Executive Summary

Fatty Acid Methyl Esters (FAME) is included in oleochemical group. Oleochemicals are
biodegradable, low toxicity and environment friendly type of chemicals. We are planning to
build a plant which produces 120 000 MTPA of FAME. We uses transesterification process with
base catalyst, a homogenous sodium methoxide. Base catalyzed transesterification is chosen
since it is faster than the acid catalyzed reaction, achieving 95% conversion.
Summary of Chapter 1
FAME is esters of fatty acids that are famously obtain from vegetables or animal oil through
transesterification of fat with methanol. The product of FAME can be divided into Light Cut,
Middle Cut and Heavy Cut. Light Cut methyl Esters, commercially used in organic synthesis,
manufacture of perfume, medicine, lubricating, grease, rubber, dye, plastics, greases and
lubricants, food additives, pharmaceuticals industry, food and beverage and as natural
antimicrobial ingredient in sanitizers for food contact surfaces and equipment, particularly in
meat. Middle Cut Methyl Esters (Laura, 2014). The Heavy Cut Methyl Esters are basically
industrialized as oils, surfactants and oil soluble materials. Apart from that, it is also widely
applied as detergent, cosmetic, special lubricant and textile assistant (Aadi, 2014). Glycerol is
also a valuable byproduct in biodiesel production by transesterification. some of its applications
are applied in cosmetic, pharmaceutical, automotive, food pulp, and paper textile.
1.1 Market Survey
The use of methyl ester has become increasingly widespread in the recent years, since they are
readily biodegradable and are less environmentally harmful. This causes the demand and
production of FAME to increase every year. The demand for these esters is going to rise in the
Asia-Pacific region due to the regions rapid economic growth and government regulations for
the control of the content of volatile organic compounds (VOCs) in the environment
(Transparency Market Research). The supply and demand was estimated to increase from 2005
till 2020. This increase is due to the demand for oleochemicals are swelling in end-user
industries such as cosmetics, food, plastics, and rubber (Evyap, 2014). As global consumer
preference for natural and environment-friendly products continues to rise, demand from markets
such as China, India and the United States will drive the Southeast Asian oleochemicals market
(Frost& Sullivan, 2014).
1.2 Synthesis Route
Generally, there are 4 alternative routes to synthesize FAME and these routes involve catalytic
process. They are the base catalyzed transesterification, acid catalyzed transesterification, lipase
enzymatic catalyzed transesterification and lastly the supercritical method. The base Catalyzed
Transesterification is chosen as it is the most advantageous. Methanol and palm oil in the ratio of
6:1 use sodium methoxide base-catalyzed transesterification of triglyceride with methanol to
produce triglycerol and FAME. Reaction under favorable operating conditions should be able to
achieve a maximum extent of reaction at the chemical equilibrium. Also, a higher conversion to

be achieved within limited amount of time will be feasible if the operating condition occur at a
relatively high reaction rate.
1.3 Objectives
1) To design a plant with production rate of 120,000 MTPA.
2) To produce methyl ester from base catalysed transesterification.
Summary of Chapter 2 Process Synthesis and Flow Sheeting
Level 2 decision
Focus on the input of raw materials and the output of product. Palm kernel oil and methanol is
chosen as the raw material. The output of product are the heavy cut, middle cut and light cut of
FAME (Adholeya & Dadhich, 2008). The EP are calculated based on 2 situations, using yield
correlation, obtaining a constant EP2 and Varying EP2 with X and molar ratio. Given below is
the formula in EP2.
EP2=Biodiesel value+Glycerol ValuePalm Kernel OilCost Methanol Cost
Level 3 decision
The level 3 is calculated by considering the recycled flow of the product stream. In this level,
Lievenspiel plot is used to determine the size of reactor, cost of equipment and the cost of
catalyst are also calculated in aiding the decision.
Level 4 Decision
In this part, the whole PFD is constructed. In the process, the equipment involve are distillation
column, reactor, decanter and flash tank. Three cstr is used as a reactor in series, converting the
reaction of PKO and Methanol to Glycerin and FAME. Decanter is used to remove glycerin after
the reactor and flash tank is used to remove the methanol in the first stage. Distilalation colum is
used to separate the Methyl Esters product. The material balance is calculated by assuming the
total input is equal to total output and no reactant/ product/catalyst accumulation in recycle
streams (i.e. equilibrium of reaction achieved). Energy balance is also calculated for this part.
Comparison of Manual and Simulation (mass balance)
Stream
1
2
3
4
5
6
7
8
9
10

Aspen (kg/hr)
14221
1990.004
14221
0.54
18349.883
18350.287
2034.169
16316.117
1894.066
14422.051

