CHARCOAL MANUFACTURING FROM WOOD CHIPS (CAPACITY: 50 TPD)
[EIRI/EDPR/4572] J.C.: 2789BTN
INTRODUCTION
Bhutan is known for its rich natural resource endowments and strict conservation policy. With 70% forest cover, only 5% of the forest area is designated to commercial management. Recent analyses advocate for increasing forest utilization to decrease the country's dependence on imports of forest-based products, particularly charcoal, as a mean to diversify the national economy.
This study examines how increasing the forest area under commercial management might allow for sustainable charcoal production in Bhutan. Using an optimization model, cost efficient locations of charcoal production sites were identified at subnational level. Simulation results show that at a discount rate of 12% charcoal production is profitable in eleven of the nineteen districts. Domestic charcoal production has the potential to offset up to 61% of charcoal imports, requiring an increase in utilized forest area from 5% to 15% of total forest area.
Charcoal production would represent a high value-added activity, with an average value-added share of 50.8%. Transportation and labor costs have only minor effects on profitability, comprising 11.7% and 2.5% of output value, respectively. Monte Carlo simulations and sensitivity analyses confirm the results that using a decentralized approach, Bhutan can increase commercial forest management without jeopardizing its highly acclaimed forest conservation agenda. Policy implications and areas of future research are briefly highlighted.
Charcoal is produced by heating wood in airtight ovens or retorts, in chambers with various gases, or in kilns supplied with limited and controlled amounts of air. High-temperature heating by all methods breaks down the wood into gases, a watery tar mixture, and the familiar solid carbon material commonly known as charcoal. Carbonizing ovens of plants designed for recovery of products other than charcoal are heated externally, and the wood is not in direct contact with the heat source. In another type, the only heat source derives from utilization of reaction heat for continuous chip conversion. Upright chambers have been developed that convert fines continuously or chunks in batches by forced circulation of hot gases through the wood, but liquid byproducts are not recovered. Also, horizontal retorts, both rotating and fixed, have been devised for the continuous carbonization of hogged material or raw mill fines. In kilns, the wood is heated directly and itself largely furnishes the heat needed for combustion.
COST ESTIMATION
Plant Capacity 50 MT/Day
Land & Building (3 Acres) BTN 1.51 Cr
Plant & Machinery BTN 1.70 Cr
Working Capital for 2 Months BTN 4.12 Cr
Total Capital Investment BTN 8.96 Cr
Rate of Return 22%
Break Even Point 52%
CONTENTS
INTRODUCTION
USES & APPLICATIONS
PROPERTIES
CHARCOAL QUALITY:
INFLUENCE OF WOOD ON CHARCOAL QUALITY:
INFLUENCE OF CARBONIZATION PARAMETERS ON CHARCOAL QUALITY:
WOOD CHARCOAL SPECIFICATIONS
MARKET POSITION
AMOUNT SPEND FOR IMPORTING CHARCOAL (NU IN MILLIONS)
COUNTRY PRODUCES THE MOST WOOD CHARCOAL ?
COMPETITION ANALYSIS
STRUCTURE OF THE INDUSTRY
THE KEY STAKEHOLDERS
DEMAND AND SUPPLY
BHUTAN IMPORTED NU 2.79B WORTH OF CHARCOAL IN 2021
DEMAND AND SUPPLY
