Feasibility Study

FILIF’S CNG
FEASIBILITY STUDY CORPORATION
TABLE OF CONTENTS
Title Page
Table of Contents
I. Executive Summary
Name of the Project
Location
Head Office
Plant Site
Brief description of the project
II. Introduction/Background of the study

Brief background of the study
Objectives of the study
Operational definition of terms
Scope and limitations of the study
III. Market Study

Demand
Consumption for the past years
Major consumers of the product
Projected demand
Supply
Supply for the past years
Projected supply
Demand and Supply Gap
Proposed Marketing Program
Place or Channel of Distribution
Product
Pricing
Promotional Activities
IV. Technical Study

Product /service
Description of the product
Uses of the product
Manufacturing Process
Description of the process
Alternative process considered
Production schedule
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Machinery and equipment

Plant location
Plant size and lay out
Raw materials and supplies
Waste disposal
Utilities
Direct labour requirements
V. Management Study
Form of business ownership
Capitalization
Organizational structure
Manpower requirements
Compensation
Organizational policies
Legal requirements
VI. Financial Study

Total project costs
Capital Investment
Working Capital and Fixed Capital
Fixed Charges
Plant Overhead Cost
General Expenses
Cash Flow statements
Breakeven point analysis
Return of Investment
Payback Period
Net present value
VII. Socio-economic
Contribution to the Philippine economy
Employment generation
Social desirability
Others
Bibliography
Appendix
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Chapter 1
EXECUTIVE SUMMARY
Name of the Project
Filif CNG Corporation, abbreviated as FCC, is one of the leading manufacturers of high
quality compressed natural gas in the Philippines.
The company logo stands for the company name itself. The acronym CNG stands for
compressed natural gas which is the main product of the company. Rice husk from a rice plant
signifies our commitment to deliver a high quality product that is sustainable and for long term
as well as prioritizing the preservation of the environment. The three pieces of husk on the upper
part of the logo symbolizes the objectives of the company which is to innovate, to advance, and
to prosper while maintaining trust, consistency, and excellence both to its people and clients. The
shade of green represents the environment and the people which symbolizes growth and
harmony. While the shade of blue represents the company which symbolizes depth and stability.
Moreover, the circular shape symbolizes unity, wholeness and infinity.
Location
The place where the principal office of the corporation is to be established at LiMa
Technological Center, Malvar, Batangas
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Head Office
Plant Site
Brief description of the project

FCC partners with community organizations and other related businesses to employ best
technology and professionals to ensure highest standard for product quality that will be
sustainable and for long term. In addition, FCC ensures that compressed natural gas produced is
clean, safe and environment-friendly.
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Chapter 2
INTRODUCTION / BACKGROUND OF THE
STUDY
Brief background of the study
Natural gas is a gaseous mixture of hydrocarbons occurring in the Earth’s crust. It is often
found together with petroleum and coal deposits and as a hydrate on sea bed. Natural gas is also
generated during decomposition of organic matter such as animal dung and in marshy areas.
Composition of natural gas varies from one production facility to another.
In this study, the Filif CNG will use rice husk to convert it to vaporized gas which is
known as compressed natural gas (CNG) by gasification process to overcome the rising demand
for natural gas. Compressed natural gas (CNG) (methane stored at high pressure) is a fuel which
can be used in place of gasoline (petrol), Diesel fuel and propane/LPG. CNG combustion
produces fewer undesirable gases than the fuels mentioned above. It is safer than other fuels in
the event of a spill, because natural gas is lighter than air and disperses quickly when released.
CNG may be found above oil deposits, or may be collected from landfills or wastewater
treatment plants where it is known as biogas.
CNG has a much higher octane value than petrol, making it a superior fuel. Due to
absence of any lead content in CNG, the lead fouling of plugs is eliminated. Being a gaseous
fuel, CNG mixes with air easily even at very low temperatures.

(1) To produce an efficient and high quality compressed natural gas as a potential for ultra-low
emission and eco-friendly fuel source.
(2)To be the solution for reducing high levels of urban pollutions caused by conventional fuels.
(3) To promote substantial availability of natural gas and as an alternative source for deriving
Natural Gas in abundance like Coal and Bio Mass.
Scope and limitations of the study

The Filif CNG will use rice husk to produce compress natural gas. Cavite, for the most
part, is an agriculture province. A report from the Office of the Provincial Agriculturist shows
that as of 2012 its agricultural land is about 50.09 percent or 71,474.91 hectares of the total land
area of the province and the total production of paddy rice from district 1 to 7 is 38,495 metric
ton. The fact that Cavite produces large quantity of rice a year, the availability of raw material
will be stable.
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Chapter 3
MARKET STUDY
Since the 1900s, natural gas has been the reliable industry in providing power to generate
electricity for the needs of communities and industries. This led to the increase of demand. Due
to the rising demand for this power, innovations are made from time to time to cope up with the
needs of everyone.
The primary use of natural gas is as a fuel, it is also a source of hydrocarbons for
petrochemical feed stocks and a major source of elemental sulfur. Natural gas is a popular energy
source and it is expected to grow substantially in the future because it presents many
environmental advantages over petroleum and coal. The usage of natural gas also applies to
different industries such as power generating plants, transportation and industrial sector.
Compressed Natural Gas (CNG) targets the power generating plants for its market since it has
the highest share in natural gas demand in the Philippines.
Present and projected the rise in demand of natural gas led the company to start producing
compressed natural gas. Production will not be possible without a raw material and a plant
design which will employ innovative procedures and technology to give the desirable quality of
the product. The company will be using rice husk as its raw material since Philippines is rich in
agricultural resources
Natural Gas Demand

Consumption of Natural Gas for the Past Years
The table below shows the consumption of natural gas for the past years in million
standard cubic feet (MSCF)
The Natural Gas Demand from 2006-2015 (Department of Energy, 2017)
Year Demand
2006 1064.22
2007 1274.22
2008 1319.9
2009 1344.7
2010 1250.02
2011 1370.66
2012 1301.41
2013 1192.5
2014 1256.11
2015
PALAWAN STATE 1966.5
UNIVERSITY
FILIF’S CNG
Graphical Presentation of Natural Gas Demand from 2006-2015
Natural Gas Demand, 2005-2016

2500
2000
Volume in MSCF
1500
1000
500
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year
Major Consumers of Natural Gas

Usage of natural gas accounts for power generation, transportation, and industrial
applications. According to the Department of Energy (DOE) in 2015, the highest share of natural
gas demand in the Philippines is devoted for power generation which is ninety one percent.
While five percent accounts for transportation, and four percent accounts for industrial
applications in the country.
Major Consumers of Natural Gas in the Philippines (2015)
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Major Consumers of Natural Gas in the Philippines

4%
5%
91%
Power generation Transportation Industrial
Power Generation
The Philippines produced 18,791 GWh of electricity from natural gas in 2013 (Philippine
Power Statistics, 2013). This corresponded to 24.97% of the Philippines’ electrical energy needs
during this period. As of March 2016, there were a total of 13 natural gas generation facilities
connected to the energy grid, 12 of which are in Luzon and one of which is in Cebu on Visayas.
Transportation
Energy demand in the domestic transport sector will grow alongside that in the industry
sector. Transport energy demand will absorb more than one-third of the economy’s total fuel
requirement during the 25-year outlook period. The sector’s total demand will expand to 19
Mtoe by 2035 from the 2010 level of 8.4 Mtoe. Petroleum consumption in the sector is not
expected to respond strongly to oil price increases. It accounts for 67% of the economy’s total oil
requirement by 2035.
Industrial
The demand for natural gas in the industry sector will grow the fastest, at an annual rate
of 4.8% in the next 25 years. Coal consumption, which dominated the industry sector’s energy
demand in 2010, is likely to be displaced by a demand for electricity by 2035. It is estimated that
electricity use will grow at a rate of 3.6% annually over the outlook period.
Projected Demand of Natural Gas
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Four methods will be used in projecting the demand of natural gas. These are the
Arithmetic Straight Line Method, Arithmetic Geometric Curve Method, Statistical Straight Line
Method and Statistical Parabolic Curve Method.
Method 1 – Arithmetic Straight Line

Projected
Demand Year
Year a Yi-1 Yc Y-Yc (Y-Yc)2 Demand
(Y)
2006 1064.22 100.25 2016 2066.72
2007 1274.22 100.25 1064.22 1164.47 109.75 12044.33 2017 2166.98
2008 1319.9 100.25 1164.47 1264.72 55.18 3044.46 2018 2267.23
2009 1344.7 100.25 1264.72 1364.97 -20.27 411.01 2019 2367.48
2010 1250.02 100.25 1364.97 1465.22 -215.20 46312.47 2020 2467.74
2011 1370.66 100.25 1465.22 1565.47 -194.81 37952.23 2021 2567.99
2012 1301.41 100.25 1565.47 1665.72 -364.31 132724.20 2022 2668.24
2013 1192.5 100.25 1665.72 1765.97 -573.47 328871.66 2023 2768.50
2014 1256.11 100.25 1765.97 1866.22 -610.11 372238.28 2024 2868.75
2015 1966.5 100.25 1866.22 1966.47 0.03 0.00 2025 2969.00
Σ 933598.6609
Standard Deviation 305.548
Method 2 – Arithmetic Geometric Curve
Demand %increase Yea Projected

Year Yi+1 1+r Yc Y-Yc (Y-Yc)2
(Y) (decrease) r Demand
2006 1064.22 1107.4 1.08 839.59 224.6 50458.64 2016 2390.84
2
2007 1274.22 19.73 1196.0 1.08 1107.42 166.8 27822.24 2017 2582.10
1
2008 1319.9 3.58 1291.6 1.08 1196.01 123.9 15347.84 2018 2788.67
9
2009 1344.7 1.88 1395.0 1.08 1291.69 53.0 2809.56 2019 3011.77
3
2010 1250.02 -7.04 1506.6 1.08 1395.03 -145.0 21027.98 2020 3252.71
3
2011 1370.66 9.65 1627.1 1.08 1506.63 -136.0 18488.57 2021 3512.92
6
2012 1301.41 -5.05 1757.3 1.08 1627.16 -325.8 106115.21 2022 3793.96
4
2013 1192.5 -8.37 1897.9 1.08 1757.34 -564.8 319040.12 2023 4097.47
2
2014 1256.11 5.33 2049.7 1.08 1897.92 -641.8 411924.28 2024 4425.27
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
6
2015 1966.5 56.55 2213.7 1.08 2049.76 -83.3 6931.75 2025 4779.29
4
Σ 979966.18
r 8.47496738 Standard Deviation 313
6
Method 3 – Statistical Straight Line
Demand
Year X X2 XY a b Yc Y-Yc (Y-Yc)2
(Y)
2006 1064.22 1 1 1064.22 1089.11 44.53 1133.64 -69.42 4819.00
2007 1274.22 2 4 2548.44 1089.11 44.53 1178.17 96.05 9225.79
2008 1319.9 3 9 3959.7 1089.11 44.53 1222.70 97.20 9448.03
2009 1344.7 4 16 5378.8 1089.11 44.53 1267.23 77.47 6001.76
2010 1250.02 5 25 6250.1 1089.11 44.53 1311.76 -61.74 3811.70
2011 1370.66 6 36 8223.96 1089.11 44.53 1356.29 14.37 206.53
2012 1301.41 7 49 9109.87 1089.11 44.53 1400.82 -99.41 9882.15
2013 1192.5 8 64 9540 1089.11 44.53 1445.35 -252.85 63932.62
2014 1256.11 9 81 11304.9 1089.11 44.53 1489.88 -233.77 54647.95
9
2015 1966.5 10 100 19665 1089.11 44.53 1534.41 432.09 186702.63
SUM 13340.24 55 385 77045.0 Σ 348678.16
8
Projected
Year X
Demand
2016 11 1578.94
2017 12 1623.47
2018 13 1668.00
2019 14 1712.53
2020 15 1757.06
2021 16 1801.59
2022 17 1846.12
2023 18 1890.65
2024 19 1935.18
2025 20 1979.71
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Method 4 – Statistical Parabolic Curve
Demand
Year X X2 X4 XY X2Y a b c Yc
(Y)
2006 1064.22 -9 81 6561 -9577.98 86201.82 1261.79 22.27 2.19 1238.71
2007 1274.22 -7 49 2401 -8919.5 62436.78 1261.79 22.27 2.19 1213.19
2008 1319.9 -5 25 625 -6599.5 32997.5 1261.79 22.27 2.19 1205.19
2009 1344.7 -3 9 81 -4034.1 12102.3 1261.79 22.27 2.19 1214.69
2010 1250.02 -1 1 1 -1250.02 1250.02 1261.79 22.27 2.19 1241.71
2011 1370.66 1 1 1 1370.66 1370.66 1261.79 22.27 2.19 1286.24
2012 1301.41 3 9 81 3904.23 11712.69 1261.79 22.27 2.19 1348.28
2013 1192.5 5 25 625 5962.5 29812.5 1261.79 22.27 2.19 1427.84
2014 1256.11 7 49 2401 8792.77 61549.39 1261.79 22.27 2.19 1524.90
2015 1966.5 9 81 6561 17698.5 159286.5 1261.79 22.27 2.19 1639.48
SUM 13340.24 0 330 19338 7347.52 458720.16
Y-Yc (Y-Yc)2 Year X X2 Projected Demand

-174.49 30446.394 2016 11 121 1771.57
61.03 3724.3497 2017 13 169 1921.17
114.71 13158.9 2018 15 225 2088.28
130.01 16901.417 2019 17 289 2272.90
8.31 69.00708 2020 19 361 2475.03
84.42 7126.2383 2021 21 441 2694.68
-46.87 2197.2234 2022 23 529 2931.84
-235.34 55383.857 2023 25 625 3186.51
-268.79 72249.435 2024 27 729 3458.69
327.02 106942.77 2025 29 841 3748.38
Σ 308199.59
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Natural Gas Supply

Supply of Natural Gas for the Past Years in MSCF (Department of Energy of the
Philippines, 2017)
Year Supply
2006 1086.06
2007 1302.11
2008 1370.73
2009 1380.3
2010 1300.08
2011 1403.68
2012 1345.63
2013 1239.44
2014 1303.51
2015 202.33
Projected Supply of Natural Gas

Supply Projected
Year a Yi-1 Yc Y-Yc (Y-Yc)2 Year
(Y) Supply
2006 1086.06 35.46 0 0 0 0 2016 1440.66
2007 1302.11 35.46 1086.06 1121.52 180.59 32612.75 2017 1476.12
2008 1370.73 35.46 1121.52 1156.98 213.75 45689.06 2018 1511.58
2009 1380.3 35.46 1156.98 1192.44 187.86 35291.38 2019 1547.04
2010 1300.08 35.46 1192.44 1227.9 72.18 5209.95 2020 1582.5
2011 1403.68 35.46 1227.9 1263.36 140.32 19689.70 2021 1617.96
2012 1345.63 35.46 1263.36 1298.82 46.81 2191.18 2022 1653.42
2013 1239.44 35.46 1298.82 1334.28 -94.84 8994.63 2023 1688.88
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
2014 1303.51 35.46 1334.28 1369.74 -66.23 4386.41 2024 1724.34

