oil Extracting Jatropha oil. 20

19 11. Reference Case examples :Start-up of Jatropha Biodiesel Fuel Production in India DaimlerChrysler is launching a new public-private partnership in India for the production of environment-friendly biodiesel fuel. This was announced by DaimlerChrysler on the occasion of the third Environmental Forum in Magdeburg, Germany, attended by over 300 participants from 20 countries between November 17 and 19, The project is setting out to test the production of biodiesel fuel from jatropha plants on eroded ground and its preparation for subsequent use in internal combustion engines. Further positive effects to be expected are the creation of jobs and a reduction in CO2 emissions. 21

20 11. Reference Case examples :TERI, BP undertake $9.4-m bio-fuel production project BP (British Petroleum) and The Energy and Resources Institute on Thursday announced that they will jointly undertake a $9.4-million project for bio-fuel production. In a statement issued here, TERI said that BP would fund the project, which would be implemented by TERI in Andhra Pradesh to demonstrate the feasibility of producing bio-diesel from Jatropha curcas, a non-edible oil bearing crop. The project, which is expected to take 10 years, will cultivate around 8,000 hectares currently designated as wasteland with jatropha and install all the equipment necessary for seed crushing, oil extraction and processing to produce 9 million litres of bio-diesel a year.a full environmental and social impact assessment on the supply chain and a life cycle analysis of greenhouse gas emissions will be completed as part of the project. TERI will be responsible for the day-to-day management and execution of the project. TERI's Director-General, Dr R. K. Pachauri, while announcing the deal said, "Recent developments have made green fuels economically attractive in view of the resource potential of this option and the environmental benefits associated with it, along with employment generation and empowerment of the rural population." 22