Manual (kg/hr)
14202.4
1993.39
14202.4
0.54
17050.4
17019.5
2032.16
17277.1
1824.8
15452.3

Error (%)
-0.13096
0.16986
-0.13096
0
-7.62142
-7.81919
-0.09886
5.56218
-3.79581
6.66729

12
15194.7
14317.88
13
1125.87
1161.883
14
14068
13155.997
15
9174.5
8834.383
16
4974
4321.614
17
2289.75
2138.339
Comparison of Manual and Simulation (Energy balance)
Separators
Manual (kW)
Aspen (kW)
Error (%)

Reactor

Flash

1346.45094
4
-1179.61
214.143737
7

40.5068
3
613.346
93.3957
6

5.77056
-3.19868
6.48282
3.7072
13.1159
6.61256

Decante
r

DC1

45.22

178.669

-977.525

100

104.626

DC2
123.955
3
-133.75
192.676
9

DC3
-29.3475
-123.42
76.2214
4

Error happens when comparing the mass and energy balance for both simulation and manual
calculation. These deviations tends to happens due to many reasons, such as, assumptions made
on the purity of components in each stream, different relative molecular mass on both manual
and aspen and different equipments used in both manual (CSTR) and simulation (stoichiometric
reactor.
Summary of Chapter 3 Process Equipment Sizing & Piping
3.1.1 Reactor (3 CSTR in series)
Reactor
Dimension

CSTR 1
Volume(m3) =13.2
Diameter(m) = 2.38
Height(m) = 3.57
Residence time (hr) = 0.63
Thickness(m) = 0.0073

CSTR 2
Volume(m3) = 17.6
Diameter(m) = 2.617091
Height(m) = 3.925636
Residence time (hr) = 0.84
Thickness(m) = 0.0073

CSTR 3
Volume(m3) =12.01
Diameter(m) = 2.30
Height(m) = 3.46
Residence time (hr) = 0.57
Thickness(m) = 0.006388

3.1.2Flash Drum and Decanter

Equipment Specification sheet
Flash Drum
Design Type
Material of Construction
Vessel
Diameter(m)
Height(m)
Volume (m3)

Vertical Vessel
Stainless Steel

Decanter
Horizontal Vessel
Carbon Steel

2.89
8.67
56.87

1.595
4.785
9.556

3.1.3 Distillation Column

Equipment Specification Sheet
Item no
Identification: Plate Column (Sieve Tray)
Material
Column

Reflux Drum

Tray Spacing(m)
Column Diameter, Dc(m)
Column Cross sectional Area, (m2)
Column height, ht(m
No of trays
Diameter, Dt (m)
Height (m)

DC-101

DC-102

DC-103

Carbon
steel
0.61
0.46
0.15
13.14
21
0.97
3.89

Carbon steel

Carbon steel

0.61
0.542
0.23
16.88
27
0.96
3.85

0.61
1.171
1.078
21.5
34
0.68
2.69

Summary of Chapter 4 Utilities & Heat Integration

4.1 Utilities
In this plant design, there is equipment such pump and reactor that required electricity to
function. The Utilities involved electricity, cooling water, steam, hot water and also refrigeration.
Utilities
Electricity
Cooling Water
Steam
Hot Water
Refrigeration

Total Yearly Cost (RM)

289,938.92
152,285.5804
266,400,4.937
762,932,6.308
651,64.05

4.2 Heat Integration

The process flow for Pinch Analysis is done by firstly identifying the hot and cold stream in the
system and stream table construction. Secondly, the minimum approach temperature ii selected.
Thirdly, the shifting of the stream data are done and the temperature interval diagram is
constructed. The cascade diagram is also constructed. Lastly, the heat exchange network are
design based on pinch analysis.

Summary of Chapter 5 Process Control and Safety Studies.

5.1 Introduction
Safety system in industrial is a crucial countermeasure in any hazardous plants. Safety systems
are demonstrated to protect human, plant, and environment in case the process goes beyond the
control margins. Without process control, the operation or process may be unstable. Things like
corrosion, explosion and fire might happen because of the unstable process that make the
operation in dangerous state.
5.2 Identification of Hazard, (MSDS)
MSDS for all chemicals that are included in this process can be seen in the appendix. The
chemicals that are listed are the raw materials, Palm Kernel Oil, Methoxide and Methanol. The
DOW & FEI and Toxicity Index are done by referring the MSDS.
Chemicals
Methanol
Sodium Methoxide
Palm Kernel Oil
ME8
ME10
ME12
ME14
ME16
ME18

