ACTIVATED CARBON PLANT IN KERALA

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1 PROJECT PROFILE ON ACTIVATED CARBON PLANT IN KERALA Prepared by: Kerala State Industrial Development Corporation

2 PROJECT PROFILE FOR ACTIVATED CARBON PLANT INTRODUCTION Activated Carbon is the carbon produced by activation of any carbonaceous material such as coconut shells, bamboo, wood chips, sawdust, coal, lignite, paddy husk, etc. In the northern region of the country, Activated carbon is produced mainly from wood charcoal, whereas in the southern region including Kerala, it is made from charcoal of the shell of Coconut that is available aplenty. Shell-based activated carbon is extensively used in the process of refining and bleaching of vegetable oils and chemical solutions, water purification, recovery of solvents, recovery of gold, in gas masks for protection against toxic gases, in filters for providing adequate protection against war gases/nuclear fall outs, etc. MARKET Activated Carbon of three grades namely powder, granular and pelletised, finds hundreds of different applications. By chemical activation, predominantly powder activated carbons are made and these qualities are mostly used for wastewater treatment. Granular products and pellets used for gas purification are predominantly made by gas steam activation. The domestic market for activated carbon is fast expanding with rapid growth of several end user industries. The demand from the vegetable oil industry the largest consumer of activated carbon, is estimated at around 30,000 tonnes. The capacity utilisation ratio is reported to be around 80% - 85%. Activated Carbon has got huge export potential due to its wide application in many industrial sectors. About 55% of value of export is contributed by U.K, South Africa, Germany and U.S.A. Other principal buyers of Indian manufactured activated carbon include Australia, Belgium, Malaysia, Japan, Sri Lanka, Netherlands, Sweden and Senegal accounting for 30% of total exports from India. MANUFACTURING PROCESS The process of activation is carried out in two stages. Firstly the coconut shell is converted into shell charcoal by carbonization process which is usually carried out in mud-pits, brick kilns and metallic portable kilns. The coconut shell charcoal is activated by reaction with steam at a temperature of 900 C C under controlled atmosphere in a rotary kiln. The reaction between steam and charcoal takes place at the internal surface area, creating more sites for adsorption. The temperature factor, in the process of activation is very important. Below 900 C the reaction becomes too slow and is very uneconomical. Above 1100 C the reaction becomes diffusion controlled and therefore takes place on the outer surface of the charcoal resulting in loss of charcoal.

3 PROJECT PARAMETERS Capacity The production capacity of most Activated Carbon Plants in the country varies from around Tons per annum. A medium-sized Plant will be having a production capacity of 10 Tons/day (3000 Tons per annum, based on 300 working days at single shift). Land An extent of around 1 acre of dry land is required for setting up an Activated Carbon Plant. Location The project is proposed to be located at s Industrial Growth Centre at Valiya Velicham, Kuthuparamba in Kannur District. Raw Material & Utilities The Raw material commonly available and most ideal for Activated Carbon Plants in Kerala is Coconut Shell. As a general rule, full shells from around 90,000 coconuts would yield 1 Ton of Activated Carbon. However, since the Carbonization process involves some degree of atmospheric pollution, most firms rely on directly sourcing Shell charcoal as the raw material. Plant & Machinery The machinery required for an Activated Carbon Plant is as follows: Sl. Name of Machine No 1 Hammer mill 2 Jaw crusher 3 Vibratory feeder 4 Elevator 5 Carbonization kiln 6 Soaking tanks 7 Cyclones 8 Rotary kiln with heat recovery unit 9 Coolers 10 Centrifuge 11 Rotary drier 12 Micro Pulverizer 13 Sieving machine 14 Pneumatic filling machine

4 The total cost of machinery for a 3000 TPA Plant would be around Rs.330 Lakhs. Besides, technology support and details of machinery manufacturers are available from institutions like the Coconut Development Board, Kochi. Manpower The total manpower requirement for a 3000 TPA Plant would be around 25 numbers. This includes 5 managerial staff, 12 machine operators and 8 support staff. Cost of the Project The total project cost for setting up a 3000TPA Activated Carbon Plant would be in the range of Rs Lakhs, including cost of 1 acre land. The project implementation period would be 12 months. Project Components Cost (Rs. Lakhs) Land (1 acre) & Land Devpt Building & Civil works (12,000 sq. ft factory) Plant & Machinery Utilities Technical Know how 2.00 Misc. Fixed Assets Preliminary & Pre-operative expenses Contingencies Margin money Total Project Cost Means of Finance The proposed means of Finance for the Project is given below: Equity Promoters contribution Subsidy from CDB/other agency Unsecured Loan Term Loan /KFC/Banks/FIs Total Project Cost The Debt-Equity ratio is 1:1.

5 Sales Turnover The Revenue at optimum utilisation (80% from the 3 rd year onwards) would be around Rs Lakhs. FINANCIAL INDICATORS The Profit after Tax is Rs.178 Lakhs. The Break Even Point (BEP) for the project is 50%. The Debt Equity Ratio (DER) for the project is 1:1 Average Debt Service Coverage Ratio (DSCR) is 3.42 The average Internal Rate of Return (IRR) for the project is 27%. CONCLUSION Activated Carbon is an essential component serving many functionalities like Adsorption, Reduction, Catalysis, Carrier of Biomass & Chemicals, etc. Due to this multi-purpose role, it is used in many industrial applications like decolourisation of sugar and sweeteners, drinking water treatment, gold recovery, production of pharmaceuticals and fine chemicals, catalytic process, off gas treatment of waste incinerators, automotive vapour filters, colour/odour correction in wines and fruit juices. The Activated Carbon industry consists of more than 60 units spread countrywide, most of which are in the unorganised small-scale industrial sector. Due to its increasing demand worldwide, more and more units have expanded operations to cater mainly to the international market. The global activated carbon industry is estimated to be around 1.1 million metric ton. Demand for virgin activated carbon is expected to rise by around 10% annually through 2014, worldwide. The U.S is the largest market, which will also pace global growth based on anticipated new federal regulations mandating mercury removal at coal-fired power plants. ***** For further details please contact Kerala State Industrial Development Corporation Ltd. Disclaimer: The findings contained in this Project Profile are based on the initial information collated through primary and secondary research, which is indicative in nature. Reference herein to any specific commercial product, process, service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring by or any entities thereof.