Soyaben Project

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 66

BAHIR DAR UNIVERSITY

BAHIR DAR INSTITUTE OF TECHNOLOGY


FACULTY OF CHEMICAL AND FOOD ENGINEERING
DEPARTMENT OF CHEMICAL ENGINEERING
Plant design and Economics
Group Project
Title: Soybean Processing Plant
By:
Name ID
Getaneh Mandefrot 0800820
Hanna Kassahun 0800886
Misrak Sisay 0801109
Tinsae Belayneh 0801360

Submitted to: Mr. Bantelay S.


Submission date: 14 / 07 / 2012 EC
Bahir Dar Ethiopia
Bahir Dar university (BIT) Plant design project

DECLARATION
We group eight students declare that this project was conducted based on our effort and original
work. The different data are collected and found from internet and Google services and also from
the published papers and journals. And also from the lecturer notes advises and personnel.

Student Name Sign Date

Getaneh Mandefrot …………. ……………….

Hanna Kassahun ………….. ………………..

Misrak Sisay …………… ……………….

Tinsae Belayneh …………….. ……………….

Final Document Page i


Bahir Dar university (BIT) Plant design project

ACKNOWLEDGEMENT
First of all we would like to thank our God for helping us by giving strength, patience, and health
for performing this project task under very crowded tasks and shortage of time. Secondly we
would like to thank the Bahir Dar institute of technology for supplying good internet and wifi
connections to perform the tasks. Thirdly we would like to thank for our lecturer Mr. Bantelay
who gives enough highlights about the course and give information on how the project be
conducted.

Final Document Page ii


Bahir Dar university (BIT) Plant design project

EXECUTIVE SUMMARY
Soybean is one of the agricultural product produced in the rural areas of the country and it is the
highly developed and industrially needed material and there are so many different products are
processed from it. These includes soybean milk, yoghurt, powdered milk, sauce etc. these several
types of products have their respective benefits. Among this type of product and respective
benefits, soybean oil is the most the required type in terms of both marketing value and public
consumptions having considering the socio-economic and living standards. Soybean oil is one of
the most attractive item in the market and it can be processed from the raw material soybean in
different mechanisms of production techniques. These includes mechanical pressing, extrusion
expelling and the solvent extraction. Each processes have their respective working techniques.
Solvent extraction with hexane is preferred because of enhanced production capacity and easier
ways of extraction. The economic analysis, equipment sizing, profitability, the site of location as
well as the possible plant lay out are presented in the paper.

Key words: soy bean, edible oil, profit, solvent extraction, equipment sizing.

Final Document Page iii


Bahir Dar university (BIT) Plant design project

Table Contents
DECLARATION ............................................................................................................................. i

ACKNOWLEDGEMENT .............................................................................................................. ii

EXECUTIVE SUMMARY ........................................................................................................... iii

Lists of figures .......................................................................................................................... vii

List of tables ............................................................................................................................. viii

Notations .................................................................................................................................... ix

CHAPTER ONE ............................................................................................................................. 1

INTRODUCTION .......................................................................................................................... 1

1.1 General Overview ................................................................................................................. 1

1.2 Soybean Processing and Advantages of Its Products ........................................................... 3

1.3 Statement of Problem ............................................................................................................ 8

1.4Objective ................................................................................................................................ 8

1.4.1 General objective ........................................................................................................... 8

1.4.2 Specific objective ........................................................................................................... 8

CHAPTER TWO ............................................................................................................................ 9

LITERATURE REVIEW ............................................................................................................... 9

2.1 Feasibility Study/ Market Assessment .................................................................................. 9

2.2 Ethiopian soybean oil market................................................................................................ 9

2.3. Comparison of possible products ....................................................................................... 11

2.4. Process Technology (innovation) and specification .......................................................... 11

2.4.1. Mechanically extracting the oil from soybeans .......................................................... 11

2.4.2. The solvent extraction process .................................................................................... 12

2.5. Utility Requirements .......................................................................................................... 13

CHAPTER THREE ...................................................................................................................... 14

Final Document Page iv


Bahir Dar university (BIT) Plant design project

PROCESSES TECHNOLOGY .................................................................................................... 14

3.1 Process ................................................................................................................................ 14

3.2. Process Comparison ........................................................................................................... 17

3.3. Process Description ............................................................................................................ 17

3.4. Process Flow Diagram ....................................................................................................... 19

CHAPTER FOUR ......................................................................................................................... 20

SITE SELECTION ....................................................................................................................... 20

4.1. Site selection analysis ........................................................................................................ 20

4.2. Plant Layout ....................................................................................................................... 21

4.3. Environmental Impact Analysis ......................................................................................... 21

CHAPTER FIVE .......................................................................................................................... 22

MASS & ENERGY BALANCE AND ECONOMIC EVALUATION ....................................... 22

5.1. Mass Balance ..................................................................................................................... 22

5.2. Energy Balance .................................................................................................................. 29

5.3. Equipment Design of major unit operations ...................................................................... 33

5.4. Equipment Sizing ............................................................................................................... 33

5.5. Economic Evaluation ......................................................................................................... 37

5.6. Purchasing cost of equipment ............................................................................................ 37

5.7. Fixed capital investment cost ............................................................................................. 41

5.8. Working capital .................................................................................................................. 42

5.9. Total Production cost (TPC) .............................................................................................. 44

CHAPTER SIX ............................................................................................................................. 51

FINANCIAL ANALYSIS ............................................................................................................ 51

6.1 Profitability ......................................................................................................................... 51

6.1.1 Gross and net profit ...................................................................................................... 51

Final Document Page v


Bahir Dar university (BIT) Plant design project

6.1.2 Break-even Analysis .................................................................................................... 52

6.1.3 Pay-back Period ........................................................................................................... 53

CHAPTER SEVEN ...................................................................................................................... 55

CONCLUSION AND RECOMMENDATION ............................................................................ 55

7.1 Conclusions ......................................................................................................................... 55

7. 2 Recommendations .............................................................................................................. 55

Reference ...................................................................................................................................... 56

Final Document Page vi


Bahir Dar university (BIT) Plant design project

Lists of figures
Figure 1: The raw soybean seed for processing .............................................................................. 1
Figure 2: Market value and importing rate of soybean products in Ethiopia ............................... 10
Figure 3: Process flow diagram for mechanical extraction process ............................................. 12
Figure 4: Process flow diagram for solvent extraction ................................................................. 13
Figure 5: Extraction mechanisms of solvent extraction ................................................................ 19
Figure 6: Possible flow diagram oil extraction ............................................................................. 19
Figure 7: Plant layout .................................................................................................................... 21
Figure 8: Material balance on degumming ................................................................................... 23
Figure 9: Mass balance on aspirating............................................................................................ 24
Figure 10: Mass balance on extractor and toastor ........................................................................ 25
Figure 11: Mass balance an drying ............................................................................................... 27
Figure 12: Material balance on cleaning ....................................................................................... 28
Figure 13: Energy balance on drying ............................................................................................ 29
Figure 14: Energy balance on cooking or conditioning ................................................................ 31

Final Document Page vii


Bahir Dar university (BIT) Plant design project

List of tables
Table 1: Annual soya bean production in Ethiopia ...................................................................... 10
Table 2: Site selection criterions and evaluation .......................................................................... 20
Table 3: Composition of soybean ................................................................................................. 22
Table 4: Extraction processing conditions .................................................................................... 22
Table 5: purchase cost of equipment in 2014 ............................................................................... 38
Table 6: Marshal and swift installed equipment index ................................................................. 39
Table 7: updated purchase equipment cost ................................................................................... 40
Table 8: total capital investment table .......................................................................................... 43
Table 9: operating labor cost table ................................................................................................ 47
Table 10: total production cost table ............................................................................................. 50
Table 11: Unit cost and citation of soybean products ................................................................... 51
Table 12: Breakeven point production analysis ............................................................................ 52

Final Document Page viii


Bahir Dar university (BIT) Plant design project

Notations
DRC Democratic republic of Congo
FAO Food and agricultural organization
FCI Fixed capital investment
GE General expense
ft Feet
hr Hour
Kg Kilogram
KJ Kilo joule
m Meter
MC Manufacturing cost
O
C Degree Celsius
Q Production rate
TCI Total capital investment
TPC Total production cost
TPDC Total production direct cost
TPIC Total production indirect cost
USA United states of America
USD US dollar
V Volume
WC Working cost

Final Document Page ix


Bahir Dar university (BIT) Plant design project

CHAPTER ONE
INTRODUCTION
1.1 General Overview
Soybeans are a type of edible legume which has a remarkable nutritional value in terms of
protein content. Soybean is one of the most nut
nutritious
ritious crop in the world. It contains at least 100%
more proteins than any other common crop and yields 55-10
10 times more protein per unit area than
other crops (Soybean Africa 2016). The protein in soybean is also balanced. It contains all the
essential amino
ino acids, which the body cannot manufacture.

Soybean is a legume increasingly consumed for economical and nutritional reasons (Steinke,
1992; Henley et al., 1993; Garcia et al., 1997a). In fact, soy
soy- bean products are an important
im low-
cost source of proteins,
ins, minerals, phosphorus and vitamins. Furthermore, soybean products play
an important role in health (Messina and Barnes, 1991; Messina, 1995; Sirtori et al., 1995). The
intake of soybean is not only suitable for people with allergenic reactions caused by
b animal milk,
but it is also recommended to prevent heart disease, obesity, hypercholesterolemia, cancer,
diabetes, kidney disease, and osteoporosis. These reasons have promoted the recent appearance
of numerous products derived from soybean such as soybe
soybean
an flour, textured soybean, soybean
dairy-like
like products, meat, bakery products prepared with soybean etc., in order to facilitate its
consumption and to improve its flavor (Wang and Ascheri, 1991; Ishii and Yamagucho, 1992;
Ladodo and Borovik, 1992).