2015 202.33 35.46 1369.74 1405.2 -1202.87 1446896.24 2025 1759.8
Σ 1600961.297
Standard Deviation 400
%increas
Yea Supply Projected
e Yi+1 1+r Yc Y-Yc (Y-Yc)2 Year
r (Y) Supply
(decrease)
2006 1086.06 - 1159.7 1.07 857.6 228.5 52207.68 2016 2281.2
2007 1302.11 19.893 1240.8 1.07 1159.7 142.5 20292.00 2017 2440.9
2008 1370.73 5.27 1327.7 1.07 1240.8 129.9 16872.40 2018 2611.8
2009 1380.3 0.6982 1420.6 1.07 1327.7 52.6 2767.31 2019 2794.6
2010 1300.08 -5.812 1520.1 1.07 1420.6-120.6 14533.11 2020 2990.2
2011 1403.68 7.969 1626.5 1.07 1520.1-116.4 13548.42 2021 3199.5
2012 1345.63 -4.1356 1740.3 1.07 1626.5-280.9 78878.49 2022 3423.5
2013 1239.44 -7.8915 1862.2 1.07 1740.3-500.9 250897.76 2023 3663.2
2014 1303.51 5.1692 1992.5 1.07 1862.2-558.7 312090.43 2024 3919.6
2015 202.33 -84.478 2132.0 1.07 1992.5 - 3204750.82 2025 4193.9
1790.2
Σ 3966838.443
Supply
(Y)
2006 1086.06 1 1 1086.06 1479.39 -52.125 1427.3 -341.2 116420.9
2007 1302.11 2 4 2604.22 1479.39 -52.125 1375.1 -73.0 5333.4
2008 1370.73 3 9 4112.19 1479.39 -52.125 1323.0 47.7 2276.7
2009 1380.3 4 16 5521.2 1479.39 -52.125 1270.9 109.4 11970.5
2010 1300.08 5 25 6500.4 1479.39 -52.125 1218.8 81.3 6612.1
2011 1403.68 6 36 8422.08 1479.39 -52.125 1166.6 237.0 56188.0
2012 1345.63 7 49 9419.41 1479.39 -52.125 1114.5 231.1 53414.1
2013 1239.44 8 64 9915.52 1479.39 -52.125 1062.4 177.1 31346.7
2014 1303.51 9 81 11731.59 1479.39 -52.125 1010.3 293.2 85992.6
2015 202.33 10 100 2023.3 1479.39 -52.125 958.1 -755.8 571248.8
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
SU 11933.87 55 385 61335.97 1479.39 -52.125 940803.82

M
Year x Standard
Projected Deviation
supply 306
2016 11 906.02
2017 12 853.89
2018 13 801.77
2019 14 749.64
2020 15 697.52
2021 16 645.39
2022 17 593.27
2023 18 541.14
2024 19 489.02
2025 20 436.89
Method 4 - Statistical Parabolic Curve
Supply
Year X X2 X4 XY X2Y a b c Yc
(Y)
2006 1086.06 -9 81 6561 -9774.54 87970.86 1464.06 -26.06 -8.20 1034.25
2007 1302.11 -7 49 2401 -9114.77 63803.39 1464.06 -26.06 -8.20 1244.59
2008 1370.73 -5 25 625 -6853.65 34268.25 1464.06 -26.06 -8.20 1389.32
2009 1380.3 -3 9 81 -4140.9 12422.7 1464.06 -26.06 -8.20 1468.42
2010 1300.08 -1 1 1 -1300.08 1300.08 1464.06 -26.06 -8.20 1481.92
2011 1403.68 1 1 1 1403.68 1403.68 1464.06 -26.06 -8.20 1429.79
2012 1345.63 3 9 81 4036.89 12110.67 1464.06 -26.06 -8.20 1312.05
2013 1239.44 5 25 625 6197.2 30986 1464.06 -26.06 -8.20 1128.69
2014 1303.51 7 49 2401 9124.57 63871.99 1464.06 -26.06 -8.20 879.72
2015 202.33 9 81 6561 1820.97 16388.73 1464.06 -26.06 -8.20 565.12
SUM 11933.87 330 19338 -8600.63 324526.35
Projected
Y-Yc (Y-Yc)2 Year X X2
supply
51.81 2684.4 2016 11 121 184.9146
57.52 3308.5 2017 13 169 -260.911
Standard
-18.59 345.5 2018 15 225 -772.354
Deviation
-88.12 7766.0 2019 17 289 -1349.41
Summary
-181.84 33064.6 2020 19 361 -1992.09
-26.11 681.8
Method 2021
Demand 21 Supply
441 -2700.38
33.58 ASLM
1127.6 2022305 23 400 529 -3474.29
110.75 12265.3 2023 25 625 -4313.82
423.79 179601.4 2024 27 729 -5218.96
PALAWAN STATE
-362.79 131619.3
UNIVERSITY 2025 29 841 -6189.72
372464.3
FILIF’S CNG
AGCM 313 630

SSLM 186 306
SPCM 175 193
The SPCM gave the lowest standard deviation however, when plotted in a graph, it
showed a decreasing line. In this case, the Statistical Straight Line Method (SSLM), which has
the second smallest standard deviation, might give a more realistic approximation of the future
demand and supply of natural gas.
Rice Husk Supply Projection

Rice husk biomass waste is very much abundant in the Philippines. In every 100 kg of
paddy rice, 20 kg of husks during milling are obtained. (United Nations Environment
Programme-International Environmental Technology Centre).
Crops (Palay): Volume of Production in the Philippines in ‘000 MT (Selected Statistics on

Agriculture, Philippine Statistics Authority)
Year Production
2006 15,326.1
2007 16,240.2
2008 16,815.5
2009 16,266.4
2010 15,772.3
2011 16,684.1
2012 18,032.4
2013 18,439.4
2014 18,967.8
2015 18,149.8
Graphical Presentation of Crops (Palay): Volume of Production from 2006-2015
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Volume of Production of Palay

20,000.00
18,000.00
16,000.00
14,000.00
12,000.00
'000 mt
10,000.00
8,000.00
6,000.00
4,000.00
2,000.00
0.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
year
Projection of rice husk supply is important to the company to know its accessibility for the
next years. The four statistical methods will also be used in projection.
Production Projected
Year a Yi-1 Yc Y-Yc (Y-Yc)2 Year
(Y) Supply
2006 15,326.10 313.744 - 2016 18463.54
2007 16,240.20 313.744 15326.1 15639.84 600.36 360426.798 2017 18777.29
2008 16,815.50 313.744 15639.84 15953.59 861.91 742890.779 2018 19091.03
2009 16,266.40 313.744 15953.59 16267.33 -0.93 0.871 2019 19404.78
2010 15,772.30 313.744 16267.33 16581.08 -808.78 654121.465 2020 19718.52
2011 16,684.10 313.744 16581.08 16894.82 -210.72 44403.846 2021 20032.27
2012 18,032.40 313.744 16894.82 17208.57 823.83 678701.405 2022 20346.01
2013 18,439.40 313.744 17208.57 17522.31 917.09 841052.087 2023 20659.76
2014 18,967.80 313.744 17522.31 17836.061,131.74 1280845.568 2024 20973.5
2015 18,149.80 313.744 17836.06 18149.8 0.00 0.000 2025 21287.24
Σ 4602442.819
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Year Production %increase Yi+1 1+r Yc Y-Yc (Y-Yc)2 Year Projected

(Y) (decrease) Supply
2006 15,326.10 14603 1.019 14496.8 829.30 687738.5 2016 19201.392
2007 16,240.20 5.964 16209.33 1.019 14603 1,637.20 2680423.8 2017 19566.219
2008 16,815.50 3.542 16517.31 1.019 16209.33 606.17 367442.1 2018 19937.977
2009 16,266.40 -3.265 16831.14 1.019 16517.31 -250.91 62954.5 2019 20316.798
2010 15,772.30 -3.038 17150.93 1.019 16831.14 -1,058.84 1121133.9 2020 20702.818
2011 16,684.10 5.781 17476.8 1.019 17150.93 -466.83 217928.1 2021 21096.171
2012 18,032.40 8.081 17808.85 1.019 17476.8 555.60 308696.6 2022 21496.998
2013 18,439.40 2.257 18147.22 1.019 17808.85 630.55 397587.7 2023 21905.441
2014 18,967.80 2.866 18492.02 1.019 18147.22 820.58 673347.2 2024 22321.645
2015 18,149.80 -4.313 18843.37 1.019 18492.02 -342.22 117114.5 2025 22745.756
Σ 6634366.7
5
r 1.986248628 Standard Deviation 814.52

Production
(Y)
2006 15,326.10 1 1 15326.1 15108.54 356.58 15465.12 -139.02 19326.56
2007 16,240.20 2 4 32480.4 15108.54 356.58 15821.7 418.5 175142.25
2008 16,815.50 3 9 50446.5 15108.54 356.58 16178.28 637.22 406049.33
2009 16,266.40 4 16 65065.6 15108.54 356.58 16534.86 -268.46 72070.772
2010 15,772.30 5 25 78861.5 15108.54 356.58 16891.44 -1119.14 1252474.3
2011 16,684.10 6 36 100104.6 15108.54 356.58 17248.02 -563.92 318005.77
2012 18,032.40 7 49 126226.8 15108.54 356.58 17604.6 427.8 183012.84
2013 18,439.40 8 64 147515.2 15108.54 356.58 17961.18 478.22 228694.37
2014 18,967.80 9 81 170710.2 15108.54 356.58 18317.76 650.04 422552
2015 18,149.80 10 100 181498 15108.54 356.58 18674.34 -524.54 275142.21
SUM 170,694.00 55 385 968234.9 3352470.4
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Projected
Year X
supply
2016 11 19030.92
2017 12 19387.5
2018 13 19744.08
2019 14 20100.66
2020 15 20457.24
2021 16 20813.82
2022 17 21170.4
2023 18 21526.98
2024 19 21883.56
2025 20 22240.14
Method 4 – Statistical Parabolic Curve

Production
Year X X2 X4 XY X2Y A b c Yc
(Y)
2006 15,326.10 -9 81 6561 -137935 1241414. 16966.45 178.29 3.12 15614.56
1
2007 16,240.20 -7 49 2401 -113681 795769.8 16966.45 178.29 3.12 15871.3
2008 16,815.50 -5 25 625 -84077.5 420387.5 16966.45 178.29 3.12 16153
2009 16,266.40 -3 9 81 -48799.2 146397.6 16966.45 178.29 3.12 16459.66
2010 15,772.30 -1 1 1 -15772.3 15772.3 16966.45 178.29 3.12 16791.28
2011 16,684.10 1 1 1 16684.1 16684.1 16966.45 178.29 3.12 17147.86
2012 18,032.40 3 9 81 54097.2 162291.6 16966.45 178.29 3.12 17529.4
2013 18,439.40 5 25 625 92197 460985 16966.45 178.29 3.12 17935.9
2014 18,967.80 7 49 2401 132774.6 929422.2 16966.45 178.29 3.12 18367.36
2015 18,149.80 9 81 6561 163348.2 1470133. 16966.45 178.29 3.12 18823.78
8
SUM 170,694.00 0 33 1933 58835.8 5659258
0 8
Projecte
Y-Yc (Y-Yc)2 Year X X2
d supply
-288.46 83209.17 2016 11 121 19305.16
2
368.9 136087.2 2017 13 169 19811.5
1
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
662.5 438906.2 2018 15 225 20342.8

5
-193.26 37349.42 2019 17 289 20899.06
8
-1018.98 1038320. 2020 19 361 21480.28
2
-463.76 215073.3 2021 21 441 22086.46
4
503 253009 2022 23 529 22717.6
503.5 253512.2 2023 25 625 23373.7
5
600.44 360528.1 2024 27 729 24054.76
9
-673.98 454249.0 2025 29 841 24760.78
4
3270244.
1
Standard Deviation Summary – Rice Husk Supply Projection

Method Standard Deviation
ASLM 678
AGCM 814
SSLM 579
SPCM 571
The projected supply of rice husk from the four methods are found to be increasing. Among
these methods, Statistical Parabolic Curve method gives a more reliable projection because it has
the lowest standard deviation.
Demand and supply analysis, demand/ supply gap

From the statistical projection made, the demand and supply gap of natural gas is presented
graphically below.
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Natural Gas Supply and Demand Gap

2500
2000
1500
1000
500
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Projected Supply Projected Demand
A table showing the gap between the projected demand and supply of natural gas.
Projected Projected
Year Gap
Supply Demand
2016 906.02 1578.94 672.92
2017 853.89 1623.47 769.58
2018 801.77 1668 866.23
2019 749.64 1712.53 962.89
2020 697.52 1757.06 1059.54
2021 645.39 1801.59 1156.2
2022 593.27 1846.12 1252.85
2023 541.14 1890.65 1349.51
2024 489.02 1935.18 1446.16
2025 436.89 1979.71 1542.82
Proposed Marketing Program
Place or Channel of Distribution
The three operational natural gas power plants in Luzon are Ilijan Power Plant, Sta. Rita
Power Plant, and San Lorenzo Power Plant, all located in Batangas are the target market of the
company. The product will be distributed mainly by pipelines. Pipelines will be constructed to
meet safety and environmental standards established by regulatory agencies and industry
associations.
Channel of Distribution of the Product
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Natural Gas Power

CNG Producer Plants
Pipeline Construction
Company
Pricing
Compressed Natural Gas is one of the most viable alternative fuel options today. CNG is
considered a better alternative to diesel and gasoline because it is the cleanest alternative fuel
(therefore, less pollution and vehicle maintenance and has higher hear content. Natural gas is
significantly less expensive than gasoline.
The growth and success of the company will depend primarily on the quality of the
product. Strict compliance with its quality will determine if it meets the requirement of customer.
Thus, continuous research and innovation is the key to a sustainable development of the
company, to the industry and to the community.
The price of an item is clearly an important factor of the value of sales made. The selling
price of the company’s natural gas is cheaper than the fossil-based natural gas sold to the natural
gas power plants in the Philippines. Researching consumers' opinions about pricing is important
as it indicates how they value what they are looking for as well as what they want to pay. An
organization’s pricing policy will vary according to time and circumstances. The share of natural
gas in the total primary energy supply is expected to rise significantly in future, considering the
country's obligation to limit the risk of climate change.
Determining the selling price of the product is based on the total product cost which
includes the manufacturing cost and general cost involved in producing the product, and is often
affected by the supply and demand of the product. For the last ten years, selling price of
compressed natural gas is slowly increasing.
Historical Market Price of Compressed Natural Gas (National Statistics Office, 2013)
Year PhP/MW
2005 290.34
2006 290.99
2007 291.64
2008 292.28
2009 293.58
2010 568.87
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
2011 590.91
2012 395.71
2013 538.88
Graphical Presentation of Historical Market Price of Compressed Natural Gas
Historical Market Price of Natural Gas

700
600
500
PhP/MW
400
300
200
100
0
2005 2006 2007 2008 2009 2010 2011 2012 2013
Year
Promotional Activities
The company aims to work mutually with governments, local communities, customers and
employees. Compressed natural gas derived from rice husk is a gateway to a better alternative
source of fuel since it is abundant and widely available. If successfully coordinated with these
organizations (e.g. DOE, DOLE, PNGI, etc.), promotion of the product will succeed
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Chapter 4
TECHNICAL STUDY
Product /service
Compressed natural gas is a methane-rich gas stored at high pressure of about 30 bars
which remains clear, odourless, and non-corrosive.
Natural gas consists of about 70-80% methane. Other compounds comprising the natural
gas are nitrogen, hydrogen, and non-energy carbon dioxide. Tert-butyl mercaptan is employed to
the gas so that when leak is present it can be easily detected. This odorant is chemically stable,
does not react with gas components, piping material, rust, etc., and does not have a corrosive
effect on gas equipment.
Natural gas is extremely flammable. Fire and explosion could occur if heated under
confinement, ignited with air, or exposed to sparks or flame. Adequate ventilation must be
ensured to maintain below exposure limits and explosive limits. Oxygen level must also be
maintained 19.5% and above. Below 19.5% oxygen is considered to be oxygen deficient.
Exposure to natural gas especially at high concentrations can displace oxygen causing
asphyxiation, central nervous system depression, and cardiac sensitization. It is important that all
involved must understand the hazard of this product may cause. It is required to strictly
implement standard operating procedures and conduct inspection regularly.
Uses of the product

