LKT CORPORATE PLANNING AND MARKETING

Copyright DECEMBER 2011

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Contents

Introduction 3

Activated Carbon Manufacturing

Steam Activation

Chemical Activaton

5

7

Activated Carbon Properties 9

Activated Carbon Output Description 10

Estimation of Equipment and Capital Cost

Steam Activated Coconut Shell Carbon

Chemically Activated Coconut Shell Carbon

12

14

Comparison of Adsorption Properties 16

World Demand Supply Trends 17

Regional Market Scenario 17

Global Market Scenario 17

Numerous Applications for Activated Carbon Worldwide 19

Sales Projection Estimates 23

Summary and Conclusion 25

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IntroductionGCF Multiproducts have been in the export and manufacturing industry of coconut and

banana products since 1997. Among these coconut products are being developed are coconut charcoal briquettes and granulated coco charcoal. With the rapid growth of activated carbon market, this study is intended to investigate the feasibility of marketing granulated activated carbon to International markets by gathering a compilation of studies from activated carbon manufacturers. Additional specific goals of this study are to determine both steam process activation and chemical process activation and estimated cost of production for granular activated carbon.

GCF Multiproducts is situated in Padada, Davao del Sur where 65% of the total land area is planted with coconuts. In 2010, Davao Del Sur region produced 842,342 MT of coconuts (Bureau of Agricultural Statistics, 2010) as copra as their main produce and the coconut shells and husk serving as byproducts.

The company started helping the coconut farmers improve the utilization of their coconut products by developing new products for export market. In line with their products include coconut charcoal briquettes, granulated coconut charcoal, coconut peat and coconut fiber manufacturing.

From the charcoal manufacturing sector of GCF Multiproducts, the company is seeing the huge international market for activated carbon. Based on Freedona International Market study on 2008, global demand for activated carbon will expand at 9.9% yearly through 2014 to 1.7 million metric tons. Currently, Global Industry Analyst (GIA) on their research entitled “Activated Carbon: A Global Strategic Business Report” on April 2011, indicates that the global market for activated carbon is forecast to reach a market size of 2.3 million metric tons by the year 2017. They also recognized the US and Asia-Pacific (China, Indonesia, Philippines, Sri Lanka and Thailand) as countries who traditionally dominate the largest activated carbon producers across the world.

In relation to activated carbon manufacturing industry to supply the increasing demand of activated carbon, China has become the world’s largest activated carbon producer and exporter reaching to 445,000 or more or less 400,000 metric tons as semi-finished carbon products that needs to be re-processed (23% from the global demand of 1.7 million metric tons) . From 2008-2010, China imported over 12,000 tons annually of high value-added activated carbon or 0.7% from the global demand for activated carbon. This spurted the immediate move of coal giants in China to enter the field of coal based activated carbon, for example, the Datong Coal Mine Group. Despite the move by coal giants in the world, there is still a huge gap in the supply demand market for activated carbon, this is due to the raw material constraints where manufacturers have moved to set plants in regions where there are abundant raw materials such as the Asia pacific region.

GCF MULTIPRODUCTS has a plant capacity to produce 600 MT of granulated charcoal made from coconut shells.

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Generally most activated carbon manufacturers produce 2,000 - 5,000 MT annually which generates at least $10 M – 25M in revenue. In relation to GCF multiproducts manufacturing capacity, in 2011 the company has produced an average estimate of 3600 MT of coconut shell charcoal. The current plant capacity can produce at most 7200 MT of charcoal which shows an interesting potential to manufacture activated carbon products.

GCF Multiproducts intends to use its technology and coconut shells to produce granulated activated carbon (GACs). Using coconut shells to produce GACs provides a less expensive raw material and a more preferred material by the international market due to its quality of adsorption. Aside from this, GAC manufactured from coconut shells is a renewable resource instead of a non-renewable one and coconut shell, rather than coal- or peat-based material, is considered to be the greener choice; aside from being renewable, it is sustainable and easily harvested. There is no requirement for the mining or digging of non-renewable fossil fuel resources, such as coal or peat.

The objectives of this investigation were to estimate the cost of production of these carbons through process descriptions and economic analysis. The depiction of process flow diagrams for the production of activated carbon from coconut shell is derived from researches, publications posted in the internet by various institutions and manufacturers. Estimated production costs were derived from equipment manufacturer’s costs and capital and operating costs based on the process flow diagrams and posted market prices of the equipments.

