Furnace Oil Project
Furnace Oil Project
Furnace Oil Project
A new standard in renewable energy that includes using ofwaste tyres as a raw material and
producing green fuel oil, carbon black, steel and gas. With global warming and utilization of rubber,
it has now become necessary to recycle the waste and convert it in fuel oil in such a way that it is
environment friendly. This is a unique technology and it can change energy market scenario in a big
way. The company owns the famous brand Infogate, whichhas presence in 25+ countries,
including Singapore, Sweden, Spain, Greece, Jamaica, India etc.
World Market Scenario:
Billions of tons of wastages are available in all over the world. We cant burn or landfills those tyres
due to pollution problems. There is no other use of these waste tyres. So, we separateall content
from wastage tyres and make it completely renewable process.
Features of the plant:
100% wastage tyre recycling is achieved (No churn left after the process).
No chemical ingredients are used in process (environment friendly).
During and after the process; no soil, water or air pollution is observed.
Creates economically valuable products out of wastage tyres (These are industrial product
that have a good market value and demand).
The most cost-effective wastage tyre recycling technology in the world.
Raw material (wastage tyre) is cheap and easy to provide. These are the by-products of tyre
production.
Each recycled ton of tyres preserves 10 tons of CO2that is a major green house gas.
It is a 100 % pollution free process, thus making eco-friendly environment.
The process can be applied to all rubber based materials.
The system creates an alternate source of energy toreplace petroleum products and natural
gas.
System gives the opportunity to governments and local administrations to deal with the
wastage tyre problem to a great extent.
The process of Pyrolysis has duration of 4 to 12 hours, depending on the quantity and size of
tyre (car tyre, truck tyre, etc.). During the process different vacuum values are applied in pre-
determined temperatures and in different phases. Different gases are obtained and the
condensed gas is stored as a fuel-oil in tanks.
The Perfect Solution (Pyrolysis Process)
Pyrolysis is the decomposition of organic compoundsunder oxygen free (anaerobic) atmosphere that
produces gas, oil, carbon black and steel. Efficient industrial Pyrolysis is a process to treat the rubber
and industrial plastic wastage as well. As a result of pyrolysis of wastage tyres one obtains,
FUEL OIL (40% to 45%)
The main oil product produced by our recycling application is the fuel oil that is wide used for
industrial and commercial purposes. The oil has 40%to 45% of the amount of recycled scrap tyres,
which will be carried with licensed tanker trucks.
CARBON BLACK (30% to 35%)
Carbon Black is the main product recycled by Pyrolysis technology. The amount of recycled carbon
black is 30% to 35% (depending on the type of tyres) of the total amount of scrap tyres recycled in
the system. Carbon black is used as raw material ormain ingredient in many industries and the
chemical structure of carbon black strengthens, lengthens the endurance, and improves the coloring
features of the materials.
Carbon black produced by Pyrolysis process (CBp) ismore economical compared to carbon black
produced primarily from petroleum and is more price-efficient to be used as an ingredient in the
industries listed;
Electric cable jacketing
Conveyor band
Carrier Bands
Hose and doormat
Black nylon bag
Rubber additive
Automotive spare parts
Heat isolation
Black colorant in rubber materials
Plastic pipes
Industrial rubber products
Fire fighting
STEEL WIRE (10% to 15%)
Tyres contain steel wires and the amount range of 10% to 15% of the total tyre wastage. All of the
steel present in the tyre can be detached after pyrolysis recycling process in completed. Valuable
steel wires are pressed and sold to steel and scrap dealers.
GAS (10% to 12%)
Non-Condensable gases arise during the pyrolysis process.
Some advantages such as
It has higher calorific value as compared to Natural Gas.
It can be replaced where Natural Gas and Propane are stored.
The high energy gas may be utilized as a source of energy for the Pyrolysis process.
The amount of gas generated in the system is 12% to15% of the total amount of recycled tyres and
considering the 10 ton scrap tyre/day recycling capacity, the facility generates 1200-1500 m3/day
gas, which has an enormous energy potential when evaluated.
Technical Detail:
This is a batch process system.
The wastage tyres are fed into the reactor vessel and heated under controlled conditions of
temperature and pressure.
The process will bring about molecular restructuring of the rubber under the pyrolysis
process as the result; furnace oil in gaseous form is produced along with other gases.
These vaporized gases are passed through heat exchanges, where in the furnace oil is
condensed into liquid form.
During the process, carbon black and steel are also generated.
The heat exchanger uses coolant water, as a condensing medium and this water is re-
circulated through process.
These systems can be operated 24/365.
Project Planning & Implementation (For the 10 ton/day capacity):
(1) Land Requirement : 1500 sq. meters
(2) Construction Shade : 40Ft * 80 Ft = 3200 Sq.Feet
(3) Water Required : 100 liter per day
(4) Power Requirement :
Without Autofeeder : 20 hp
With Autofeeder : 31 hp
(5) Manpower Planning : Manager-2, Technical-1, Worker-4
Other Arrangements to be made by Client
Storage tank of oil (Available locally), Civil Work, Local Worker & labor
Capital investment:
Price of the Plant : Rs. 60 lakhs
Delivery Terms & Conditions:
Delivery Time : 70-90 days from your order confirmation
Installation Period : 25 days
Particular Investment
Building and land (1500 sq. meter with 600 sq. meter shade), Depending on the area.
This does not include the rate of interest on capital investment
Estimated Operational Cost and Return on Investment:
The analysis is based on the conjecture of 10 tons/day capacity unit operating for 300 days a year;
Raw material waste Tyre: 7 ton per day*300 days = 2100 ton/ year.
Total output:
Carbon black (35%) - 735 Ton (Rs 4,000 per Ton in India)
Furnace oil (40%) - 840 Ton (Rs 28,000 per Ton in India)
Steel (12%) - 252 Ton (Rs 12,000 per Ton in India)
Gas (13%) - 273 Ton (We are not considering its price)
Other Expenses per month
1 Waste tyre Raw Material
8500Kg*24 days*2 Machines *Rs 10 40,80,000
2 Coal/Wood 100Kg * 24 * 2* Rs 5 24,000
3 Water 20,000
4 Telephone 10,000
5 Salaries 9,00,000
6 Insurance Fire & employee 50,000
7 Repairs & Renuals 20,000
8 Electricity Bill -40HP 24 Hrs*24 days*Rs 8*2 1,40,000
9 Transportation 60,000
10 Consumables 10,000
11 Travel & Freight 10,000
12 Postage & Stationary 5,000
13 Land Rent --
14 Other perquistes @ 20% 20,000
15 TOTAL EXPENDITURE (A) 53,29,000
TOTAL INCOME PER MONTH
1 From Furnace Oil ( 42% to 45% ) 3570 Kg*24 days *35 Rs *2 Machines 59,97,600
2 From Steel Scrap ( 15% to 20% ) 1600 Kg* 24 days * Rs 6/Kg * 2 4,60,800
3 From Carbon Black ( 30% to 35%) 2550 Kg* 24 days * Rs 1.5 * 2 1,83,600
4 From Recycled Gas -- --
TOTAL (B) 66,42,000
NET PROFIT = B-A =6642000-5329000 = 13,13,000 per Month
PYROLYSIS PROCESS :
MACHINE ANALYSIS :
TREND REVERSAL
Prices of furnace oil and diesel (Rs/ tonne )
State
Price of
FO
in Dec,
11
Price of
diesel
in Dec, 11
Price of
FO
in Jul,
12
Price of diesel
in Jul, 12
Delhi 55,828 46,725 51,448 46,725
Haryana 49,893 45,569 49,623 45,594
Uttar
Pradesh
53,663 49,359 51,877 49,398
Jharkhand 49,893 49,519 51,244 49,547
Bihar 49,893 49,439 49,970 49,466
Diesel price after adjusting calorific value; FO: Furnace oil
Source: Industry
A typical passenger car tyre contains 24-28 per cent of Carbon black, 40-48 per cent of natural rubber
(NR) and 36-24 per cent of synthetic rubber including Styrene Butadiene Rubbers (SBR) and Butyl
Rubber (BR). These need to be recovered back from tyres lest they are wasted away. Currently, India
produces 90,000 metric tonnes (MT) of reclaimed rubber, which is sold at Rs. 25-30/kg but does not
produce Carbon black, Butyl Rubber and oil from used tyres.
Now the Indian tyre industry (specifically) imported 39,000 tonnes of Carbon black and 54 per cent of
its Butyl Rubber requirements in 2008-09. If we could produce even a small amount of that import
ourselves, we would be saving a huge amount for the exchequer.