Figure 1:: The raw soybean seed for processing

Final Document Page 1


Bahir Dar university (BIT) Plant design project

The process that soybean undergoes in order to obtain these products may alter its properties.
Some of these industrial processes are the following:

1. Soybean flakes are made by a process consisting of: cleaning, heating, and cracking the seed,
dehulling by aspiration, flaking to 0.25-0.30mm thickness, and removing the oil with hexane.
This is the starting material for most commercial soy- bean products with the exception of full-
fat flour or grits, in which case flakes are obtained without removing the oil (Soy Protein
Council, 1987; Lusas and Riaz, 1995).

2. Soybean flour and grits are prepared by grinding the flakes either after or before removing
the fat to pass through a US lo&325 mesh (in the case of the flour) or a l&80 one (in the case of
the grits). Afterwards, flour and grits are submitted to a controlled moist heat treatment to
provide pro- ducts with different nitrogen solubility indices (white, cooked or toasted) (Soy
Protein Council, 1987; Lusas and Riaz, 1995).

3. Extrusion cooking is a heating process at high temperatures during a short time in which
soybean flour changes into textured soybean. During this process, quaternary structures of
proteins open due to the moisture and high temperatures, proteins polymerize and reorientate,
and inter- molecular bonds are set up. At the same time, enzymes such as urease (which reduces
the useful life-time of the product) and lipoxygenase (which produces off-flavors due to the
oxidation of the soybean oil) and the trypsin inhibitor (which reduces the digestibility of the
protein) are destroyed (Fellows, 1994). This process improves the biological value and modifies
the functional properties of the product (Horvath et al., 1989). Nevertheless, extrusion cooking
needs suitable control because under processing of the product causes gastro-intestinal disorder
and extra processing damages the nutritional and functional properties of the protein (Narayan et
al., 1995).

4. Soybean protein isolates are made from white flakes or from flour milled to US 200 mesh by
removing most of the non-protein components. Protein from flakes or flour is solubilized at pH
6.8-10 using an alkaline agent and separated by centrifugation or filtration from insoluble fibrous
residues. The resulting supernatant is acidified (PH 4.5) to precipitate protein as a curd and
separated from soluble oligosacharides by centrifugation. Then, the protein is spray-dried at its
precipitating pH or it could be neutralized to pH 6.5-7.0 as sodium or potassium proteinates to
make it more soluble and functional (Soy Protein Council, 1987; Lusas and Riaz, 1995).

Final Document Page 2


Bahir Dar university (BIT) Plant design project

5. Soybean milk is an aqueous extract of whole soy- beans (Soy Protein Council, 1987). During
the process, whole soybeans are soaked in distilled water, washed, drained, mixed with distilled
water, ground, and centrifuged to separate the soybean milk from the insoluble residue. This
insoluble residue is commercialized as Okara (Byun et al., 1995).

6. Powdered soybean milk can be produced from soybean protein isolates or by drying soybean
milk. Sometimes calcium or magnesium salts are added (Lusas and Riaz, 1995).

7. Soybean infant formulas are made from soybean protein isolates in which other nutrients
such as vitamins, minerals or amino acids (generally methionine) are added (Soy Protein
Council, 1987; Anderson and Wolf, 1995).

8. Soybean yogurt results from the fermentation of soybean milk (Shirai et al., 1992a,b).

1.2 Soybean Processing and Advantages of Its Products


As it is known that soybean is further processed to produce a wide variety of soy products both
for edible as well as industrial use. In other words soybean processing results in large variety of
soy products. These products have broad applications and advantages.
SOY MILK:
Following are the six most important health benefits of soymilk.
 The most important attribute of soymilk is its ability to improve lipid profile. Studies
have shown that regular intake of soymilk can significantly lower the blood concentration
of triglyceride.
 The Omega – 3 and Omega – 6 fatty acids as well as the powerful phyto antioxidants in
soy can effectively protect blood vessels from lesions and hemorrhage. It improves the
fluidity and flexibility of blood vessels.
 Soymilk is naturally lower in sugar content than regular milk and hence promotes weight
loss.
 It is a rich source of phytoestrogen that can inhibit the production of testosterone in men
and cut significantly the risk of prostate cancer.
 It helps in prevention of osteoporosis which is an age and hormone related disease.
 It prevents postmenopausal syndromes in women thus reducing the risk of health
problems both physical and psychological.

Final Document Page 3


Bahir Dar university (BIT) Plant design project

MISO:
 A fermented soy product Miso gives probiotic effects. Probiotics refer to friendly bacteria
and contains ‘supernatant’ which refers to the growth of medium of the beneficial
bacteria.
SOY SAUCE:
 This product can be used in many different ways in the kitchen including marinating,
adding saltiness, darkening foods, changing appearance, enhancing and balancing flavors.
LECITHIN:

 Lecithin has been utilized by the food industry in a variety of forms to serve many
different functions.
 Lecithin is nature’s best emulsifiers that help blend materials that do not mix
spontaneously or easily when combined.
 Soy lecithins are often used in many bakery applications such as bread, buns and tortillas.
It can extend shelf life and softness of bread products.
 The rapid growth of extruded foods, such as snack foods, pastas and cereals requires a
new generation of lecithin’s to enable efficient production. Soy lecithin solves this
purpose.
SOYBEAN OIL:
Soybean oil is a perfect alternative to olive and canola oil. It is used to :-
 Stir fry meals.
 Dress Salad
 Baking
 Making Dip
DEFATTED SOYA FLOUR (TOASTED):
This product has a variety of application in making various products as detailed below apart from
its use in Soya milk and milk products :-
 Fortification in cereals. This enhances protein content of processed foods.
 Enhances protein content of baked goods, improves crumb body etc.
 Reduces moisture in cookies thus increases shelf life. ¾ Enhances protein content in
baby food as well.

Final Document Page 4


Bahir Dar university (BIT) Plant design project

 Acts as best base material for fermentation in making antibiotics.


UNTOASTED DEFATTED SOYA FLOUR:
The advantages and applications of this value added soy products are that it:
 Maintains the balance of essential amino acids which is required for overall development
in our bodies.
 Acts as a good agent for surface sealing and protein fortification.
 Adds moistness and longer shelf life in the dough nut.
FULL FAT SOYA FLOUR:
Enzyme active full fat Soya flour has wide variety of applications, a few of which are as under:-
 Up to 3% in bread making helps to improve whiteness in blend.
 It is a good emulsifier and stabilizer. It helps in homogenizing of milk for cakes.
 It improves mixing tolerance when mixed with ready flour mixes.
SOYA TEXTURED VEGETABLE PROTEIN (TVP): Applications and advantages of this
product are:-
 It is free from microbiological contamination and objectionable odors.
 It is used in a variety of dishes like vegetable pulav, vegetable curry, sweet dish, burgers
etc.
 It provides adequate texture in industrialized food products.
SOYBEAN MEAL:
 It is livestock feed and a major protein product in the world. Around 90 – 95% of total
output of soybean meal is being used for livestock feed in the world.
 It is safe ingredient for cattle and poultry and contains minerals, vitamins and all essential
amino acids.
SOYBEAN HULLS:
 Soy hulls a by-product resulting from the processing of soybeans for soybean meal and
oil, is also used extensively as animal feed
NON – FOOD APPLICATIONS OF SOY PRODUCTS:

The same products that are produced for the food and animal feed industries are also sold into
other industries for non – food applications. Biodiesel: It is a fuel type which is produced by
reaction of a short chain alcohol (methanol or ethanol) with vegetable oils that are obtained by

Final Document Page 5


Bahir Dar university (BIT) Plant design project

oilseeds plants or animal fats. Biodiesels that are produced with commercial purposes are
obtained by canola, soybean or safflower oils.

Especially in United States soybean is used for biodiesel production (Çengelci et al, 2011). Fuels
that are petroleum origin have harmful effects on the environment. Therefore, using of
environmentalist fuels such as biodiesel is supported (Sekmen and Aktaş, 2008). These other
uses of the product represent industrial applications. The use of soy oils, soy proteins and soy
lecithin’s in the industrial areas are consistent with an environmentally responsible approach to
formulation. The following are examples of the applications where soy products have been
employed for industrial use:-

Industrial Applications of Soy Lecithin:

Classified by functionality, the same properties that lecithin is employed for in food processing
often has industrial applications as the following points illustrate:

Antioxidant: Used in the automotive industry in cleaning and penetrating products, and
as a chelating agent for multivalent metals.
Crystallization Control: In cosmetics and pharmaceuticals, lecithin modifies and
stabilizes the crystal structure of fats, mono and diglycerides.
Dust Control: Applied by spray, lecithin diluted 10 – 30% in oil helps to suppress the
potential of small particles to become airborne.
Emollient: In shampoo products, lecithin is easily dispersible and improves shine and
body.
Lubrication: In shock absorbers and manufacturing, lecithin is used in combination with
other lubricants in penetrating oil, cleaning sprays and hydraulic fluids.
Pigment Dispersion: In paints, inks, coatings, cosmetics and magnetic media, there are
forms of lecithin that are easily dispersible in water or oil, highly filtered, heat resistant
and completely soluble.
Wetting: In lefion polymer powders and in singing powders, lecithin helps powdered
ingredients to wet more quickly.
Softening and Curing: Used in leather tanning as an inexpensive softening and
penetrating agents.

Final Document Page 6


Bahir Dar university (BIT) Plant design project

Industrial Applications of Soy Protein:


Soy protein concentrate are used as a nutrient base for fermentation in the production of
pharmaceuticals, gums and gels. Other applications of soy protein include production of plastics,
cosmetics, wood replaces, adhesives, paper coating agents and as a foaming agent for application
of herbicides.
Industrial Application of Soy Oil: Includes

 Drying Oil: Soybean oil is used in the drying oil industry to make household and
architectural oil based paints and inks for newsprint and offset printing.
 Plasticizers: Soybean oil is used as both a plasticizers and stabilizer in the manufacture
of plastic parts and components.
 Surfactants: Soybean oil is used in the manufacture of various surface – active agents.
 Dimmer Acids: Soybean oil is used in the production of dimmer acids used in both non
– reactive and reactive polyamide resins.
 Hydraulic Fluids: Soybean oil is the base component in a new line of environmentally
friendly hydraulic fluids.
 Insecticides and Fungicides: Soybean oil is used as a carrier and sticking agent in
agricultural chemicals to improve the efficacy of these products.
 Solvents and Cleaners: Soybean oil and methylated soybean oil are used to provide a
safer and biodegradable alternative replacement for petroleum based solvents and
cleaners.
 Coatings: Many coating applications using various soybean oil derivatives can be used
to make water dispersible poly resins.

In general the soybean is used:

1. as food ingredient.

2. For Industrial uses.

3. For Consumer Consumption and

4. As Livestock feed.

Final Document Page 7


Bahir Dar university (BIT) Plant design project

1.3 Statement of Problem


Ethiopia is the 5th leading soybean producer country in Africa and there is an increase in
production volume during the lastconsecutive years. This cultivated product is directly exported
without any processing or value addition, in parallel larger amount of processed soybean product
is imported. On the other hand there is a visible scarcity, low quality and cost fluctuation in the
market of edible oil. Since edible oil is one of main consumable materials its scarcity and
expensive cost cannot be anticipated easily. Thus continuous and large demand of edible oil
makes the oil production sector more attractive than other soybean processing alternatives.
Annually Ethiopia on average spend 11 million USD for importing various soy bean products out
of which more than 74% of such amount of USD spend for import of edible oil. This decreases
the foreign currency paid for edible oil importing, provide an oil with better quality and provide
large demand for the products of the producer.

1.4Objective
1.4.1 General objective
The main objective of this project is to design edible oil producing plant using soya bean as raw
material.
1.4.2 Specific objective

 To make market assessment on past, current and future soya bean oil supply and demand.
 To investigate different process technologies on soya bean oil and comparing them.
 To select plant site, location and its impact on environment.
 To perform capital cost, operating cost and profitability analysis.
 To conduct mass and energy balance on specified unit operation.
 To conduct preliminary and detail equipment design on specified unit operation.

Final Document Page 8


Bahir Dar university (BIT) Plant design project

CHAPTER TWO
LITERATURE REVIEW
2.1 Feasibility Study/ Market Assessment
Compared to the USA, South/Latin America and Asia, Africa is a very small producer of
soybean. During the last decade or so, Africa accounted for 0.4 – 1% of total world production of
soybean. The main producers within the continent include Nigeria, South Africa, Uganda, and
Zimbabwe. Nigeria, which contributed nearly 50% of Africa’s output, accounted for a mere
0.3% of the world soybean output in 2003.
About 19 African countries are recorded in the world soybean production statistics compiled by
FAO. These countries and the proportion (%) of African soybean production that each accounts
for are: Nigeria (48.9%), Uganda (16.8%), South Africa (14.9%), Zimbabwe (8.4%), Ethiopia
(2.7%), Rwanda (2.0%), Egypt (1.7%), and DRC (1.4%). Others are: Cameroon (0.8%), Benin
(0.7%), Cote d’Ivoire (0.3%), Liberia (0.3%), Burkina Faso (0.3%), Zambia (0.2%), Gabon
(0.2%), Tanzania (0.2%), Morocco (0.1%) [7].

Export of Soy bean in Ethiopia has been started in 2004, it is exporting only soybean grain and
no other processed products of soy bean are started to be exported. At the year 2008 the highest
volume of export has been registered and has immediately declined in a significant amount. The
average volume of annual soy bean export is 1.4 million Kg. This export volume is very far from
the volume of imported soy bean products.
2.2 Ethiopian soybean oil market
Soy bean grain, soya sauce, Soy bean edible oil, Soy bean flour and meal and non-edible oil the
only types of soy bean products imported during the last 12 years. Edible oil takes the lion share
of the proportion from the total imported volume of Soy bean products. Edible soy bean oil takes
more than 84% of the total volume Ethiopia’s import of soy bean products. Based on the last ten
years imported volume data, Ethiopia on average import more than 15 million Kg soy bean was
products every year.

Final Document Page 9


Bahir Dar university (BIT) Plant design project

Table 1:: Annual soya bean production in Ethiopia

Figure 2:: Market value and importing rate of soybean products in Ethiopia

Final Document Page 10


Bahir Dar university (BIT) Plant design project

2.3. Comparison of possible products


Soy bean grain, soya sauce, Soy bean edible oil, Soy bean flour and meal and non-edible oil were
the only types of soy bean products imported during the last 12 years. Edible oil takes the lion
share of the proportion from the total imported volume of Soy bean products. Edible soy bean oil
takes more than 84% of the total volume Ethiopia’s import of soy bean products. Based on the
last ten years imported volume data, Ethiopia on average import more than 15 million Kg soy
bean was products every year. Equivalent to the volume, the total value of edible soy bean has
also the biggest share of the total amount of USD Ethiopia spent for importing soy bean
products. Annually Ethiopia on average spend 11 million USD for importing various soy bean
products out of which more than 74% of such amount of USD spend for import of edible oil.
Thus production of edible oil is more attractive in terms of its demand and economic benefit.

2.4. Process Technology (innovation) and specification


Mechanical pressing and solvent extraction are the two primary methods of oil removal used in
soybean processing. The mechanical process, with hydraulic pressing and continuous screw
pressing techniques, was used before the development of solvent extraction. Because higher oil
recovery and efficiency is associated with solvent extraction, mechanical expelling has declined
in popularity, having been replaced by the solvent extraction techniques.

2.4.1. Mechanically extracting the oil from soybeans

The screw-press process involves heating whole soybeans and the oil is mechanically squeezed
out of the beans. The heat generated by friction of the screw presses destroys the anti-nutritional
factors in raw soybeans. While mechanical extraction of seeds or fruits, a very old method for the
processing of oil is nowadays used only for fruit oils or specialty oils, in the extensive extraction
process in large facilities, mechanical and chemical means are applied. This results in raw oil
that has to run through different steps of a refining process to make the oil useable. A further
method for the extraction of oil is the use of high-pressure carbon dioxide. These specialized
meals have higher levels of residual oil (energy), lower protein contents, greater rumen bypass
values and are more palatable than other oilseed meals. These meals find great use in dairy
rations to balance the amino acids supplied by alfalfa forage, or corn-based byproducts (8).

Final Document Page 11


Bahir Dar university (BIT) Plant design project

Figure 3: Process flow diagram for mechanical extraction process

2.4.2. The solvent extraction process

Solvent extraction uses the solubility of oil and a nonpolar organic solvent to extract oil from
soybean flakes. Compared to the mechanical expelling process, solvent extraction can remove
about 0.5% of residual oil with less energy consumption and facility maintenance (Anderson,
2011). Due to its relatively higher oil recovery and energy efficiency, the development and
application of solvent extraction has expanded since the 1940s along with the early expansion of
U.S. soybean production (Woerfel, 1995).

Hexane is the solvent most used for oil extraction, and it is the mix of isomers with similar
properties which is also called extraction hexane or commercial hexane (Anderson, 2011).
Compared to n-hexane, extraction hexane has similar molecular weight and specific gravity,
higher ignition and flash temperature, lower melting point and boiling point Table 1-1 (NFPA-36
standard, 2009). These properties increase the safety of operating. Additionally, the extraction
hexane results in a slightly greater ability to extract efficiently than n-hexane, due to the presence
of various isomers.

Final Document Page 12


Bahir Dar university (BIT) Plant design project

Figure 4: Process flow diagram for solvent extraction

2.5. Utility Requirements


Electricity and steam are main energy inputs for the extraction process. Electricity powers the
facilities and steam heats the resources for the process. More energy inputs are needed in larger
scales of production for soybean drying, conditioning process, and desolvenization process.

Final Document Page 13


Bahir Dar university (BIT) Plant design project

CHAPTER THREE
PROCESSES TECHNOLOGY
3.1 Process
Pretreatment: For the production of high-quality oil, it is important to use high-quality raw
material. Therefore, it is necessary not to start oil processing only with the oil extraction from the
raw material, but the process has to start on the field.

After harvesting, cleaning and, drying of seeds are the most important steps. Both the amount of
foreign matter and the content of moisture are basis for the settlement of the oil mills with the
farmers when seeds are delivered. The initial preparation step is cleaning and it is necessary
because typical seed lots entering the processing plant will contain approximately 2% foreign
material (sticks, pods, dust, stones, sands, etc.). Then it is dried using steam to reduce moisture
content from 13 percent to 9 percent.

De-hulling: For DE hulling of soybeans, the material is tempered for 24 h before the process to
allow uniform distribution of moisture in the seeds. Even today hot de-hulling systems are in use
where the cleaned seeds are heated to 60°C for half an hour, resulting in the migration of
moisture to the surface with following quick heating to about 85°C which removes the moisture
from the material to a content of 1–3%. By this treatment, hulls break loose from the beans and
the beans become crisp and can be divided into two halves. In the conventional DE hulling, the
beans are cracked into six to eight pieces by roller mills. Afterward, hulls are separated by shaker
screens, aspirators, or gravity tables, which also can be used in combination.

To maintain the oil quality from De-hulled seed material, it is necessary to work continuously
without any delay and carefully to disrupt as few cotyledons as possible, because DE hulled
material is remarkably more susceptible to settlement by microorganisms and degradation by
enzymes such as myrosinase or lipases. The enzymes being separated in compartments prior
dehulling come together with the substrates, forming isothiocyanates and nitriles from
glucosinolates and free fatty acids from triacylglycerides. This results in a fast degradation of the
dehulled seed material and the formation of degradation products strongly influencing the oil
quality.

Final Document Page 14


Bahir Dar university (BIT) Plant design project

Preconditioning: Before the extraction process starts; seeds are often heated to about 30–40°C
to prevent shattering during the flaking process. Another important point is that this
preconditioning helps to improve cake formation, extractability, and hexane recovery from the
extracted oilseed flakes (Unger 1990). This step is also important for plants in colder climates.
Preheating of the whole seeds is performed either by direct contact of the seed material with hot
air or by indirect heating.

Flaking: The next step in large-scale facilities is the flaking operation. The aim of this step is to
rupture as many cell walls as possible to improve the release of oil from the seeds by destruction
of the seed coat and the oil cells. In these cells, lipid particles are surrounded by cell membranes
or cell walls, which avoid that oil is delivered from the intact seeds. After the flaking process,
about 80% of these membranes or walls are destroyed resulting in the unimpeded drain of oil.
Another important point is that the surface of seeds is drastically enlarged by flaking, which
results in an easier contact of the lipid particles among each other by which they more easily
migrate from the seed material. Additionally, solvent can more easily dissolve the lipid fraction
from the seeds, which leads to a more comprehensive extraction of the material. The result is that
extraction of the seeds needs less thermal energy input during cooking and less mechanical
energy during extraction by screw presses.

In general, flaking is carried out by using two cast-iron rolls with a smooth surface, which are set
at an appropriate gap to control the thickness of the flakes. During running, one roll revolves at
2–5% higher rpm with the result that the roll surfaces wipe each other. Distribution of seeds on
the whole width of the rolls is achieved by using vibrating feeders which result in an even
spreading. While preheated seeds pass through the rolls, the seed coat and cell walls are
destroyed as a result of the pressure that occurs during this process. Often, flaking is carried out
in a two-step process, in order to ensure a high grade of flaked seeds. In the first step, the seeds
are cracked to about 0.4–0.7 mm thickness. The result of this step is that the hull or seed coat of
the seeds is broken. In a second step, the thickness of the flakes is reduced to about 0.2–0.4 mm,
whereas the optimum is between 0.30 and 0.38 mm. Flakes thinner than 0.2 mm are very fragile,
while flakes thicker than 0.4 result in lower oil yield (Carr 1995) . The problem of thin flakes is
that they contain a large part of small particles that can get into the oil resulting in problems
during filtration of the oil.

Final Document Page 15


Bahir Dar university (BIT) Plant design project

Cooking or conditioning: Cooking or conditioning of the flaked seeds has different advantages
for the following process, and also for the product quality itself. First of all, intact cells that
overcame the flaking process are disrupted during the thermal treatment with temperatures
between 75 and 85°C. This results in an easier extractability of oil from the solid residue. Then,
as a result of higher temperature during cooking, viscosity of the oil droplets is reduced
facilitating the emergence of small lipid particles coming from the oil-bearing cells to form
larger oil droplets. This relieves the drainage of the oil from the solid during the extraction. A
successful cooking process can be seen by the oily appearance of the flakes as a result of the
larger oil droplets, whereas the appearance of uncooked flakes is dry and the oil is not noticeable.

Another important point is that the moisture content of the material can be adjusted by the
cooking process before starting the extraction Most enzymes have a temperature optimum
between 50 and 60°C. Within this range, the conversion rates of the enzymes with its substrates
are highest. Therefore, it is important to pass through this range as fast as possible. At higher
temperature, the process of cooking results in deactivation of the enzymes. This deactivation is
important since breakdown products of glucosinolates in rapeseed, such as isothiocyanates or
nitriles, partially remain in the solid residue after the extraction process. They are suspected to be
harmful to animal when using the residue as fodder. Another point is that glucosinolates consist
of sulfur, which can be found in the oil as a result of degradation. Sulfur poisons catalysts and
therefore influences their activity during a possible hydrogenation process.

The inactivation of lipases by heat treatment is important since these enzymes lead to the
degradation of triacylglycerides and phospholipids resulting in higher amounts of free fatty acid
responsible for a reduction of the shelf life of the oil.

In general, conditioning of flakes takes place by using A relatively new method for conditioning
the raw material before extraction is the high-temperature–short-time (HTST) conditioning of the
seeds The material is treated less than 20 s with heated steam as heat carrier at temperatures
between 120 and 145°C, which results in the seeds at temperatures higher than 100°C and an
immediate deactivation of the enzymes. Another effect is a better extractability of valuable
minorcomponents such as polyphenols, while the content of tocopherols remains unchanged
Extraction of Oilseeds.

Final Document Page 16


Bahir Dar university (BIT) Plant design project

3.2. Process Comparison


Extraction by solvent is recommended if it is necessary to reduce the oil content in the raw
material to lower than 2%. This means the aim of extraction by solvent is to remove as much oil
as possible from the oilseed. From an economical point of view, pre-extraction by screw presses
is advisable, because equipment and maintenance for solvent extraction is very costly. In most
cases, hexane is used as solvent, because it is cheap, has good oil solubility at relatively low
temperature, has an appropriate boiling temperature, is noncorrosive to metal, does not react
chemically with the oil, is stable under the process conditions, is not mixable with water, which
eases the separation of water from the seeds, and it is easily and completely removed from the
residue with low energy input and without impairment of the raw oil. Nevertheless, this solvent
also has some disadvantages with regard to its potential danger from which results high
requirements concerning the equipment.

Also some other solvents such as hydrogen sulfide or trichloroethylene are in the discussion, but
finally the advantages of hexane overbalance the disadvantages in comparison to the other
solvents. Hydrogen sulfide has a high toxicity, a low boiling point, and an extremely high vapor
pressure. The heat of evaporation of trichloroethylene is higher than that of hexane, considering
the density.

3.3. Process Description


During solvent extraction of the oilseed, an intensive contact between solvent and press cake is
necessary to achieve an exhaustive removal of oil. For this, the solvent is heated to 50–60°C, but
it is important to avoid boiling when hot press cake comes into contact with the solvent. Since
press cake comes hot from the pressing process, a further temperature supply is only necessary
when the extractor starts working. Temperature is important for the extraction since viscosity of
the solvent is reduced and the solubility of the extract increases with higher temperatures. The
result is a higher rate of extraction. Additionally, the composition of the extract is influenced by
the extraction temperature.

While most oils mainly consist of triacylglycerides, minor components such as phospholipids,
chlorophyll, free fatty acids, color pigments, and degradation products of oxidative reactions are
co extracted by the solvent. This amount of minor components increases drastically with the
temperature. For example, an increase in temperature from 40 to 58°C raises the content of

Final Document Page 17


Bahir Dar university (BIT) Plant design project

phospholipids in rapeseed oil from 0.2 to 0.8%. This should be taken into consideration, because
removal of minor components during refining is costly.

Another important factor influencing the result of solvent extraction is moisture, which can come
from the surface of the press cake or from poor water/hexane separation after distillation. This
moisture can avoid an optimal penetration of the press cake by the solvent, resulting in low
extraction rates and high residual solvent in the meal. In some cases, “blinding off” of the
perforated cell floors occurs resulting in the necessity of a complete shutdown of the plant and
cleaning of the floors.

The extraction rate not only depends on temperature and moisture but also on the adjustment of
equilibrium between diffusion of solvent into cake particles to dissolve oil and diffusion of oil
from within the particles out into the solvent for which a certain time is necessary. This time is
needed for an extensive extraction of the press cake. Therefore, each plant has to find a balance
between time necessary for the extraction and the oil yield necessary for an economical work.
The highest amount of oil is extracted within the first few minutes of the process: 75% in the first
25 min, whereas the total oil yield depends on the further number of extraction steps and the total
extraction time

The result is small particles with a worse surface/volume ratio, which lead to a remarkable worse
percolation of the solvent through the cake bed. This again results in poor extraction efficiency,
higher residual oil content in the press cake (Unger1990), and also high levels of solvent in the
meal. Thus, more extraction steps and a higher solvent requirement are necessary to achieve a
sufficient oil yield.

In most cases, solvent extraction of the press cake is carried out by using a continuous
countercurrent extraction process moving the press cake and the solvent in opposite directions.
This method is most efficient in reducing the oil content of the press cake to a minimum, while
the need of solvent remains comparably low. During the process, the cake is brought into contact
with solvent several times and after a certain time of adjustment of equilibrium the solvent/oil
mixture, called as miscella, is allowed to drain away from the cake. With each step, the amount
of oil in the cake is reduced, but since it is not possible to remove all of the solvent from the cake
a certain amount remains together with oil in the cake. Therefore, theoretically, the extraction

Final Document Page 18


Bahir Dar university (BIT) Plant design project

process is an infinite process and the processor has to balance between economic aspects and an
extraction as extensively as possible.

Extractor

Figure 5: Extraction mechanisms of solvent extraction

3.4. Process Flow Diagram

Figure 6: Possible flow diagram oil extraction

Final Document Page 19


Bahir Dar university (BIT) Plant design project

CHAPTER FOUR
SITE SELECTION
4.1. Site selection analysis
There are favorable climatic and soil conditions for soybean production in South and Western
Ethiopia which is essential both for commercial purposes as well as for Subsistence farming
Soybeans are very sensitive seeds. The main soybean producing areas are in the western part of
the country, in Oromia and BenishangulGumuz, and, to a lesser extent, in the Amhara region.
These areas are said to have vast fertile land and a favorable agro-climate suited to growing
soybeans. Site selection criteria’s are;

 Raw materials
 Market
 Energy
 Water supply
 Transportation facility
 Community factor
 Taxation and legal restriction

Alternative sites are Jimma, Assosa and BahirDar.

Table 2: Site selection criterions and evaluation


Selection criteria Alternative sites
Jimma Assosa BahirDar
Raw materials availability Very good Very good low
Marketavailability Good Good good
Energyavailability Good Low good
Water supply Good Low good
Transportation facility Good Low low
Community factor Good Good good
Taxation and legal restriction Uniform uniform uniform

Final Document Page 20


Bahir Dar university (BIT) Plant design project

All the sites have the same ground on community factor and legal restrictions. In considering
soybean supply Jimma and Assosa are closer to main producing areas. Jimma and BahirDar are
preferable in their energy and water supply facilities due to their readymade industrial park
shelters. In accounting the transportation facility, even though the selected sites are around the
input cultivation area, they vary in their location from the corners and center of the country
which is valuable for market distribution.

Based on its location Jimma looks attractive site of plant. Taking the summation of site selection
criterion comparisons Jimma is preferable site of the soybean oil plant.

4.2. Plant Layout

Figure 7: Plant layout

4.3. Environmental Impact Analysis


The production of soybean oil from soy does not use significant amount of chemicals except
hexane which is recycled. Hence, the impact on environment due to the production of soybean
oil is negligible

Final Document Page 21


Bahir Dar university (BIT) Plant design project

CHAPTER FIVE
MASS & ENERGY BALANCE AND ECONOMIC EVALUATION
5.1. Mass Balance
List of available data:

Table 3: Composition of soybean


Soybean composition %
Oil 18
Protein 36
Moisture 13
Fiber and ash 10
Carbohydrate 23

Table 4: Extraction processing conditions


Soybean preparation %
Percent of soybean removed as hull 10
Percent oil in the hull 1.5
Percent of moisture of cleaned soybean 13

Oil extraction
Percent moisture of flake leaving extractor 13
Percent oil of flake leaving extractor 0.5

The process selected for the manufacture of the soybean oil is essentially continuous.

Assumption;

▪ Specifying plant operation for 300 calendar days per year.


▪ Company attain a plant with an annual production of 12 thousand ton.

Crude oil produced = 12000ton/ 300days= 40ton/day

Final Document Page 22


Bahir Dar university (BIT) Plant design project

Material balance on degumming

Wed=?
Degumming
Wco=40tons/day

Wpl=0.125*Wed

Figure 8: Material balance on degumming


Where;

Wsd = mass flow rate of extracted oil from extractor to degumming

Wco = mass flow rate of degummed pure crude oil

Wpl = mass flow rate of phospholipid

Over all material balance on degumming unit:

Wsd = Wco + Wpl but Wpl = 0.125 *Wsd

Wsd = 40 +0.125* Wsd

Wsd – 0.125Wsd = 40

0.875Wsd = 40

Wed = 40/0.875 = 45.7 tons/day

Thus mass flow rate of phospholipid removed is equal to 0.125*45.7 = 5.7 tons/day

Final Document Page 23


Bahir Dar university (BIT) Plant design project

Aspirating

Wdsoy=? Whull=10%Wdsoy

Xoil=18% Xoil=1.5%

Wce=?

Xoil=?

Figure 9: Mass balance on aspirating


Where;

Wdsoy = mass flow rate of dried soybean

Whull = mass flow rate of hull

Mass flow rate of hull is about 10% of the soybean.

Overall material balance

Wdsoy = Whull + Wce but Whull = 0.1*Wdsoy

Wdsoy = 0.1*Wdsoy + Wce

0.9Wdsoy = Wce…………………………………………… (1)

Component (oil) balance

Xoil*Wdsoy =Xoil* Whull + Xoil*Wce

0.18*Wdsoy = 0.015*Whull +Xoil*Wce

0.18*Wdsoy = 0.015(0.1Wdsoy) + Xoil*Wce

0.1785*Wdsoy = Xoil*Wce…………………………………. (2)

Substituting equation (1) in to (2)

0.175*Wdsoy = Xoil*(0.9*Wdsoy)

Final Document Page 24


Bahir Dar university (BIT) Plant design project

Xoil = 0.1785/0.9 = 0.2 = 20%

Thus the oil content of soybean fed to the extractor is 20%

Material balance on extractor and toaster

In extraction section there are two processes these are;

 Mixing
 Components splitting

Xh=100% Xoil=0.5%

Wh=? Wf=?

Wec=?

Xoil=20% Wed=45.7ton/day

Xoil=100%

Wh=?

Xh=100%

Figure 10: Mass balance on extractor and toastor


Where;

Wce = mass flow rate of soy bean from conditioning to extraction

Wh = mass flow rate of hexane used for extraction of oil

Wf = mass flow rate of flake from extraction to meal house

Wed = mass flow rate of extracted oil form extractor to degumming

Xh = composition of hexane

Xoil = composition of oil

The amount of hexane used for extraction is equal with the amount of soybean to be
extracted so as to have efficient extraction.

Final Document Page 25


Bahir Dar university (BIT) Plant design project

Overall material balance

Wce + Wh = Wf + Wed +Wh

Wce = Wf +Wed

Wce = Wf + 45.7

Wce – Wf =45.7 …………………………………………… (3)

Oil (component) balance

Wce*Xoil = Wf*Xoil + Wed*Xoil

0.20*Wce= 0.005 *Wf+45.7*1

0.20*Wce– 0.005*Wf = 45.7…………………………………. (2)

Solve equation (3) and (4) simultaneously

0.20*(Wf +45.7) – 0.005*Wf = 45.7

0.195*Wf = 36.56

Wf = 36.56/0.195 = 187.5 tons/day and

Wce = 187.5 +45.7 = 233.2 tons/day

Mass flow rate of conditioned soybean fed to extractor is 233.2 tons/day. After finding this
mass flow rate of dried soy (Wdsoy) can be calculated by using equation (1)

Wdsoy =Wce/0.9 = 233.2/0.9

Wdsoy = 259 tons/day and thus Whull =0.1*259 = 25.9 tons/day

For one (1) tons of soybean seed use 5–15 tons of hexane for a complete wash out. And in
our case to extract 233.2 tones we need 1,166-3,498 tons of hexane. And if we take the
average 2,332 tons of hexane is required (Wh = 2,332 tons/day).

Material balance on soy bean preparation

Soy bean preparation includes;

Final Document Page 26


Bahir Dar university (BIT) Plant design project

 Cleaning
 Drying
 Aspirating (removal of hull)
Drying

Xwater=13% Xwater=%
Drying
Wcsoy=? Wwater=?

Wdsoy=259ton/day

Xwater=9%

Figure 11: Mass balance an drying


Where;

Wcsoy = mass flow rate of cleaned soy

Wwater = mass flow rate of water

Xwater = component of water (moisture content)

Overall material balance

Wcsoy = Wwater + Wdsoy

Wcsoy = Wwater + 259……………………………. ………………... (5)

Water (component) balance

Xwater*Wcsoy = Xwater*Wwater +Xwater*Wdsoy

0.13*Wcsoy = Wwater + 0.09*259

0.13Wcsoy = Wwater +26……………………………. (4)

Substitute equation (3) in to (4) and solve for Wcsoy

0.13(Wwater + 259) = Wwater + 23.31

0.13*Wwater + 33.67 = Wwater +23.31


Final Document Page 27
Bahir Dar university (BIT) Plant design project

0.87Wwater = 11.5

Wwater = 10.36/0.13

Wwater = 11.9 tons/day

Thus mass flow rate of cleaned soy bean (Wcsoy) = 11.9 + 259 = 270.9 tons/day

Cleaning

Row soy bean will contain approximately 2% foreign material (sticks, pods, dust, stones,
sands etc.).

Wsoy=? Wfo=2%Wsoy
Cleaning

Wcsoy=270.9ton/day

Figure 12: Material balance on cleaning


Where;

Wsoy = mass flow rate of raw soy received from farmer

Wfo = mass flow rate of foreign material

Over all material balance

Wsoy = Wfo + Wcsoy but Wfo = 0.002*Wsoy

Wsoy = 0.02*Wsoy + 270.9

0.98Wsoy = 270.9

Wsoy = 270.9/0.98 = 276.43 tons/ day

And Wfo = 0.02*270.9 = 5.5 tons/day

Thus 276.43 tons of raw soybeans are required to produce 40tons of oil per day. The
material balance summary made for the process shown in Fig. below is given on a daily
basis. After a complete material balance is made, the mass quantities are used to compute

Final Document Page 28


Bahir Dar university (BIT) Plant design project

energy balances around each piece of equipment. Temperature and pressure levels at
various key points in the process, serve as guides in making these heat balances.

5.2. Energy Balance


Energy balance is performed in unit operations such as drying, conditioning, and toasting. These
three-unit operations require energy

Drying

Qcsoy

Drying Qdsoy

Qst

Qew

Figure 13: Energy balance on drying


Where;

Qcsoy=the rate of heat energy of the cleaned soy feed

Qst=the rate of heat energy supplied to the drier in the form of steam.

Qew= the rate of heat energy in the evaporated water.

Qdsoy= the rate of heat energy of dried soy.

Assumption

Heat loss in the drier is negligible.

There is no chemical reaction inside the drier.

The operation is operated at steady state.

Given information

The initial temperature of the feed (cleaned soybean) is 250℃

The mass flow rate of the feed from cleaning (ṁF) is 270.9 tons/day = 270,900 kg/day
Final Document Page 29
Bahir Dar university (BIT) Plant design project

The mass flow rate of the vaporized moisture is 11.9 tons/day = 11900kg/day The mass flow rate
of dried soybean Mdsoy is 259 tons/day = 259,000 kg/day The maximum temperature of the
drier is 85℃.

Note: since the feed (cleaned soy bean) is not preheated the heat of feed is zero (Qcsoy=0)

1. Heat of vaporized moisture can be calculated as follows

QEW = ṁEW*CpW* ∆T Cpw = Specific heat capacity of water = 4.2 KJ/kg k

QEW = 11,900 *4.2 * (80-25)

QEW =2,998,800 KJ/day

2. Energy in the dried soy. Moisture content of dried soy is 9%

Qdsoy = Mdsoy*Cpsoy*∆T but Cpsoy = 0.032M +1.379 where M = moisture content

Cpsoy = 0.032*0.09 + 1.379 = 1.382 KJ/kg k

Qdsoy = 259,000*1.382*(85-50) Qdsoy = 12,527,830 KJ/day.

Therefore the total energy balances in the driers given by:

Ein =Eout

Qcsoy +Qst = QEW +Qdsoy

Qst = QEW +Qdsoy – Qcsoy

Qst = 2,998,800 +12,527,830 -0 = 15,526,630 KJ/kg.

To reduce the moisture content of the feed soybean from 13% to 9%v we need steam energy that
has 15,526,630 KJ.

Cooking or Conditioning

Qasoy
Cooking or
Qcsoy
conditioning
Qst

Final Document Page 30


Bahir Dar university (BIT) Plant design project

Figure 14: Energy balance on cooking or conditioning


Where

Qasoy=the rate of heat energy of the aspirated soy

Qst=the rate of heat energy supplied to the cooker in the form of steam.

Qcsoy= the rate of heat energy of cooked soy.

Assumption

Heat loss in the drier is negligible.

There is no chemical reaction inside the drier.

The operation is operated at steady state.