PRICING & MARKETING STRATEGIES:
INDIVIDUAL CONSUMERS CAN BE FURTHER CLASSIFIED UNDER THREE GROUPS:
SIMILARLY, INSTITUTIONAL BUYERS WOULD BE PRIMARILY MANUFACTURING UNITS IN THE FOLLOWING INDUSTRY SEGMENTS:
SOME VIABLE POSITIONING STATEMENTS COULD BE
PROMOTIONAL ACTIVITIES
SPECIAL ATTRIBUTES DESIRED BY TARGET CUSTOMERS:
ASSESSMENT OF COMPARATIVE ADVANTAGE
AVAILABILITY OF WOOD:
AVAILABILITY OF FIREWOOD:
POTENTIAL FOR MARKETING COLLABORATION:
RESOURCES
ELECTRICITY:
AVAILABILITY OF MANPOWER AND SKILLS
NEED FOR SKILL DEVELOPMENT
TOTAL EMPLOYED PERSONS BY TYPE OF ENTERPRISE, SEX AND AGE GROUP, BHUTAN 2022
PRODUCTION OF CHARCOAL FROM WOOD CHIPS
PRODUCTION PROCESS
WOOD CHIPS PYROLYSIS
STAGES OF WOOD CHIPS PYROLYSIS
PRODUCTION OF WOOD CHIPS CHARCOAL:
PRODUCTION PROCESS
FIGURE: PRODUCTION PROCESS FLOW CHART OF WOOD CHIPS CHARCOAL
BIOCHAR PRODUCTION EQUIPMENT
SPECIFICATION AND PARAMETER OF BESTON BIOCHAR PRODUCTION EQUIPMENT
TECHNICAL SPECIFICATION OF 50 TONS PER DAY MACHINE
BIOCHAR PRODUCTION TECHNOLOGY – CARBONIZATION
WOOD CHARCOAL MAKING MACHINE
BAMBOO CHARCOAL MACHINE
SUGARCANE BAGASSE CHARCOAL MAKING MACHINE
TEST REPORT OF CHARCOAL FROM DIFFERENT MATERIALS
BIOCHAR PRODUCTION PROCESS
DESIGN OF BIOCHAR PRODUCTION UNIT
APPLICATIONS OF END PRODUCTS
BIOCHAR
FINISHED BIOCHAR FROM BIOCHAR PRODUCTION EQUIPMENT
PROCESS FLOW DIAGRAM OF CHARCOAL
MANUFACTURERS/SUPPLIERS
BUYERS IN OVERSEAS COUNTRIES
QUALITY CONTROL TESTING OF CHARCOAL
CARBON TETRACHLORIDE ACTIVITY
SURFACE AREA
HARDNESS
MESH SIZE
ASH CONTENT
DENSITY
INTERRELATION OF PROPERTIES
OTHER TESTS
TESTING OF ACTIVATED CHARCOAL
LIST OF COMPLETE PLANT MANUFACTURERS & SUPPLIERS
FOREIGN MANUFACTURERS
SUPPLIERS OF PULVERISER
SUPPLIERS OF BOILER
PRINCIPLES OF PLANT LAYOUT
PLANT LOCATION FACTORS
PRIMARY FACTORS
1. RAW-MATERIAL SUPPLY:
2. MARKETS:
3. POWER AND FUEL SUPPLY:
4. WATER SUPPLY:
5. CLIMATE:
SPECIFIC FACTORS
6. TRANSPORTATION:
A. AVAILABILITY OF VARIOUS SERVICES AND PROJECTED RATES
7. WASTE DISPOSAL:
8. LABOR:
9. REGULATORY LAWS:
10. TAXES:
11. SITE CHARACTERISTICS:
12. COMMUNITY FACTORS:
13. VULNERABILITY TO WARTIME ATTACK:
14. FLOOD AND FIRE CONTROL:
EXPLANATION OF TERMS USED IN THE PROJECT REPORT
1. DEPRECIATION:
2. FIXED ASSETS:
3. WORKING CAPITAL:
4. BREAK-EVEN POINT:
6. MARGIN MONEY:
7. TERM LOANS:
8. TOTAL LOAD:
9. LAND AREA/MAN POWER RATIO:
UTILITIES
POWER
WORKING
TOTAL MANPOWER AND PAYROLL
ENVIRONMENTAL ASPECTS
IMPACT ON DEFORESTATION
1. IMPACT ON DEFORESTATION
2. AIR POLLUTION
3. EFFECT ON HUMAN HEALTH
ELEMENTS CONSIDERED FOR ENVIRONMENTAL IMPACTS
DURING CONSTRUCTION PHASE
DURING OPERATION PHASE
OCCUPATION HEALTH AND SAFETY
MACHINERY PHOTOGRTAPH
RAW & FINAL PRODUCTS PHOTOGRAPHS
WOOD CHIPS (RAW MATERIAL)
CHARCOAL (FINAL PRODUCTS)
ORGANIZATION CHART
PLANT LAYOUT
TURNKEY CONSULTANT
PLANT LOCATION: BHUTAN
AT A GLANCE
COUNTRY CONTEXT
RECENT ECONOMIC DEVELOPMENTS
ECONOMIC OUTLOOK
LIST OF DOCUMENTS REQUIRED TO GET LICENSES
DOCUMENTS
OTHER LICENSES REQUIRED FOR THE SETUP:
IMPLEMENTATION SCHEDULE
THE KEY FACTORS THAT WOULD FACILITATE SUCCESSFUL AND TIMELY PROJECT IMPLEMENTATION ARE –
IMPLEMENTATION STRATEGY
IMPLEMENTATION SCHEDULE
PRE-PROJECT ACTIVITIES INCLUDE:
PROJECT IMPLEMENTATION SCHEDULE
APPENDIX – A:
01. PLANT ECONOMICS
02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)
