Biodiesel

PRODUCTION OF BIO-DIESEL
A Entrepreneurship Project Report

Submitted in partial fulfillment of
The requirement for the
Degree of Bachelor of Technology
Under Biju Pattnaik University of Technology, Rourkela.
By
Saibalinivarsa Samantasinhar Roll # IT200475168
Prasanta Kumar Sahu Roll # CSE200410170
Upasana Dalai Roll #
CSE200465075
Shakti Prasad Panigrahy Roll #
IT200410359
April - 2008
Under the guidance of

Mr. Jagannath Mohanty
NATIONAL INSTITUTE OF SCIENCE &TECHNOLOGY
PALUR HILLS, BERHAMPUR, ORISSA – 761008, INDIA
2
ABSTRCT
Now a day’s fuel is the one of the main source of energy which act as basic need of
transportation so, its need never perish and it’s demand is always there for mankind
and it never diminish. now a day’s the conventional fuel i.e. petrol and diesel come to
exhaust as it is nonrenewable source of energy and it take lot of time for it’s
production as in petroleum form in the mines ,so day by day fuel cost hikes ,to reduce
that cost and present day demand bio-diesel is one of the best alternative. Present day
no such big industry comes forward to produce bio-diesel because it is very costlier
when it produced in small amount. And cost can be maintainable when it produced in
large amount and it even more beneficial in future.
Bio-diesel—a fuel composed of mono-alkyl esters of long chain fatty acids derived
from vegetable oils or animal fats, designated B100, and meeting the requirements of
ASTM (American Society for Testing& Materials). Bio-diesel is biodegradable and
non-toxic, and typically produces about 60% less net-lifecycle carbon dioxide
emissions, as it is itself produced from atmospheric carbon dioxide via photosynthesis
in plants. Its emissions of smog forming hydrocarbon are 65% less, although the
Nitrogen Oxide emissions are about 10% greater than those from petroleum-based
diesel. Net-lifetime carbon dioxide emissions can actually differ widely between fuels
depending upon production methods of the source vegetable oils and processing
methods employed in their creation.
i
ACKNOWLEDGEMENT
Completing a job has never been an easy go for a single person, so we are doing this
project in a group often it is the result of invaluable contributions from individuals in
the surrounding in a direct or indirect manner.
I am deeply grateful to my advisor Mr. Jagannath Mohanty and Dr. Pavan Kumar
for having been a constant source of encouragement for our entrepreneurship project
Report on “Production of Bio-Diesel”.
Finally we thank Prof.Sangram Mudali, for his continued drive for better quality in
everything that happens at NIST. This report is a small contribution towards the
greater goal.
Sailibalinivarsa Samantasinhar
Prasanta Kumar Sahu
Upasana Dalai
Shakti Prasad Panigrahy
ii
TABLE OF CONTENTS
ABSTRCT ......................................................................................................................i
ACKNOWLEDGEMENT.............................................................................................ii
TABLE OF CONTENTS..............................................................................................iii
LIST OF FIGURES........................................................................................................v
1. GENERAL INFORMATION...................................................................................vi
1.1 NAME OF THE ENTREPRENEUR .................................................................vi
1.2 PROPOSED PROJECT......................................................................................vi
1.3 MAJOR PRODUCE............................................................................................vi
1.4 PROPOSED LOCATION...................................................................................vi
1.5 TYPE OF ORGANIZATION.............................................................................vi
2. ENTREPRENEUR PROFILE...................................................................................1
2.1 EDUCATIONAL QUALIFICATION.................................................................1
2.2 TECHNICAL SKILLS.........................................................................................1
2.3 WORK EXPERIENCE........................................................................................1
3. TYPE OF PRODUCT................................................................................................2
3.1 TYPE OF PROJECT............................................................................................2
3.2 PRODUCT /SERVICES DESCRIPTION...........................................................2
3.3 MAJOR CONSUMERS.......................................................................................4
3.4 MARKET POTENTIAL......................................................................................5
3.5 PRESENT DEMAND AND SUPPLY OF THE PRODUCT..............................6
3.6 COMPETITION...................................................................................................7
3.7 TARGET CLIENT/SELECTED MARKET AREA............................................8
3.8 MARKETING STRATEGY (USP).....................................................................9
4. MANUFACTURING PROCESS............................................................................12
4.1 TECHNICAL KNOW HOW AVAILABILITY................................................12
4.2 STEP BY STEP DESCRIPTION OF THE MANUFACTURING PROCESS
FROM RAW MATERIAL TO FINISHED GOODS TRANSESTERIFICATION?
..................................................................................................................................13
4.2.1 Transesterification.......................................................................................14
4.2.2 Individual Steps of Transesterification.......................................................14
4.2.3 Chemistry of Triglycerides..........................................................................15
4.2.4 Current Bio-diesel Production Method.......................................................16
5. PRODUCTION SCHEDULE..................................................................................20
5.1 NO OF WORKING DAYS PER ANNUM.......................................................20
5.2 NO OF WORKING SHIFTS (8HR) PER DAY................................................20
5.3 INSTALLED CAPACITY (ANNUAL)............................................................20
5.4 UTILISED CAPACITY (%)..............................................................................20
6. DETAILS OF THE PROPOSED PROJECT...........................................................22
6.1 LAND AND BUILDING...................................................................................22
6.2 MACHINES AND EQUIPMENTS...................................................................24
iii
6.3 MISC FIXED ASSETS......................................................................................25
6.4 PRELIMINARY AND PRE OPERATIVE EXPENSES...................................26
6.5 SALES AND REVENUE..................................................................................26
6.6 RAW MATERIAL(MONTHLY REQUIREMENT).........................................28
6.7 UTILITIES MONTHLY....................................................................................29
6.8 MAN POWER (SALARIES/WAGES)-MONTHLY........................................30
6.9 REPAIRS AND MAINTENANCE MONTHLY..............................................30
6.10 SELLING AND DISTRIBUTION EXPENSES-MONTHLY........................31
6.11 ADMINISTRATIVE EXPENSES-MONTHLY..............................................31
6.12 INTEREST-ANNUAL.....................................................................................31
6.13 DEPRECIATION.............................................................................................33
7. WORKING CAPITAL (ONE MONTH) / ONE CYCLE........................................34
8. TOTAL COST OF THE PROJECT.........................................................................35
9. MEANS OF FINANCE...........................................................................................36
10. PROFITABILITY PROJECTIONS.......................................................................37
11. BREAK EVEN POINT..........................................................................................37
12. CONCLUSION......................................................................................................38
13. REFERENCE.........................................................................................................39
iv
LIST OF FIGURES
Figure 1 .........................................................................................................................2
Figure 2 .........................................................................................................................3
Figure 3 .........................................................................................................................5
Figure 4 .........................................................................................................................8
Figure 5 .........................................................................................................................9
Figure 6........................................................................................................................11
Figure 7........................................................................................................................12
Figure 8 .......................................................................................................................13
Figure 9 .......................................................................................................................13
Figure 10 .....................................................................................................................15
Figure 11 .....................................................................................................................15
Figure 12 .....................................................................................................................16
Figure 13 .....................................................................................................................16
Figure 14 .....................................................................................................................17
Figure 15 .....................................................................................................................17
Figure 16 .....................................................................................................................18
Figure 17 .....................................................................................................................23
Figure 18 .....................................................................................................................23
Figure 19 .....................................................................................................................24
Figure 20......................................................................................................................25
Figure 21......................................................................................................................25
Figure 22......................................................................................................................26
.....................................................................................................................................26
Figure 23 .....................................................................................................................26
Figure 24 .....................................................................................................................26
Figure 25 .....................................................................................................................28
Figure 26 .....................................................................................................................28
Figure 27 .....................................................................................................................29
Figure 28 .....................................................................................................................37
v
1. GENERAL INFORMATION
1.1 NAME OF THE ENTREPRENEUR
PRASANTA KUMAR SAHU