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ACTIVATED CARBON MANUFACTURING

STEAM ACTIVATION

Activation/Oxidation:

Raw material or carbonised material is exposed to oxidizing atmospheres (carbon dioxide, oxygen, or steam) at temperatures above 250 C, usually in the temperature range of 600-1100 C.

Steam activated carbon manufacturing is generally considered a three stage process consisting of pre-activation, activation and post-activation.

Pre-activation is concerned with quality checking and correct sizing and screening of material prior to activation. At this point material can be called kiln-feed.

Activation is the process by which charcoal raw material kiln-feed is turned into activated carbon. Steam activation for this process is where coconut shell charcoal is subjected to high temperatures and steam within specially designed activation kilns. The coconut shell charcoal is activated by reaction with steam at a temperature of 900oC -1100oC under controlled atmosphere in a rotary kiln. The reaction between steam and charcoal takes place at the internal surface area, creating more sites for adsorption. The temperature factor, in the process of activation is very important. Below 900oC the reaction becomes too slow and is very uneconomical. Above 1100oC the reaction becomes diffusion controlled and therefore takes place on the outer surface of the charcoal resulting in loss of charcoal.

Finally, post-activation consists of quality checking the parameters of kiln output material. Further screening is then undertaken and additional special processes such as washing (for example, for ash/impurity removal), demagnetising and impregnation that are applied to meet the requirements of the customer's application.

Steam activation is done through injecting steam

inside the heated rotating kiln with carbonized

coconut charcoal

ROTA

RY K

ILN

GRANULATED COCO CHARCOAL

STEAM GENERATOR

ROTA

RY C

OO

LER

WASHING

DEMAGNETIZING

PELLETING / PACKAGING

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Figure 1. Steam Activated Process

Product Specification

pH Value 6.5 - 7.5

Methylene Value adsorption mgm / gm 190 - 350

Adsorption capacity at % by mass (min) 45

Moisture (max.) 5%

Ash (max) 5%

Hardness 90

Machinery

Jaw crusher  Hammer mill Vibratory feeder

Elevator Carbonization kiln Soaking tanks

CyclonesRotary kiln with heat

recovery unitCoolers

Centrifuge Rotary drier Micro pulverizer

Sieving machine Pneumatic filling machine  

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Chemical activation

Prior to carbonization, the raw material is impregnated with certain chemicals. The chemical is typically an acid, strong base, or a salt (phosphoric acid, potassium hydroxide, sodium hydroxide, zinc chloride, respectively). Then, the raw material is carbonized at lower temperatures (450-900 C). It is believed that the carbonization / activation step proceeds simultaneously with the chemical activation. This technique can be problematic in some cases, because, for example, zinc trace residues may remain in the end product. However, chemical activation is preferred over physical activation owing to the lower temperatures and shorter time needed for activating material.

Activated carbon is produced from coconut shell powder by chemical activation. In commercial production of activated carbon from waste material as coconut shell powder is done by chemical activation.

The coconut shell is first grounded in the form of powder by use of pulverizer.

The powdered raw material is taken into a mechanical mixer. Now the solution of 50% Zinc Chloride is prepared and incorporated into the mechanical mixer. The mixing is done by use of stirrer and heating is applied so that thick paste of raw material powder and zinc chloride is formed.

The thick paste is then passed through an extruder of having an extrusion plate with 1/8” size perforation.

The paste is extruded under pressure into the form of granulated mass.

The granulated mass is then dried by blowing hot air and taken into the rotary kiln.

The klin is heated to the temperature of 850° to 1000ºC by means of furnace flue gas.

The hot activated carbon produced is then cooled in an iron box in the absence of air.

The cooled product is then taken into a washing tank where the dilute hydrochloric acid are sprayed on the activated carbon to remove the inorganic chemicals like zinc compound and the residual acid.

Now, washed activated carbon is dried in the air stream heated kiln at the temperature of 275° to 300° C.

Chemical Activation is done through treating the raw materials into chemicals before

carbonizing at lower heat

PULVERIZERCOCO CHARCOAL

MECHANICAL MIXER

CaCl2 or ZnCl2

EXTRUDERGRANULATED MASS DRIER

ROTA

RY K

ILN

/ C

ARBO

NIZ

ATIO

N

Pressurized Cooling Box

WASHING TANK

DRY

ER

Pulverizing / Pelleting /Packaging

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The activated carbon is then pulverized and screened as per the requirement and then packed in polythene laminated jute bags.