It is more efficient than other sources of power like coal and crude oil, and is considered
as the cleanest burning fuel. For the same amount of heat produced, natural gas emits less carbon
dioxide than burning oil or coal, thus, improving the quality of air.
Manufacturing Process
The production of compressed natural gas is dependent on what type of process is
suitable in meeting the specifications of the product. In selecting, it must be an established
process to assess the capacity of the plant including layout and to design the work system. With
this, initial feasibility and market evaluation can be done.
Gasification Process
The rice husk has high moisture content and must be reduced by drying as well as its size
using a pulverizer to meet the right condition before gasification process takes place. The gasifier
has three zones (mechanism) and these are combustion, reaction and pyrolysis that occur in
different range of temperature. When the product gas comes out, it has a trace of char (mostly fly
ash) and tar (gaseous phase), and it is being removed by cyclone and hot gas filter. After this
stage, further cleaning happens by reducing the emission of CO2 in the scrubber or adsorption
tower and also further cooling and increasing its pressure before going to the reactor so as to
come up with the desired product. Separation of vapor from the liquid phase will be the final
step.
Biomass gasification is an incomplete combustion of biomass that results in the

production of combustible gases consisting of carbon monoxide (CO), hydrogen (H2), and
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
methane (CH4). This mixture is called producer gas. Producer gas can be used to run internal
combustion engines (both compression and spark ignition) for power generation, substitute
furnace oil in direct heat applications, and serve as chemical feedstock to produce methanol in an
economically viable way. Since any biomass material can undergo gasification, this process is
much more attractive than ethanol production or biogas where only selected biomass materials
can be produced.
Description of the process
Drying and Size Reduction
Biomass gasification is an incomplete combustion of biomass that results in the

production of combustible gases consisting of Carbon monoxide (CO), Hydrogen (H 2) and traces
of Methane (CH4). This mixture is called producer gas. Producer gas can be used to run internal
combustion engines (both compression and spark ignition), can be used as substitute for furnace
oil in direct heat applications and can be used to produce, in an economically viable way,
methanol – an extremely attractive chemical which is useful both as fuel for heat engines as well
as chemical feedstock for industries. Since any biomass material can undergo gasification, this
process is much more attractive than ethanol production or biogas where only selected biomass
materials can be produce.
In the production of compressed natural gas the rice husk is first fed into the pneumatic or
flash dryer, the rice husk is dispersed into an upward-flowing stream of hot air by a suitable
feeder. The equipment serves as a pneumatic conveyor and dryer. It lessens the moisture content
of the rice husks from 15.30 wt% to 8.00 wt%.
After leaving the drier, the rice husks at 200 oC with an analysis of 35.00 wt% C, 29.73 wt
% O, 4.00 wt% H, 23.00 wt% ash, 0.23 wt% N, 0.04 wt% S, and 8.00 wt% moisture content will
then go to the Rotary Knife Cutter. In this equipment, the rice husks will undergo size reduction
through five rotating blades cutting against four stationary blades. The particle size will be
reduced from 1mm to 0.8 mm before entering the gasifier.
Biomass Gasification
The gasification process takes place in a circulating fluidized bed gasifier, the reaction
time takes about 30 seconds at 850 oC temperature. The high temperatures ensure a high
conversion of the hydrocarbon compounds resulting from pyrolysis of the fuel. The reactivity of
the fuel regarding the heterogeneous gas-solid reaction is of secondary importance because the
boundary layer determines the speed of the entire process. The ash melts and accumulates after
adequate cooling as slag.
Mechanism of gasification:
Pyrolysis
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
A series of complex physical and chemical processes occur during the devolatilization or
pyrolysis processes, which start slowly at less than 350°C, accelerating to an almost
instantaneous rate above 700°C. The composition of the evolved products is a function of the
temperature, pressure, and gas composition during devolatilization. (Basu, 2006).
The pyrolysis reaction is Biomass + Heat → Char + Gases + Vapor or Liquid
Pyrolysis generally produces the following three products:

1. Light gases such as H2, CO, CO2, H2O, CH4;
2. Tar, a black, viscous and corrosive liquid composed of heavy organic and inorganic
molecules; and,
3. Char, a solid residue mainly containing carbon.
The vaporized liquid product contains tar and polyaromatic hydrocarbons (PAH,).
Combustion
The combustible substance of a solid fuel is usually composed of elements carbon,

hydrogen, and oxygen. The oxidation or combustion of fuel is one of the most important
chemical reactions taking place inside a gasifier, providing practically all the thermal energy
needed for the endothermic reactions. Oxygen, often in combination with steam, supplied to the
gasifier reacts with the combustible substances present, resulting in the formation of CO 2 and and
H2O. The combustion reaction is exothermic and yields a theoretical oxidation temperature of
850°C. The main reactions are:
C + O2 → CO2
H2 + ½O2 → 2 H2O
Gasification
Gasification involves a series of endothermic reactions supported by the heat produced
from the combustion reaction. The following are four major gasification reactions taking place at
850°C:
1. Water–gas reaction C + H2O → CO + H2
2. Boudouard reaction CO2 + C → 2CO
3. Shift conversion CO + H2O → CO2 + H2
4. Methanation C + 2 H2 → CH4
Gas Cleaning and Upgrading
After the gasification, the producer gas with some impurities leaves the gasifier at 850 oC
and 20 bar, and enters the cyclone separator. Here, the gas-solid mixture is fed tangentially or
axially into a cylindrical receptacle with usually a conical underpart. The swirl is produced either
through the tangential entry of the gas or through guide vanes attached to the circumference of
the cyclone housing. Through the rotary stream forming in the separation chamber centrifugal
forces act upon the solid particles and centrifuge them outwards. The solid material slides down
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
the wall of the cyclone separator into a collecting vessel. The gas then enters the hot gas filter.
Hot gas filtration takes place at 850°C. The percent ash, char, and tar from the gasifier, cyclone,
and hot gas filter will be collected for proper disposal.
From the hot gas filter, the gas passes through a cooler before entering the packed bed
scrubber. The gas is then cooled from 850°C to 210°C. In the scrubber, the gas is contacted with
water ammonia to absorb carbon dioxide and some impurities in the gas. The gas will then pass
through a heat exchanger to preheat the gas before entering the methanation reactor. The
preheater medium used to heat the gas will be the product gas from the methanation reaction. In
methanation, the carbon monoxide and hydrogen gas will be converted into methane by the use
of nickel catalyst.
Due to the high exothermic character of the methanation reactions, the temperature will
increase significantly in adiabatic system. Resultantly, the thermodynamic equilibrium is readily
reached but with only limited conversion. To achieve high conversion, the temperature must be
decreased. The reaction heat has to be removed. In the reactor, the methanation will take place
until thermodynamic equilibrium is reached.
CO + 3H2 ↔ CH4 + H2O

CO + H2O ↔ H2 + CO2
From the reaction, the gas with traces of water vapor will be cooled from 96°C to 40°C
and will go through a flash tank to remove the traces of water vapor and leave only the gas with
high percent methane. The gas will be changed in the storage tank with a maintaining pressure of
30 bar. The water amine with carbon dioxide and impurities from the scrubber and the water
removed from the flash tank will be treated for proper wastewater disposal.
Machinery and equipment

1. Rice Husk Storage
2. Dryer
3. Crusher or Pulverizer
4. Air Preheater
5. Gasifier
6. Cyclone
7. Hot Gas Filter
8. Cooler
9. Scrubber
10. Air Compressor
11. Reactor
12. Heater (Heating/Cooling Heat Exchanger)
13. Cooler (Heating/ Cooling Heat Exchanger)
14. Cooler
15. Flash Tank
16. Water Tank
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
17. Ammonia Hydroxide Tank

18. Product Storage Tank
19. Wastewater Tank
Process Flow Diagram
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Plant location
Plant Location Selection
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Filif CNG Corporation will produce compressed natural gas from rice husk by
gasification process to overcome the rising demand for natural gas.
The following factors are assessed and ranked to select the suitable plant location for the
production of compressed natural gas:
1. Raw Material Availability

In selecting a plant location, several factors for the raw materials availability should be
considered. This includes raw materials accessibility to lessen the transportation cost, the
reliability of supply and the storage requirements upon transporting.
2. Accessibility to the Target Market
An important consideration in selection of plant site location is the nearness to the major market
in which the clients find it profitable. A location should be chosen which has a number of
competing railroads in order that the competition will help to maintain low rates and give better
service. The hassle-free distribution of the product contributes to the effectiveness of the
operation.
3. Special Business Incentives
The special business incentives establish a good deal to the manufacturer and the consumers.
Giving incentives attracts investors. Therefore, it enlarges the profit of the business.
4. Climatic Condition
The climate affects the production of the plant and supply of the raw materials that can cause
delay to the operation and transportation of raw materials and products. Also, excessive cold and
humidity lessen the productivity on the part of workmen.
5. Utilities Cost and Availability
The production and operation of the plant is dependent to the supply and cost of electricity which
is important consideration in selecting plant location. Electric power must be readily available
and alternative sources must be considered in cases of power interruptions or other emergencies.
The plant uses water for its operations. The plant site location must have a sufficient supply of
water for all industrial, sanitary, and fire demands, both present and future. Alternative sources
of water must be considered in cases of water shortage.
LOCATION: LiMA Technology Center (LTC), Malvar, Batangas
Plant Location Background

Batangas is a first class province of the Philippines located on the south western part of
Luzon in the CALABARZON region. Its capital is Batangas City and it is bordered by the
provinces of Cavite and Laguna to the north and Quezon to the east. Across the Verde Island
Passages to the south is the island of Mindoro and to the west lies the South China Sea.
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Malvar is a second-class municipality located in the northeastern part of the province of

Batangas with 45,952 people as of 2010. Regarding development Malvar is classified as partly
urban. Malvar occupies an area of 33.00 km². It is located 68 kilometers south of Manila. The
town is bounded by Tanauan City to the north, Santo Tomas to the east, Lipa City to the south,
and Balete to the west.
LiMA Technology Center (LTC), a 485-heactare industrial park, is one of the largest
expanded multinationals located in the province of Batangas. Batangas is at the heart of the
booming group of provinces of the Southern Tagalog. The company has a notable track record
and widespread strategic resources in real estate development. LTC is expected to become the
primary business zone in CALABARZON.
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Raw Material Availability

Agriculture is the main economic activity in Batangas. Crops such as palay, sugarcane,
coconut, and coffee are the major products produced by the province. According to the data
given by the Agriculture and Agrarian Reform the total production of paddy rice is 43,206 metric
ton in 2012. The availability of raw material will be stable since the quantity of paddy rice
produced is of large amount.
Accessibility to the Target Market

Batangas City is 37.7 km away from Malvar, Batangas
Special Business Incentives

LiMA is a proclaimed Special Economic Zone by PEZA, and can enjoy the advantage of
a certain tax and non-tax incentives. The incentives are provided for export enterprises; domestic
market, facilities, utilities and tourism enterprises; and ecozone developer /operator enterprises.
Registered Export or Free Trade Enterprises operating in ECOZONES or Special
Economic Zones shall enjoy the following incentives:
• Income Tax Holiday (ITH) for 4 years to a maximum of 8 years
• After the lapse of ITH, exemption from national and local taxes, in lieu thereof, special 5% tax
rate on Gross Income
• Exemption from duties and taxes on imported capital equipment, spare parts, materials and
supplies
• Tax credit on domestic capital equipment
• Tax and duty free importation of breeding stocks and genetic materials
• Additional deduction for training expenses such as labor and management
• Additional deduction for labor expense (50% of wages corresponding to increment in number
of direct labor subject to certain conditions)
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Climatic Condition
Batangas has a natural calm climate. From November to April is the dry season and rainy
of the year making it more favorable to agriculture and industries. The driest month with an
average temperature of 82 degrees Fahrenheit is March while February is the coldest month with
an average temperature of 69 degrees Fahrenheit. May is the hottest month with a temperature
averaging to 96.1 degrees Fahrenheit.
Utilities Cost and Availability

The provider of the power supply in the industrial park is the LiMA Utilities Corporation
(LUC). The LiMA Water Corporation, is an in-house water utility station that provides industrial
and potable water with a daily capacity of 8,700 cubic meters and a full capacity of 40,000 cubic
meters. The corporation ensures a 24-hour accessibility and right amount of water supply.
The power rate charge is PhP 9.86 per kWh and the water rate charge for the first 10
cubic meters is PhP 210.00.
Waste Treatment Facilities

The Waste Water plant in LiMa is the LiMA Water Corporation where it actively
operates to ensure the proper treatment of waste coming from the different manufacturing plants
inside. It has a concept of oxidation-type that can process 22,000 cubic meters of industrial
wastes per day.
Labor Cost
Batangas has a total population of 1,905,348 as of 2010. 61.9% of which belong to the
age group 18 years old and above. This gives a maximum of 1471607.505 labor force available
from province of Batangas alone. Neighboring provinces including Cavite and Laguna can
contribute to the number of labor available.
Minimum Wage: PhP 316.50-335.50 (www.bles.dole.gov.ph)
Construction Cost
The leasing cost of an industrial land per month is ranging from P3,000.00 – 4,500.00
pesos per square meter.
LTC is an emerging industrial plant location and is a promising place for business. The
location itself has raw materials available and a potential market to the manufactured goods
which are the most important factors to be considered. LTC is the most ideal site that combines
smart economics, a synergy of strength and offers excellent special business incentives and
utility services.
Plant size and lay out
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Raw materials and supplies
1. Rice Husk
Rice husk is the hard protecting coverings of grains of rice. It can be burned and used to
power steam engines. Some rice mills originally disposed of husks in this way. Unfortunately the
direct combustion of rice husks produces large quantities of smoke. An alternative is
gasification. Rice husks are easily gasified using gasifier. The combustion of this rice husk gas
produces a blue flame, and rice husk char makes a good soil amendment.
2. Mercaptan
Tert-butyl mercaptan (TBM) is a highly odorous material, with an odour threshold of
<1.0 ppb. It has high oxidation resistance (highest among mercaptans) which make TBM the
most used component of gas odorants. The main disadvantage is its high freezing point which
disables using TBM as a stand-alone odorant and thus TBM has to be blended with other types
of odorant.
Methylethyl sulfide (MES) has a good oxidation stability in pipelines and a vapor
pressure similar with TBM and thus blends of TBM/MES are suitable for both vaporization and
injection type odorizers. The TBM/MES blend has a trade name of Spotleak 1001.
3. Ammonium Hydroxide (Aqua Ammonia)

Ammonium Hydroxide, or aqua ammonia, clear, colorless liquid having a strong pungent
ammonia odor. It is a solution of ammonia in water. Aqueous ammonia can be used to capture
CO2 with quick reaction rate and high removal efficiency. The aqua ammonia process has high
loading capacity of CO2, does not pose a corrosion problem, no absorbent degradation problem,
thus reducing absorbent makeup rate, and the energy requirement for absorbent regeneration is
predicted to be much lower than in the MEA process.
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Chapter 5
MANAGEMENT STUDY
Form of business ownership
The type of business is corporation. The corporation shall have all the express powers of
a corporation as provided for under Section 36 of the Corporation Code of the Philippines. The
term of which the corporation is to exist is fifty (50) years and renewable from and after the date
of issuance of the certificate of incorporation. The Corporation shall comply with the rules and
regulations of the Securities and Exchange Commission (SEC) for non-stock corporations for the
duration of the operation.
The number of trustees of said corporation shall be not less than five (5) and not more
than ten (10) and that the incorporators shall constitute the first board of directors. The
corporation manifests its willingness to alter its corporate name in the event that another person,
entity or firm has acquired a prior right to use the said firm name or confusingly similar to it.
Vision and Mission
Vision
Filif CNG Corporation for envisions itself:
 As a leading manufacturer of highest quality of compressed natural gas;
 As a company that consistently develops and innovates to promote green environment
and prosperity among its people; and
 As a company that motivates people to perform with utmost commitment to advance their
professional and personal lives.
Mission
Filif CNG Corporation is committed:
 To produce and provide high quality compressed natural gas that is clean, safe and
environment-friendly at a cost-effective system;
 To develop a culture of excellence among people through empowerment and
advancement towards achieving world-class standards; and
 To intensify its commitment towards quality researches that would develop better
products using bio-ecologically safe resources.
Capitalization
The authorized capital stock of the corporation is pesos: SIX HUNDRED SIXTY
MILLION PESOS (PhP 660,000,000.00) in lawful money of the Philippines.
Ana Valerie S. Tan Filipino 110,000,000.00

