I. PROJECT DESCRIPTION
a. Basic Concept
This Project adopts the concept of a Village-Scale Waste Vegetable Oil (WVO) Bio-Fuel Plant.
Processing capacity is 60 liters per hour (LPH) or 1,440 liters per day (LPD) assuming 24 hours continuous operation.
Blended with 10% regular petro-diesel fuel, the end-product is a “clean and green” bio-fuel that can be used directly as diesel engine fuel in stationary diesel engines and in most indirect injection (IDI) diesel-fed automotive vehicles without any further blending with petro-diesel fuel or any alteration of the fuel systems
b. Purpose and Objectives
The project shall produce and profitably sell to consumers in the immediate community where it is based, a vegetable oil-based alternative fuel to substitute up to 90% of petro-diesel consumption of diesel engines, at adequate volumes and at the same price as petro-diesel fuel.
The ultimate purpose is to serve the country and the people by contributing to:
- the reduction of the operating cost of transport and other industries that will redound to decreased costs of goods and services and improved purchasing power of the peso;
- a significant increase in the use of indigenous and renewable energy resources, thereby reducing importation of petro-diesel fuel and improving the balance of payment situation; and
- the shift to clean and green fuels leading to the improvement of over-all environmental quality.
c. Plant Site
The plant is ideally located in or close to an urban area but not necessarily in the city or town center.
Being a small-scale plant with no large motors or engines used and no hazardous chemicals and very minimal process wastes, the plant can be located even in non-commercial/industrial zones, e.g., a low-density residential area.
The final products can be delivered to the target outlets: e.g., garage/service stations of organized transport groups, diesel-fired plants, fishing ports.
The minimum requirements are:
- road accessibility
- sufficient power and water supply,
- and adequate land area of at least 500 sqm and a building area of 100 sqm.
If available at affordable rates, a land parcel with an existing building will be the most ideal for a quick start-up. Preferably, a property of at least 2,500 sqm will allow for future expansion.
d. Production and Marketing Program
As designed, the Project shall be able to produce about 1,300 liters of 10% diesel-blended bio-fuel per day.
This fuel is ready to use “as is” in any diesel engine without any alteration in the engine’s fuel supply and combustion system.
This entails the recovery of 1,440 liters of WVO per day at the competitive buying price of Php 10/liter.
Opening the door of opportunity to the suppliers (e.g., hotels, restaurants, canteens) to join as shareholders, the Project is well positioned to corner the local supply.
Since the raw material and the process are both inexpensive, the Project shall be able to offer the product at the same price of petro-diesel.
The marketing task is not expected to be difficult. The priority target market is the public transport service sector.
Small fleet operators or cooperatives/associations with their own service station shall be the best client with whom a long-term supply-purchase agreement shall be given priority.
The scope of the marketing effort is also very manageable. At the least bio-fuel ratio of only 10%, the target number of vehicles (at the low daily fuel usage of 20 liters per vehicle) is about 650 only.
At the maximum bio-fuel ratio of 70%, which is not unlikely given the competitive pricing and over-all beneficial impact, the target number of vehicles is less than a hundred.
This market volume threshold is very possible to attain even in medium-sized towns with basically an agricultural economy where small diesel engines are the mainstay of agricultural machineries and post-harvest facilities.
e. Organization and Management Plan
The Project shall be established and managed as a joint-venture enterprise of the co-investors.
To be registered as a stock corporation, the business shall be managed under the corporation code with management involvement and income sharing in proportion to the equity shares of the shareholders.
These shall include both consumers, i.e., public transport service firms, especially cooperatives or associations of drivers and operators, and suppliers of the raw material, i.e., food service establishments.
Any person or entity willing to put up the land and/or buildings where the Project can be located is also welcome.
For the full Pre-feasibility Study of the Biofuel Production Plant (Waste Vegetable Oil), you can download the document HERE.