SAIBALINIVARSA SAMANTSINHAR
UPASANA DALAI
SHAKTI PRASAD PANIGRAHY
1.2 PROPOSED PROJECT
Production of biodiesel through decomposition of various waste organic materials as

well as some plant by cultivation, plants like soybeans, jatropha rich in fat and along
with formation of byproduct like glycerin, vegetable oil and seed cake all are
produced.
1.3 MAJOR PRODUCE
Synthetic biodiesel, glycerin and seed cake for fertilization purpose
1.4 PROPOSED LOCATION
Berhampur is the main production field for cheaper area for land and all facilities
Bhubaneswar, Cuttack, Kokatta, and Mumbai are the destination place up to where
diesel to be reached.
1.5 TYPE OF ORGANIZATION
This company based on production and selling of the product in the market along with
selling of some by product Alternate fuels (bio-diesel) will replace liquid fuels
impacting Oil Cos.
vi
• Setting up network for alternate fuels is capital intensive
• Gas availability – marketing infrastructure e,g hydrogen gas.
• Prone to diversions due to fiscal subsidy
• Inadequate utilization of existing auto-LPG infrastructure because it tend to
exhaust now.
• Auto-industry to gear up for manufacture of custom-made vehicles
• Inadequate statutory intervention
• Customer education
vii
PRODUCTION OF BIODIESEL
2. ENTREPRENEUR PROFILE
2.1 EDUCATIONAL QUALIFICATION
Post Qualification Sex Age

Manager MBA or MSC in
chemistry Male/female 25-35
Supervisor Bachelor in any
chemistry Male/Female 25-30
Diesel injector +2 level Male 22-28
Bachelor in any
Clerk subject Male/female 24-32
Driver Matriculation Male 23-30

