Designing, Building and Operating Small BioDiesel Production Plants 10,000 SF In Island-Nations for Used Cooking Oils to BioDiesel Production by Charles Dushek

 

Charles J Dushek for “Global Humanity Organization”

“Keep the World Green” …Convert Used Cooking Oil to BioDiesel & Soaps Production in Island Nations

Charles J. Dushek has done a Targeted Analysis of One Local Island Market, Costa Rica of 4,500,000 Population, for Converting Used Cooking Oils to BIOFUELS for Powering Diesel Trucks, Cars, Pleasure & Fishing Boats, Construction Equipment & Electric Power Generators.

Theoretical BioDiesal at a Country Island Small 10,000 SF Plant is 10,000 gallons a week during an 8 hour shift and adjusting for multi-weeks interval downtime for equipment maintenance cycles we have about 40 weeks per year of BioDiesel Product equal 10,000 gallons per week x 40 weeks = 400,000 gallons per year.

Per Capita Usage of Biodiesel is about 5 gallons per year.  Hence, a small local production plant can supply 400,000 / 5 gallons per year per person = 80,000 people per year.

Petro Diesel is selling now for about $5.00 per gallon around the world.

Used Cooking Oils as selling for about 15 cents per pound 

Besides the production of biodiesel and the by-product glycerin for making detergents, additional benefits of the Used Cooking Oil collection service would be the safe disposal of the used oils that are currently disposed of in open sewer or landfill locations and generally generate a negative impact on Costa Rica’s claim to be one of “greenest” countries in the world.  The current price of BioDiesel in Costa Rica is $3.64 per gallon compared to the “Used Cooking Oils” bulk volume input cost of about $1.00 per gallon (Domestic sources and African Imports)….This creates a generous cost to sales spread margin to cover local operating costs of a conversion facility, earned employee incomes, and net operating profits to fund retained earnings for upscaling production capacity at existing facilities….and to build new facilities in different location in Costa Rica.


In comparison Regular Petro Diesel in Costa Rica is $5.15 per gallon.

Used Cooking Oil sells for about 15 cents per pound in bulk form, and is typically High-Volume Bulk Shipped un plastic-lined bladder cargo containers, wiath an oil cost of 15 cents per pound x 7.6 pounds per gallon = $1.14 per gallon.

On any Ocean Island, where inhabitamts widely use cooking oils, if reclamation collection centers are used = Simple 55 Gallon Used Cooking Oild Dump Tanks, hundreds of them for local resident oils disposal, for Local Tanker Truck Collection Routes, then the input costs of Used Cooking Oil to BioDiesel Production Plants can be far less than $1.00 per gallon of feed stock!

 

 
Cooking Oild to BioBiofuels

 

 
Used Cooking Oils Dumped into Water Ponds,Open Landfills & Waterways


Collected Used Cooking Oil in 55 Gallon Drums

Costa Rica, BioDiesel User, is a small democratic country located between Nicaragua and Panama in Central America. Its 4.5 million inhabitants consume 23,052,368 gallons, 5 gallons of diesel fuel annually according to Charles J Dushek statistics.

As Costa Rica has mandated that the country be carbon neutral by 2020, an enormous opportunity has been created to provide biodiesel as a substitute for Petro-Diesel. There are only a few existing biodiesel plants currently operating in Costa Rica, generating less than 1 million gallons a year.  

Bio-Diesel production is “Cleaner Burning” that Petro-Diesel,and yet the county’s supply of organically manufactured Bio-Diesel is less than 5% of all diesel fuel used for power and motive generation annually….Many more low capacity Bio-Diesel conversion facilities are need to “ Change The Balance” and to create more semi-skilled labor jobs to benefit the Costa Rica economy that create 20-25 full-time employees per small local facility generating 400,000 gallons of BioDiesel annually as estimated by Charles J Dushek using a 1-3-Shift operating model. 

The operating capacity in gallons of Bio-Fuel per plant is highly dependent on access to cheap Used Cooking Oils, from: 1. Bulk quantity imports, 2. Local Incentivized Collection system, and 3. From fat renderings from slaughter houses.  A new possibility is emerging from the Agra-Production of plants that can yield an plant-based-oil suitable for conversion/processing into a Bio-Fuel.