Reactivity Hazard
0
2
0
0
0
0
0
0

Flammability Hazard
3
2
1
2
1
0
0
1

Health Hazard
1
3
1
0
1
0
0
1

The products includes light cut methyl esters, middle cut methyl esters and heavy cut methyl
esters. Table below shows the DOW &FEI and Toxicity Index for the Major Equipemnt.
Major Equipment
Reactor
Flash Column
Decanter
Distillation Column 1
Distillation Column 2
Distillation Column3

Fire
and
Explosion
Index
42.24 (Light)
115.44 (Intermediate)
38.72 ( Light)
103.3 (Intermediate)
83.48 (Moderate)
40.47 (Light)

Toxicity Index
1.6 (Light)
3.8 (Low)
9.5 (Moderate)
6.4 (Moderate)
3.4 (Light)
3.7 (Light)

5.3 HAZOP of Major Equipment

The major equipments that are involve in the process are three CSTR in series, decanter, flash
tank and three distillation column. These equipments must be control as to avoid any leakage,
explotion or any accidental release. The HAZOP analysis are done by identifying the FEI &
DOW and Toxicity Index of each equipment. The guide words are used to provide a systematic
and consistent means of brainstorming potential deviations to operations. These guide words are

applied to flow rate, liquid level, temperature, pressure, pH and other variable that can affects the
process and trigger incident.
5.4 Major Equipment Control
The control for major equipment are listed in the table below.
Equipment
CSTR 1,2 and 3
Flash Tank
Decanter
Controllers
Flow Controller, Flow
Flow
Level Controller,
Controller,
Controller,
Temperature
Level
Level
Controller
Controller,
Controller,
Temperature
Pressure
Controller,
Controller
Pressure
Controller

Distilation 1 and 2
Flow Controller
(recycle top
distilate), Level
Controller (reflux
drum),
Temperature
Controller
(condenser), Flow
controller (Feed),
Level controller.

Distillation 3
Flow Controller
(recycle top
distilate), Level
Controller
(reflux drum),
Temperature
Controller
(condenser),
Flow controller
(Feed), Level
controller,
Analyzer
controller.

Summary of Chapter 6 Waste Management and Pollution Control

6.1 Introduction
In this part, the only waste identified is water and PKO impurities such as fiber that are
discharged by the sedimentation centrifugal. The amount of waste that are discharged is 711.05
kg/hr.
6.2 JAS schedule B (liquid materials - BOD and COD)
In this process it does not involve any gaseous. The raw material is given in the table below.
Parameter
BOD5 at 200C (mg/L)
COD(mg/L)

Standard
A
20
50

B
50
100

6.3 Process flow diagram of Waste treatment system based on the type of waste

The first stage of the waste treatment is the equalization tank which is mainly used for damping
of flow rate variations so that a constant or nearly constant flow rate is achieved. The second
stage is the biological treatment in the aeration tank to to reduce COD and BOD level of
wastewater. The third stage is the activated carbon adsorption tank to remove refractory organic
materials from wastewater. The last stage is the filtration where it remove particulate and
colloidal matter, removal of suspended solids,
Summary of Chapter 7 Site Selection and Plant Layout
7.1 Site Selection
The location that are chosen for this project is in Tanjung Langsat Industrial Area, Pasir Gudang,
Johor. There are many factors why Pasir Gudang is selected. Some of the reasons is because of
its location that are just 15.7 km away from the Johor Port which makes it easier for exportation.
Apart from that, its location from Sehcom Industries, one of the top major companies providing
palm kernel oil, is just 3.7 km away, which makes it convenient to build the site there. The price
per square feet are one of the cheapest ratings at RM 17-30 which is quite reasonable. Lastly the
incentives provided by Johor state is quite advantageous to build a plant there.
7.2 Plant Layout

Summary of Chapter 8 Economic Analysis

8.1 Introduction
In this economic analysis, capital cost, manufacturing cost, engineering economy analysis and
profitability are basically included. Apart from that, the fixed and total capital investment cost,
cash flow analyses are performed. The basic components of the manufacturing costs of a process
cover fixed capital investment, cost of operating labor, cost of raw materials, cost of utilities and
cost of waste treatment. For engineering economic analysis, interest, annuities, discount factors
are covered. Lastly, the part of profitability analysis is extended to evaluate the profitability of
chemical processes. Profitability criteria using non-discounted is presented.
8.2 Fixed and Total Capital Investment Cost
Fixed capital investment includes direct and indirect cost without land. Direct cost represents the
manufacturing fixed capital investment whereas indirect cost represents the non-manufacturing
fixed capital investment. Direct cost is the capital necessary for the installed process equipment
such as piping, instruments, foundations and auxiliary facilities. For indirect cost, it is the cost of
land and construction overhead. The total Capital Investment are calculated as below formula.
Total Capital Investment (TCI) = Fixed Capital Investment + Working Capital
Onsite
Component
Purchase equipment