Fig. 2 Chemical Activation Process

PRODUCT SPECIFICATIONS OF CHEMICALLY ACTIVATED CARBON

Chemical parameters Acid washed Unwashed

Moisture(%) max. 10 10

Methylene value(min) 270 280

KmnO4(min) 60 60

Iodine value 1100 1100

Ash(%) max. 3 NA

Fe ppm 200 1000

pH 6.5 to 7.2 Adjustable

Chlorine(%) max 0.4 NA

Sulphate(%) max 0.4 NA

Phosphate Nil Nil

Acid soluble matter(%) 1.5 5

Water soluble(%) 0.5 4

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Bulk density 4 to 6 gm/cc 4-6 gm/cc

ACTIVATED CARBON PROPERTIES

Generally, most manufacturers can customize the properties of activated carbon to cater different client preferences. Different applications for activated carbon demands different activated carbon properties. Listed below are the important properties of activated carbon that manufacturers are customizing for increased marketability and serves as a gauge for quality.

SURFACE AREAo Determines the adsorption capacity. Usually

found by the adsorption of nitrogen (BET method)o Depends on the micropores

PHYSICAL PROPERTIESo Density, hardness, particle size

IODINE NUMBERo Adsorption of iodine from solution

Represented as milligram of iodine adsorbed per gram of carbon

The iodine number is nearly equal to the surface are in m2/g.

DECOLORIZING POWERo Adsorption of dyes from solution – Methylene blue number

ADSORPTION CAPACITYo Adsorption of organic vapors from air stream

Carbon tetra chloride Benzene

OIL RETENTION and FILTERABILITY

● ● ●

Activated Carbon surface area of 500 m2

● ● ●

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HARDNESS NUMBER – percentage retained in a sieve of a given mesh size after shaking the material along with steel balls for a specific time

ACTIVATED CARBON OUTPUT DESCRIPTION FOR BOTH STEAM AND CHEMICALLY ACTIVATED CARBON

A. PRODUCT CHARACTERISTICS

Form Powder,

Pellets

Granules

Grade Liquid phase or de-colouring carbon.

Gas phase or vapour absorbent carbon.

Liquid phase or decolouring carbon

Form Light fluffy powder

Characteristics Large percentage of transitional or macropores

Gas phase or vapour absorbent carbon.

Form Granules or pellet

Characteristics Large percentage of micropores

Pore size

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Porosity and the pore structure are the most important characteristics of Activated carbon. Size of the micropores is the deciding factor in selective absorption.

At least two systems of pores of distinctly different sizes exist in every carbon particle.

Macropores (1000 to 2600 Deg A) acts as large access ways for diffusion of particles.

Micropores (10 to 100 deg A) contributes towards large surface area which are responsible for absorption action.

Surface area

From 200 to 2000 m2/g, depending upon the method and manner of preparation.

Adsorption behavior and Product Specifications    

Depending on the process of activation, i.e. steam, as or chemically activated, the Activated Carbon differ in their adsorption behaviour.

Gradewise application

Grade Sector

Powdered Activated carbon Vegetable oils, fats, sugar, water treatment, pharmaceuticals, fine chemicals and food products.

Granular Activated carbon Automotive canisters, air purification, chemical and pharmaceutical industry.

Pelletised Activated carbon Solvent recovery, catalyst application etc

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Estimation of Equipment and Capital Cost

Once the process flow diagrams were constructed, equipment and capital costs were estimated from a combination of vender quotes from Alibaba.com, web publication and printed literature. Equipment costs represent actual purchase costs and not investment costs. This capital cost estimate was then used in a procedure to estimate fixed capital investment using ranges of process-plant component costs. Land cost, building cost, and service facilities are estimates and transportation of materials and equipments are not included. Procedures are intended for a high degree of automatic control and outdoor operation.

Rotary kilns were sized based on Zhengzhou Huaye Heavy Industry & Machinery Co., Ltd., China from Alibaba.com and so are the other machinery estimates.

Estimation of Equipment and Capital Cost for Steam Activated Coconut Shell Carbon

Table 1. ESTIMATED CAPITAL COST

Equipment Cost (P)

Hammer mill 150,000

2 Rotary kilns (500,000 each) 1,000,000

Rotary cooler 500,000

Sieve 100,000

Total equipment cost 1,750,000

Equipment installation 250,000

Instrumentation 200,000

Electrical installation 100,000

Buildings 2,500,000

Service facilities 500,000

Land 5,000,000

Construction expense 500,000

Contingency 2,970,000

Total capital costs 13,770,000

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Table. 2 ANNUAL OPERATING COST

Item Annual cost (P) Raw materials

Coconut Shell (1000 MT/mo at 9.00 kl) 9,000,000

Utilities

Steam 240,000

Water 180,000

Natural gas 360,000

Electricity (300,000/mo) 3,600,000

Labor

Operating labor (6x10000/mo) 720,000

Maintenance labor (3x12000/mo) 432,000

Supervision (2x15000/mo) 540,000

Supplies

Operating supplies (50,000/mo) 600,000

Maintenance supplies (50,000/mo) 600,000

General Works

General and administrative (5x10000/mo) 600,000

Depreciation 17,144,400

Total cost 34,016,400

Table 3. Summary of Cost of Activated Coconut Shell Carbon

Purchased equipment cost Php 1,750,000

Capital cost 12,020,000

Total fixed capital investment 13,770,000

Total annual operating cost 34,016,400

Estimated annual production of carbon 2,400,000 kg

Estimated cost for activated carbon Php 14.1735

Cost Analysis for Steam Activated Coconut Shell Carbon

Costs were developed assuming a 20 percent yield of coconut shell-based activated carbon (7.5 MT/day output), 320 days per year of production and two men per shift (three shifts) for 24 hours a day at P385 per day. Production of 2400 MT/year of steam-activated coconut shell carbon requires a fixed capital investment of P 13 million (Table 1) and an annual operating cost of P39 million (Table 2). The estimated product cost is P14.17/kg (Table 3).

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Estimation of Equipment and Capital Cost for Chemically Activated Coconut Shell Carbon

Table 4. Estimated capital costs for CaCl activation of coconut shells

Equipment Cost (P)

Hammer mill 150,000

2 Glass-lined, acid soak tanks 400,000 Rotary dryer 500,000

2 Rotary kilns 1,000,000 Rotary cooler 500,000

2 Glass-lined, acid wash tanks 300000

2 Glass-lined, acid recovery tanks 300000

2 Glass-lined, acid storage tanks 300000

Rotary dryer 500,000

Sieve 100,000

Total equipment cost 4,050,000

Equipment installation 250,000

Instrumentation 200,000

Electrical installation 100,000

Buildings 2,500,000

Service facilities 500,000

Land 5,000,000

Construction expense 500,000

Contingency 2,970,000

Total capital costs 16,070,000

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Table 5. Annual operating costs for Cacl activation of coconut shells

I tem Annual cost ($)

Raw materials

Coconut Shell (1000 MT/mo at 9.00 kl) 9,000,000

Zinc Chloride (1 L per kg of coconut shell at P8/L) 96,000,000

Utilities  

Steam 240,000

Water 180,000

Natural gas 360,000

Electricity 500,000

Labor

Operating labor (6x10000/mo) 720,000

Maintenance labor (3x12000/mo) 432,000

Supervision (2x15000/mo) 540,000

Supplies

Operating supplies (50,000/mo) 600,000

Maintenance supplies (50,000/mo) 600,000

General Works  

General and administrative (5x10000/mo) 345,000

Depreciation 22,403,400

Total cost 131,920,400

Table 6. Summary of costs for CaCl activation of coconut shells

Purchased equipment cost Php 4,050,000

Capital cost 12,020,000

Total fixed capital investment 16,070,000

Total annual operating cost 131,920,400

Estimated annual production of carbon 4,800,000 kg

Estimated cost for activated carbon Php 27.05/kg

Cost Analysis

Costs were developed assuming a 40 percent yield of coconut shell-based activated carbon (15 MT/day output), 320 days per year of production and two men per shift (three shifts) for 24 hours a day at P385 per day. Production of 2400 MT/year of chemically activated coconut shell carbon requires a fixed capital investment of P 16 million (Table 4) and an annual operating cost of P131 million (Table 5). The estimated product cost is P27.05/kg (Table 6).

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Comparison of adsorption properties of a chemically activated and a steam-activated carbon, using inverse gas chromatography

By: Eva Dı́?az, Salvador OrdóñezDepartment of Chemical Engineering and Environmental Technology, University of Oviedo, Julián

Claverı́Sa s/n, 33006 Oviedo, Spain

Adsorption properties of two different activated carbons, steam and chemically activated, respectively, were examined by inverse gas chromatography (IGC). The influence of acid, basic and combined washings, carried out in order to remove ashes, on the adsorption properties of these materials was also tested using this technique. Chemical and textural characterization was carried out by nitrogen adsorption, ICP-MS and temperature programmed desorption, whereas thermodynamic properties (enthalpy of adsorption, surface free energy characteristics) have been determined by IGC. Washing procedures (specially those involving acid washing) removes almost completely the mineral ashes of the carbons. Concerning to the effect on porous structure, this procedures only affect significantly to the properties of chemically activated carbon, with increases of micropore volume of up to 43%.

The steam activated carbon shows the best adsorptive behavior, with an enthalpy of adsorption up to 16% higher than the corresponding to chemically activated one, as well as a large amount of micropores. The removal of these ashes enhances the adsorption of studied compounds, especially for alkanes and chlorinated ones. Washing procedures also modify the chemical structure of the organic functionalities, but this effect does not seem to be very important on the adsorption properties of these materials.

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WORLD DEMAND SUPPLY TRENDSSector wise demand

Sector Demand in Metric tons annually

Pharmaceutical 2630

Plasticisers 1750

Glucose/Dextrose Monohydrate/Sorbitol 1550

Vegetable Oil 32500

Miscellaneous sector 6100

Export Sector 400

Total 44930

Likely growth rate in demand : 9 to 10% per annum (Global Industry Analyst, 2010)

REGIONAL MARKET SCENARIO

Region XII has only three (3) major manufacturers of activated carbon

There are only three identified major manufacturers of activated carbon in Davao, namely: Davao Central Chemical Corporation, Premium Active Carbon Incorporated, and Cenaprochemical Corporation.

GLOBAL MARKET SCENARIO

Demand for Activated Carbon:

Around 1.7 million tonnes per annum

Raw materialThe wood based Activated Carbon accounts

for around 40% of the total worldproduction.

Major Producing Countries

The Philippines and Sri Lanka are the major producers and exporters

of Activated Carbon.Sri Lanka has increased its export

volume of Activated Carbon to around 10,000 tonnes per annum.

Global growth rate in demand

9 to 15% per annum

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The new industry study by Freedonia on World Activated Carbon, presents historical demand data (1999, 2004, 2009) plus forecasts for 2014 and 2019 by type, market, world region and major country. The study also considers market environment factors, evaluates company market share and profiles 32 industry competitors worldwide. It summarizes the following points:

a) Global demand to expand 9% annually through 2014

World demand for virgin activated carbon is forecast to expand an impressive 9.0 percent per annum through 2014 to 1.7 million metric tons. The US represents the largest national market for activated carbon in the world, and through 2014, the country will also pace global growth. This extremely optimistic outlook is based on US new federal environmental regulations mandating mercury removal at coal-fired power plants by 2014. A number of states have already passed their own regulations, resulting in US activated carbon demand from coal fired power plants rising significantly in 2009. If federal regulations pass, which is likely, gains are expected to really take off in 2013 and 2014.

b) US market to be aided by DBP & mercury control rules

Demand in the US will also be aided by regulations that will require mercury control at cement kilns and at industrial boilers. Moreover, demand from the water sector will benefit from the US Environmental Protection Agency (EPA)’s Stage 2 Disinfection Byproducts Rule (DBP Rule). This rule was promulgated in 2006 and establishes maximum levels at which disinfection byproducts (DBPs) are permitted to be present in drinking water supplies. DBPs are potentially harmful compounds that are formed when chlorine that is used to disinfect drinking water reacts with naturally occurring organic materials in the water. By removing the organic materials, activated carbon prevents the formation of DBPs.

c) China’s market to be driven by economic growth

Unlike the US, where federal regulations will dictate demand growth, strong gains of around nine percent per year in China’s market for activated carbon will result from continuing healthy economic growth in the country. All end uses for activated carbon in China will benefit from this economic growth. Although the country relies on coal to supply a majority of its energy requirements, UStype mercury removal regulations are unlikely to pass in China in the near future.

d) Coal fired power plants may boost Western European market

Demand for activated carbon in Western Europe and Japan will register weak gains through 2014. In Western Europe, there is some concern that coal will make a comeback (something that is already occurring in Italy) as a key source of energy supply due to declining oil and gas reserves in the North Sea, the pending end of life for some nuclear power plants in the region, and security issues and public disapproval preventing further reliance on energy imports from Russia. If coal fired power plants proliferate in Western Europe, they are likely to also use activated carbon to curtail mercury emissions.

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APPLICATIONS FOR ACTIVATED CARBON WORLDWIDE

Activated carbon is used in gas purification, gold purification, metal extraction, water purification, medicine, sewage treatment, air filters in gas masks and filter masks, filters in compressed air and many other applications.

One major industrial application involves use of activated carbon in the metal finishing field. It is very widely employed for purification of electroplating solutions. For example, it is a main purification technique for removing organic impurities from bright nickel plating solutions. A variety of organic chemicals are added to plating solutions for improving their deposit qualities and for enhancing properties like brightness, smoothness, ductility, etc. Due to passage of direct current and electrolytic reactions of anodic oxidation and cathodic reduction, organic additives generate unwanted break down products in solution. Their excessive build up can adversely affect the plating quality and physical properties of deposited metal. Activated carbon treatment removes such impurities and restores plating performance to the desired level.

Analytical chemistry applications

Activated carbon, in 50% w/w combination with celite, is used as stationary phase in low-pressure chromatographic separation of carbohydrates (mono-, di- trisacchardes) using ethanol solutions (5-50%) as mobile phase in analytical or preparative protocols.

Environmental applications

Activated carbon is usually used in water filtration systems. In this illustration, the activated carbon is in the fourth level (counted from bottom).

Carbon adsorption has numerous applications in removing pollutants from air or water streams both in the field and in industrial processes such as:

Spill cleanup Groundwater remediation Drinking water filtration Air purification Volatile organic compounds capture from painting, dry cleaning, gasoline dispensing

operations, and other processes. In 2007, West-Flanders University (in Belgium) began research in water treatment after

festivals . A full scale activated carbon installations, was built at the Dranouter music festival in 2008, with plans to utilize the technology to treat water at this festival for the next 20 years.

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Activated charcoal is also used for the measurement of radon concentration in air.

Medical applications

Activated carbon is used to treat poisonings and overdoses following oral ingestion. It is thought to bind to poison and prevent its absorption by the gastrointestinal tract. In cases of suspected poisoning, medical personnel administer activated charcoal on the scene or at a hospital's emergency department. Dosing is usually empirical at 1 gram/kg of body weight ( for adolescents or adults, give 50100 g ), usually given only once, but depending on the drug taken, it may be given more than once. In rare situations activated charcoal is used in Intensive Care to filter out harmful drugs from the blood stream of poisoned patients. Activated carbon has become the treatment of choice for many poisonings, and other decontamination methods such as ipecac-induced emesis or stomach pumping are now used rarely.

While activated carbon is useful in an acute poisoning situation, it has been shown to not be effective in long term accumulation of toxins, such as with the use of toxic herbicides.

Mechanisms of action:

Binding of the toxin to prevent stomach and intestinal absorption. Binding is reversible so a cathartic such as sorbitol may be added as well. It interrupts the enterohepatic circulation of some drugs/toxins and their metabolites Incorrect application (e.g. into the lungs) results in pulmonary aspiration which can sometimes be fatal if immediate medical treatment is not initiated. The use of activated charcoal is contraindicated when the ingested substance is an acid, an alkali, or a petroleum product.

For pre-hospital use, it comes in plastic tubes or bottles, commonly 12.5 or 25 grams, pre-mixed with water. The trade names include InstaChar, SuperChar, Actidose, and Liqui-Char, but it is commonly called Activated Charcoal.

Ingestion of activated carbon prior to consumption of ethanol has been shown to reduce absorption of alcohol into the blood. 5 to 15 milligrams of charcoal per kilogram of body weight taken at the same time as 170 ml of pure ethanol (which equals about 10 servings of an alcoholic beverage alcohol, or 12 shots), over the course of one hour, has very apparent effects at reducing potential blood alcohol content other studies showed that this is not the case and that ethanol blood concentrations were increased because of activated charcoal use. This ineficciency together with risk of aspiration make it a dangerous drug when in improper hands. In the past charcoal biscuit was sold in England in the early 19th century, originally as an antidote to flatulence and stomach trouble.

Tablets of activated charcoal are still used as a folk remedy and over-the-counter drug to treat diarrhea, indigestion, and flatulence. They were also used in the past by doctors for this purpose. There is some evidence of its effectiveness as a treatment for irritable bowel syndrome (IBS), and to prevent diarrhea in cancer patients who have received irinotecan. It can interfere with the absorbency of some medications, and lead to unreliable readings in medical tests such as the guaiac card test. A type of charcoal biscuit has been marketed as a pet care product.

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Activated charcoal is also used for bowel preparation by reducing intestinal gas content before abdominal radiography to visualize bile, pancreatic and renal stones.