While capable of generating approx. 10,000 gallons a week during an 8 hour shift, a local facility has not produced optimal scale of 3-Shift Production due to consistent local or imported supply of Used Cooking Oil (UCO) or virgin plant-based-oils.

 Another source of biodiesel is palm oil which currently is being exported to the US due to the higher prices paid by US biodiesel producers. Tax incentives have raised the price of palm oil to over $800 a ton. The planting of castor and Jathropha is being encouraged by the Costa Rican government, but again, the current tax incentives in the USA make it more profitable to ship the oil out of the country.

Charles J Dushek views Bio-Fuels as having a imported used oil supply opportunity to import UCO from Africa for approx.. $250 a ton ($1.00 per or gallon) to convert to biodiesel, which simultaneously developing the UCO collection business In-Country as a satellite business of the Bio-Diesel conversion process for any Island-Nation Country. 

As Costa Rica is quite small (170 miles wide and approx. 400 miles long), collection would be over the entire country, encompassing the larger metropolitan areas. Besides the production of biodiesel and the by-product glycerin, additional benefits of the collection service would be the safe disposal of the used oils that are/has been disposed of in open sewer or landfilled and generally generate a negative impact on Costa Rica’s claim to be one of “greenest” countries in the world. 

A Local-Based UCO collection process can be structured by locating hundreds of 50-gallon drums throughout local regions of Costa Rica for residents to conveniently dispose of UCO into the drums and earn Cash or Debit Card REWARDS for each gallon recycled into Bio-Diesel.  Small tank trucks can collect the UCO by pumping out the UCO from “Drums to Truck Tank” and deliver the load to the local conversion facility.  Further, the same tanker trucks can operate a “Reverse Plan” to load Bio-Diesel for the facility and deliver the finished product to buyers of Bio-Diesel.

In addition to biodiesel production, Our Tico BioFuels Model can pursue the use of the glycerin by-product as an alternative fuel containing a large BTU value, and for the production of soap, and a newly found use as a bio-degradable dust control palliative.

Big Positive Eco-Friendly Regarding Spills

Bio-Diesel (Unlike UCO) is 100% biodegradable and poses no environmental impact in case of a spill. The additional bonus of eliminating disposal issues associated with UCO makes local-based the Bio-Fuels plan a win-win for the country of Costa Rica.

Recent new laws waiving any import duties on any equipment or materials associated with the production of biodiesel for a period of 10 years acknowledges the Costa Rican governments endorsement of the development of this industry, and help lower importation expenses for UCO from outside Costa Rica.

Sales of the biodiesel produced (10,000 gallons a week) represent 0.02 of the biodiesel consumed in Costa Rica.

The five large sugar plantations in the state of Guanacaste consume 5,000,000 gallons a year in diesel type fuel alone. Several bus companies consume over 500,000 gallons a year. Florida Beverages, the Pepsi distributor for Costa Rica, is interested in purchasing whatever volume of biodiesel that can be produced to help meet their commitment to join the government in making Costa Rica carbon neutral by their 2020 target. Serious consideration would be given to double and triple shifting Bio-Diesel production plants and, with good scheduling, 3 batches could be produced every 24 hours, tripling the production of single-shift plants, which yields a much higher Return On Investment (ROI) by utilizing the same scale-up of facilities for more that one shift.

Charles J Dushek says….No firm has approached the production of biodiesel in Costa Rica with this business model. While biodiesel exists in the USA for a large part, as a result of federal tax incentives, Costa Rica poses a unique “bubble of need and opportunity” in that Costa Rica Fuels Production and Distribution Organization controls the distribution of all petroleum products in the country and these sales are used to pay for the roads system maintenance and also funneled into reforestation projects to support the carbon neutrality pollution goal. This causes the prices of gasoline and Petro-Diesel to be artificially high and it will remain high for the foreseeable future. Whereas, The current price for biodiesel is approx.. $3.60 a gallon….AND..Is a part of the Costa Rica desire to lower airborne and ground-pollution across the country.