FCI
range
0.15

Cost (RM)
3349464.08

Purchase equipment installation

Instrumentation & control installation
Piping installation
Electrical system installation
Offsite
Building
Yard improvements
Service facilities
Land
Total direct costs
Component
Engineering and supervision
Construction expenses
Contractor's fee
Contingency
Total indirect cost
total direct indirect plant cost

0.06
0.02
0.03
0.02

1339785.63
446595.21
669892.82
446595.21

0.03
0.02
0.08
0.01
FCI range
0.04
0.04
0.02
0.05

669,893
446,595
1,786,381
223,298
9,378,499
Cost (RM)
893,190
893,190
446,595
1,116,488
3,349,464
12727963

Considering the onsite, offsite and components, the TCI calculated is 40,316,383.
8.3 Manufacturing cost and total production cost
Fixed manufacturing cost is the sum of the cost of the plant overheads, local taxes, insurance as
well as depreciation. The manufacturing cost calculated by adding up the cost of raw material,
waste treatment, utilities, operating labor, direct supervision & clerical labor, maintenance and
repairs, operating supplies and laboratory charges.

Plant overhead cost

Local taxes and insurance
Depreciation

0.5(COL+CDS+CM&
R)
0.14FCI
0.1FCI

Total Fixed Manufacturing Cost

736,977
490,808
3,505,772
4,733,558

8.4 Cash Flow Analysis

The cash flow are done for twenty years, for both discounted and non discounted. from the
analysis, the payback period is 2 years.

8.5 Financial Ratios (profitability analysis)

8.6.1 Operating Margin Ratio (EBIT)
Operating Margin is the proportion of revenue remaining after paying the costs of operating the
business. It is also known as operating income margin, operating profit margin, return on sales
(ROS) and EBIT (Earnings before Interest and Taxes).
Operating margin ratio = ((Revenue Direct Manufacturing Cost)/Revenue)*100
=25%
8.5.2 Gross Profit Margin
The gross profit margin is a measure of the gross profit earned on sales. The gross profit margin
considers the firms cost of goods sold, but does not include other costs.
Gross profit margin = ((Revenue Fixed Manufacturing Cost)/Revenue)*100
=33%
8.5.3 Net Profit Margin
Net profit margin measures how much of each dollar earned by the company is translated into
profits. Low profit margin indicates a low margin of safety. The higher the margin is, the more
effectively the company is converting revenue into actual profit.
Net profit margin = ((Revenue Total Production Cost)/Revenue)*100
=17%

Summary of Chapter 9 Conclusion and Recomendation

Our plan is targeted to produce 120 000 MTPA of FAME from palm kernel oil through
transesterification of fat with methanol. The product of FAME can be divided into Light Cut,
Middle Cut and Heavy Cut. The chosen route to produce FAME is the base catalyzed
transesterification because it is more advantageous compared to the others. In our plant the major
equipment consist of is 3 CSTR in series, 3 distillation column, 1 flash and 1 decanter. For minor
equipment there are 3 condenser, 3 reboiler, 6 pumps, 2 heater and 2 cooler. Heat integration is
conducted based on pinch technology and this allows 94.06% of energy saving. To operate this
plant at full capacity, utilities such as electricity, steam, hot water and cooling water are required.

Based on the completed PFD, necessary equipment control were identified and placed onto
major equipment. The resulting P&ID allows HAZOP studies to be carried out. Possible
deviations, causes and consequences were identified through HAZOP. Fire and explosion index
and also toxicity index of major equipments are done based on the given guideline. Several types
of waste were identified as a result of the production of FAME. The waste treatment cost is RM
3,981,628. The plant will be located at Tanjung Langsat Industrial Area, Pasir Gudang, Johor.
This decisions are made based on the location, transportation, road facilities, and land prices as
well as the incentives that are provided by Johor State Government. Based on the thoroughly
inspected economic analysis, the payback period was found to be 2 years. The gross profit
margin is 0.33 and operating profit margin is 0.25 respectively while the net profit margin is
expected to be 0.17. The plant will generate yearly revenue of RM 524,691,717. All in all,
important elements such as safety and economic consideration have been taken extensively to
ensure that the plant is safe while economically feasible and viable. For future works, from an
economic point of view, additional revenue may be generated by purifying and selling the
glycerol by-product or enhancing the methanol recovery to lower operational costs. Capital cost
may be reduced with used equipment and obtaining government funding. The utility cost also
could be reduced so that the energy saving can be achieved as high as possible.

Appendix