Harold S. Bautista Filipino 110,000,000.00
Andrea L. Benedicto Filipino 110,000,000.00
Kaye Rose C. Filipino 110,000,000.00
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Nicolas
Jainie Lynne B. Filipino 110,000,000.00
Rivera
Richydelle Jon E. Filipino 110,000,000.00
Santos
Total PhP 660,000,000.00
No transfer of stock or interest which would reduce the stock ownership of Filipino
citizens to less than the required percentage of the capital stock as provided by existing laws
shall be allowed or permitted to be recorded in the proper books of corporation and this
restriction shall be indicated in the stocks certificates issued by the corporation. Furthermore, no
transfer of stock in favor of parties other than existing stockholders shall be registered in the
books of the corporation unless the same is first tendered to the corporation or other existing
stockholders under the same terms and conditions, the same offer to be effective for a period not
exceeding thirty (30) days from such tender.
Organizational policies
BYLAWS OF
Filif CNG Corporation
ARTICLE I
SUBSCRIPTION, ISSUANCE AND TRANSFER OF SHARES
Section 1. Subscription. The price of the subscription value of the organization

shall be paid by the stockholders in accordance with the terms and
conditions set by the Board of Directors. Unpaid subscriptions shall not
earn interest unless determined by the Board of Directors.
Section 2. Certificate of Stock. Stockholders shall be given certificate as a proof
of fully paid stock subscription. The certificate of stock shall be signed
by the President or the Vice-President, countersigned by the Secretary
or Assistant Secretary, and sealed with the corporate seal. This shall be
issued to a subscriber only after full payment of his subscription,
including interest on unpaid subscriptions and other expenses, if any.
Section 3. Transfer of Shares. Shares of stocks may be transferred, sold or
pledged by delivery of the certificates duly endorsed by the
stockholder, his attorney-in-law, or other legally authorized person. No
transfer shall be valid until it has been recorded in the books of the
organization, so as to show the names of the parties to the transaction,
the date of the transfer, the number of certificate, and the number of
shares transferred; provided, that when the bank holds any unpaid
claim on shares of stock, transfer of said shares shall not be recorded in
the corporate books.
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Section 4. Lost or destroyed certificates. A new stock certificate may be issued in

lieu of the original certificate which serves as a proof of their fully paid
stock subscription. This section is governed by Section 73 of the
Corporation Code.
ARTICLE II
MEETINGS OF STOCKHOLDERS
Section 1. Annual Meetings. The annual meeting of the stockholders shall be held
at the principal office of the organization or at any place located within
the vicinity of the company. This will be held every last Friday of
January. Should that day falls on a holiday, then the meeting will be
held the following working day.
Section 2. Special Meetings. The Board of Directors may conduct special
meetings any time deemed necessary by the President provided that a
five days written notice will be sent to all the members of the Board.
Section 3. Notice of Meeting. Before conducting regular or special meetings, a
notice, two (2) weeks before, shall be sent by the secretary through
delivery or by mail. The notice shall include the following: place of
meeting, date and time, and the purpose for which the meeting is
called.
In case of an adjourned meeting, no necessary notice shall be given to
the stockholders. Information shall be announced at the meeting proper
at which the adjournment was taken.
Section 4. Quorum. In all regular or special meeting of stockholders, a majority of
the outstanding capital stock must be present or represented in order to
constitute a quorum. If no quorum is constituted, the meeting shall be
adjourned until the requisite amount of stock shall be present.
Section 5. Conduct of Meeting. The president shall preside the stockholders
meeting, or in case of his absence, by the Board of Directors and the
Credit Committee. In all meetings being conducted, the corporate
secretary shall act as secretary.
Section 6. Manner of Voting. A vote may be casted by the stockholder in person
or a proxy may represent him. Proxies shall have a written proof signed
by the stockholder and filed before the scheduled meeting with the
corporate secretary. Unless written notice is provided, proxies filed
with the Secretary may be revoked by the stockholders
Section 7. Waiver of Notice. Notice of any meeting may be waived by any stock
holder.
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
ARTICLE III
BOARD OF DIRECTORS
Section 1. Election and Term. The directors shall be elected by the stockholders
during annual meeting and is entitled to hold one (1) office for a year;
and until their successors are elected and whose qualification shall be
subject to the pertinent rules.
Section 2. Notice. In case of regular or special meetings of the board, the
secretary shall inform the stockholders by giving notice through text,
fax, telegram or it can be done personally.
Section 3. Vacancies. In case of vacancy occurring in the elected directors, voting
may be conducted by the remaining board of directors. The director
filling the vacancy shall be elected only for the unexpired term of his
predecessor in office.
Section 4. Meetings. The board of directors shall held regular meetings once a
month on such date, time and place as decided by the majority of the
directors.
Section 5. Quorum. Majority of the directors shall organize a quorum for the
transaction and the decisions made by the majority of board present
during the quorum is considered valid except for the election of
officers which requires the vote of all the majority of board members.
Section 6. Compensation. No compensation shall be given to any directors for
their services, provided that such compensation maybe granted by the
directors through the vote of stockholders representing at least a
majority of the outstanding capital stock every annual or special
stockholders meeting.
ARTICLE IV
OFFICERS
Section 1. Officers of the Corporation. The executive officers of the corporation

shall be (1) Chief Executive Officer, and (2) Executive Secretary. The
officers shall be elected by the majority vote of all the members of the
Board.
Section 2. Election and Term. Election for the officers of the organization shall be
conducted annually by the Board of Directors during the regular
stockholders meeting; and each officer will be given an office for one
year or until his successor shall have been elected and qualified. In
case of vacancy in any office because of death, resignation, removal,
and disqualification, other board members may fill the position as
decided by the majority of stockholders.
Section 3. Chief Executive Officer. The CEO acts as a direct liaison between the
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
board and management of the company; and communicates to the

board on behalf of management, shareholders, employees, government
authorities, other stakeholders and the public. He/she also implements
the objectives laid down by the board.
Section 4. Chairman of the Board of Directors. The Chairman is responsible for
leadership of the Board; manage and supervise all aspects of the
company as a whole. His task is to develop and manage relationships
and communicate with the funders, partners, and other stakeholders
and to review corporate financial statements and receive confirmation
from the chief financial officer.
Section 5. Secretary. The Secretary shall: (a) keep the minutes of the meetings of
the Board of Directors and of all Executive Committees in one or more
books provided for that purpose; (b) see that all notices are duly given
in accordance with the provisions of these bylaws or as required by
law; (c) be custodian of the corporate records and of the seal of the
corporation and see that the seal of the corporation is affixed to all
documents of which on behalf of the corporation under its seal is duly
authorized; and (d) in general, perform all duties incident to the office
of Secretary and such other duties as from time to time may be
assigned to him by the President or by the Board of Directors.
ARTICLE V
CONTRACTS, LOANS, CHECKS, DEPOSITS AND GIFTS
Section 1. Contracts. Any officer or agent may be authorized by the Board of

Directors to enter into any contract in the name of and on behalf of the
organization, and such authority may be general or confined to specific
instances.
Section 2. Loans. Unless authorized by a resolution of the Board of Directors, no
loans shall be contracted on behalf of the organization and no
necessary obligation shall be issued in its name. Such authority may be
general or confined to specific instances.
Section 3. Checks and Drafts. Upon issuing any checks, drafts, or other orders for
the payment of money, issued in the name of the corporation, an
officer or agent shall sign from time to be determined by resolution of
the Board of Directors. In the absence of such resolution, such
instruments shall be signed by the Chief Executive Officer and
countersigned by the chairman of the board of directors of the
corporation.
Section 4. Deposits. Depositories chosen by the board of directors will receive
from time to time the necessary funds for the benefit of the
organization.
Section 5. Gifts. Settlement or devise for the general or special purposes of the
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
organization may be accepted by the board of directors, on behalf of

the organization.
ARTICLE VI
GENERAL PROVISIONS
Section 1. Seal.
Section 2. Fiscal Year. The fiscal year of the corporation shall be fixed by the
Board of Directors.
Section 3. Amendments. The bylaws may be revised or revoked; and new law
may be accepted by the favorable vote of two thirds of the directors
present at any regular or special meeting of the Board of Directors at
which a quorum is being conducted, provided that at least a week
notice is provided.
Section 4. Distribution upon Dissolution.
Section 5. Books and Records. Correct and complete books and records shall be
provided by the organization and shall keep the minutes of the
proceedings of the board of directors and committees in these.
Inspection shall be done to the books, records and papers of the
corporation, during reasonable business hours. The articles of
incorporation and the bylaws of the corporation shall be available for
inspection by any member at the principal office of the corporation.
ARTICLE VII
AMENDMENTS
Section 1. By the affirmative vote of a majority of the elective stock, the bylaws
issued may be altered or repealed during regular or special meeting of
the shareholders.
Section 2. In line with Article VII Section 1, the board of directors shall have the
power to make, amend and repeal the bylaws of the organization.
However such alteration may be changed or repealed by the holders of
a majority of the stock entitled to vote at any shareholders meeting.
Section 3. Emergency Bylaws: Bylaws maybe adopted by the board of directors.
And is subjected to repealing or changing by the action of the
shareholders, which shall be operative during any emergency in the
conduct of business.
Organizational structure
Operating period
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Filif CNG Corporation has five major department: the Human Resources Department,
Finance Department, Sales and Marketing Department, Operations Department, and Research
and Development Department. These departments are under the office of the Chief Executive
Officer who oversees all the activities within the company in behalf of the Board of Directors. In
this period, the company will now produce compressed natural gas from rice husk, accept orders,
and deliver it to clients.
The company will be operating 350 days a year, 7 days a week and 24 hours a day for
three shifts. There will be a company shutdown twice a year for equipment maintenance and
repair. The normal working hour of an employee shall not exceed eight hours a day with meal
break for five days a week.
Administration and office employees shall have working days from Mondays to Fridays.
Work shall start from eight o’clock in the morning until five o’clock in the afternoon. Two paid
non-consecutive fifteen-minute break periods and an unpaid one-hour lunch period will be
provided for each employee. Production workers and other service personnel shall have six
working days with shifts schedules: first shift is from 6:00 am to 3:00 pm; second shift is from
12:00 pm to 9:00 pm and the third shift is from 7:00 pm to 5:00 am. One unpaid 45-minute break
period will be provided for each production worker and other service personnel, and the
schedules of which will vary according to daily need and efficiency goal. Shifting rotation may
vary every month to be scheduled by their respective supervisors. Employees in the Engineering
Department and Maintenance Office shall work hand in hand to ensure that the plant shutdown
will not affect the overall plant productivity and efficiency. Hence, schedule rotation for
employees within these departments shall be strategically designed in such a way that the plant
shall still be in full operation 7 days a week. Figure 1.9 shows the organizational chart of the
operating period.
The Executive Department
Chairman
Board of
Director
CEO/President
Legal Counsel Secretary
The Chairman of the Board

The Chairman of the Board guides and directs the governance process, centering the
work of the board on the organization’s mission, vision and strategic direction. He presides over
Board and Executive Committee meetings in a manner that encourages participation and
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
information sharing, as well as establishing agendas while moving the Board toward timely
closure and prudent decision-making. He leads the processes of CEO goal setting, performance
evaluation and compensation review, consistent with Board policy. He leads the development of
the board’s knowledge and capabilities by playing a central role in orientation of new board
members and providing continuing education for the entire board. He must ensure that the
organization maintains positive and productive relationships with the funders, partners, and other
stakeholders.
The Board of Directors

The Board of Directors direct and oversee policy and functions of the company, and
supports the advancement of the company in accordance with its goals. The board works as one
in carrying out decisions in favor for good of the company, as well as for its employees, its
clients, and the law. They shall attend board meetings and important
related meetings regularly, and build mutual working relationship that contributes to consensus
and make serious commitment to participate actively in committee work.
CEO/President
The Chief Executive Officer (CEO) or the president leads the development and execution
of the company’s long term strategy with a view to creating shareholder value. He performs
regular administration and management activities and organize the internal regime of the
corporation. He represents the corporation and act on their behalf before judicial, administrative,
labor, municipal, political and police authorities. He assures company’s relevance to the
community, the accomplishments of the company’s mission and vision, and the accountability of
the company to its diverse constituents. His leadership role entails being ultimately responsible
for all day-to-day management decisions and has the authority to carry out the responsibilities in
accordance with the direction and policies established by the Board for the implementation of the
company’s long and short term goals. He acts as a direct liaison between the Board and
management of the Company. He also communicates on behalf of the Company to shareholders,
employees, government authorities, other stakeholders and the public.
The CEO also submit the projects for annual reports and financial statements, annual
budgets, work programs and other activities to the Board of Directors for approval, and, if
approved, execute the plan. He enter and sign the corporation agreements and obligations, within
the criteria authorized by the By-Laws and the Board of Directors. He delegates the execution,
decentralize bids or tenders, and engages staff for managerial positions, according to the rules
established by the Board of Directors on hiring procedures. He designs and executes
development plans, annual action plans and investment, maintenance and expenses plans. He
also directs all department which involve developing and communicating cooperative goals and
results to personnel, selecting, supervising, and supporting the employee team, and upholding
cooperative policies to his people.
The Executive Secretary
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
The Executive Secretary supervises the process of: recording and archiving the minutes
of all association Board and executive Committee meetings; holding annual election; and calling
roll of voting members at all association Board and executive Committee meetings. He is
responsible for providing secretarial, clerical and administrative support in order to ensure that
services are provided in an effective and efficient manner.
Legal Counsel
The Legal Counsel is responsible for the legal affairs of the entire corporation. He
provides lawful recommendations to the chairman of the board, board of directors, chief
executive officer, and other senior management. He manage outside counsel and develops
strategy for litigation and regulatory proceedings, develops in-house organization of legal
professionals to provide legal assistance to the company, negotiates and drafts transactional
documents for the company, and plans the company’s strategy for handling government affairs
and lobbying efforts.
The Human Resources Department
Human Resource
Manager
Manager
Human
Human Resource
Resource
Secretary
Employee
Employee Relations
Relations
Recruitment Head General Service and
Officer Head Officer and Development
Development
Head Officer
Head Officer
Company Doctor Maintenance Training and Employee

Recruitment Staff Guard
& Nurses Personnel Development Staff Relations Staff
The Human Resource Department is responsible for providing support in the various
human resource functions, which include recruitment, staffing, training and development,
performance monitoring and employee counseling. Human Resource staff’s responsibility
involves the planning for the future and finding out how many employees will be needed in the
future by the business and what types of skills should they possess. They advertise job postings,
source candidates, screen applicants, conduct preliminary interviews and coordinate hiring
efforts with managers responsible for making the final selection of candidates. On the other
hand, it is also the responsibility of employers to provide a safe working environment for
employees. They watch over employees of the organization. They need to provide regular
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
trainings and development programs to improve efficiency level. They coordinate with line
managers and see that the organizational policies are being implemented in a proper manner.
Finance
Manager
Finance
Secretary
Chief
Accountant
Accounting Payroll
Bookkeeper Clerk Officer
The Finance Department

