The economic evaluation of the production of oil-palm-shell-based phenol
Previous work done in the extraction of phenol from oil palm shells showed that it contained up to 80.1% purity of phenolic compounds. The oil-palm-shell-based phenol is applicable to replace petroleum-based phenol in preparation of phenol formaldehyde wood adhesives. Since the average price of petr...
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Penerbit UTM Press
2007
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| Online Access: | http://eprints.utm.my/5042/2/FaridNasirAni2007_TheEconomicEvaluationoftheProduction.pdf http://eprints.utm.my/5042/3/271 http://eprints.utm.my/5042/ |
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| _version_ | 1845471278943698944 |
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| author | Chuan, Chin Wong Ani, Farid Nasir |
| author_facet | Chuan, Chin Wong Ani, Farid Nasir |
| author_sort | Chuan, Chin Wong |
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| content_provider | Universiti Teknologi Malaysia |
| content_source | UTM Institutional Repository |
| continent | Asia |
| country | Malaysia |
| description | Previous work done in the extraction of phenol from oil palm shells showed that it contained up to 80.1% purity of phenolic compounds. The oil-palm-shell-based phenol is applicable to replace petroleum-based phenol in preparation of phenol formaldehyde wood adhesives. Since the average price of petroleum-based phenol is around RM 3600/ton, this work was done to estimate the cost of oil-palm-shell-based phenol. In this present research, three oil-palm-shell-based phenol manufacturing plants were investigated. Their manufacturing capacities are 1000 ton/year, 10 000 ton/year, and 100 000 ton/year. All the designs are based on the results from simulator DESIGN II. From the economic analysis, the cost of the oil-palm-shell-based phenol is RM 1084, RM 1008, and RM 972 per ton respectively. It shows that the cost of the oil-palm-shell-based phenol is reduced when the productivity is high. The net profit after taxes for these plants is RM 361,530, RM 4,140,764 and RM 43,943,092 per year respectively. The plants require 3 years for starting–up and their operating life is 17 years with a depreciation of 10% per year. For undiscounted cash flow, the pay back period is 10.0, 8.4, and 7.8 years respectively including the first 3 years. For different discount rates, values of net present value and discounted break–even point vary. The discounted cash flow rate of return is 14.0%, 20.0%, and 25.0% respectively in these plants with related net present value becomes zero. The after tax rate return obtained are 71%, 169%, and 426% respectively.
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| format | Article |
| id | my.utm.eprints-5042 |
| institution | Universiti Teknologi Malaysia |
| language | en en |
| publishDate | 2007 |
| publisher | Penerbit UTM Press |
| record_format | eprints |
| spelling | my.utm.eprints-50422017-11-01T04:17:27Z http://eprints.utm.my/5042/ The economic evaluation of the production of oil-palm-shell-based phenol Chuan, Chin Wong Ani, Farid Nasir TJ Mechanical engineering and machinery Previous work done in the extraction of phenol from oil palm shells showed that it contained up to 80.1% purity of phenolic compounds. The oil-palm-shell-based phenol is applicable to replace petroleum-based phenol in preparation of phenol formaldehyde wood adhesives. Since the average price of petroleum-based phenol is around RM 3600/ton, this work was done to estimate the cost of oil-palm-shell-based phenol. In this present research, three oil-palm-shell-based phenol manufacturing plants were investigated. Their manufacturing capacities are 1000 ton/year, 10 000 ton/year, and 100 000 ton/year. All the designs are based on the results from simulator DESIGN II. From the economic analysis, the cost of the oil-palm-shell-based phenol is RM 1084, RM 1008, and RM 972 per ton respectively. It shows that the cost of the oil-palm-shell-based phenol is reduced when the productivity is high. The net profit after taxes for these plants is RM 361,530, RM 4,140,764 and RM 43,943,092 per year respectively. The plants require 3 years for starting–up and their operating life is 17 years with a depreciation of 10% per year. For undiscounted cash flow, the pay back period is 10.0, 8.4, and 7.8 years respectively including the first 3 years. For different discount rates, values of net present value and discounted break–even point vary. The discounted cash flow rate of return is 14.0%, 20.0%, and 25.0% respectively in these plants with related net present value becomes zero. The after tax rate return obtained are 71%, 169%, and 426% respectively. Penerbit UTM Press 2007-06 Article PeerReviewed application/pdf en http://eprints.utm.my/5042/2/FaridNasirAni2007_TheEconomicEvaluationoftheProduction.pdf text/html en http://eprints.utm.my/5042/3/271 Chuan, Chin Wong and Ani, Farid Nasir (2007) The economic evaluation of the production of oil-palm-shell-based phenol. Jurnal Teknologi, 46 (A). pp. 43-52. ISSN 2180-3722 DOI:10.11113/jt.v46.281 |
| spellingShingle | TJ Mechanical engineering and machinery Chuan, Chin Wong Ani, Farid Nasir The economic evaluation of the production of oil-palm-shell-based phenol |
| title | The economic evaluation of the production of oil-palm-shell-based phenol |
| title_full | The economic evaluation of the production of oil-palm-shell-based phenol |
| title_fullStr | The economic evaluation of the production of oil-palm-shell-based phenol |
| title_full_unstemmed | The economic evaluation of the production of oil-palm-shell-based phenol |
| title_short | The economic evaluation of the production of oil-palm-shell-based phenol |
| title_sort | economic evaluation of the production of oil-palm-shell-based phenol |
| topic | TJ Mechanical engineering and machinery |
| url | http://eprints.utm.my/5042/2/FaridNasirAni2007_TheEconomicEvaluationoftheProduction.pdf http://eprints.utm.my/5042/3/271 http://eprints.utm.my/5042/ |
| url_provider | http://eprints.utm.my/ |