Design 2

Executive Summary

Biodiesel is a biofuel alternative to petroleum diesel. One of the main pathways of biodiesel production is through transesterification. For each unit of biodiesel converted using this reaction, approximately 10% by weight will be recovered as by-product glycerol. This reaction alone accounted for approximately 65% of total glycerol production in 2011. The growing biodiesel market has created an abundance of inexpensive glycerol, which can be converted into higher value products such as propylene glycol. After conducting a thorough review of the literature, a process was developed based on existing UOP patented technology. This process produces propylene glycol via hydrogenolysis of glycerol. The reaction is carried out at 370 °F and 800 psi, which results in 85% conversion of glycerol with a 91% selectivity to propylene glycol, balance ethylene glycol. The main product is purified to 99.8 wt% to meet USP/EP grade. The main byproduct, ethylene glycol, is sold at 99.9 wt%. The process was simulated in Aspen HYSYS V7.3 to determine material balances and overall energy requirements. The process uses 16,919 tons of crude glycerol a year to produce 9,601 tons of propylene glycol and 759 tons of ethylene glycol year. This requires 823,680 tons of water, 609,840 tons of steam and 229,680 kWh a year. The sizing and cost analysis for each of the individual machines and utilities as well as the overall economic analysis have also been examined. The project is estimated to cost 7.63 $MM in capital and 12.3 $MM annual cost of production. The total project revenue comes out to 25.9 $MM each year. After an economic analysis the process was determined to have a 10 year NPV of 4.11 $MM and 20 year NPV of 7.9 $MM with respective IRR of 30% and 34%. These numbers were calculated using 20% cost of capital, a 34% tax rate and a 10 year MACRS depreciation. The project was deemed to be highly profitable and is recommended to move forward when possible.