The Finance Department will be responsible for all the day to day transactional
accounting for the business. This will include the tracking of all transactions and the
management of any government reporting. They are responsible on making financial statements,
maintaining cash controls, preparing the payroll, maintaining accounts payable and managing
office operations. They are also responsible for the management of the organization’s cash flow
and ensuring there are enough funds available to meet the day to day payments. They also
encompasses the credit and collections policies for the company’s customers, and ensure the
organization is paid on time and that there is a payment policy for the company’s suppliers.
The Finance Department will work with managers to prepare the organization’s budgets
and forecasts, and to report back on the progress against these throughout the year. The Finance
Department should be called upon to provide information to assist managers in making key
strategic decisions, such as which markets or projects to pursue or the payback periods for large
capital purchases. The Finance Department can often contribute an objective perspective based
on special financial assessment techniques.
The Sales and Marketing Department
Sales and
Marketing Officer
Sales and
Marketing
Secretary
Marketing Head
PALAWAN STATE Product Specialist
Officer
UNIVERSITY
FILIF’S CNG
The Sales and Marketing Department has the overall responsibility for growing revenue,
increasing market share and contributing to company growth and profitability. The role of
marketing is to contribute to the leadership of the company. From product development to
making invoices easier to read, marketing should provide leadership on how to better serve the
customer. They are responsible for purchasing, price development, customer satisfaction surveys,
and monitoring competitors. Market research is a key responsibility for the marketing
department. Product specialists ensure companies produce the right product at the right time to
maximize their commercial value. Product Specialist work on the technical development of the
product, identify business opportunities for the product, establish marketing and promotional
strategies, and maintain awareness on competing products. They coordinate with sales and
marketing staff to provide technical information which will enhance the market value of the
company’s product.
The Operations Department
Operations
Operations
Manager
Manager
Operations
Secretary
Engineering
Engineering EHS
EHS Head
Head Production
Production QA
QA &
& QC Head
QC Head Logistics
Logistics Head
Head
Head Officer
Head Officer Officer Head Officer
Head Officer Officer
Officer Officer
Officer
Officer
Production
Production Warehouse/
Equipment
Equipment Process
Process Safety/Pollution
Safety/Pollution Production
Production QA & QC
QA & QC Logistic
Logistic Warehouse/
Line Engineer
Line Engineer PLanning
PLanning Supervisor Analyst
Inventory
Inventory Control
Control
Engineer
Engineer Engineer
Engineer Control
Control Officer
Officer Officer Supervisor Analyst Officer
Officer Officer
Officer
Officer
Production
Production
Workers Driver/Utility
Driver/Utility
Workers
The Operations Department comprises of five major sub-departments: Engineering

Department, Environment, Health, and Safety Department, Production Department, QA and QC
Department, and Logistics Department. The five departments must work closely together and the
work flow must be harmonized with the strategies of in order to meet the objectives of the
company.
The Engineering Department develops ideas for the existing system employed in the
operations, and possibly create a new system which will improve the current production. They
oversees the creation and improvement of elements and system components that involve the
Engineering Department. They coordinate and direct projects, making detailed plans to
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
accomplish goals and directing the integration of technical activities. They plan and direct the
installation, testing, operation, maintenance, and repair of facilities and equipment, as well as
directing, reviewing, and approving product design and changes.
The Environment, Health, and Safety (EHS) Department plans, implements, and
coordinates safety program, requiring application of engineering principles and technology, to
prevent or correct unsafe environmental working conditions.
The Production Department ensures the efficient and timely production of good. They plan a
production schedule for the job, implement and control the production schedule, make decisions
about equipment use, maintenance, modification and procurement, work out and implement
standard operating procedures for production operations, ensure that standard operating
procedures are adhered to, ensure implementation and adherence to health and safety, and
ensure efficient collaboration and co-ordination between relevant departments including
procurement, distribution and management.
The Quality Assurance (QA) and Quality Control (QC) Department ensures that the
product or service an organization provides is fit for purpose, is consistent and meets both
external and internal requirements. This includes legal compliance and customer expectations.
Quality managers also monitor and advise on the performance of the quality management
system, produce data and report on performance, measuring against set standards.
The Logistics Department organizes the storage and distribution of goods. Essentially
they need to ensure the right products are delivered to the right location on time and at a good
cost. They are involved in transportation, stock control, warehousing and monitoring the flow of
goods. They need to have an understanding of the whole supply chain so they can coordinate it
effectively and liaise with suppliers of raw materials, manufacturers, retailers and consumers.
The Research and Development Department
Research and
Development
Manager
R&D Secretary
Product
Process
Development
Developer
Specialist
The Research and Development Department keeps track on latest advancements to

process technologies and product improvements that can come necessary to achieve the
company’s goals. Before a new product is developed, a research and development department
conducts a thorough study to support the project. The research phase includes determining
product specifications, production costs and a production time line. The research also is likely to
include an evaluation of the need for the product before the design begins to ensure it is a
functional product that customers want to use. The research and development team aids the
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
company in staying competitive with others in the industry. The department is able to research
and analyze the products other businesses are creating, as well as the new trends within the
industry. This research aids the department in developing and updating the products created by
the company. The team helps direct the future of the company based on the information it
provides and products it creates.
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Chapter 6
SOCIO-ECONOMIC STUDY
A worthy project does not only mean profit from it but also its contribution to the
Philippine society. Bearing in mind the contribution it can give to the community development
where it is established, as well as the welfare of the people living within the vicinity of the area,
and with regards to its social and economic responsibilities.
Income
Improvement
Community
status of
Development
living
PROJECT
Government Employment
Taxes
Contribution to the Philippine economy

The Philippines utilizes renewable energy sources including hydropower, geothermal
energy, solar energy, wind power and biomass resources. In 2013, these sources contributed
19,903 GWh of electrical energy, representing 26.44 percent of the country's energy needs. By
utilizing rice husk (biomass) to methane (biogas), the project will be of great aid in this country’s
ever growing energy needs as a developing country.
Filif’s CNG Corporation will definitely contribute additional support to our government
by means of paying right taxes. Through this, the government can able to perform its functions
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
well including continuous support and assistance to the business industry, providing projects for
the community such as building infrastructures, public schools and hospitals, strengthening arm
forces for the security, protection and peace of the countrymen and other indispensable projects
that will benefit the people.
Employment generation
Having been able to construct a manufacturing plant would give a lot of benefits both for
the Philippines and the Filipino people. Building companies or businesses signifies an increase in
job vacancies which is proportional to the increase in employment rate and would result to the
increase in revenue associated with the taxes which the Philippine government asserts. 120
employees will be able to work on the manufacturing plant and each of them will have an
income that will decrease the deflation in line with poverty and unemployment rate.
We will not just only create employment and income in our company but also increase
the level of employment, income and output of the other sectors of the economy.
In addition to providing employment, income and preventing the outflow of foreign
exchange for the Philippine economy as a whole, our company not only stimulates the growth of
allied industries supplying equipment, tools, machinery and chemicals necessary for the
production but also the growth of those allied industries depending upon the products mentioned
above for their basic materials or indispensable factor of production
Energy Conservation
In agricultural countries, lots of agriculture residues or biomass wastes, such as rice husk
and woods, are produced every year. The world annual production of rice is more than 540
million metric tons. Instead of leaving these lying around, the project will be utilizing these
wastes to produce biogas that can alleviate the country’s energy needs.
We can give two ways benefits to the environment. First one is the green energy that can
be generated from the biogas and then the second one is the environmental waste reduction by
the use of rice husks.
Methane is many times more potent than carbon dioxide and in examples like this it is
very good that methane is captured and used for power generation rather than allowing it to
escape into the atmosphere and contributing to greenhouse gas emission.
PALAWAN STATE
UNIVERSITY
FEASIBILITY STUDY FILIF’S CNG CORPORATION
Chapter 7
FINANCIAL STUDY
Total Purchased Equipment Cost
TOTAL Purchased
Equipment Cost
EQUIPMENT QUANTITY COST IN PHP COST INDEX (2016) COST INDEX ACTUAL COST IN PHP
(2017)
Rice Husk Silo Storage 4 6,064,000.00 1,604.95 1,619.14 6,117,611.59
Dryer 1 2,478,480.00 1,604.95 1,619.14 2,500,392.14
Crusher or Pulverizer 1 402,560.00 1,604.95 1,619.14 406,119.02
Air Preheater 1 407,194.34 1,604.95 1,619.14 410,794.32
Gasifier 1 2,080,500.00 1,604.95 1,619.14 2,098,893.62
Cyclone 1 806,400.00 1,604.95 1,619.14 813,529.35
Hot Gas Filter 1 150,960.00 1,604.95 1,619.14 152,294.63
Scrubber 1 452,873.66 1,604.95 1,619.14 456,877.50
Air Compressor 1 5,285,641.78 1,604.95 1,619.14 5,332,371.93
Fluidized Bed Reactor 1 1,006,400.00 1,604.95 1,619.14 1,015,297.54
Heater Exchanger 2 2,516,000.00 1,604.95 1,619.14 2,538,243.86
Cooler 1 2,025,600.00 1,604.95 1,619.14 2,043,508.25
Flash Tank 1 150,960.00 1,604.95 1,619.14 152,294.63
Product Storage Tank 3 2,516,000.00 1,604.95 1,619.14 2,538,243.86
Waste Water Tank 1 1,032,000.00 1,604.95 1,619.14 1,041,123.87
Water Tank 2 1,006,400.00 1,604.95 1,619.14 1,015,297.54
Ammonia Hydroxide 1 2,516,000.00 1,604.95 1,619.14 2,538,243.86
Tank
Total Price of Equipment 24 31,171,137.51
Total Direct Cost in Philippine Peso
DIRECT COST PRICE IN PHP

Purchased and Equipment
Delivered 38,963,921.89
Installation 15,195,929.54
Instrumentation and Control 10,130,619.69
Piping and Conveyor
Installation 12,078,815.79
Building 11,299,537.35
Land Cost 40,700,000.00
Electrical System 3,896,392.19
Yard Improvement 4,675,670.63
Service Facilities 21,430,157.04
Total Direct Cost 158,371,044.10
Total Indirect Cost and Fixed Capital Investment in Philippine Peso
INDERECT COST PRICE IN PHP

Engineering and Supervision 12,468,455.00
Construction Expenses 13,247,733.44
Legal Expenses 1,558,556.88
Contractor's Fee 7,403,145.16
Contingency 14,416,651.10
Total Indirect Cost 49,094,541.58
FIXED CAPITAL INVESTMENT 207,465,585.68
PALAWAN STATE UNIVERSITY

FILIF’S CNG
Total Cost of Purchased Equipment (Delivered)

Using 25% delivery cost:
Total Cost Delivered = PhP 31,171,137.51 (1.25)
= PhP 38,963,921.89
Installation Cost
Basis: Cost of Installation is estimated as 39% of Purchased Equipment
Total = PhP 15,195,929.54
Instrumentation and Control Cost

Basis: Instrumentation and Control Cost is estimated as 26% of Purchase Equipment
Delivered
Total = PhP 10,130,619.69
Piping & Conveyor Installation .

Basis: The piping and conveyor installation cost is estimated as 31% of the cost of
Purchased Equipment Delivered
Total = PhP 12,078,815.59
Buildings
Basis: Buidlings Cost is estimated as 29% of the Purchase Equipment Delivered
Chemical Engineers: Solid-Fluid Processing Plant. (Table 6-9, p. 251).
Buildings and Services = PhP 11,299,537.35
Land Cost
(11,000 m2)(PhP 3,700/m2) = PhP 40,700,000.00
Total = PhP 51,999,537.35
Electrical Systems
Basis: Electrical Systems Cost is estimated as 10% of Purchase
Electrical Systems (Installed)
Total = PhP 3,896,392.19
Yard Improvement
Basis: Cost of Yard Improvement is estimated as 12% of Purchased Equipment
Delivered.
Total = PhP 4,675,670.63
Service Facilities
Basis: Cost of Service facilities is estimated as 55% of Purchase
Total = PhP 21,430,157.04
Engineering and Supervision

Basis: Engineering and supervision cost is estimated as 32% (Purchase Equipment
Delivered)
Total = PhP 12,468,455.00
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Construction Expenses
Basis: Construction expenses are estimated as 34% of the Purchase Equipment
Delivered
Total = PhP 13,247,733.44
Legal Expenses
Basis: Legal expenses are estimated as 4% (Purchase Equipment Delivered)
Total = PhP 1,558,556.88
Contractor’s Fee
Basis: Contractor’s Fee is estimated as 19% (Purchase Equipment Delivered)
Total = PhP 7,403,145.16
Contingency
Basis: Contingency is estimated as 37% (Purchase Equipment Delivered)
Total = PhP 14,416,651.10
WORKING CAPITAL
Working Capital = Raw Materials + Labor Cost + Utilities
Price (PhP per

Costs year)
Raw Material 5,585,613.76

Labor 23,286,591.60
Utilities
A. Electricity 145,432,000.0000
B. Water 478,996.66
Total 174,783,202.01
Raw Materials
A. Rice Husk
Price (Asia) = $40.00 or PhP 2012.8/ton
(Source: agebb.missouri.edu/dairy/byprod/allcompanies.asp)
Rice Husk Feed Rate (kg/day) = 5,889.11
Rice Husk Cost = (5,889.1055kg/day)(350day/yr) (PhP 2012.8/ton) (1ton/1000kg)
Rice Husk Cost (PhP/yr) = PhP 4,148,757.0430
B. Ammonium Hydroxide
Price (Asia): $ 390.00/ton or PhP 19,624.8/ton
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
(Source: https://m.alibaba.com/product/60207966381/Ammonium-Hydroxide-25-
price)
Ammonium Hydroxide Feed Rate (kg/day) = 193.6243
Ammonium Hydroxide Cost = (193.6243 kg/day) (300 days/ yr) (PhP 19,624/ton)
(1ton/1000kg)
Ammonium Hydroxide Cost (PhP/yr) = PhP 1,329,889.14
C. Mercaptan
Price (Asia): ₨ 250/kg or PhP 197.43/kg
(Source: http://m.indiamart.com/proddetail.php?i=4121377212)
Mercaptan Feed Rate (kg/day) = 1.548
Mercaptan Cost = (1.548 kg/day) (350 days/yr) (PhP 197.43/kg)
Mercaptan Cost (PhP/yr) = PhP 106,967.57
Operating Labor
Total Labor Cost = PhP 23,646,591.60
Utilities
A. Electricity
kWh 350 days

(
Total Power= 42,400
day )(
1 yr .
¿) )
Total Electricity Cost = PhP 145,432,000.00
B. Water
m3
(
Water Rate= 1,368.56
day )( 3501 yrdays. )( 21.06m PhP )
3
Total Water Rate = PhP 478,996.66
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
VARIABLE PRODUCTION COST
Cost PhP Product
Raw Material 5,585,613.76

Operating Labor 23,286,591.60
Utilities
A. Electricity 145,432,000.00
B. Water 478,996.66
Maintenance and
Repair 12,447,935
Operating Supplies 31,119,837.85
Laboratory Charges 3,492,988.74
Direct Supervisory 3,492,988.74
Total 225,336,952.49
RAW MATERIALS:
Total Raw Material Cost = PhP 4,148,757.0430 + PhP 1,329,889.14

+ PhP 106,967.57
Total Raw Material Cost = PhP 5,586,613.76
UTILITIES COST:
Total Utilities Cost = PhP 145,432,000.00 + PhP 478,996.66
Total Utilities Cost = PhP 145,910,966.7
OPERATING LABOR:
Total Operating Labor Cost = PhP 23,646,591.60
MAINTENANCE AND REPAIR:
Maintenance and Repair Cost = (6%) (Fixed Capital Investment)
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Maintenance and Repair Cost = PhP 12, 447, 935.00