The countrys annual furnace oil consumption is 10.87 million tonnes, against diesels 60 mt.
The gap between diesel and furnace oil is different across states, due to taxation. The gap is sharpest in Delhi,
where furnace oil sells at Rs 55,828 per tonne against Rs 49,501 for diesel.
If one adjusts the diesel price for its higher calorific value, its price becomes even cheaper, at Rs 46,725 per
tonne, said an industry official. In Uttar Pradesh, furnace oil sells at Rs 53,663 per tonne while the diesel price
after adjusting for its higher calorific value is Rs 49,359 per tonne.
In a trend reversal, industrial users of furnace oil who were using subsidised diesel last year are turning to
furnace oil to take advantage of a price fall. This will bring down the losses of oil companies on diesel, which
accounts for 60 per cent of the government's oil subsidy.
Furnace oil is largely used as fuel to generate electricity and heat in a number of sectors. Being market-linked,
the price of furnace oil fluctuates unlike diesel.
Last year, it moved up and industrial consumers shifted to diesel improving its consumption. Now, furnace oil has
turned cheaper to diesel in states like Haryana, Uttar Pradesh, Jharkhand and Bihar. Diesel price was last
increased in June 2011.
Currently, industrial users in Delhi get an advantage of Rs 4,723 per tonne on using furnace oil. It is Rs 4,029
per tonne in Haryana, Rs 2,479 in Uttar Pradesh, Rs 1,697 in Jharkhand and Rs 504 in Bihar. The gap between
diesel and furnace oil is different across states, due to taxation. Therefore, in states like Gujarat, Maharashtra,
Tamil Nadu, Andhra Pradesh, Karnataka, etc diesel still offers a price advantage over furnace oil. If the current
trend in global prices continue, furnace oil can become economically viable vis a vis diesel in more states, said
an industry official.
The pricing of diesel, kerosene and domestic LPG is regulated by the government. Due to the huge gap between
the government-set price of kerosene and the market price, large scale diversion takes place and many intended
beneficiaries do not benefit. Oil companies like Indian Oil, Bharat Petroleum and Hindustan Petroleum currently
sell diesel at a loss of Rs 9.18 per litre.
Due to this shift to diesel, annual furnace oil consumption fell 14.9 per cent in 2011-12 to 9.18 million tonnes
(mt) from 10.87 mt in 2010-11. However, diesel consumption grew 7.8 per cent to 64.75 mt. In fact, diesel
accounted for nearly 44 per cent of the domestic petroleum products consumption in 2011-12, pointing to
dieselisation of the Indian economy. In the current financial year, furnace oil consumption dropped 25.5 per
cent in April, but the decline shrunk to just 0.5 per cent in May.
The 13 per cent rise in the price of diesel is expected to trigger a preference for furnace oil in a number of states.
Industrial consumers had been using diesel due to its price advantage but this trend is expected to get slower.
The hardening of crude oil prices, along with a weakening rupee, had made furnace oil costlier in the past couple
of months. And, a number of states levied a surcharge of Rs 1,000 per tonne on it this month.
However, furnace oil consumers still enjoy a price advantage of Rs 7,676 per tonne over diesel in Gujarat, Rs
5,972 per tonne in West Bengal and Rs 5,311 in Tamil Nadu, for example. It is advantageous to use it in a
number of other states, too, such as Madhya Pradesh, Rajasthan, Andhra Pradesh, Kerala or Bihar.
However, diesel is still more economical in six places. In Delhi, it is cheaper than furnace oil by Rs 6,527 per
tonne, by Rs 3,927 in Uttar Pradesh, Rs 3,325 in Haryana and Rs 2,177 in Punjab. It also offers an advantage
over furnace oil in Odisha and Jharkhand.
Furnace oil is largely an industrial fuel. It is a key ingredient in generation of electricity and heat in a number of
production units. Being market-linked, its price has been moving up.
On the other hand, diesel prices went up by Rs 5 per litre on September 13 after a gap of 14 months.
Consequently, industrial consumers had turned to diesel to take advantage of its static price; demand for diesel
grew in double digits for the past several months. The pricing of diesel, along with kerosene and domestic
cooking gas, is regulated by the government.