Given information

The temperature of the feed grinded soy is 50o c

The mass flow rate of the grinded soy to cooker (Masoy) is 233.2 tons/day = 233,200 kg/day The
maximum temperature of the cooker is 120oc.

3. Energy in the dehulled feed soy (Qdsoy)

Qasoy = Masoy*Cpsoy*∆T but @ to 50oc Cpsoy = 0.032M +1.379 where M = moisture


content

Cpsoy = 0.032*0.09 + 1.379 = 1.382 KJ/kg

Qasoy = 233,200*1.382*(50-25) Qasoy = 5,830,000 KJ/day.

4. Energy in the cooked soy (Qcsoy)

Qcsoy = Mcsoy*Cpsoy*∆T but @ to 120oc Cpsoy = 0.032M +2.173 where

M = moisture content = 9%

Cpsoy = 0.032*0.09 + 2.173 = 2.175 KJ/kg

Qcsoy = 233,200*2.175*(120-50)

Final Document Page 31


Bahir Dar university (BIT) Plant design project

Qcsoy = 35,504,700 KJ/day.

Therefore the total energy balances on the cooker given by:

Ein =Eout

Qasoy +Qst = Qcsoy

Qst = Qcsoy – Qasoy

Qst = 35,504,700 KJ/day - 5,830,000 KJ/day

Qst = 29,674,700KJ/day

Thus the total amount of steam energy needed to the plant is

Qst total = 15,526,630 KJ/kg + 29,674,700KJ/day

Qst total = 45,201,330 KJ/day

Final Document Page 32


Bahir Dar university (BIT) Plant design project

5.3. Equipment Design of major unit operations


Equipment design for this preliminary process evaluation involves determining the size of the
equipment in terms of the volume, flow per unit time, or surface area. Some of the calculations
associated with the extraction, unit are presented in the following to indicate the extent of the
calculations which are sometimes adequate for a preliminary design.

5.4. Equipment Sizing


Storage (Holding) Tank:

Storage tank and silo is used to store raw materials such as; raw soybean, Hexane, water and
final products that is crude oil.

Storage bin (silo)

From material balance mass of soybean consumed per day is 276.63 tons

Thus V soybean = mass of soybean/density of soy bean

And density of soybean is equal to 753 kg/m³ =0.753ton/m³

V soybean consumed = 276.63/0.753

= 367.3 m3/day

V storage bin for soybean = V soy bean consumed per day*storage period in days

Assume storage period in day is 6 days

V storage bin for soybean = 367.3 *6 day

V storage bin for soybean = 2,203.8 m3 = 77,776.7 ft3

3 storage bins with holding volume of 25,922.23 is used to handle the raw soybean.

Crude oil storage

From material balance mass crude oil consume per day is 40 tons.

Thus V crude oil = mass of crude oil/density of crude oil

And density of soybean is equal to 850 kg/m³ =0.85ton/m³

Final Document Page 33


Bahir Dar university (BIT) Plant design project

V crude oil produced = 40/0.85

= 47m3/day

V crude oil produced = V crude oil produced per day*storage period in days

Assume storage period in day is 7 days

V tank of crude oil = 47 m3 day*7 day

V tank of crude oil = 329 m3 = 86,912.602 gallon

One tank with holding volume of 86,912.602 gallon is used to store the produced crude oil.

Hexane tank

From material balance mass hexane used and recycled per day is 2,332 tons.

Thus V hexane = mass of hexane/density of hexane

And density of soybean is equal to 680 kg/m³ =0.68 ton/m³

V hexane used and recycled = 2332/0.68 = 3427.9m3/day

V hexane tank = V hexane used per day*storage period in days

Assume storage period in day is 1days

V hexane tank = 3,427.9 m3 day*1 day

V hexane tank = 3,427.9 m3 = 905,555.38 gallon

Five (5) tanks with holding volume of 181,111 gallon each are used to store hexane solvent.

Pump 1

Assumption

Positive displacement pump is used to transport hexane to extractor

Density= 680kg/m3

Head = 4m

Materials of construction is carbon steel

Final Document Page 34


Bahir Dar university (BIT) Plant design project

Capacity = 142.8 m3/hr.

Pump 2

Assumption

Positive displace pump is used to move recycled hexane to hexane tank.

Density= 680kg/m3

Head = 4m

Materials of construction is carbon steel

Capacity = 142.8 m3/hr.

Dryer

The volume of clean soybean fed to the dryer is calculated as follows;

Thus V csoybean = mass of soybean/density of soybean

And density of soybean is equal to 753 kg/m³ =0.753ton/m³

V csoybean = 270.9/0.753 = 359.76 m3/day

V drier for soybean = V soy bean consumed per day*storage period in days

Assume drying period in day is 2 days

V storage bin for soybean = 359.76 m3/day*2 day

V dryer for soybean = 719.5 m3 = 7740.9 ft3

And also volume of dryer

V dryer = 7740.9

Assume height of dryer = 5m = 53.8 ft2

r2 = 7740.9/3.14 *53.8

r2 = 45.8 ft2

r = 6.77 ft.

Final Document Page 35


Bahir Dar university (BIT) Plant design project

• Area of the drum dryer evaluated from the volume.

Area of dryer = Area of dryer = 3.14*6.772

Area of dryer = 143.91 ft2

Extractor capacity

Hexane and conditioned soybean fed to the extractor counter currently. And thus the extractor
capacity will be

Mass of hexane + mass of soy bean

2,332 tons/day + 233.2 tons/ day = 2565.2 tons/day

Assume extraction time equals one day

Extractor capacity = 2565.2 tons/day * 1 day

Extractor capacity = 2565.2 tons

Degumming tank

From material balance mass crude oil degummed per day is 45.7 tons and to do this 5.7 tons of
water is used.

V degumming tank = V crude oil + V water

Thus V crude oil =

And density of crude oil is equal to 850 kg/m³ =0.85ton/m³

V crude oil produced = /day

And V water

And density of water is equal to1000 kg/m³ = 1ton/m³

V crude oil produced = /day

Now evaluate volume of degumming tank.

V degumming tank = V crude oil + V water

Final Document Page 36


Bahir Dar university (BIT) Plant design project

= 53.7 m3/day + 5.7m3/day

V degumming tank = 59.5 m3/day

Assume storage period in day is 1days

V degumming tank = 59.5 m3/day * 1day

V degumming tank = 59m3 = 15,691 gallon

Two degumming tanks with capacity of 7845.5 gallon for each are used.

5.5. Economic Evaluation


Before an industrial plant can be put into operation, a large sum of money must be supplied to
purchase and install the necessary machinery and equipment. Land and service facilities must be
obtained, and the plant must be erected complete with all piping, controls, and services. In
addition, it is necessary to have money available for the payment of expenses involved in the
plant operation.

The capital needed to supply the necessary manufacturing and plant facilities is called the fixed
capital investment, while that necessary for the operation of the plant is termed the working
capital. The sum of the fixed-capital investment and the working capital is known as the total
capital investment. The fixed-capital portion may be further subdivided into manufacturing
fixed-capital investment and nonmanufacturing fixed-capital investment.

5.6. Purchasing cost of equipment


The cost of purchased equipment is the basis of several predesign methods for estimating capital
investment. Sources of equipment prices, methods of adjusting equipment prices for capacity,
and methods of estimating auxiliary process equipment are therefore essential to the estimator in
making reliable cost estimates. The estimation can be done by using cost index, and Estimating
Equipment Costs by Scaling.

Final Document Page 37


Bahir Dar university (BIT) Plant design project

Table 5: purchase cost of equipment in 2014


No equipment Type variable Material Of cost in
construction 2014
(USD)

1 conveyor Screw conveyor carbon steel 41,300


width/diameter = 36
inch
2 storage bin cone, bottom, large volume = 25,922.23 carbon steel 198,100
ft3
3 hexane tank horizontal, fuel volume = 181,111 fiberglass 578,000
storage gallon reinforced plastic

4 crude oil API, cone roof volume = 86,912.6 stainless steel 227,700
tank gallon
5 hexane pump chemical injection, capacity = cast iron 40,100
fixed speed 2.38 m3/min
6 drum drier drum, double surface area = 143.1 ft2 carbon steel 224,700
vacuums
7 grinder large cone crusher equipment diameter = carbon steel 1,624,600
10ft
8 aspirator vibratory deck area = 32 ft2 medium carbon 20,900
1deck, steel wire
medium
9 flaking mill ball mill equipment diameter = carbon steel 550,100
7ft
10 extractor and liquid-liquid capacity = carbon steel 20,000
toaster extractor 2565.6 tons/day
11 degumming vertical, cone top and volume = 7,845.5 stainless steel 93,200
tank bottom, small gallon
Source: www.matche.com

Final Document Page 38


Bahir Dar university (BIT) Plant design project

Cost index

A cost index is merely an index value for a given point in time showing the cost at that time
relative to a certain base time. If the cost at some time in the past is known, the equivalent cost at
the present time can be determined by multiplying the original cost by the ratio of the present
index value to the index value applicable when the original cost was obtained.

The most common of these indexes are the Marshall and Swift all
all-industry
industry and process-industry
equipment indexes.

Since the cost index of 2020 is not available we take the cost index of 2017.

Table 6:: Marshal and swift installed equipment index


Year Annual Index
2009 521.9
2010 550.8
2011 585.7
2012 584.6
2013 567.3
2014 576.1
2015 556.8

2016 541.7
2017 535.3

Present cost = original cost*

We choose 2014 as the base year


Index at 2020
Present cost (2020) = original cost (2014)*
Index at 2014

Final Document Page 39


Bahir Dar university (BIT) Plant design project

Estimating Equipment Costs by Scaling

It is often necessary to estimate the cost of a piece of equipment when no cost data are available
for the particular size of operational capacity involved.

The cost-capacity
capacity concept should not be used beyond a tenfold range of capacity, and care
ca must
be taken to make certain the two pieces of equipment are similar with regard to type of
construction, materials of construction, temperature and pressure operating range, and other
pertinent variables.