OPERATING SUPPLIES:
Operating Supplies = (15%) (Fixed Capital Investment)
Operating Supplies = PhP 31,119,837.85
LABORATORY CHARGES:
Laboratory Charges = (15%) (Operating Labor)
Laboratory Charges = PhP 3,456,988.74
DIRECT SUPERVISORY:
Direct Supervisory = (15%) (Fixed Capital Investment)
Direct Supervisory = PhP 3,456,988.74
FIXED CHARGES
FIXED CHARGES
Cost PHP Product
Depreciation 3,246,993.49
Local Taxes 10,373,279.28
Insurance 1,452,259.10
Total 15,072,531.87
DEPRECIATION:
V Total Cost of Purchased Equipment PhP38,963,921.89
Depreciation = = =
n length of the straight−line recovery period 12
¿ PhP3,246,993.49
LOCAL TAXES:
Local Taxes = (5%) (Fixed Capital Investment)
Local Taxes = PhP 10,373,279.28
INSURANCE:
Insurance = (0.7%) (Fixed Capital Investment)
Insurance = PhP 1,452,259.10
PLANT OVERHEAD COST:

Plant Overhead Cost = (60%) (Operating Labor + Maintenance and Repair + Direct
Supervisory)
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Plant Overhead Cost = PhP 23,784,909.29
GENERAL EXPENSES
Cost PhP Product
Administrative Cost 7,845,503.10
Disttribution and Marketing 35,591,743.62
Research and Development 16,178,065.28
Total 59,615,312.00
ADMINISTRATIVE COST:
Administrative Cost = (20%) (Operating Labor + Maintenance and Repair + Direct
Supervisory)
Administrative Cost = PhP 7,845,503.10
MANUFACTURING COST:
Manufacturing Cost = Fixed Variable Cost + Fixed Charges + Plant Overhead Cost
Manufacturing Cost = PhP 263,945,993.65
TOTAL PRODUCT COST:

Total Product Cost = Manufacturing Cost + Administrative Cost + Distribution and
Marketing
Total Product Cost = PhP 323,561,305.65
DISTRIBUTION AND MARKETING:

Distribution and Marketing = (11%) (Total Product Cost)
Distribution and Marketing = PhP 35,591,743.62
RESEARCH AND DEVELOPMENT:

Research and Development = (5%) (Total Product Cost)
Research and Development = PhP 16,178,065.28
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
PALAWAN STATE
UNIVERSITY
Total Cost of Year 2017

Yearly No. of Total Salary per Monthly Monthly Yearly
Positions Monthly Salary Salary Person Position SSS SSS Yearly SSS PhilHeath PhilHealth PhilHealth
President/CEO 80,000.00 960,000.00 1 960,000.00 1,208.70 1,208.70 14,504.40 437.50 437.50 5,250.00
General Manager 60,000.00 720,000.00 1 720,000.00 1,208.70 1,208.70 14,504.40 437.50 437.50 5,250.00
Legal Counsel 40,000.00 480,000.00 1 480,000.00 1,208.70 1,208.70 14,504.40 437.50 437.50 5,250.00
Human Resource Manager 35,000.00 420,000.00 1 420,000.00 1,208.70 1,208.70 14,504.40 437.50 437.50 5,250.00
Sales and Marketing Manager 35,000.00 420,000.00 1 420,000.00 1,208.70 1,208.70 14,504.40 437.50 437.50 5,250.00
Finance Manager 35,000.00 420,000.00 1 420,000.00 1,208.70 1,208.70 14,504.40 437.50 437.50 5,250.00
Operations Manager 35,000.00 420,000.00 1 420,000.00 1,208.70 1,208.70 14,504.40 437.50 437.50 5,250.00
R&D Manager 35,000.00 420,000.00 1 420,000.00 1,208.70 1,208.70 14,504.40 437.50 437.50 5,250.00
Logistics Head Officer 27,000.00 324,000.00 1 324,000.00 1,208.70 1,208.70 14,504.40 337.50 337.50 4,050.00
Engineering Head Officer 27,000.00 324,000.00 1 324,000.00 1,208.70 1,208.70 14,504.40 337.50 337.50 4,050.00
Production Head Officer 27,000.00 324,000.00 1 324,000.00 1,208.70 1,208.70 14,504.40 337.50 337.50 4,050.00
QA & QC Division Head Officer 27,000.00 324,000.00 1 324,000.00 1,208.70 1,208.70 14,504.40 337.50 337.50 4,050.00
Environment, Health and Safety
Head Officer 27,000.00 324,000.00 1 324,000.00 1,208.70 1,208.70 14,504.40 337.50 337.50 4,050.00
Product Specialist 27,000.00 324,000.00 1 324,000.00 1,208.70 1,208.70 14,504.40 337.50 337.50 4,050.00
Process Development Specialist 27,000.00 324,000.00 1 324,000.00 1,208.70 1,208.70 14,504.40 337.50 337.50 4,050.00

Chief Accountant 27,000.00 324,000.00 1 324,000.00 1,208.70 1,208.70 14,504.40 337.50 337.50 4,050.00
Executive Secretary 20,000.00 240,000.00 1 240,000.00 1,208.70 1,208.70 14,504.40 250.00 250.00 3,000.00
Health and General Service Head
Officer 20,000.00 240,000.00 1 240,000.00 1,208.70 1,208.70 14,504.40 250.00 250.00 3,000.00
Employee Relations and
Development Head Officer 20,000.00 240,000.00 1 240,000.00 1,208.70 1,208.70 14,504.40 250.00 250.00 3,000.00
Recruitment Head Officer 20,000.00 240,000.00 1 240,000.00 1,208.70 1,208.70 14,504.40 250.00 250.00 3,000.00
Marketing Officer 20,000.00 240,000.00 1 240,000.00 1,208.70 1,208.70 14,504.40 250.00 250.00 3,000.00
Sales Head Officer 20,000.00 240,000.00 1 240,000.00 1,208.70 1,208.70 14,504.40 250.00 250.00 3,000.00
Logistics Officer 20,000.00 240,000.00 5 1,200,000.00 1,208.70 6,043.50 72,522.00 250.00 1,250.00 15,000.00
Equipment Engineer 20,000.00 240,000.00 8 1,920,000.00 1,208.70 9,669.60 116,035.20 250.00 2,000.00 24,000.00
Process Engineer 20,000.00 240,000.00 3 720,000.00 1,208.70 3,626.10 43,513.20 250.00 750.00 9,000.00
Production Planning Inventory
Control 20,000.00 240,000.00 1 240,000.00 1,208.70 1,208.70 14,504.40 250.00 250.00 3,000.00
Producion Officer 20,000.00 240,000.00 1 240,000.00 1,208.70 1,208.70 14,504.40 250.00 250.00 3,000.00
Line Engineers 20,000.00 240,000.00 3 720,000.00 1,208.70 3,626.10 43,513.20 250.00 750.00 9,000.00
Safety Officer 20,000.00 240,000.00 1 240,000.00 1,208.70 1,208.70 14,504.40 250.00 250.00 3,000.00
Pollution Control Officer 20,000.00 240,000.00 1 240,000.00 1,208.70 1,208.70 14,504.40 250.00 250.00 3,000.00
Company Doctor 20,000.00 240,000.00 1 240,000.00 1,208.70 1,208.70 14,504.40 250.00 250.00 3,000.00
Secretary 15,000.00 180,000.00 5 900,000.00 1,135.00 5,675.00 68,100.00 187.50 937.50 11,250.00
QC and QA Staff 15,000.00 180,000.00 5 900,000.00 1,135.00 5,675.00 68,100.00 187.50 937.50 11,250.00

R&D Secretary 15,000.00 180,000.00 1 180,000.00 1,135.00 1,135.00 13,620.00 187.50 187.50 2,250.00
Employee Relations and
Development Staff 12,000.00 144,000.00 1 144,000.00 894.00 894.00 10,728.00 150.00 150.00 1,800.00
Recruitment Staff 12,000.00 144,000.00 1 144,000.00 894.00 894.00 10,728.00 150.00 150.00 1,800.00
Company Nurse 12,000.00 144,000.00 1 144,000.00 894.00 894.00 10,728.00 150.00 150.00 1,800.00
General Services Personnel 12,000.00 144,000.00 1 144,000.00 894.00 894.00 10,728.00 150.00 150.00 1,800.00
Marketing Staff 12,000.00 144,000.00 2 288,000.00 894.00 1,788.00 21,456.00 150.00 300.00 3,600.00
Purchaser 12,000.00 144,000.00 1 144,000.00 894.00 894.00 10,728.00 150.00 150.00 1,800.00
Bookkeeper 12,000.00 144,000.00 1 144,000.00 894.00 894.00 10,728.00 150.00 150.00 1,800.00
Payroll Officer 12,000.00 144,000.00 1 144,000.00 894.00 894.00 10,728.00 150.00 150.00 1,800.00
Production Workers 12,000.00 144,000.00 15 2,160,000.00 894.00 13,410.00 160,920.00 150.00 2,250.00 27,000.00
Accounting Clerk 10,500.00 126,000.00 2 252,000.00 783.50 1,567.00 18,804.00 125.00 250.00 3,000.00
Warehouse Administrator 10,000.00 120,000.00 1 120,000.00 746.70 746.70 8,960.40 125.00 125.00 1,500.00
Delivery and Utility Men 10,000.00 120,000.00 5 600,000.00 746.70 3,733.50 44,802.00 125.00 625.00 7,500.00
Cashier 10,000.00 120,000.00 2 240,000.00 746.70 1,493.40 17,920.80 125.00 250.00 3,000.00
Driver 9,000.00 108,000.00 5 540,000.00 673.00 3,365.00 40,380.00 112.50 562.50 6,750.00
Maintenance Crew 9,000.00 108,000.00 5 540,000.00 673.00 3,365.00 40,380.00 112.50 562.50 6,750.00
1,245,741.6
Total Payment 101 21,780,000.00 0 260,850.00
Total Labor Cost 23,286,591.60

CASHFLOW


FILIF’S CNG
RETURN OF INVESTMENT AND PAYBACK PERIOD

Year Net Income After Tax Total Investment %ROI
2017 125,604,774.35 689,623,646.77 18%
2018 285,837,756.81 810,880,223.96 35%
2019 524,947,398.98 942,193,465.62 56%
2020 877,649,596.07 1,082,949,993.19 81%
2021 1,393,590,629.21 1,232,570,501.47 113%
2022 2,143,735,184.38 1,390,468,342.15 154%
2023 3,229,484,287.60 1,556,010,021.24 208%
2024 4,795,689,469.93 1,728,476,260.97 277%
2025 7,049,227,734.11 1,907,022,412.86 370%
2026 10,285,513,010.01 2,090,637,099.13 492%

Total Investment 1,171,949,700.00
Payback Period 4.59375 years
ROI
Percent ROI
492%
370%
277%
208%
154%
113%
81%
56%
35%
18%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
PALAWAN STATE
UNIVERSITY
BREAKEVEN ANALYSIS

FILIF’S CNG
GRAPH OF BREAKEVEN
PHP 1,400,000,000.00
PHP 1,200,000,000.00
PHP 1,000,000,000.00
PHP 800,000,000.00
PHP 600,000,000.00
PHP 400,000,000.00
PHP 200,000,000.00
PHP 0.00
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Fixed Cost Variable Cost

Total Income Total Production Cost
PALAWAN STATE
UNIVERSITY
BIBLIOGRAPHY
Uniform Enginer Fuels, Petroleum Products and Automotive Lubricants Regulation. (2008). National
Institute of Standards and Technology, pp. 149-164.
A.M.Gerrard. (2001). Chemical Engineers: Solid-Fluid Processing Plant. In Guide to Capital Costing (pp.
38-39). Warwickshire: Institute of Chemical Engineers.
Alternative Fuel Data Center. (n.d.). Retrieved August 1, 2017, from US Department of Energy: Energy
Efficiency & Renewable Energy: http://www.afdc.energy.gov
Benefits of CNG. (n.d.). Retrieved July 20, 2017, from CNG One: http://www.cng-one.com
Compressed Natural Gas. (n.d.). Retrieved July 27, 2017, from PNOC Exploration Corporation:
http://pnoc-ec.com.ph/
Don Hofstrand. (n.d.). Breakeven Selling Price. Retrieved August 7, 2017, from Iowa State University:
http://www.extension.iastate.edu
Hofstrand, D. (n.d.). Break Even Sales Volume . Retrieved July 15, 2017, from Iowa State University:
Extension and Outreach: http://www.extension.iastate.edu
Natural Gas. (n.d.). Retrieved August 2, 2017, from NGV Global Knowledge Base: http://www.iangv.org
Natural Gas Statistics. (n.d.). Retrieved July 5, 2017, from Department of Energy of the Philippines:
http://www.doe.gov.ph
Peters, M., Timmerhaus, K. (1991). Plant Design and Economics for Chemical Engineers (Fourth Edition
ed.). Singapore: McGraw-Hill.
FILIF’S CNG
APPENDIX
Floor Plan of Administrative Build
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Material Safety Data Sheet of Raw Materials
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Overall Material Balance:

1. Dryer
RICE HUSK FEED

COMPONENT % WT. (kg) RICE HUSK PRODUCT
COMPONENT % WT. (kg)
Rice Husk 84.70 4,988.0724
Rice Husk 92.00 4,987.5736

Moisture 15.30 901.0331
Moisture 8.00 433.7020

Total 100.00 5,889.1055
Temperature 25°C
Total 100.00 5,421.2756
Temperature 200°C
MOISTURE
LOSS COMPONENT % WT. (kg)
COMPONEN
T % WT. (kg)
Moisture 100.00 467.2410
Line Loss 0.01 0.5889
Description:
To reduce the moisture content of rice husk from 15.30% to 8.0% required for gasification process.
Data and assumption:

1. The moisture content of rice husk entering the dryer is 15.30% (NPCS Board, 2012).
2. The moisture content of rice husk leaving the dryer is 8.0% (Kumar, Mohanta, Kumar, & Parkash,
2012).
3. Line loss is 0.01%.
Basis: 1 hour operation

Total mass of rice husk fed to the dryer per hour: 5,889.1055 kg
Losses: 5,889.1055 kg (0.0001) = 0.5889 kg
Mass of rice husk entering the dryer:
Bone Dry Solid Rice Husk = 5,889.1055 kg (0.8470) = 4,988.0724 kg
Moisture = 5,889.1055 kg (0.1530) = 901.0331 kg
Total mass of rice husk leaving the dryer:
(4,988.0724) - (4,988.0724)(0.0001)/ 0.9200 = 5,421.2756 kg
Mass of rice husk leaving the dryer:
Bone Dry SolidRice Husk = 5,421.2756 kg (0.9200) = 4,987.5736 kg
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Moisture = 5,421.2756 kg (0.0800) = 433.7020 kg

Mass of moisture evaporated: (5,889.1055 – 0.5889 – 5,421.2756) kg = 467.2410 kg
2. Pulverizer
RICE HUSK FEED
COMPONEN
T % WT. (kg)
RICE HUSK FEED
COMPONEN
Rice Husk 92.00 4,987.5736 T % WT. (kg)
433.7020
Moisture 8.00 Rice Husk 92.00 4,987.5736
Total 100.00 5,421.2756 Moisture 8.00 433.7020

Temperature 200°C
Total 100.00 5,421.2756
Temperature 200°C
LOSS
COMPONE WT.
NT % (kg)
Line Loss 0.01 0.5421
Description:
To reduce the particle size of rice husk to allow good heat transfer for gasification process.
Assumption: 0.01% Line Loss