Peon /gatekeeper Matriculation Male 22-28
Farmers Matriculation Male 20-28
2.2 TECHNICAL SKILLS
Should have idea about chemistry and candidates are suitable one when they should
did Masters in chemistry or bachelor in chemistry.
2.3 WORK EXPERIENCE
The driver should have 2 year experience of driving any kind of four wheeler vehicle
Candidate for manager posts are from technical background is more preferable.
1
3. TYPE OF PRODUCT
3.1 TYPE OF PROJECT
This project totally based upon manufacturing and production of bio-diesel and it
byproduct along with subsidiary product like green manure, medicinal plants
etc.Along with selling of that product in the market along with subsidiary product.
3.2 PRODUCT /SERVICES DESCRIPTION
Figure 1
1. Bio-diesel
2. Common edible oil
3. Glycerin
4. Seed cakes
2
Figure 2
Vegetable oils are used as an ingredient or component in many manufactured

products.
Many vegetable oils are used to make soaps, skin products, candles, perfumes and
other personal care and cosmetic products.
Some oils are particularly suitable as drying agents, and are used in making paints and
other wood treatment products. Dammar oil (a mixture of linseed oil and dammar
resin), for example, is used almost exclusively in treating the hulls of wooden boats.
3
Vegetable oils are increasingly being used in the electrical industry as insulators as
vegetable oils are non-toxic to the environment, biodegradable if spilled and have
high flash and fire points. However, vegetable oils have issues with chemical stability
(there has to be a tradeoff with biodegradability), so they are generally used in
systems where they are not exposed to oxygen and are more expensive than crude oil
distillate. Two examples are FR3 by Cooper Power and Biotemp by ABB. Midel 7131
by M & I materials is a synthetic tetra ester, like a vegetable oil but with four fatty
acid chains compared to the normal three found in a natural ester, and is manufactured
by an alcohol plus acid reaction. Tetra esters generally have high stability to oxidation
and have found use as engine lubricants.
Common vegetable oil has also been used experimentally as a cooling agent in PCs.
One limiting factor in industrial uses of vegetable oils is that all such oils eventually
chemically decompose turning rancid. Oils that are more stable, such as Ben oil or
mineral oil, are preferred for some industrial uses.
Vegetable-based oils, like castor oil, have been used as medicine and as lubricants for
a long time. Castor oil has numerous industrial uses, primarily due to the presence of
hydroxyl groups on the fatty acid chains. Castor oil, and other vegetable oils which
have been chemically modified to contain hydroxyl groups, are becoming
increasingly important in the production of polyurethane plastic for many
applications. These modified vegetable oils are known as natural oil polyols
3.3 MAJOR CONSUMERS
1. Common people
2. Automobile industry
3. Sports organization
4. Different health agency
Bio-diesel is being used in school buses
– Clean School Bus USA – cost-shared grant program to help school districts
– eg,Jefferson and Littleton county schools
4
• U.S. Military
– The single largest user of bio-diesel in the country, consuming about 5
million gallons annually!
– Army, Navy, Air Force
Figure 3
3.4 MARKET POTENTIAL
Although there is no such market for bio-diesel but for other byproduct there is some
market value. But the word diesel itself is a kind of thing which can automatically can
create market because its demand never vanishes in the near future, because 50%
Indian transportation system about depends on that..
Good potential to replace 2-5% of our current diesel needs in the U.S. with bio-diesel
• People are requesting diesel cars specifically to use bio-diesel
• Gasoline prices may have reached a plateau, creating an opportunity for Bio-
diesel to edge its way into the market
“If all of the vegetable oil (23.6 billion lbs) and animal fat (11.6 billion lbs) were used
to Produce bio-diesel, we could only replace about 14% (approx 4.62 billion
5
gallons/yr) of Current demand for on-highway diesel.” (Dr. J Van Gerpen, University
of Idaho)
• Biomass oils could displace up to 10 billion gallons of petroleum by 2030.
Requires Incentives, mandates, R&D. (NREL)
• Washington State: 2%- 20 million gallons; 5%- 50 million gallons.
• Production potential: 4 yr rotation dry land wheat - 5 million gallons/100,000
acres.
Estimated production varies- 100 million gallon estimate
3.5 PRESENT DEMAND AND SUPPLY OF THE