Fuel Storage

Research is being done testing various activated carbons ability to store natural gas and hydrogen gas. The porous material acts like a sponge for different types of gasses. The gas is attracted to the carbon material via Van der Waals forces. Some carbons have been able to achieve bonding energies of 5-10 KJ per mol. The gas may then be desorbed when subjected to higher temperatures and either combusted to do work or in the case of hydrogen gas extracted for use in a hydrogen fuel cell. Gas storage in activated carbons is an appealing gas storage method because the gas can be stored in a low pressure, low mass, low volume environment that could would be much more feasible than bulky on board compression tanks in vehicles.

The United States Department of Energy has specified certain goals to be achieved in the area of research and development of nano-porous carbon materials. As of yet all of the goals are yet to be satisfied but numerous institutions, including the ALL-CRAFT program, are continuing to conduct work in this promising field.

Gas purification

Filters with activated carbon are usually used in compressed air and gas purification to remove oil vapours, odours, and other hydrocarbons from the air. The most common designs use a 1 stage or 2 stage filtration principle in which activated carbon is embedded inside the filter media. Activated charcoal is also used in spacesuit Primary Life Support Systems. Activated charcoal filters are used to retain radioactive gases from a nuclear boiling water reactor turbine condenser. The air vacuumed from the condenser contains traces of radioactive gases. The large charcoal beds adsorb these gases and retains them while they rapidly decay to non-radioactive solid species. The solids are trapped in the charcoal particles, while the filtered air passes through.

Chemical Purification

Commonly used to purify homemade non-dangerous chemicals such as sodium acetate. It is then filtered out.

Distilled alcoholic beverage purification

Activated carbon filters can be used to filter vodka and whiskey of organic impurities which can affect color, taste, and odor. Passing an organically impure vodka through an activated carbon filter at the proper flow rate will result in vodka with an identical alcohol content and significantly increased organic purity, as judged by odor and taste.

Mercury scrubbing

Activated carbon, often impregnated with iodine or sulfur, is widely used to trap mercury emissions from coal fired power stations, medical incinerators, and from natural gas at the wellhead. This carbon is a specialty product costing more than $4.00 per kg. However, it is often not recycled.

Disposal in the USA

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The mercury laden activated carbon presents a disposal dilemma. If the activated carbon contains less than 260 ppm mercury, Federal regulations allow it to be stabilized (for example, trapped in concrete) for landfilling. However, waste containing greater than 260 ppm is considered to be in the high mercury subcategory and is banned from landfilling (Land-Ban Rule). It is this material which is now accumulating in warehouses and in deep abandoned mines at an estimated rate of 1000 tons per year.

The problem of disposal of mercury laden activated carbon is not unique to the U.S. In the Netherlands this mercury is largely recovered and the activated carbon is disposed by complete burning.

SALES PROJECTION ESTIMATES

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Sales projection estimates is based on the plant capacity of GCF multi-products in producing granulated coco charcoal, a semi-finished charcoal product which has not yet been activated. Their plant capacity is 600 MT/mo. Their current production for 2011 stands at the average of 200 MT/mo in producing granulated coco charcoal which has a yield of 20-25% from raw materials which is basically closer to the yield of producing activated carbon by steam activation.

The average selling price is the lowest current market price from different activated carbon manufacturers worldwide.

SALES PROJECTION OF STEAM ACTIVATED COCONUT SHELL CARBON

SALES (mo) 200,000

AVERAGE SELLING PRICE 300.00

VARIABLE COST (per unit) 14.71

GROSS MARGIN (per unit) 285.29

GROSS REVENUE 60,000,000.00

TOTAL GROSS MARGIN 57,058,000.00

OTHER EXPENSES 500,000.00

NET PROFIT 56,558,000.00

Sales projection estimates for chemical activated coconut shell carbon is still based on the plant capacity of GCF multi-products in producing granulated coco charcoal, a semi-finished charcoal product which has not yet been activated. Their plant capacity is 600 MT/mo. Their current production for 2011 stands at the average of 200 MT/mo in producing granulated coco charcoal which has a yield of 20-25% from raw materials which is basically closer to the yield of producing activated carbon by steam activation. However, for chemical activation process we used a 40-45% yield, factors for higher yield includes lower heat temperature and shorter time of activation.

The average selling price is the lowest current market price from different activated carbon manufacturers worldwide for chemically activated carbons.

SALES PROJECTION OF STEAM ACTIVATED COCONUT SHELL CARBON

SALES (mo) 400,000

AVERAGE SELLING PRICE 800.00

VARIABLE COST (per unit) 27.05

GROSS MARGIN (per unit) 772.95

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GROSS REVENUE 320,000,000.00

TOTAL GROSS MARGIN 309,180,000.00

OTHER EXPENSES 500,000.00

NET PROFIT 308,680,000.00

Example price range from www. buyactivatedcharcoal.com

4 lbs – 1 gal. jug ($24.87) 8 lbs – 2 gal. pail ($39.89) 20 lbs – 5 gal. pail ($79.56)

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Summary and ConclusionsIndeed the manufacturing of activated carbon is a lucrative business and has a huge market

demand for the many years to come, especially for its numerous applications in widening industries that includes medical applications and chemical purifications.

Steam-activated coconut shell carbon manufacturing requires less equipment in the process flow sheet and fewer steps, but had a lower yield compared with chemical activation. Chemical activation through CaCl required more steps and more equipment, but the product costs only a little more to manufacture, because of the higher yield of final product in the acid activation process. The factors that causes this difference in yield are mainly the heating temperatures and the rate that the coconut shell carbon is activated. In summary, chemical activation is preferred over physical activation owing to the lower temperatures and shorter time needed for activating material in terms of efficiency. However, in terms of market demand for quality activated carbon, steam activated carbon is much more preferred due to its adsorption properties

Our estimated product cost for steam-activated coconut shell carbon was P 14.71. High quality, high surface area, granular activated carbons made from steam activation of coal or coconut shell sell for P215/kg and more, depending on their particular use. If the coconut shell-based carbons are used effectively in a particular niche market, they could sell for P300 to 500/kg. In this case, the difference in product manufacturing cost and product sales cost could be sufficient to realize a profit for the manufacturer. In the case of chemically activated coconut shell carbons, our estimated product cost was P 27.05/kg. Acid-activated, coconut shell carbons are shown to possess superior metal ion adsorption compared to steam-based commercial carbons. Therefore, these carbons could be sold in a niche market for metal ion-adsorbing carbons. Effective, metal ion-sequestering carbons made from coal sell for about P 800 to 1200/kg. Therefore, there is a considerable cost differential between the manufacturing cost and a potential selling price for this type of carbon in the commercial marketplace.

Additional value can be added by addressing niche markets, such as metals adsorption or portable water treatment, either in point-of-use (POU) or point-of entry (POE) water filtration systems. In these selected niche markets, commercial carbons sell for P 250/kg and up. Moreover, the difference in manufacturing cost (P 222.25/kg) and product sales cost, as determined by the manufacturer, could be sufficient to realize a profit for the seller.

The possibility of manufacturing activated carbons at less cost than P 14.71/kg should be considered, since the sale of activated carbons takes place in a competitive market. Carbons can be manufactured more economically in plants with selecting a more cheaper but effective

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machineries like the rotary kiln and moving to alternative types of chemicals for activation aside from calcium chloride (CaCl) or zinc chloride (ZnCl) like phosphoric acid. Substantial savings in equipment and infrastructure could be realized by renovating existing structures of GCF Multiproducts and retrofitting existing manufacturing facilities and equipment. In an example, GCF current setup of manufacturing granulated coconut charcoal can be realigned with steam activated carbon setup. This type of carbon manufacturing could modify an existing process with little or no equipment change and a substantial cost savings could be realized. Additionally, raw materials costs can be minimized and construction costs can be reduced as well.

References:

World Activated Carbon: Industry Forecast for 2014 & 2019 (2010). Freedonia Group, Cleveland OH.

China Activated Carbon Industry Report 2011-2012. www.researchinchina.com

Activated Carbon: Market Research Report:Global Industry Analyst, Inc. 2011.

WEHRLE Umwelt GmbH Activated Carbon Manufacturers

Activated Carbon for Purification of Alcohol. Gert Strand 2001.

Granular Activated Carbons from Agricultural By-products: Sugar Cane Bagasse and Pecan Shell by Chilton Ng and co.

Commercial Process for Low Cost Production of Charcoal, Activated Carbon by L.Conti, S.Mascia, and G.Scano, University of Sassari, Belgium

Industrial Technology Development Institute. Gen. Santos Ave., Taguig City. http://itdibiz.com/

Alibaba.com list of manufacturers, equipments and industrial machineries and general information.

Wikipedia.com for general information.

www.buyactivatedcharcoal.com for general information on market price