Losses: 5,421.2756 kg (0.0001) = 0.5421 kg
Total mass of rice husk leaving the pulverizer:
= (5,421.2756 – 0.5421) kg
= 5,420.7335 kg
Mass of rice husk to be fed in the gasifier:
Bone Dry SolidRice Husk = 5,420.7335 kg (0.9200) = 4,987.0748 kg
Moisture = 5,420.7335 kg (0.0800) = 433.6587 kg
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
3. Preheater
COMPRESSED AIR
COMPONEN
T % WT. (kg)
HOT AIR
COMPONEN
N2 79.00 174.2181 T % WT. (kg)
O2 21.00 46.3111 N2 79.00 174.2007
Total 100.00 220.5292 O2 21.00 46.3065

Temperature 25°C
Total 100.00 220.5072
Pressure 250 kPa
Temperature 250°C
Pressure 250 kPa
LOSS
Line Loss 0.01 0.0221
Description:
To pre-heat the compressed air from 25°C to 250°C required for gasification process.
Losses: 220.5292 kg (0.0001) = 0.0221 kg
Total mass of product gas leaving the cooler:
= 220.5292 kg (0.9999)
= 220.5072 kg
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
4. Fluidized Bed Gasifier

RICE HUSK FEED (ULTIMATE
ANALYSIS) GAS PRODUCT
COMPONEN COMPONE
T % WT. (kg)
NT % WT. (kg)
1,897.256
C 35.00 7 2,557.46
CH4 49.61 78
H 4.00 216.8293
463.963
CO2 9.00 1
1,611.584
O 29.73 1
1,494.99
N 0.23 12.4677
CO 29.00 23
S 0.04 2.1683 489.738

H2 9.50 9
Moisture 8.00 433.6587

148.983
N2 2.89 7
1,246.768
Ash 23.00 7
100.0 5,155.14
Total 0 58
5,420.733
Total 100.00 5
Temperature 200°C 162.794
Char 3.00 1
LOSS
COMPON WT. 108.529
ENT % (kg) Tar 2.00 4
0.01 0.58 100.0 5,426.46

Line Loss 00 42 GP Total 0 93
Temperatur
e 850°C
FLUIDIZING MEDIUM
REFUSE COMPONEN
COMPONENT % WT. (kg) T % WT. (kg)
Combustibles 25.00 103.9426 Air 52.39 220.5072
Ash 75.00 311.8277 Steam 47.61 200.4147
Total 100.00 415.7703 Total 100.00 420.9219

Temperature 850°C Temperature 250°C
Description:
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
During gasification process, rice husk is directly converted to synthesis gas

(syngas) in a gasifier under a controlled amount of air and steam.
1. The ultimate analysis of rice entering the gasifier is 35.0% carbon, 4.0%
hydrogen, 29.73% oxygen, 0.23% nitrogen, 0.04% sulfur, 8.0% moisture, and
23% ash (Kumar, Mohanta, Kumar, & Parkash, 2012).
2. The analysis of product gas is 49.61% methane, 9.0% carbon dioxide, 29.0%
carbon monoxide, 9.50% hydrogen, and 2.89% nitrogen (Rahardjo, 2013).
3. The tar content in the gas product is 2.0% and is composed of 90.0% carbon and 10.0% hydrogen
(Hougen, Watson, & Ragatz, 1954).
4. The char content in the gas product is 3.0% (Hougen, Watson, & Ragatz, 1954).
5. The analysis of refuse is 25% combustibles and 75% ash (Hougen, Watson, & Ragatz, 1954).
Mass of each component of rice husk:
C: 5,420.7335 kg (0.3500) = 1,897.2567 kg

H: 5,420.7335 kg (0.0400) = 216.8293 kg
O: 5,420.7335 kg (0.2973) = 1,611.5841 kg
N: 5,420.7335 kg (0.0023) = 12.4677 kg
S: 5,420.7335 kg (0.0004) = 2.1683 kg
Moisture: 5,420.7335 kg (0.0800) = 433.6587 kg
Ash: 5,420.7335 kg (0.2300) = 1,246.7687 kg
Basis: 100 kg of rice husk

kmoles of each component of rice husk:
C: 35.00 kg (1 kmol/12kg) = 2.9167 kmol
H: 4.00 kg (1 kmol/2kg) = 2.0000 kmol
O: 29.73 kg (1 kmol/32kg) = 0.9291 kmol
N: 0.23 kg (1 kmol/28kg) = 0.0082 kmol
S: 0.04 kg (1 kmol/32kg) = 0.0013 kmol
Moisture: 8.00 kg (1 kmol/18kg) = 0.4444 kmol
Accounting for H2:

Net H2 = kmol H2 - kmol O2 (1 kmol H2/ 0.5 mol O2
= 2 kmol H2 - 0.93 kmol O2 (1kmol H2/0.5 kmol O 2)
= 0.1400 kmol H2
Net H2 in tar = (0.10 )(2 kg tar) / 2kg H2 = 0.2 = 0.1000 kmol H2

Net H2 in gas = Net H2 in gas - Net H2 in tar
= (0.1400 – 0.1000) kmol = 0.0400 kmol H2
Combined H2O = kmol O2(1 kmol H2/ 0.5 kmol O2)

= 0.93 kmol O2(1 kmol H2/0.5 kmol O2)
= 1.8600 kmol H2
Accounting for C:
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
C in refuse = 23 kg ash (25 kg combustibles/ 75 kg ash)(1 kg C/1 kg combustibles)(1 kmol C/12 kg C) =

0.6400 kmol C
C in tar = 2 kg tar (0.90)(1 kg C/1 kg tar)(1 kmol C/12 kg C) = 0.1500 kmol C
C in char = 3 kg char(1 kg C/1 kg Char)(1 kmol C/12 kg C) = 0.2500 kmol C
C in gas = C in rice husk – C in refuse – C in tar – C in char
= (2.92 - 0.6400 – 0.1500 – 0.2500) kmol C
= 1.8800 kmol C
Basis: 100 kmol dry % C H2 O2

gas Component
CH4 49.61 49.61 99.22
CO2 9.00 9.00 9.00
CO 29.00 29.00 14.50
H2 9.50 9.50
N2 2.89
Total 100.00 87.61 108.72 23.50
Mass of air supplied:

N2 in gas = Mass of rice husk (2.89/100)= 5,420.7335 kg (2.89/100) = 156.6592 kg
N2 in rice husk = Mass of rice husk (0.23/100)= 5,420.7335 kg (0.23/100) = 12.4677 kg
Total mass of N2 = (156.6592 + 12.4677) kg = 169.1269 kg
kg of air supplied = total mass of N2(1 kmol N2/28 kg N2)(100 kmol Air/79 kmol N2)(28.84 kg Air/1
kmol Air)
= 169.1269 kg N2(1 kmol N2/28 kg N2)(100 kmol Air/79 kmol N2)(28.84 kg Air/1 kmol Air)
= 220.5072 kg
Mass of steam supplied:

Steam decomposition: H2 from steam = mass of steam supplied
Carbon balance:
Mass of H2 = 5,420.7335 kg(1.8800 kmol C/100 kg rice husk)(100 kmol dry gas/87.61 kmol C)(108.72
kmol H2/100 kmol dry gas)(2 kg H2/1 kmol H2)
= 252.9308 kg H2
Mass of steam supplied:

Steam decomposition: H2 from steam = mass of steam supplied
Carbon balance:
Mass of H2 = 5,420.7335 kg(1.8800 kmol C/100 kg rice husk)(100 kmol dry gas/87.61 kmol C)(108.72
kmol H2/100 kmol dry gas)(2 kg H2/1 kmol H2)
= 252.9308 kg H2
Hydrogen balance:
Mass of H2 = Mass of rice husk(0.04 kmol Net H2 in gas/100 kg rice husk)(2 kg H2/1 kmol H2) +
Mass of rice husk(0.4444 kmol H2 in H2O moisture/100 kg rice husk)(2 kg H2/1 kmol H2)
= 5,420.7335 kg(0.04 kmol Net H2 in gas/100 kg rice husk)(2 kg H2/1 kmol H2) +
5,420.7335 kg(0.4444 kmol H2 in H2O moisture/100 kg rice husk)(2 kg H2/1 kmol H2)
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
= 52.5161 kg H2
kg of steam supplied = (252.9308 – 52.5161) kg = 200.4147 kg H2
Total mass in:

= mass of rice husk + mass of air supplied + mass of steam supplied
= (5,420.7335 + 220.5072 + 200.4147) kg
= 5,841.6554 kg
Losses: 5,841.6554 kg (0.0001) = 0.5842 kg
Total mass in refuse:

= mass of rice husk feed (7.67 kg C in refuse100 kg rice husk)
= 5,420.7335 kg rice husk(7.67 kg C in refuse100 kg rice husk)kg
= 415.7703 kg
Total mass of product gas leaving the gasifier:

= ((5,841.6554 + 0.5842) – 415.7703) kg
= 5,426.4693 kg
Mass of component of gas product leaving the gasifier:

Char: 5,426.4693 kg (0.0300) = 162.7941 kg
Tar: 5,426.4693 kg (0.0200) = 108.5294 kg
Product Gas: 5,426.4693 kg (0.9500) = 5,155.1458 kg
Mass of component of product gas:

CH4: 5,155.1458 kg (0.4961) = 2,557.4678 kg
CO2: 5,155.1458 kg (0.0900) = 463.9631 kg
CO: 5,155.1458 kg (0.2900) = 1,494.9923 kg
H2: 5,155.1458 kg (0.0950) = 489.7389 kg
N2: 5,155.1458 kg (0.0289) = 148.9837 kg
5. Cyclone Separator
GAS FEED
COMPONEN WT. (kg)
T %
CH4 49.61 2,557.4678
CO2 9.00 463.9631
CO 29.00 1,494.9923
H2 9.50 489.7389
N2 2.89 148.9837
3.0337E- 1.5639E-
Mercaptan 07 05
Total 100.00 5,155.1458
Char 3.00 162.7941
PALAWAN STATE
UNIVERSITY
GAS PRODUCT
COMPONEN
T % WT. (kg)
CH 49.61 2,557.2121
FILIF’S CNG
4

CO 2 9.00 463.9167
CO 29.00 1,494.8428
Tar 2.00 108.5294 H2 9.50 489.6899
GP Total 100.00 5,426.4693 N2 2.89 148.9688

Temperature 850°C 3.0337E-
Mercaptan 07 1.5637E-05
LOSS Total 100.00 5,154.6303

COMPON WT.
ENT % (kg)
Char 3.00 3.2556
CHAR & TAR
Line Loss 0.01 0.5426 COMPONENT % WT. (kg)
Tar 2.00 108.5185
Char 100.00 159.5222 GP Total 100.00 5,266.4044

Temperature 850°C
Temperature 850°C
Description:
To remove char and tar unnecessary for natural gas product.
1. The percent removal of both tar and char is 98.0% (Solar Energy Research Institute, 1988).
Losses: 5,426.6268 kg (0.0001) = 0.5426 kg
Mass of char removed in cyclone separator:

Char: 162.7941 kg (0.9999) (0.9800) = 159.5222 kg
Mass of char and tar retained in the product gas:
Char: 162.7941 kg (0.9999) (0.0200) = 3.2556 kg
Mass of mercaptan added:

Mercaptan: 5, 154.7878 kg(1x103 kg/m3) /(0.3296 kg/m3) = 1.5639x10-5 kg
Mass of product gas: 5,155.3033 kg (0.9999) = 5,154.7878 kg
Total mass of gas product leaving the cyclone separator:
= (5,154.6303 + 3.2556 + 108.5185) kg
= 5,266.4044 kg
6. Hot Gas Filter

GAS FEED
COMPONEN
T % WT. (kg)
CH4 49.61 2,557.2121
CO2 9.00 463.9167
CO 29.00 1,494.8428
H2 9.50 489.6899
PALAWAN STATE
UNIVERSITY
GAS PRODUCT
FILIF’SCOMPONENT
CNG % WT. (kg)

CH4 49.61 2,556.9564
CO2 9.00 463.8703
N2 2.89 148.9688
3.0337E- 1.5637E- CO 29.00 1,494.6933
Mercaptan 07 05
H2 9.50 489.6409
Total 100.00 5,154.6303
N2 2.89 148.9539
Char 3.00 3.2556 3.0337E-
Mercaptan 07 1.5637E-05
Tar 2.00 108.5185 Total 100.00 5,154.1148
Temperature 850°C
GP Total 100.00 5,266.4044
Temperature 850°C
LOSS
COMPONEN
T % WT. (kg)
Line Loss 0.01 0.5266
Description:
To remove the retained char and tar in the product gas unnecessary for natural gas product.
Assumption:
1. The percent removal of both tar and char is 100.0% (Solar Energy Research Institute, 1988).
Losses: 5,266.4044 kg (0.0001) = 0.5266 kg

Mass of char and tar removed in hot gas filter:
Char: 3.2556 kg (0.9999) = 3.2552 kg CHAR & TAR
COMPONEN
Tar: 108.5185 kg (0.9999) = 108.5077 kg T % WT. (kg)
Total mass removed: (3.2553 + 108.5077) kg = 111.7629 kg
Char 2.91 3.2552
Mass of gas product leaving the hot gas filter:

Tar 97.09 108.5077
= 5,154.6303 kg (0.9999)
= 5,154.1149 kg Total 100.00 111.7629
Temperature 850°C
7. Cooler GAS PRODUCT
GAS FEED
COMPONEN CH4 49.61 2,556.7007
T % WT. (kg)
CO2 9.00 463.8239
CH4 49.61 2,556.9564
CO 29.00 1,494.5438
CO2 9.00 463.8703

H2 9.50 489.5919
N2 2.89 148.9390
3.0337E
PALAWAN STATE Mercaptan -07 1.5634E -05
UNIVERSITY
Total 100.00 5,153.5993
Temperature 210°C
FILIF’S CNG
CO 29.00 1,494.6933
H2 9.50 489.6409
N2 2.89 148.9539
3.0337E 1.5636E
Mercaptan -07 -05
Total 100.00 5,154.1148
Temperature 850°C
LOSS
COMPONEN
T % WT. (kg)
Line Loss 0.01 0.5154
Description:
To reduce the temperature of product gas from 850°C to 210°C.
Losses: 5,154.2723 kg (0.0001) = 0.5154 kg
= 5,154.2723 kg (0.9999)
= 5,153.7569 kg
8. Scrubber
GAS PRODUCT
GAS FEED
COMPONEN COMPONENT % WT. (kg)
T % WT. (kg)
CH4 53.98 2,556.4450
CH4 49.61 2,556.7007
CO2 0.98 46.3778
CO2 9.00 463.8239
CO 31.56 1,494.3944
CO 29.00 1,494.5438
H2 10.34 489.5430
H2 9.50 489.5919
N2 3.14 148.9241
3.3011E 1.5633E
N2 2.89 148.9390 Mercaptan -07 -05
Mercaptan - - Total 100.00 4,735.6843
Temperature 40°C
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
Total 100.00 5,153.5993
Temperature 210°C
NH4HCO3
COMPONEN
T % WT. (kg)
NH4OH
NH4HCO3 100.00 611.0047
Temperature 40°C
NH3 28.00 193.6243
Temperature 10°C LOSS

COMPONEN
T % WT. (kg)
Line Loss 0.01 0.5347
Description:
To reduce the amount of carbon dioxide required for gas cleaning of the product gas.
1. The concentration of liquid ammonia is 28.0% (Darde, Thomsen, van Weel, & Stenby, 2009).
2. The percent carbon dioxide recovery is 90.00% (Darde, Thomsen, van Weel, & Stenby, 2009).
3. The ratio of the number of moles of carbon dioxide absorbed per moles of liquid ammonia is 3:1
(Darde, Thomsen, van Weel, & Stenby, 2009).
kmoles of each component of gas feed entering the scrubber:

CH4: 2,556.7007 kg (1 kmol/16 kg)= 159.7938 kmol
CO2: 463.8239 kg (1 kmol/44 kg)= 10.5415 kmol
CO: 1,494.5438 kg (1 kmol/28 kg)= 53.3766 kmol
H2: 489.5919 kg (1 kmol/2 kg)= 244.7960 kmol
N2: 148.9390 kg (1 kmol/28 kg)= 5.3193 kmol
Total kmoles of gas feed entering the scrubber:
= (159.7938 + 10.5415 + 53.3766 + 244.7960 + 5.3193) kmol
= 473.8270 kmoles
Mole fraction of CO2 in gas feed: = 10.5415 kmol/473.8270 kmol = 0.0222

Mole ratio of CO2 to gas feed: = mol CO2/(1-mol CO2) = 0.02221 - 0.0222 = 0.0227
Mole ratio of CO2 to gas product:
= mole ratio of CO2 to gas feed (1 – % Recovery) = 0.0227(1 – 0.9000) = 0.0023
Mole fraction of CO2 in gas product leaving the scrubber: = mol ratio of CO2 to gas feed/(1+mol ratio of
CO2 to gas feed) = 0.00231 + 0.0023 = 0.0023
Molar flow rate of product gas:

= molar flow rate of gas feed entering the scrubber (1 – mole fraction of CO2 in gas feed)
= 473.8270 kmol/hr (1 – 0.0222)
= 463.2856 kmol/hr
kmoles of gas product leaving the scrubber: = molar flow rate of product gas(1 - mol fraction of CO2 in
gas product) = (463.2856 kmol1 - 0.0023)(0.9999) = 464.2933 kmol
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
kmoles CO2 in solvent stream leaving the scrubber:

= total kmole of gas feed entering the scrubber (mole fraction of CO2 in gas feed) (% recovery)
= 473.8270 kmol (0.0222) (0.9000)
= 9.4873 kmol
kmoles of solvent stream leaving the scrubber:
= 9.4873 kmol(3 kmol CO2absorbed/(1 kmol NH3 + 3 kmol CO2))(0.9999) = 12.6485 kmol
kmoles of NH3 leaving the scrubber:
= (12.6485 – 9.4873) kmol
= 3.1612 kmol
Mass of solvent stream leaving the scrubber:

=((9.4873 kmol CO2)(44 kg/1 kmol)+(3.1612 kmol NH4)(61.08 kg/1 kmol))(0.9999)
= 611.0047 kg
Mass of each component of gas product leaving the scrubber:

CH4: 2,556.7007 kg (0.9999) = 2,556.4450 kg
CO2: 463.8239 kg (0.0999) (0.1000) = 46.3778 kg
CO: 1,494.5438 kg (0.9999) = 1,494.3944 kg
H2: 489.5919 kg (0.9999) = 489.5430 kg
N2: 148.9390 kg (0.9999) = 148.9241 kg
Total mass of gas product leaving the scrubber:
= (2,556.4450 + 46.3778 + 1,494.3944 + 489.5430 + 148.9241) kg
= 4,735.6843 kg
Mass of NH4OH entering the scrubber:

= mass of gas product leaving the scrubber + mass of solvent stream leaving the scrubber – mass of gas
feed entering the scrubber
= 4,735.6843 + 611.0047 + [(4,735.6843 + 611.0047) (0.0001)] – 5,153.5994 kg
= 193.6243 kg
Losses: (5,153.5994 + 193. 6243) kg (0.0001) = 0.5347 kg
Mass of NH4HCO3 leaving the scrubber:

= (mass of NH4OH + gas feed) – (gas product + line loss)
= (193.6243 + 5153.5994) – (4,735.6843 + 0.5347)
= 611.0047 kg
9. Heater
GAS FEED

REACTOR FEED
COMPONEN
T % WT. (kg)
CH4 53.98 2,556.4450
2,556.189
CO2 0.98 46.3778 CH4 53.98 4
CO 31.56 1,494.3944 CO2 0.98 46.3731
H2 10.34 489.5430
1,494.244
CO 31.56 9
N2 3.14 148.9241
3.3011E 1.5633E
Mercaptan -07 -05 H2 10.34 489.4940
N2 3.14 148.9092
3.3011 1.5631E
Mercaptan E -07 -05
PALAWAN STATE
UNIVERSITY 4,735.210
Total 100.00 6
Temperature 120°C
FILIF’S CNG
Total 100.00 4,735.6843
Temperature 40°C
LOSS
Line Loss 0.01 0.4736
Description:
To raise the temperature of product gas from 40°C to 91°C required for methanation reaction.
Losses: 4,735.6843 kg (0.0001) = 0.4736 kg
= 4,735.6843 kg (0.9999)
= 4,735.2107 kg
10. Reactor
REACTOR FEED
CH4 53.98 2,556.1894
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
CH4-RICH GAS
CO2 0.98 46.3731 COMPONEN
T % WT. (kg)
CO 31.56 1,494.2449
CH4 70.80 3,352.2757
H2 10.34 489.4940
CO2 1.08 51.1076
N2 3.14 148.9092
CO 2.06 97.5400
3.3011E
Mercaptan -07 1.5630E -05
H2O 18.88 893.9780
Total 100.00 4,735.2106
Temperature 120°C H2 4.03 191.0200
N2 3.15 148.9694
3.3006E
LOSS Mercaptan -07 1.5628E -05
Total 100.00 4,734.8907
Line Loss 0.01 0.4735 Temperature 320°C
Description:
To convert the carbon monoxide to methane gas.
Data and Assumption:
2. Reaction Stoichiometry:
Pressure: 30 bars or 29.61 atm

Temperature: 320oC or 593.15 K
Reaction Stoichiometry
Free Energy:
Standard Gibbs Free energy (ΔG) of reaction at T=298 K
ΔG = -RT ln(k); k = Kp (gas
phase)
(ΔGf) at 298 kJ/mol
K (formation)
CH4 -50.8
CO -137.3
CO2 -394.4
H2 0.0
H20 -228.6
Ln (KP2/KP1)= -ΔHR[1/T2-1/T1]
Ln(KP2/6.57x1017)= 201025.6 J/mol8.314 J/mol K [1/593.15-1/298.15]
Kp2 = 0.877
CO + 3H2 ↔ CH4 + H2O
53.37 244.747 159.76 0
–x -3x x x
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
53.37 - x 244.747 - x 159.76 + x x
0.877 =[29.61(x)/457.877][29.61(159.76+x)/457.877]/[29.61(53.37-x)/457.877][29.61(244.747-
3x)/457.877]
x = 49.7782
CO retained: (53.37 – 49.7782)kmoles(28kgCO/kmoles)=100.5704 kg CO

H2 retained: (244.747 – 3(49.7782)) kmoles(2 kgH2/kmoles)= 190.8248 kg H2
CH4 produced: 159.76 + 49.7782 kmoles(16kg CH4/kmole)=3,352.6112 kg CH4
H2O produced: 49.7782 kmoles(18kg H2O/kmole)=896.0076 kg H2O
Reaction 2: CO + H2 ↔ CO2+ H2
ΔG= -19.4 kJ/mol
ΔG= -RTln(Kp)
-19.4 kJ/mol (1000 mol/kmol) = -8.314 kJ/kmol K (298.15K) ln (Kp)
Kp1 = 2505.659
ΔH25= -41.16 kJ/mol
ΔH320= -38.92 kJ/mol
Ln(KP2KP1)= -ΔHR[1/T2-1/T1]
Ln(KP2/2505.659)= 38920 J/mol/8.314 J/mol K [1/593.15-1/298.15]
Kp2 = 0.855
0.855=[29.61(1.0539+x)/149.8363][29.61(95.4124+x)/149.8363][29.61(3.5918-x)/149.8363]
[29.61(49.7782-x)/149.8363]
x = 0.107754
CO retained: (3.5918 – 0.107754)kmoles(28kgCO/kmoles)=97.5533 kg CO

H2O retained: (49.7782 – 0.107754 ) kmoles(18kg H2O/kmoles)= 894.06 kg H2O
CO2 produced: (1.0539 + 0.107754)kmoles(44kg CO2/kmoles)= 51.1128 kg CO2
H2 produced: (95.4124 + 0.107754) kmoles(2kg H2/kmoles)=191.0403 kg H2
Thus,
Product Mass (kg) %
Compositi
on
CH4 3,352.275 70.80
7
CO2 51.1076 1.08
CO 97.54 2.06
H2O 893.978 18.88
H2 191.02 4.03
N2 148.9694 3.14
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
11. Cooler (Heating and Cooling Heat Exchanger
CH4-RICH GAS
COMPONEN
T % WT. (kg)
3,352.275
CH4 70.80 7
CO2 1.08 51.1076 CH4-RICH GAS

COMPONE
NT % WT. (kg)
CO 2.06 97.5400
3,351.94
H2O 18.88 893.9780 CH4 70.80 05
H2 4.03 191.0200 CO2 1.08 51.1025
N2 3.15 148.9694 CO 2.06 97.5302

3.3006 1.5628E
Mercaptan E -07 -05
893.888
H2O 18.88 6
4,734.890
Total 100.00 7
191.000
Temperature 320°C H2 4.03 9
148.954
N2 3.15 5
LOSS 3.300
COMPONEN 6E 1.5626
T % WT. (kg) Mercaptan -07 E -05
Line Loss 0.01 0.4735 100.0 4,734.41

Total 0 72
Temperatur
e 240°C
Description:
To reduce the temperature of product gas from 320°C to 120°C to proceed in the next cooling process.
Losses: 4,734.8907 kg (0.0001) = 0.4735 kg
= 4,734.8907 kg (0.9999)
= 4,734.4172 kg
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
12. Cooler
CH4-RICH GAS
CH4-RICH GAS COMPONEN
COMPONEN T % WT. (kg)
T % WT. (kg)
CH4 70.80 3,351.6053

CH4 70.80 3,351.9405
CO2 1.08 51.0974

CO2 1.08 51.1025
CO 2.06 97.5205
CO 2.06 97.5302
H2O 18.88 893.7992

H2O 18.88 893.8886
H2 4.03 190.9818
H2 4.03 191.0009
N2 3.15 148.9396
N2 3.15 148.9545 3.3006E 1.5625E
3.3006E 1.5626E Mercaptan -07 -05
Mercaptan -07 -05
Total 100.00 4,733.9438

Total 100.00 4,734.4172
Temperature 40°C
Temperature 240°C
LOSS
COMPONEN
T % WT. (kg)
Line Loss 0.01 0.4734
Description:
To reduce the temperature of product gas from 240°C to 40°C.
Losses: 4,734.4172 kg (0.0001) = 0.4734 kg
= 4,734.4172 kg (0.9999)
= 4,733.9438 kg
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
13. Flash Tank

"CH4-RICH GAS" VAPOR STREAM
CH4-RICH GAS FEED COMPONEN
T % WT. (kg)
CH4 87.276 3,351.2701

CH4 70.80 3,351.6053
CO2 1.329 51.0163

CO2 1.08 51.0974
CO 2.539 97.5107
CO 2.06 97.5205
H2O 0.004 0.1655
H2O 18.88 893.7992
H2 4.973 190.9623
H2 4.03 190.9818
N2 3.878 148.9246
4.0687E
N2 3.15 148.9396 Mercaptan -07 1.5623E -05
3.3006E
Mercaptan -07 1.5625E -05
Total 100.00 3,839.8495
Total 100.00 4,733.9438 Temperature 40°C
Temperature 40°C
LOSS "CH4-RICH GAS" LIQUID STREAM

COMPONEN
COMPONENT % WT. (kg) T % WT. (kg)
8.50E
Line Loss 0.01 0.4734 CO2 -03 0.0760
1.00E 8.94E
CO -05 -05
1.00E 89
H2O -02 3.6337
5.00E 4.47E
H2 -05 -04
1.00E 8.94E
N2 -05 -05
Total 100.00 893.7097
Temperature 40°C
Description:
To separate the liquid phase and gaseous phase required for final storage of the product.
Assumption: 0.01%
By Soave-Redlich-Kwong Equation,
Feed: 4,733.9437 kg/hr
Feed Mass (kg) %

Composition
PALAWAN STATE
UNIVERSITY
FILIF’S CNG
CH4 3,351.2701 70.79

CO2 51.0923 1.08
CO 97.5107 2.06
H2O 893.7098 18.88
H2 190.9627 4.03
N2 148.9247 3.15
Vapor Stream: 3,840.234 kg/hr

Product Mass (kg) %
Compositio
n
CH4 3,351.2701 87.27
CO2 51.0168 1.32
CO 97.5107 2.54
H2O 0.0761 1.98x10-3
H2 190.9623 4.97
N2 148.9246 3.87
Liquid Stream: 893.7098 kg/hr
Product Mass (kg) %Compositio

n
CO2 0.0755 8.44x10-3
CO 8.9371x10-5 1x10-5
H2O 893.63 99.99
H2 0.0004 4.4757x10-5
N2 8.9371x10-5 1x10-5
Total Volume of Product at 30 atm and 40°C = 92,163.47 kgday x m319.659 kg = 4,688.1057 m3/day
PALAWAN STATE
UNIVERSITY

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FILIF’S CNG

FEASIBILITY STUDY CORPORATION

II. Introduction/Background of the study

III. Market Study

IV. Technical Study

Machinery and equipment

VI. Financial Study

Brief description of the project

Objectives of the study

Scope and limitations of the study

Natural Gas Demand

Graphical Presentation of Natural Gas Demand from 2006-2015

Natural Gas Demand, 2005-2016

Major Consumers of Natural Gas

Major Consumers of Natural Gas in the Philippines (2015)

Major Consumers of Natural Gas in the Philippines

Power generation Transportation Industrial

Projected Demand of Natural Gas

Method 1 – Arithmetic Straight Line

Method 2 – Arithmetic Geometric Curve

Demand %increase Yea Projected

Method 3 – Statistical Straight Line

Method 4 – Statistical Parabolic Curve

Y-Yc (Y-Yc)2 Year X X2 Projected Demand

Natural Gas Supply

Projected Supply of Natural Gas

2014 1303.51 35.46 1334.28 1369.74 -66.23 4386.41 2024 1724.34

Method 3 – Statistical Straight Line

SU 11933.87 55 385 61335.97 1479.39 -52.125 940803.82

Method 4 - Statistical Parabolic Curve

AGCM 313 630

Rice Husk Supply Projection

Crops (Palay): Volume of Production in the Philippines in ‘000 MT (Selected Statistics on

Graphical Presentation of Crops (Palay): Volume of Production from 2006-2015

Volume of Production of Palay

Method 1 – Arithmetic Straight Line

Year Production %increase Yi+1 1+r Yc Y-Yc (Y-Yc)2 Year Projected

Method 3 – Statistical Straight Line

Method 4 – Statistical Parabolic Curve

662.5 438906.2 2018 15 225 20342.8

Standard Deviation Summary – Rice Husk Supply Projection

Demand and supply analysis, demand/ supply gap

Natural Gas Supply and Demand Gap

Projected Supply Projected Demand

Proposed Marketing Program

Place or Channel of Distribution

Channel of Distribution of the Product

Natural Gas Power

Graphical Presentation of Historical Market Price of Compressed Natural Gas

Historical Market Price of Natural Gas

Uses of the product

Biomass gasification is an incomplete combustion of biomass that results in the

Description of the process

Drying and Size Reduction

Biomass gasification is an incomplete combustion of biomass that results in the

The pyrolysis reaction is Biomass + Heat → Char + Gases + Vapor or Liquid

Pyrolysis generally produces the following three products: