Feasibility Analysis Report on Refining Fuel Oil with Atmospheric and Vacuum Distillation Device
      I. Background and significance of project development
      With the rapid development of oil refining industry by waste plastics, scrap rubber and waste engine oil, the fuel oil produced has been widely applied，and penetrated in all the fields of national economy and people’s daily lives. However, the rapid development and the increase of employees in the industry also enable the price of raw material to increase drastically. How to raise the added value of fuel oil on the basis of decreasing the cost of raw material？The simplest method is to re-distill (or called rectify) the waste engine oil and raw oil extracted waste plastics and scrap rubber. The rectified oil is usually faint yellow or faint red liquid with main technical indexes reach the standards for 0# or -10# diesel, and may replace the –10# diesel in application. Its price is 1500Yuan/ton higher than that of raw oil. There are two options of the unit to regenerate the fuel oil: one is large petrochemical refining plant with investment more than 1 billion Yuan; the other is currently popular earth burner with investment between 50,000-100,000 Yuan. However, the earth burner has a bad performance in terms of operating efficiency, security and environmental protection. Thus, it is now an important subject to have less investment and overcome the weakness of an earth burner.
      The traditional refinery equipment named earth burner in China now adopts horizontal fixed treater. The technological process is as below: first manually feed the waste engine oil and raw oil extracted from waste plastics and scrap rubber from the top of split treater, then seal up the feed inlet and heat up slowly the bottom of treater with coal of fuel; the volume of a split treater usually is 20 stere, plus15 tons of material, and usually the smelting completes in two weeks. After the smelting is over, stop for 12 hours to make the treater fully cool down, then open the dregs outlet at the bottom of treater to discharge dregs, feed material from the feed inlet of treater to continue another cycle of refining.
      The three wastes treatment with domestic horizontal fixed treater fails to meet the requirements of environmental protection; and the quality of oil produced with air distillation method is poor, moreover, the output capacity is low.
By fostering the strengths and circumventing the weakness of large petrochemical refining plant and combining researches of other companies, Shangqiu Donghe has launched atmospheric and vacuum distillation unit with Donghe characteristics over years of scientific research based on China’s practical conditions
      II. Characteristics of up-to-date series of oil refining equipment (to take JL-1 as an example)
      1. Each set of unit is comprised of the following eight parts:
            a. Reboiler
            b. Fractionating tower
            c. Pressure release device
            d. Central electric control system
            e. Condensation system
            f. Fuel gas heating system (exhaust treatment system)
            g. Air heater
            h. Flue dust collecting system
      2. Domestic initiation:
            a. The complete set of unit produces no smoke and smell with favourable effects of environmental protection.
            b. The pressure release device operates through water circulation, which greatly improves the security of the system.
            c. The release of pressure during the production dramatically increases the output within certain time and meanwhile improves the quality of oil.
            d. The heating system adopts hot air heating technology, which improves the safety performance of production and heating efficiency.
            e. High efficiency fuel gas heating system. When the heated gas reaches 150℃ during refining, a large amount of gas will be generated: through methane to butane, which cannot be liquefied under normal temperature. A large quantity of energy will be generated after these gases fully burn within a specially designed gas burner. Then energy will be saved greatly.
            f. Flue dust collecting system; Equipped with water hammer cyclone dust collecting room, which makes sure the discharged flue gas reach national emission standard.
      3. Cmpany Pomise:
      There is complete aftersale service for series of unit from out company. The warranty period of the main part of unit is 1 year, which completely eliminates customers’ worries.
      III. Product and Raw Material Market
      With the rapid advance of the global economy, Energy source has been the main factor limiting the economic development of each country since the 1990s with the daily increasing trend of petroleum in short supply, the petroleum explored in the whole land of the globe will be exploited out in 15 years! Seeking new energy sources has become the question all countries in the world focus on. China has a broad tract and a large population, and with the rapid development of the market economy and the popularization of vehicles and machinery, the demands to petroleum is increasing continuously and China has changed from a petroleum exporting country to an importing country. In the first half year of 2008, we still need to import 120 million buckets of crude oil from foreign countries to be able to meet the demands of domestic market except the domestically produced crude oil in accordance with the news publicized by China Petroleum & Chemical Corporation. Since 2008, the international price of crude oil increases time and again, and the price of each bucket of crude oil has exceeded 100 dollars (quotation from OPEC in February 2008).
Then whether the sources of the raw materials for refining oil can be guaranteed?
There are factories to refine raw oil with waste plastics and scrap rubber almost in all the regions above county-level in the Chinese mainland. In addition, a large amount of mineral oils such as waste engine oil and waste crude oil need processing. Thus, a refinery in a county with annual refining capacity 1500 tons of waste oil does not have to worry about its raw material.
      IV. Main Technical Characteristics
      1. The key unit adopts vacuum catalytic cracking technology and chemical extraction technology.
      2. There is complete equipment equipped for environmental protection, e.g. waste gas burner and flue gas dust collecting room.
      3. Adopt simple chemical method, eliminate the colour and peculiar smell of products.
      4. The output capacity of pure raw oil is less than 80%.
      5. The design of unit is reasonable, the manufacturing process is advanced, the operation is highly automatic and the safety facilities are complete.
      6. Have multiple purposes.
      V. Applicable Products & Industries of Oil Refining Treater
      1. Raw oil extracted from waste plastics and scrap rubber
      2. Waste engine oil
      3. Waste raw oil
      4. Waste washing oil
      VI. Technological Process
      Pump the raw oil for further processing into reboiler, catalyse and heat in a decompression state to distillate oil vapour, make the oil vapour pass the condenser, then the part that can be liquefied will be condensed into oil product, and the part that cannot be liquefied       will be sent into air heater for burning.
      The concrete process is as below:

 

      VII. Security
      1. The security of main device, the main components of the exhaust gas that cannot be liquefied are alkanes class from C1 to C4, whose direct burning is dangerous. Therefore, we shall first make them pass water seal of the first safety device before burning up them as fuels, and further make them pass the gas burner of the second safety device; then the safe production shall be realized completely.
      VIII. Environmental Protection
      Treatment of the three wastes in the course of production
      1. Exhaust gas
      By means of full combustion in water seal and gas burner of safety devices, the pollution of exhaust gas shall be eliminated and a large amount of fuel shall be saved.
      2. Waste liquid
      Faintly acid waste water shall produce in the course of treatment of oil products (about 50 kg waste water each ton oil, small volume and tractable); after neutralization by adding faintly alkaline liquor, the neutral waste water shall be harmless with three-grade filtration and be discharged into special evaporation processor to vapor (heat source is the flue residual heat of main processor).
      3. Waste solid
      The waste plastic will have some solid residues, which probably accounts for 5% to 10% of the weight of waste plastic, after being catalyzed and thermally cracked. The main component of these residues is asphalt and it can be sold as the raw material of producing asphalt in the market.  

      IX. Analysis of Economic Benefit
      1. Technical parameter of equipment

      2. Production sites cover an area of 450m2 , including a 6m2 room with central electric-control-box.
      3. Production cost (Take raw oil from waste plastics as raw material, and JL-1 type as equipment)
Economic benefit analysis of JL-1 type equipment
            a. 6 tons raw oil from waste plastics (oil yield 90%): 6 tons*3500.00 RMB/ton=21000.00RMB
            b. Using coal 0.3tons*800.00 RMB/ton =240.00RMB
            c. Water and Electricity: 20kw/h*0.70RMB/kw*15h=210.00RMB
            d. Chemicals: 200.00RMB
            e. Salary for two workers: 50.00*2=100.00RMB
            f. Depreciation cost of equipments: 20RMB
            g. Tax (remark): free from tax for environmental protection project
            h. Other expenses: 50RMB
      i. Total: 21820.00 RMB
      j. Calculation of the Daily Output(Take JL- 1type equipment for example)
      The daily output of product oil of JL-1type equipment is 4.8tons, 6tons waste plastics raw oil are required.
k. Gross profit
      The current price of No.0 product diesel oil is 6000.00 RMB/ton.
      The fuel oil produced can be used in oil spray gun of industrial heating instead of No.0 diesel oil
      The fuel oil produced can be calculated on 5.50RMB/kg.
      Daily turnover of JL-1 type: 4.8*5500RMB/ton=26400.00RMB
      Daily profit 26400.00RMB/day-21820.00RMB/day =4580.00RMB/day
      Monthly profit: 4580.00RMB/day*25days=114500.00RMB
      Yearly profit (ten months): 1,145,000RMB
      Calculation of investment recovery
      Monthly profit is 114500.00RMB; equipments are put into operation within 30 days after they enters the factory; capital can be totally recovered in normal production condition in the short term.
      X. Conclusion
      The above analysis and calculation show that using raw oil from waste plastics, waste engine-oil and waste crude oil as raw material and carrying out deep-processing is feasible in terms of technique, with advantages of small investment, much raw material, rapid recovery and favorable prospect. Therefore, it is an optimal choice to invest in factories.
Shangqiu Donghe Special Equipments Co., Ltd
February 2008