No Equipment Quantity Cost Cost Equipment cost Estimated equipment


index in index in in 2014 cost in 2019
2014 2019 (USD) (USD)
1 Conveyor 1 576.1 535.3 41,300 38,375.09113
2 storage bin 3 576.1 535.3 594,300 552,211.0571
552
3 hexane tank 5 576.1 535.3 578,000 537065.44
4 crude oil tank 1 576.1 535.3 227,700 211,574.0496
5 hexane pump 2 576.1 535.3 80,200 74,520.15275
6 drum drier 1 576.1 535.3 224,700 208,786.5128
7 Grinder 1 576.1 535.3 1,624,600 1,509,544.142
8 Aspirator 1 576.1 535.3 20,900 19,419.84031
9 flaking mill 1 576.1 535.3 550,100 511,141.347
extractor and
1 576.1 535.3 20,000 18,583.57924
10 toaster
11 degumming tank 2 576.1 535.3 93,200 86,599.47926
Total purchase
equipment cost 3,767,820.691
Table 7: updated purchase
ase equipment cost

Final Document Page 40


Bahir Dar university (BIT) Plant design project

5.7. Fixed capital investment cost


Fixed costs mainly come from facility and hardware costs. They are divided into total plant
direct cost (TPDC), total plant indirect cost (TPIC), and contractor fees and contingency
(CFC).TPDC includes items like facility installation, processing pipe connections, and
instrumentation; and TPIC includes engineering and construction fees. Total plant cost (TPC) is
estimated by total TPDC and TPIC. Additionally, the summation of TPC, CFC, startup costs and
working capital is total capital investment for the whole producing line. The fee to purchase the
facility is used as the base to estimate fixed costs and is calculated using different multipliers.
A. Direct cost

Direct cost is the type of fixed capital investment costs that directly applicable for plant erection.
Before we are going to estimate the direct cost first of all identifies the process type. And the
plant is solid liquid processing plant.

B. Indirect cost

Indirect costs are expenses which are not directly involved with material and labor or actual
installation of complete facility.

 Fixed Capital investment (FCI) = Direct cost + Indirect cost FCI = DC + IC

 Total capital investment (TCI) It is the sum of fixed capital investment and working
capital

 TCI= FCI + WC but WC = (10-20) % TCI, taking 15%

TCI= FCI + 0.15 TCI

TCI – 0.15TCI = FCI

TCI (1-0.15) = FCI 0.85TCI = FCI

TCI = FCI/0.85

Final Document Page 41


Bahir Dar university (BIT) Plant design project

5.8. Working capital


The working capital (WC) is the total amount of money invested in the raw materials and
supplies cost carried in stock, finished product in stock, semi-finished product in stock and other
requirements.

The working capital for an industrial plant consists of the total amount of money invested in (1)
raw materials and supplies carried in stock, (2) finished products in stock and semi-finished
products in the process of being manufactured, (3) accounts receivable, (4) cash kept on hand for
monthly payment of operating expenses, such as salaries, wages, and raw-material purchases, (5)
accounts payable, and (6) taxes payable.

The working capital is 10-20 % total capital investment (TCI), assume 15%

WC = 0.15*TCI

Total capital investment cost of the plant is calculated (summarized) in the table below.

Final Document Page 42


Bahir Dar university (BIT) Plant design project

Table 8: total capital investment table


Item percentage (% of E ) costs in USD
Purchased equipment (delivered) 100 3,767,820.69
Purchased equipment installation 39 1,469,450.069
Instrumentation (installed) 13 489,816.6898
Piping (installed) 31 1,168,024.414
Electrical (installed) 10 376,782.0691
Buildings (including services) 29 1,092,668
Yard improvements 10 376,782.0691
Service facilities (installed) 55 2,072,301.38
Land 6 226,069.2415
Total direct plant cost D 293 11,039,714.62
engineering and supervision 32 1,205,702.621
construction expense 34 1,281,059.035
Total indirect plant cost I 66 2,486,761.656
Total direct and indirect plant cost 359 13,526,476.28

(D+I)
Contractor's fee (about 5% of D+I ) 18 678,207.7244
Contingency (about 10% 0f D+I ) 36 1,356,415.449
Fixed - capital investment (FCI) 413 15,561,099.45
Total - capital investment (TCI) FCI/0.85 18,307,175.83
Working capital 15%TCI 2,746,076.374

Final Document Page 43


Bahir Dar university (BIT) Plant design project

5.9. Total Production cost (TPC)


Determination of the necessary capital investment is only one part of a complete cost estimate.

Another equally important part is the estimation of costs for operating the plant and selling the
Products. These costs can be grouped under the general heading of total product cost (TPC). The
latter, in turn, is generally divided into the categories of manufacturing costs and general
expenses. Manufacturing costs are also known as operating or production costs. Further
subdivision of the Manufacturing costs is somewhat dependent upon the interpretation of direct
and indirect cost.

Total product cost (TPC) = Manufacturing costs (MC) + General expense (GE)

Raw material cost calculation

1. Soybean:

Amount of soybean needed for one day is 276.43 tons = 276,430 kg

Amount of soybean needed for one year is thus

Plant operation day is 300 days per year

Annual soybean requirement is 300 days/year*276,430 kg/day = 82,929,000 kg/year

Unit price of soybean in market is $0.438/kg

Total annual cost of soybean = $0.438/kg*82,929,000 kg/year = $36,322,902/year

2. Hexane:

Amount of hexane for one day = 2,332tons = 2,332,000kg.

Since hexane is recycled therefore we only invest money for the first operation.

Unit price of hexane =$0.89/kg.

Total cost of hexane = $0.89/kg * 2,332,000kg = $2,075,480/year

3. water:

Amount of water in the process per day = 5.7m 3

Final Document Page 44


Bahir Dar university (BIT) Plant design project

Amount of water per year = 5.7m3/day *300 day = 1710 m3/year

Cost of water per m3= $0.0655

Total cost of water per year = 1710 m3/year* $0.0655/m3 = $112.1/year


Total annual raw material cost = $38,398,494.

Utilities supply cost

i Water

Amount of water in the process per day = 50m3.

Amount of water per year = 50m3 *300day/year = 15,000 m 3/year

Cost of water per m3= $0.0655

Total cost of water per year = 15,000 m3/year* $0.0655/m3 = $983.25/year

ii Electric power
Power required running the process estimated at 5,000 kWh per day and thus 1,500,000 kWh per
year

Cost of electric power = $0.0277/kWh Total cost of electric power per year = $41,666.6/year

iii steam

Amount of steam required in the process per day = 45,201,330KJ/day

Amount of steam required per year = 45,201,330KJ/day *300day/year = 13,560MJ/year

Cost of steam = $5/MJ

Total cost of water per year = 13,560 MT/year *$5/KJ = $67,800/year

Total annual utility cost = $ 110,449.85

Calculation of operating cost

Operating Labor

In general, operating labor may be divided into skilled and unskilled labor. Hourly wage rates
for operating labor in different industries at various locations can be obtained from the U.S.

Final Document Page 45


Bahir Dar university (BIT) Plant design project

Bureau of Labor Monthly Labor Review. For chemical processes, operating labor usually
amounts to about 15 percent of the total product cost.

In preliminary costs analyses, the quantity of operating labor can often be estimated either from
company experience with similar processes or from published information on similar processes.

Another method of estimating labor requirements as a function of plant capacity is based on


adding up the various principal processing steps on the flow. And we used this method to
calculate operating labor cost of the plant.

Final Document Page 46


Bahir Dar university (BIT) Plant design project

Table 9: operating labor cost table

Sr. Description Req. No. Monthly Annual


No. Salary(USD) Salary(USD)
1 Plant manager 1 300 3,600
2 Secretary 1 90 1,080
3 Production and technical manager 1 220 2,640
4 Finance and administration manager 1 220 2,640

5 Commercial manager 1 220 2,640


6 Accountant 2 220 2,640
7 Purchaser 2 220 2,640
8 Sales man 2 220 2,640
9 Production supervisor 1 110 1,320
10 Mechanic 2 145 1,740
11 Electrician 2 145 1,740
12 Chemists 2 220 2,640
13 Operators 33 1,320 15,840
14 Assistant operator 33 1,155 13,860
15 Laborers 20 500 6,000
16 Personnel 1 75 900
17 Time keepers 3 90 1,080
18 Clerk 3 65 780
19 Store keeper 2 70 840
20 Driver 5 375 4,500
21 Guard 5 150 18,00
22 Cleaner 3 90 10,80
Sum-total 126 6,220 74,640

In general, operating labor may be divided into skilled and unskilled labor.

1. Manufacturing costs

Manufacturing cost = direct production costs + fixed charges + plant overhead costs

Final Document Page 47


Bahir Dar university (BIT) Plant design project

A. Direct production costs

1. Raw material (10-15) % of total product cost (TPC)

Raw material cost = $38,398,494

2. Operating labor (10-20) % TPC = $74,640

3. Direct supervisory and clerical labor (10-25) % of operating labor) = 0.1*OL =$7,464
4. Utilities = $110,449.85

5. Maintenance and repairs=(2-10)%FCI = 0.03*FCI=0.03*15,561,059.45 = $466,832.98

6. Operating supplies 15%M&R =0.15*466,832.98 = $70,024.947

7. Laboratory charges (10-20% of operating labor) = 0.15*74,640 = $11,196

8. Patents and royalties (0-6% of total product cost) = 0.01*TPC

Direct production cost (DPC) = 39,139,101.88 + 0.01* TPC--------------------------- (1)

B. Fixed charges

1. Depreciation 10% FCI =0.1*FCI = 0.1*$15,561,099.45 = $1,556,109.945

2. Local taxes (1-4) % FCI = 0.01*FCI =0.01*$15,561,099.45 = $155,610.99

3. Insurance (0.4-1) % FCI = 0.005*FCI = 0.005*$15,561,099.45 =$77,805.49

4. Rent (8-12) % of value rented land and buildings – for the safe of promoting local
investors, in Ethiopia provide land free from taxes and rents.