Charles Dushek believes Bio-Fuels local production is at a perfect time to enter the market at scale by either negotiating the purchase of the Facility Locations on the outskirts of high-resident density locations for assembling new facilities in Island Countries. Dushek visions that each facility must be located adjacent to improved roadway access to easily and safely facilitate to transportation of UCO to the facility, and of Bio-Diesel to the customers. 

Site Engineering plan documents can show the costs associated with a new 10,000 SF facility, the poly storage tank units Tico BioFuels has engineered and the oil delivery schedule required to step up production  at a new facility.

 

Youth Employee Skills Development

Charles Dushek sees a renaissance-opportunity to employ youth ages 18 and older and young adult labor age 25 and older in a multi shift production process.  Aspiring to 3 shifts with 6 “operational employees” on each shift.  It is important to have this business be a “training ground for different strata of employees” to move thru an “A to Z training program” in all aspects of fuels production and logistics.  For One Initiative step, Dushek wants to create and certify highly skilled employees that can eventually leave the facility and “enter a career on-ramp” to high valued employment in manufacturing and chemical industry settings.  And Two, that if/when this business is hugely successful in its growing years that we will have developed a strong and diversely skilled employee labor force.

Bio-Fuels Employee Job Descriptions for different employee skills and responsibilities:

Shift Manager…Senior Age and Skills Level…Operational Employee

Process Technician…Operational Employee

Safety Engineer and First Aid Tech…Operational Employee

Maintenance Engineer…Operational Employee

Equipment Operator…Operational Employee

UCO Gathering and BD Delivery Distribution Logistics Manager/Driver…Operational Employee

Facilities Superintendent (Outside grounds and HVAC, water....non-processing equipment) …Single Shift Employee

Employee Scheduling, HR, Training Programs, Payroll, AR and AP Services Rep…Single Shift Employee

 As you can see we have a full and rich curriculum of job assignments to rotate employees to develop broad valued business skills.

 

Biodiesel Safety Issues and Practices

Safety issues have been a chief concern for the biodiesel industry, as evidenced by a long list of fires and explosions. The following is an assessment of what improvements are necessary to make commercial biodiesel processing safer.

By Pete Moss | February 23, 2010



Questions abound as to why biodiesel plants have a much poorer safety record than other chemical and petrochemical operations, and what steps can be taken to address this issue before the industry suffers irreversible damage. Improvements can and should be made to determine new benchmarks for industry participants. 

Dushek strongly supports…The First Step… in assuring biodiesel safety is implementing a Process Safety Management (PSM) program, which includes a hazardous operations review. The code of federal regulations 29 under CFR 1910.119 mandates a PSM program if more than 10,000 pounds (1,517 gallons) of any non-organic chemicals, irritative or flammable chemicals, or any activins which may be present in a production facility, and all but the smallest of plants have more than this. But even the smallest plants should implement program mandates for employees and protection of investments, and to be responsible neighbors. 

The PSM program is not a document that can be copied from one diverse industry site and applied to any other site. Each phase of the Bio-Diesel operation is evaluated for potential hazards and problems that could be encountered during normal operation, start up, shut down, and stand by or down time. It must be prepared by a competent, experienced company or individual, and the facility's operations staff. Adequate time should be allowed for a review of each operation and piece of equipment in detail. 

As part of the PSM program, the piping and instrument diagrams should be complete and ready for review. A set should always be available at all locations for operating personnel. These drawings can be the outline for the review of each phase of the operation. The PSM program also requires detailed operating instructions for the plant so someone unfamiliar with the plant could read and understand the steps for safe, reliable, normal operation, start up, shut down, and maintaining an idled plant. It also describes formal safety training that must take place before operations begin. The training includes OSHA requirements, “not just general industry work permit requirements”, enclosed space entry permits, required personnel safety protection equipment, and more. 

Each step in the process is analyzed by the experienced program provider, and the operations management staff. The first step in the review is to assure that each piece of equipment is safe during normal operation: the electrical classification, instrumentation and mechanical installation. The next two steps are a similar review for start-up and shut down. Following this is a similar review for the plant being idle with or without process fluids present, then review of procedures for mechanical and electrical work in the plant during operation and down time, says Charles Dushek.

