MAKING ACTIVATED CARBON FROM RICE HUSKS
Introduction
This project idea is for production and marketing of activated carbon from rice husks. Activated Carbon is an amorphous form of carbon, which when treated, produces a highly porous structure with a very large internal surface area. The revenue potential is estimated at US$500 per year.
Production Process
The process consists of crushing the rice husks in a hammer
mill to required size and then pulverizing them in a ball mill. The husk powder
is digested with zinc chloride. The mass is then activated at
elevated temperature. The activated pellets are quenched and leached
counter-currently by diluted hydrochloric acid and dried in a tray drier.
Market Analysis
The activated carbons are widely used for the absorption of toxic gasses. Therefore, this product has a good marketability with proper linkages of the manufacturers, especially in the sugar industry and in the sewerage industry. There are no investors in this industry
Capital Investment Requirements in US$
|
Capital Investment Item |
Units |
Qty |
Unit |
Amount |
|
Hammer mill |
No |
1 |
4,000 |
4,000 |
|
Open pan evaporation steam |
No |
1 |
1000 |
1,000 |
|
Rotary Digester |
No |
1 |
2,500 |
2,500 |
|
Plate and frame filler presses |
No |
1 |
1,000 |
1,000 |
|
Tunnel dryer |
No |
1 |
2,000 |
2,000 |
|
Vibrating screens |
No |
1 |
750 |
750 |
|
Treating and setting tanks |
No |
1 |
500 |
500 |
|
High pressure steam boilers |
No |
2 |
3,750 |
7,500 |
|
Rotary Activation kiln |
No |
1 |
400 |
400 |
|
Activated carbon storage silo |
No |
2 |
200 |
400 |
|
Non corrosive materials |
set |
1 |
600 |
600 |
|
Tank filters press. Etc. |
No |
1 |
1,500 |
1,500 |
|
Total |
|
22,150 |
Production and Operating Costs in US$
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod
cost |
|
Direct costs |
||||||
|
Rice husks |
kgs |
0.1 |
385 |
38.5 |
1,001 |
12,012 |
|
Zinc chloride |
Liters |
1.25 |
50 |
62.5 |
1,625 |
19,500 |
|
Hydrochloric |
Liters |
2 |
30 |
60 |
1,560 |
18,720 |
|
Sub-total |
465 |
161 |
4,186 |
50,232 |
||
|
General costs (Overheads |
||||||
|
Rent |
150 |
1,800 |
||||
|
Labour |
2,000 |
24,000 |
||||
|
Utilities(power) |
150 |
1,800 |
||||
|
Other costs |
500 |
6,000 |
||||
|
Depreciation (Asset write off) Expenses |
461 |
5,538 |
||||
|
Sub-total |
3,261 |
39,138 |
||||
|
Total Operating costs |
7,447 |
89,370 |
1. Production costs assumed 312 days per year with a daily capacity of 500grams of activated carbon.
2. Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets
3. Direct costs include materials, supplies and other costs that directly go into production of the product.
Project Product costs and Price Structure
in US$
|
Item |
Qty |
Qty/ Yr |
Unit |
Pdn/ |
Unit |
T/ |
|
Activated |
500 |
156,000 |
0.6 |
89,370 |
0.75 |
117,000 |
Profitability Analysis in US$
|
Profitability Item |
Per |
Per |
Per |
|
Revenue |
375 |
9,750 |
117,000 |
|
Less production and operating Costs |
286 |
7,448 |
89,370 |
|
Profit |
89 |
2,303 |
27,630 |
Availability of Raw Materials and Equipment
Raw materials like rice husks can be procured locally in Bugiri Gulu, Mbale, Kasese, and highland rice farmers while equipment can be imported from countries China and Japan.
Incentives Available
There are government organizations like Private Sector Foundation Uganda which serve as a channel through which subsidies and free advisory services are given and are government financed