Fixed charges (FC) = Depreciation + Local tax + Insurance

FC = $1,789,526.43

C. Plant overhead (5-15% of total product cost) = 0.05*TPC

Manufacturing Cost (MC) = Direct production costs + Fixed charges + Plant overhead

= $39,139,101.88 + 0.01* TPC +$1,789,526.43 + 0.05*TPC

= $40,928,628.31 + 0.06* TPC------------------------------ (2)

Final Document Page 48


Bahir Dar university (BIT) Plant design project

2. General expense

General expenses (GE) = Administrative cost + distribution and selling costs + Research
and development costs + Financing/Interest

A. Administrative cost is 15%OL = 0.15*74,640 = $11,196

B. Distribution and selling cost (2-20% of total product cost) = 0.02*TPC

C. Research and development cost (5% of total product cost) = 0.05*TPC

D. Financing (0-10% of total capital investment)

= 0.01*TCI = 0.01*18,307,099.45 = $183,071.75

General expenses (GE) = $11,196 + 0.02*TPC + 0.05*TPC + $183,071.75

General expenses (GE) = $194,267.75 + 0.07TPC-------------------------------------------- (3)


Total product cost (TPC) = Manufacturing costs (MC) + General expense (GE)

TPC = $40,928,628.31 + 0.06* TPC + $194,267.75 + 0.07TPC

TPC = $41,122,896.06 + 0.13* TPC

TPC (1-0.13) = $41,122,896.06

0.87*TPC = $41,122,896.06

TPC =$47,267,696.62/year

Final Document Page 49


Bahir Dar university (BIT) Plant design project

Table 10: total production cost table


Item Percentage cost in USD
raw material cost 38,655,012.10
operating labor 74,640
direct supervisory and clerical labor 10%OL 7,464.00
Utilities 110,449.85
maintenance and repair 3%FCI 466832.9835
operating supplies 15% M&R 70024.94753
laboratory charges 15%OL 11196
patent and royalties 1%TPC 472,679.96
Direct production cost 39,611,778.84
Depreciation 10%FCI 1,556,109.945
local taxes 1%FCI 155,610.9945
Insurance 0.5%FCI 77,805.49725
Fixed charges 1,789,526.43
Plant-overhead costs 5%TPC 2,363,384.831
Administration 15%OL 11,196
distribution and selling 2%TPC 945,353.93
research and development 5%TPC 2,363,384.831
financing(interest) 1%TCI 183,071.7583
General expense 3,503,006.519
Total production cost 47,267,696.62

Final Document Page 50


Bahir Dar university (BIT) Plant design project

CHAPTER SIX
FINANCIAL ANALYSIS
6.1 Profitability
6.1.1 Gross and net profit

1. Gross profit=

But Capacity

Table 11:: Unit cost and citation of soybean products


Products Unit cost ($2.34/kg) Citation
Soybean oil 2.34 USDA ERS, 2016
Soybean meal 0.62 USDA ERS, 2016
Soybean hull 0.21 Feedstuffs Magazine,

1980-2019

Plant operation day is 300 days. If the plant has 100% production level (Full capacity)

Therefore, Income from sale Revenue

 Revenue from soy bean oil (main produ


product)

$2.34/kg*12,000,000 kg/year
kg/year= $28,080,000/year

 Revenue from soybean meal (byproduct)

Annual product of soybean meal = 187.5tons/day*300days/year*1000kg/ton =

56,250,000kg/year

$0.62/kg*56,250,000kg/year = $34,875,000/year

 Revenue from soybean hull (byproduct)

Annual product of soybean hull = 25.9tons/day*300days/year*1000kg/ton =

7,770,000kg/year

$0.21/kg*7,770,000kg/year = $1,631,700/year

Final Document Page 51


Bahir Dar university (BIT) Plant design project

Total revenue = $64,586,700/year

Gross profit = 64,586,700 - 47,267,696.62

Gross profit = $17,319,003.38/year

Net profit = Gross profit – Income tax = Gross profit – 34% Gross profit

= 17,319,003.38 -0.34(17,319,003.38)
Net profit =$11,430,542.23year

Based on the projected profit and loss statement, the project will generate a profit throughout its
operation life. The annual net profit after taxes is $11,430,542.23year during the life of the
project.

6.1.2 Break-even Analysis

The break-even analysis establishes a relationship between operation costs and revenues. It
indicates the level at which costs and revenue are in equilibrium. To this end, the break-even
point for capacity utilization and sales value estimated by using income statement projection are
computed as followed.
At Break-even point:
Table 12: Breakeven point production analysis
Product type Annual quantity in kg (Q) Percentage (%)
Soybean oil 12,000,000 15.78
Soybean meal 56,250,000 74
Soybean hull 7,770,000 10.22
Total 76,020,000 100

Final Document Page 52


Bahir Dar university (BIT) Plant design project

Average selling price of products is aapproximately = $0.842/kg

Total production cost = Total sale revenue

Fixed cost + variable cost = Total sale revenue

Fixed cost + r*Q = s*Q


Where;

r = unit production cost and

s = unit selling price respectively


Fixed cost= Q/(s - r) and

r= TPC/Q total = $0.62/kg

Fixed cost = Fixed charge+ Plant overhead cost+ General expense

= $1,789,526.43+ 2,363,384.831+ 3,503,006.519= $7,655,916.95/year

QBE

$7,655,916.95/year
= =34,486,111kg/year
$0.842/kg - $0.62/kg
From the total break even qu
quantity,
antity, 15.78% of the quantity is soybean oil. Thus quantity of
oil produced at breakeven point is

QBE of oil = 0.1578*34,486,111kg/year = 5,441,908.21kg/year


The breakeven point capacity is 45.35% of full capacity.

6.1.3 Pay-back Period

The pay- back period,


eriod, also called pay – off period is defined as the period required for recovering
the original investment outlay through the accumulated net cash flows earned by the project.

Accordingly, based on the projected cash flow it is estimated that the projec
project‟s
‟s initial investment
will be fully recovered within approximately3 years.

Payback period

Final Document Page 53


Bahir Dar university (BIT) Plant design project

Net cash annual = Net Profit + Depreciation

Net cash annual = +

Payback period=

Payback period = 1.2years {based on net profit}

6.1.4 Rate of return or Rate on investment

ROR=

= *100% 11,430,542.23
18,307,175.83

= 62.4%

The plant returns 62.4% of the capital investment per year.

Final Document Page 54


Bahir Dar university (BIT) Plant design project

CHAPTER SEVEN
CONCLUSION AND RECOMMENDATION
7.1 Conclusions
In this project we have tried to study the feasibility of production of oil from soybean.The
equipment’s that will be used for the production of oil were designed based on the capacity of
the plant. Thus the material and energy balances were determined. In addition to the design of
equipment’s for major unit operations, the purchasing costs are obtained using the cost index of
2014 as original cost and cost index of 2020 as present time cost. Since profitability is used as a
general term for measurement of a profit can be obtained from a situation. Thus the
determination of and analysis of profit obtained from the investment of capital and the choice of
best investment among various alternatives are major goal of an economic analysis.

Generally, to check whether the project is feasible or not we have used two models of
profitability evaluation (payback period, ROR). The payback period calculated is 2 years and 3
months. Since it is shorter the better the project. The Rate of Return (ROR) tells us how much
rate of return we are getting and is calculated to be 62.4% and hence it is higher and the project
is accepted.

7. 2 Recommendations
The profitability analysis of the plant is done analytically and during computation errors may
occur. And we recommend that in the future the profitability and economic evaluation of the
plant should have to be estimated by using software. For instance super pro designer the best
software for such application

Final Document Page 55


Bahir Dar university (BIT) Plant design project

Reference
1. Woolworth, J.C., M.D. Tokach, R.D. Goodband, J.L. Nelssen, P.R. O’Quinn, and D.A.
Knabe, Apparent Ileal Digestibility of Amino Acids and Digestible and Metabolizable
Energy Values for Conventional Soybean Meal or Dry Extruded-Expelled Soybean Meal
for Swine, in Swine Day 1998, Kansas State University, Manhattan, 1998, p. 49.
2. Zhang, Y.E., C.M. Parsons, K.E. Weingartner, and W.B. Wijeratne, Effect of Extrusion
and Expelling on Nutritional Quality of Conventional and Kunitz Trypsin Inhibitor–Free
Soybeans, Poultry Sci. 72:2299–2308 (1993).
3. Aldrich, C.G., and N.R. Merchan, Heat Treatment of Whole Soybeans: Influence on
Protein Digestion by Ruminants, Triple “F,” Inc., Nutrition Conference, Des Moines,
Iowa, 1995.
4. Lawrence A. Johnson,Extrusion-Based Oilseed Processing Methods, Wilmot B.
WijeratneInsta-Pro International Tong Wang Iowa State University, 2004.
5. Ming-Hsun Cheng and Kurt A. Rosentrater, Techno-Economic Analysis of Extruding-
Expelling of Soybeans to Produce Oil and Meal; Department of Agricultural and
Biosystems Engineering, Iowa State University, Ames, Iowa 50011 USA; Received: 1
March 2019; Accepted: 23 April 2019; Published: 26 April 2019.
6. Cheng, Ming-Hsun, "Sustainability analysis of soybean refinery: soybean oil extraction
process" (2017).
7. Chianu Jonas N1, Vanlauwe B1, Mahasi, JM2, Katungi E3, Akech C1, Mairura FS1,
Chianu Justina N1, and Sanginga N1; Soybean Situation And Outlook Analysis, April
2008.
8. Dr. Lawrence Johnson,Dr. Keith Smith, Keith Smith and Associates;soya bean Meal Info
Center Fact Sheet Crops Utilization Center, Iowa State University.
9. Anderson, G., 2011. Solvent extraction: Edible oil processing. Retrieved from AOCS
Lipid Library: http://lipidlibrary.aocs.org/OilsFats/content.cfm?ItemNumber=40337/
(accessed 16.11.15)
10. NFPA Standard, 2009. NFPA 36 standard fro solvent extraction plants. 19. NFPA.
11. Woerfel, J., 1995. Extraction. in: D. Erickson (Ed.), Practical handbook of soybean
processing and utilization. AOCS Press and the United Soybean Board, Champaign, IL,
pp. 65-92.

Final Document Page 56

You might also like