The review would also include any special precautions for handling hazardous materials (Very Important states Charles Dushek), each of which must be reviewed separately. Special attention must be given to methanol or any similar gas during normal containment in the operating and downed plant. The hazards of methanol, if ever present in a Bio-Fuels production facility for equipment failure, such as a pump seal failure, must be assessed. 

The methanol-based catalyst requires review in the same manner. The handling of acids and caustics (for any equipment cleaning) should also be reviewed thoroughly and should include recommended personal protection equipment required for every instance that acid or caustic may be encountered. In each stage of the review, recommendations should be made for steps to take in case of failure in one of the systems, as Charles Dushek firmly believes in as a former Industrial Engineer


Common Problems 

Most of the common causes of biodiesel plant problems stem from failure to adhere to good manufacturing practices for this type of chemical plant. 

Methanol The largest safety hazards in biodiesel plants are methanol and catalyst, which contains 75 to 80 percent methanol. Methanol is highly flammable and vapors are explosive over a wide range of concentrations, and since they are heavier than air, vapors accumulate in low areas of the plant.

Hence, Indoor production units should be well-ventilated with "Many Doors Open" and 24/7 Alarmed Methane Gas Measurement Gauges according to the NFPA code. Many insurance companies and local fire departments require sprinklers in these areas because the hazard is so great. The hazard classification should adhere to the National Electric Code, so no spark-generating electrical components are allowed in the area. The equipment selection and installation should assure that components have the highest reliability to reduce mechanical failure. 

Frequent causes of methanol escaping into the operating area are pump seal failures or fractures, hose failures or fractures, instrumentation connection failures and similar incidents. Personnel should be trained to be observant for any mechanical abnormalities so remedial action can be taken immediately. 

Another potential problem is spill containment, which should not only comply with storm water local Code Regulations, but also to control hazardous collections of any flammable materials (Yet, Bio-Diesel is not inherently flammable like gasoline…Bio-Fuel burns in combustion chambers only when under a compression condition….it is not Explosive as Gasoline is in unprotected areas.) Many plants follow the guidelines for most areas, but fail for hose connections that can create methanol spills. 

Equipment selection and design Once a plant is operating each piece of equipment should be evaluated, and all safety precautions reviewed, to minimize chance for leaks, failure and design conditions. Temperature and pressure should be well within operational limits. Question the vendor to assure correct application in a biodiesel plant. 

Dushek states…The design for equipment installation and relevant support systems must also be thoroughly reviewed. Pressure relief instrumentation should be selected based on upset conditions versus normal plant operations alone. Relief should be provided for overheating, over pressure, over temperature, and even upset conditions such as fire. 

If fire occurs, precautionary measures should be prepared for the tank, heat exchanger, pump and other affected areas. Control instrumentation is typically designed for operating within normal limits and appropriate actions should be taken when limits are exceeded. These systems should include action and/or operations notification for processes going outside normal limits, whether it is a slow or rapid upset. 

Each piece of equipment and area should be reviewed to assure correct electrical classification is met, including proper grounding. Access for maintenance is also critical for safety.  Charles Dushek says that these comprehensive safety inspections by each of the plant’s: 1. Safety Engineer and First Aid Tech…Operational Employee and 2. Maintenance Engineer…Operational Employee on a weekly basis for “Visual Inspections”, and monthly for” Hands-On Stress and Pressure inspections”.

 
Operator training In start-up operations, especially in smaller installations, operator training is often viewed as unnecessary costs to be minimized and shortened as much as possible. But, Charles Dushek insists that for a plant to operate safely, operators need thorough understanding of the mechanics and chemical reactions associated with the facility. At minimum, training should include how to start up, operate and shut down the plant….without a 3rd party supervisor or coach to guide any operations employee. 

Each piece of equipment and plant area should have an adequate training protocol so every employee has a basic understanding of each item and how it relates to other plant operations, and control, field and maintenance operators should all be included. 

Understanding the basics of the entire process is also necessary for every employee. This knowledge will allow the operator to understand why issues are arising and how to respond to root problems versus treating specific symptoms. “Spontaneous Upset Conditions” can cause very severe problems if the operator doesn't understand the “Fundamental Root Problems” that could occur. 

Everyone in the plant not only needs access to Material Data Safety Sheet Information, but needs to know each material used. They need to know the proper personal safety equipment required in all areas of the plant and personal safety equipment required in special areas, or when handling certain materials. When unloading a truck of catalyst, caustic or sulfuric acid, personal safety equipment is ”Required-not just Recommended”.

Each operator requires instruction on how to respond to abnormal operations such as spills, tank overflows, electrical power outages, sudden operational disruptions, natural disasters and fires. The quick and accurate response to problems can very often prevent personal injury or death and loss of property. 

Mandatory training includes the items required by the federal government in all similar industries. The biodiesel industry, which is young and relatively immature, needs to step up its efforts to improve the efficacy of its safety and training programs to save lives, money and preserve the industry's reputation. 

A Brief, Recent History of Safety-related Biodiesel Plant Issues 
A few of the adverse events as reported in media sources will be listed as examples of problems that can occur, most of which could be avoided with proper preparation. 

American Biofuels, Bakersfield, Calif., 02/17/2006 
During a methanol transfer, a small spill occurred. The methanol was ignited and the fire spread into the process building. Apparently, the spill was not contained. Likewise, an ignition source was present around a flammable liquid in an upset condition. A PSM should have identified these two issues so that the spill would be contained and the area would be electrically classified so that no ignition sources should be present. This emphasizes the absolute need for the PSM Program for any size biodiesel plant. 

Sun Break Biofuels, Canby, Ore., 06/23/2006 
A major fire resulted when a small fire melted plastic biodiesel storage tanks. Even though the cause of the initial fire was not listed, the resulting major damage could have been prevented with a PSM Program. The same analysis is that the area should have been electrically classified so that no ignition sources should be present. The area should have containment. Storing biodiesel in plastic tanks is not good manufacturing practice. 

Blue Sky Biodiesel, New Plymouth, Idaho, 07/07/2006 
A small fire occurred when a worker was installing a vent tube in an existing tank. 

Agri Biofuels Dayton, Texas, 07/14/2007 
A fire resulted from a methanol spill. 

Better Biodiesel Spanish Fork, Utah, 7/25/2007 
A small fire occurred when there was a mechanical malfunction in a methanol transfer line to the reactor section. 

Farmers & Truckers Biodiesel Augusta, Ga., 8/21/2007 
A worker was welding a flow meter on the top of a tank and was killed when an explosion occurred. 

Foothills Biodiesel Lenoir, N.C., 8/25/2007 
Feedstock tanks in the tank farm were destroyed by fire two days after the plant was shut down. The tanks were destroyed. Since the plant was unoccupied, no one was hurt. 


Minnesota Soy Bean Processors Brewster, Minn., 5/24/2009 
A fire and explosion on a Saturday night at 10 PM resulted in several tanks being on fire. 

Midwest Biorenewables Toledo, Ohio, 6/15/2009 
A faulty safety valve was blamed for a fire which destroyed one of two production lines. The vacuum control valve imploded, igniting biodiesel. 

Columbus Foods Company Chicago, Ill., 7/19/2009 
Two workers were seriously injured in the biodiesel plant while mixing glycerin and sulfuric acid. 

Kenneth "Pete" Moss is the managing partner and owner of renewable energy consulting firm Frazier, Barnes & Associates LLC. Reach him at pete@fba.com.

 

Collection of Used Cooking Oils Locally in Costa Rica



Basic Layout of a Small Bio-Fuels Facility

 


 

“Keep the World Green” …Convert Used Cooking Oil to BioDiesel Production

 

Summary and Conclusions to Plan and Enable a Bio-Fuels Production Facility

Within Many Developing Nations that have National Desires, Visions and Implementation

To change a Fundamental Used Cooking Oils Contamination Problem into an Environmental & Profitable Solution

 

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