Activated Carbon Plant KSIDC

PROJECT PROFILE


ON


ACTIVATED CARBON PLANT IN KERALA







Prepared by:


Kerala State Industrial Development Corporation






Activated Carbon Plant KSIDC
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 900C -1100C 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 900C the reaction becomes too slow and is very uneconomical. Above 1100C the
reaction becomes diffusion controlled and therefore takes place on the outer surface of the
charcoal resulting in loss of charcoal.
Activated Carbon Plant KSIDC

PROJECT PARAMETERS

Capacity
The production capacity of most Activated Carbon Plants in the country varies from around
1000 - 5000Tons 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 KSIDCs 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.
No
Name of Machine
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
Activated Carbon Plant KSIDC

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.650-700 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 50.00
Building & Civil works (12,000 sq. ft factory) 102.00
Plant & Machinery 330.00
Utilities 10.00
Technical Know how 2.00
Misc. Fixed Assets 25.00
Preliminary & Pre-operative expenses 32.00
Contingencies 24.00
Margin money 95.00
Total Project Cost 670.00


Means of Finance

The proposed means of Finance for the Project is given below:

Equity
Promoters contribution 250.00
Subsidy from CDB/other agency 25.00
Unsecured Loan 60.00
Term Loan
KSIDC/KFC/Banks/FIs 335.00
Total Project Cost 670.00

The Debt-Equity ratio is 1:1.

Activated Carbon Plant KSIDC
Sales Turnover
The Revenue at optimum utilisation (80% from the 3
rd
year onwards) would be around Rs.
2160 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.

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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
KSIDC or any entities thereof.