PRODUCT
Now a day’s fuel is the one of the main source of energy which act as basic need of
transportation so, it’s need never perish and it’s demand is always there for mankind
and it never diminish. now a day’s the conventional fuel i.e. petrol and diesel come to
exhaust as it is nonrenewable source of energy and it take lot of time for it’s
production as in petroleum form in the mines ,so day by day fuel cost hikes ,to reduce
that cost and present day demand bio-diesel is one of the best alternative.
Present day no such big industry comes forward to produce biodiesel because it is
very costlier when it produced in small amount. And cost can be maintainable when it
produced in large amount and it even more beneficial in future.
Bio-diesel is biodegradable and non-toxic, and typically produces about 60% less net-
lifecycle carbon dioxide emissions, as it is itself produced from atmospheric carbon
dioxide via photosynthesis in plants. Its emissions of smog forming hydrocarbon are
65% less, although the Nitrogen Oxide emissions are about 10% greater than those
from petroleum-based diesel. Net-lifetime carbon dioxide emissions can actually
differ widely between fuels depending upon production methods of the source
vegetable oils and processing methods employed in their creation. It is therefore
debatable as to the extent that bio-diesel reduces total carbon dioxide emissions
currently contributing to anthropogenic global warming compared to those from
petroleum-based dieseles .so bio-diesel is on of the
6
Bio-diesel is biodegradable and non-toxic, and typically produces about 60% less net-
lifecycle carbon dioxide emissions, as it is itself produced from atmospheric carbon
dioxide via photosynthesis in plants. Its emissions of smog forming hydrocarbon are
65% less, although the Nitrogen Oxide emissions are about 10% greater than those
from petroleum-based diesel. Net-lifetime carbon dioxide emissions can actually
differ widely between fuels depending upon production methods of the source
vegetable oils and processing methods employed in their creation. It is therefore
debatable as to the extent that bio-diesel reduces total carbon dioxide emissions
currently contributing to anthropogenic global warming compared to those from
petroleum-based diesel.
3.6 COMPETITION
There are several competitors are there in the form of other alternative fuel generating
companies as they may use solar energy or might be hydrogen or alcohol energy. But
present day competitor are those companies produce diesel in conventional way or
those companies produce diesel as petroleum is their raw source component. A
comparison between bio-diesel(B!00 and B40) and normal diesel(B20)
Fig 3.6.1
7
Figure 4
In this figure it is found that what is the demand of oil in comparison to other kind of
fuels
3.7 TARGET CLIENT/SELECTED MARKET AREA
1. Common people
2. Automobile industry
3. Sports organization
4. Different health organization
This type of product can easily attracted by environmentally conscious people,
And mainly health conscious people.
8
Figure 5
B20 blend is what most fleets use including the cities of Tacoma and Seattle. B100
used by some.
• B2-B5 blends are growing in use. Improves fuel lubricity in low sulfur fuels.
Used as entry point for renewable fuel or minimum content standards-
Washington’s renewable fuels mandate.
• B5-B20 blends growing demand for home heating oil.
• Marine applications
• Solvent, lubricant
3.8 MARKETING STRATEGY (USP)
Engine manufacturers warrant for parts and workmanship. They do not warrant their
engines for fuels, including petroleum diesel.
• The fuel supplier is responsible for fuel related problems. Consumer needs to
make sure product meets ASTM D6751
• Biodiesel does not void engine warranties.
9
• Engine Manufacturers Association states that B5 is OK. Many engine

manufacturers, like Caterpillar, are comfortable with B20, but are still
evaluating effects of higher blends.
The bio-diesel sector is not so developed in our country .we make a small survey on
America when it is established and how the market strategy there.
Bio-Diesel
– Blending normal diesel with Non-edible Oils (5%) extracted from plants like
“Jatropha” and “Karanjia”
– No engine modification required
– IOC R&D centre making pioneering efforts
– Mahindra & Mahindra and Ashok Leyland have endorsed bio-diesel as fuel for their
vehicles
– Product successfully piloted on Delhi-Amritsar Shatabdi Express
10
Figure 6
How the distributor and retailer segment is spread in the country
11
Figure 7
4. MANUFACTURING PROCESS
4.1 TECHNICAL KNOW HOW AVAILABILITY
It can be developed artificially by some chemical reactions as some fats are their
reactants. Biodiesel refers to a diesel-equivalent processed fuel consisting of short
chain alkyl (methyl or ethyl) esters, made by transesterification of vegetable oils or
animal fats, which can be used (alone, or blended with conventional diesel fuel) in
unmodified diesel-engine vehicles.
Technical Definition:
Biodiesel a fuel composed of mono-alkyl esters of long chain fatty acids derived from
vegetable oils or animal fats, designated B100, and meeting the requirements of
ASTM (American Society for Testing& Materials) D 6751.
Biodiesel is distinguished from the straight vegetable oils (SVO) or waste vegetable
oils (WVO) used (alone, or blended) as fuels in some diesel vehicles.
• Alternative fuel for diesel engines.
• Made from vegetable oil or animal fat.
• Meets health effect testing (CAA).
• Lower emissions, High flash point (>300F), Safer.
• Biodegradable, Essentially non-toxic.
• Chemically, biodiesel molecules are mono-alkyl esters produced usually from
triglyceride esters.
12
Figure 8
4.2 STEP BY STEP DESCRIPTION OF THE

MANUFACTURING PROCESS FROM RAW
MATERIAL TO FINISHED GOODS
TRANSESTERIFICATION?
Fatty Acid
Alcohol
Glycerin
Vegetable Oil Biodiesel

Figure 9
13
4.2.1 Transesterification
While actually a multi-step process, the overall reaction looks like this
CH2OOR1 catalyst CH2OH

| â |
CHOOR2 + 3CH3OH ó 3CH3OORx + CHOH
| |
CH2OOR3 CH2OH
Triglyceride 3 Methanol’s Biodiesel Glycerin
R1, R2, and R3 are fatty acid alkyl groups (could be different, or the same), and
depend on the type of oil. The fatty acids involved determine the final properties of
the biodiesel (cetane number, cold flow properties, etc.)
4.2.2 Individual Steps of Transesterification
First step, triglyceride turned into triglycerides, methoxide (minus Na) joins freed FA
to make biodiesel, Na joins OH from water (from methoxide formation) to make
NaOH. Other H joins the diglyceride.
H O H
| | |
HCOR1 H HCO H O
| | | | |
HCOOR2 + HCONa +H2O ó CHOOR2 + HCOR1 + NaOH
| | | |
HCOR3 H HCOR3 H
| | | |
H O H O
Triglyceride + Methoxide + H2O ó Diglyceride + Biodiesel + NaOH
14
4.2.3 Chemistry of Triglycerides
• Biodiesel is made from the combination of a triglyceride with a monohydroxy

alcohol (i.e. methanol, ethanol…).
What is a triglyceride? Made from a combination of glycerol and three fatty acids
Figure 10
Figure 11
15
Figure 12
4.2.4 Current Bio-diesel Production Method
Figure 13
16
Individual steps of the flow chart
Figure 14
Figure 15
17
Figure 16
WASTE OIL
As of 2000, the United States were producing in excess of 11 billion liters of waste
vegetable oil annually, mainly from industrial deep fryers in potato processing plants,
snack food factories and fast food restaurants.
Waste vegetable oil, sold as the commodity yellow grease has a market value of
approximately $1.09 per US gallon ($0.29/l or $335 per metric tonne), expected to
rise to $1.21 by 2013, enough to make collection economically viable.
Currently, the largest uses of waste vegetable oil in the U.S. are for animal feed, pet
food, and cosmetics. Since 2002, an increasing number of European Union countries
have prohibited the inclusion of waste vegetable oil from catering in animal feed.
Waste cooking oils from food manufacturing, however, as well as fresh or unused
cooking oil, continues to be used in animal feed.
World consumption
Oil source Notes
(million tons)
18
Accounts for about half of worldwide edible

Soybean 26.0
oil production.
The most widely produced tropical oil. Also
Palm 23.3
used to make bio-fuel.
A common cooking oil, also used to make
Sunflower seed 8.6
bio-diesel.
Peanut 4.2 Peanut oil Mild-flavored cooking oil.
A major food oil, often used in industrial
Cottonseed 3.6
food processing.
Palm Kernel 2.7 From the seed of the African palm tree
Used in cooking, cosmetics, soaps and as a
Olive 2.5
fuel for traditional oil lamps
19
5. PRODUCTION SCHEDULE
5.1 NO OF WORKING DAYS PER ANNUM
GARBAGE SEED PRODUCTION SELLING

COLLECTION CULTIVATION /MAUFACTURING
weekly 6 days weekly 6 days Weekly 5 days 7 days
52*6=312days 52*6=312days 52*5=260+1=261 days 365 days
5.2 NO OF WORKING SHIFTS (8HR) PER DAY
VEG GARBAGE SEED PRODUCTION SELLING

COLLECTION CULTIVATION /MAUFACTURING
st
1 shift 2nd shift Single shift 1st shift 2nd shift 1st 2nd night
shift shift shift
7:00 am 3:00 pm 8:30 am to 4: 30 8:00 am to 4:00 pm 6:00 2:00 10:00
to 3:00 to 11:00 pm 4:00 pm to 12:00 am pm pm to
pm pm pm to to 6:00
2:00 10:0 am
pm pm
5.3 INSTALLED CAPACITY (ANNUAL)
YEAR 1 MACHINE NO OF PER YEAR BUT ESTIMATED

PRODUCED MACHINES INSTALLED VALUE OF BIO-
PER DAY PRESENT CAPACITY DIESEL IN LIT
st
1 137lit 20 1,000,000 630,000 (B100)
29,200(B20)
nd
2 137lit 20 1,000,000 840,000 (B100)
40000 (B20)
3rd 137lit 20 1,000,000 840,000 (B100)
80,000(B20)
4th 137lit 20 1,000,000 840,000 (B100)
100,000(B20)
5.4 UTILISED CAPACITY (%)
20
YEAR PRODUCED TOTAL % OF SEED

SEED AND NO OF TIME PRODUCED CONVERTED
OTHER PRODUCED INTO BIO-DIESEL
VEGETABLE PER YEAR
MATERIAL IN
KG
1st 600 kg/acre 3 1,800,000 35% = 630,000 lit
2nd 600 kg/acre 4 2,400,000 35% = 840,000 lit
3rd 600 kg/acre 4 2,400,000 35% = 840000 lit
4th 600 kg/acre 4 2,400,000 35% = 840,000 lit
21
6. DETAILS OF THE PROPOSED PROJECT
6.1 LAND AND BUILDING
Sl Particular Area required Total value Remarks

no
1. Land(cultivation) 1000 acres (1Sqa ft=3 Rs) Cheaper
1000*4046.856=4046856m2 398,312 Sqa ft =
=13277086.61ft2 50,00,000Rs
2. Building( 1 acre=4046.856 m2 1 Sqa ft=100 Rs Cheaper

1.berhampur =13277.08661ft2 = 1327700.0 Rs
2.bhubaneswar 0.5 acre 1 Sqa ft=200 Rs medium

= 1327700.0Rs
3.cuttack 0.5 acre 1 Sqa ft=150 Rs medium
= 995775 Rs
4.kolkatta 0.25 acre 1 Sqa ft=500 Rs costlier
= 1659625 Rs
5.mumbai 0.25 acre 1 Sqa ft=800 heavy
/-=2655400 Rs costlier
3. Manufacturing 2 acre8093.712=26554.17ft2 (1Sqa ft=3 Rs) Cheaper

unit 26554. Sqa ft=
79662.00Rs
Total 1004.5 acres Rs130,45,862
22
Figure 17
Figure 18
23
6.2 MACHINES AND EQUIPMENTS
Figure 19
Sl no Description Nos required Rates(Rs) Total

values(Rs)
1. Filter 30 5000 1,50,000
2. Biodiesel tank 20 15000 300,000
3 Glycerin tank 20 10000 2,00,000
4. Methanol tank 20 5000 1,00,000
5. Micro reactor 22 20000 4,40,000
6. Control panel 20 200 4,000
7. Stand 20 5000 1,00,000
8. Seed press 22 7500 1,60,000
machine
9. Injecting 8 100,000 800,000
machine
Total 22,64,000
24
Figure 20
Figure 21
6.3 MISC FIXED ASSETS
Sl No particulars Nos required Rates(Rs) Total

values(Rs)
1. Truck 10 500,000 50,00,000
2 Garbage collector 8 400000 32,00,000
truck
3 Tractor 8 250,000 20,00,000
4 Cultivation equipment 50 5,000 2,50,000
5. Raw material for 2,00,00,000
manufacturing
building
25
Figure 22
6.4 PRELIMINARY AND PRE OPERATIVE EXPENSES
Sl no Particulars interest during Amount(Rs)

implementation establishment expenses
and start up expenses
1. Labors 12,00,000
2. Transportation(petrol or diesel) 10,00,000
3. Vegetable seed for cultivation 1,00,000
4. Plant establishment cost 15,00,000
5. Sodium or potassium methoxide 300,000
Misc expanses total 41,00,000
Figure 23
Figure 24
6.5 SALES AND REVENUE
1 acre generate around 49 gallon of vegetable oil per 2 month=185lit
26
1000acres produce =185000 lit

Biodiesel produced =140000lit/1000acres
Out of 185 lit---------------30 lit pure edible oil =30000lit/1000acres
--------------- 15 lit glycerin =15000lit/1000acres
1 acre produce-------------0.25 tone seed cake =250tone/1000acres
For each truck garbage =10 lit/day biodiesel

For 8 truck =80 lit / day
80*365=29200 lit
Year Items(s) Quantity Rates Sales
sold/year perunit(Rs) realization(Rs)
st
1 Bio-diesel 630,000 (B100) B100=50/lit 31,500,000+
29,200(B20) B40=45/lit 1,314,000
Glycerin 60,000 100/lit 6,000,000
Vegetable oil 120,000 75/lit 9,000,000
Seed cake 15tones 100000/tone 1500.000
1st year total 49,314,000

nd
2 Bio-diesel 840,000 (B100) B100=55/lit 46,200,000+
40000 (B20) B40=50/lit 2,000,000
Glycerin 90,000 125/lit 11,250000
Vegetable oil 180,000 85/lit 15300,000
Seed cake 20tones 150000/tone 3,000,000
2nd year total 77,750,000
3rd Bio-diesel 840,000 (B100) B100=60/lit 50,400000+
80,000(B20) B40=55/lit 4,400000
Glycerin 90,000 150/lit 13,500,000
Vegetable oil 180,000 95/lit 17,100,000
Seed cake 20tones 200,000/tone 4,000,000
3rd year total 89,400,000
Green manure and
In 3 year 10,000,000
animal food
production
gross total 226,464,000
DIFFERENT TYPE OF BLENDED BIODISEL IS ALSO FORMED
27
Figure 25
Figure 26
6.6 RAW MATERIAL(MONTHLY REQUIREMENT)
Items(s0 Quantity Rates(s) Total

Sl no values(Rs)
1 methanol 70000 lit 20 Rs 1400000
2 Sodium oxide 1000 50 Rs 50000
3 Diesel/petrol To run the 10000 48 480000
machine
4 total 1930000
5 Annual 23160000
28
total
Figure 27
6.7 UTILITIES MONTHLY
Each day each building consume 20 unit of electricity

Total 5 building 100 unit per day
The manufacturing machines consume 50 unit per day
20 machines 1000unit per day
Total consumption 1100 unit per day
Per month 1100*30=33000unit
Each unit cost 4.2 Rs
33000 unit cost 138600 Rs
Sl no Particulars Annual Remark
expenditure(Rs)
1 Power /electricity 1663,200
2 Water 100,000
3 Coal/oil stream 50,000
4 Plantation and 500,000
gardening
29
Total 2,13,200
6.8 MAN POWER (SALARIES/WAGES)-MONTHLY
Each machine handled by 4 workers

20 machines 80 workers
Each station has one manager
5 station 5 manager
Each garbage collector truck has one driver 2 helper
Sl Particulars No Salary per Wages/salaries Annual
no person per month expenses(Rs)
1 Skilled
Worker of the 40 10000 320000 3840000
manufacturing unit
Supervisor 10 15000 150000 1800000
Manager 1 25000 25000 300000

peon 2 3000 6000 72000
2 Semi skilled
Garbage collector 8 5000 40000 480000
truck driver
Helper to garbage 16 3000 48000 576000
truck driver
Tractor driver 8 4000 32000 384000
People worked on the 100 3000 300000 3600000
cultivational field.
Farmers 20 4000 80000 960000
3 Unskilled
Truck driver 10 4500 45000 540000
Helper 10 3000 30000 360000
Diesel injector 15 6000 90000 1080000
4 Office staff
Manager 5 20000 100000 1200000
Clerk 10 12000 120000 1440000
Peon 5 4000 20000 240000
total 1406000 16792,000
6.9 REPAIRS AND MAINTENANCE MONTHLY
Sl no Particulars Per item No of items Monthly Annual

expenses expenses Amounts(Rs)
30
1 machines 3000 20 60000 1200000

2 building 2000 6 12000 144000
3 vehicles 2500 26 65000 780000
total 137000 2124000
6.10 SELLING AND DISTRIBUTION EXPENSES-

MONTHLY
Sl no particulars Amount(Rs) Remarks

1. Publicity expanses 50000 Manageable
2. Traveling 100000 costlier
3. Freight 200000 cheaper
4. Commission 60000 cheaper
5. Misc 100000 cheaper
total 510000
Annual total 6120000
6.11 ADMINISTRATIVE EXPENSES-MONTHLY
Sl no Particulars Amount(Rs) Remarks

1. Stationary and printing 100000 It can be
controllable
2. post/telephone/fax 200000 It might be reduced
3. guest entertainment 150000 It is may limited
expenses
4. Misc 50000
total 500000
Annual total 6000000
6.12 INTEREST-ANNUAL
Land area cost :130,45,862

Machines and equipment cost: 22,64,000
Miscellaneous cost : 1,04,50,000
Pre operative cost : 2,41,00,000
----------------------------
Total: Rs49,859,862 investment cost
Raw material : 23160000
31
Utilities ; 2313200
Salary and wages: 16792,000
Repair and maintenance cost : 2124000
Selling and distribution cost : 6120000
Administrative expenses : 6000000
----------------------------------
Cost after one year other than
Investment cost : : 56509200
Loan amount Interest(Rs Amount of Installment Balance(Rs)

) interest
20000000 2% 400000 1000000 1st month
19400000
2ndmonth
18750000
400000*27
3rdmonth
810000
18100000
After one year
12000000
After 2 year
2000000
After 2 year 3
month 0
10000000(vehicle) 1% 100000 500000 1st month
9600000
100000*21= 2nd month
2100000 9150000
Total 10200000 3rd month
interest 8712500
amount After one year
5000000
Afte one year 11
month 0
32
6.13 DEPRECIATION
Sl no Types of asset Cost of asset Depreciation% Balance(Rs)

1. Building 20000000 1% 200000
2. Plant and 22,64,000 10% 226400
machinery
3. Vehicle 1,04,50,000 7% 731500
total 1,157,900
33
7. WORKING CAPITAL (ONE MONTH) /

ONE CYCLE
Sl no Item Amount (Rs)

1. Raw material 1930000
2. Salary/labour 1406000
3. administrative expenses 500000
4. Repairs and maintenance exp 137000
5. Selling and distribution expenses 510000
6. utilities 192766.6
Monthly expense 4707966.6
Yearly expense 56495599.2
34
8. TOTAL COST OF THE PROJECT
Sl no particulars Total values(Rs)

1. Fixed capital 49859862
2. Working capital(one cycle) 56495599.2
3. preliminary and pre operative 4100000
expenses
4. Cost escalation and contingencies 1000000
total 111455461
35
9. MEANS OF FINANCE
Sl no Particulars Types of Percentage Amount(Rs)

investment of loan
1. Own investment Investment by No interest 30000000
share
2. term loan Loan on the land 2% 20000000
area
3. Loan on vehicle 0% bank loan on 1% 10,000,000
vehicle
4. Taking special help No interest 10000,000
from environment refundable
protection agencies
5. Internal return No interest 30,000,000
refundable
total 100,000,000
This is amount required at the beginning if the first month of this company
17,037,037/-
The amount money collected from different mean of finance

100,000,000/-
-------------------
Still the amount to be needed is= 17037037/-
This amount could be collected from the company itself by internal rate of return
WHO(world health organization) and world bank etc.
36
10. PROFITABILITY PROJECTIONS

Sl no Particulars Amount(Rs)
1. Annual sale realization
1st year 49,314,000
2nd year 77,750,000
3rd year 89,400,000
4th year 100,000,000
Total money collected in 3 326,464,000
year
2. cost of maintenance for 3 year 8,496,000
A. triennial working capital 225,982,396
B. triennial interest on loan 10,200,000
C. Annual depreciation 4,631,600
Total 249,309,996
3. Gross profit/loss(A-B) 77,154,004
Figure 28
11. BREAK EVEN POINT
Break even point =fixed cost*100/(fixed cost + profit)

Break even point =76.36
37
Future of bio-diesel
Bio-diesel use has at least doubled every year for the last 3 years
• Superb for smaller niches and local markets. Since replacing one major fuel
dependency with another is a bad idea, small scale energy production that is
more localized will be best anyway. This will create more jobs as well.
• Cannot rely on tax breaks and tax incentives to keep it going because it
requires large public support.
12. CONCLUSION
The demand of alternate fuels is increase the commercial aviation into twofold. First,
with respect to near-term concerns, alternate fuels will relieve the worldwide pressure
on crude oil derived (extracted from mines) fuels. This will help to stabilize price
fluctuations.
38
Mid-term concerns, alternate fuels should increase environmental performance thus

reducing CO2 emission and making environment neat and clean (eco-friendly). That
helps to avoid global warming and photochemical smog. Thus, the ideal alternate fuel
will fulfill both requirements and relieve the worldwide pressure for crude oil derived
fuels and to significantly reduce CO2 emissions. And this also encourage the way for
empowerment and countries development.
The long-term issue of using alternate fuel is to protect the environment and reserving
the non-renewable resources by maintaining a healthy environment.
13. REFERENCE
WEB SITES
1. www.wikipedia.orgwiki/bio-diesel
2. www.bio-diesel.com
39
3. http://apweb05.csm.vu.edu.au
4. www.mmcelroy@uiuc.edu
BOOKS
1. Bhattacharya SC and A.P Salam, 2002, Low Greenhouse Gas Biomass
Options for Cooking in the Developing Countries, Alternate fuel Biofuels and
Bioenergy,
2. Bhattacharya S.C., D.O Albina and A. M Khaing, 2002, Effects of Selected
Parameters on Performance and Emission of Biomass Fired Cook Stoves, alternate
fuel (Biomass and Bio-diesel),
3. Dixit B. C. S, 2003, Experimental and Computational Studies on Pulverized
Fuel Stoves, Ph.D. Thesis, Combustion Gasification Propulsion Laboratory, Indian
Institute of Science.
4. Dendukuri G and J.P Mittal, 1993, Some Field Experiences with Improved
Chulhas (Cookstoves) Introduced in Rural Households of Andhra Pradesh, India,
Energy Conver. Manage, 34, 6,457-464.
40

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PRODUCTION OF BIO-DIESEL

A Entrepreneurship Project Report

Under the guidance of

Prasanta Kumar Sahu

Shakti Prasad Panigrahy

1.1 NAME OF THE ENTREPRENEUR

PRASANTA KUMAR SAHU

1.2 PROPOSED PROJECT

Production of biodiesel through decomposition of various waste organic materials as

1.3 MAJOR PRODUCE

Synthetic biodiesel, glycerin and seed cake for fertilization purpose

1.4 PROPOSED LOCATION

1.5 TYPE OF ORGANIZATION

2.1 EDUCATIONAL QUALIFICATION

Post Qualification Sex Age

Driver Matriculation Male 23-30

2.2 TECHNICAL SKILLS

2.3 WORK EXPERIENCE

3.1 TYPE OF PROJECT

3.2 PRODUCT /SERVICES DESCRIPTION

Vegetable oils are used as an ingredient or component in many manufactured

3.3 MAJOR CONSUMERS

3.4 MARKET POTENTIAL

3.5 PRESENT DEMAND AND SUPPLY OF THE

3.7 TARGET CLIENT/SELECTED MARKET AREA

3.8 MARKETING STRATEGY (USP)

• Engine Manufacturers Association states that B5 is OK. Many engine

How the distributor and retailer segment is spread in the country

4.1 TECHNICAL KNOW HOW AVAILABILITY

4.2 STEP BY STEP DESCRIPTION OF THE

Vegetable Oil Biodiesel

CH2OOR1 catalyst CH2OH

4.2.2 Individual Steps of Transesterification

4.2.3 Chemistry of Triglycerides

• Biodiesel is made from the combination of a triglyceride with a monohydroxy

4.2.4 Current Bio-diesel Production Method

Individual steps of the flow chart

Accounts for about half of worldwide edible

5.1 NO OF WORKING DAYS PER ANNUM

GARBAGE SEED PRODUCTION SELLING

5.2 NO OF WORKING SHIFTS (8HR) PER DAY

VEG GARBAGE SEED PRODUCTION SELLING

5.3 INSTALLED CAPACITY (ANNUAL)

YEAR 1 MACHINE NO OF PER YEAR BUT ESTIMATED

YEAR PRODUCED TOTAL % OF SEED

2nd 600 kg/acre 4 2,400,000 35% = 840,000 lit

3rd 600 kg/acre 4 2,400,000 35% = 840000 lit

4th 600 kg/acre 4 2,400,000 35% = 840,000 lit

6. DETAILS OF THE PROPOSED PROJECT

6.1 LAND AND BUILDING

Sl Particular Area required Total value Remarks

2. Building( 1 acre=4046.856 m2 1 Sqa ft=100 Rs Cheaper

2.bhubaneswar 0.5 acre 1 Sqa ft=200 Rs medium

3. Manufacturing 2 acre8093.712=26554.17ft2 (1Sqa ft=3 Rs) Cheaper

6.2 MACHINES AND EQUIPMENTS

Sl no Description Nos required Rates(Rs) Total

6.3 MISC FIXED ASSETS

Sl No particulars Nos required Rates(Rs) Total

6.4 PRELIMINARY AND PRE OPERATIVE EXPENSES

Sl no Particulars interest during Amount(Rs)

6.5 SALES AND REVENUE

1 acre generate around 49 gallon of vegetable oil per 2 month=185lit

1000acres produce =185000 lit