Post: MAKING ACTIVATED CARBON FROM RICE HUSKS BUSINESS IN UGANDA

MAKING ACTIVATED CARBON FROM RICE HUSKS BUSINESS IN UGANDA

Introduction

This project is for the production and marketing of activated carbon from rice husks. The activated carbons are widely used for the absorption of toxic gasses. Therefore, this product has a good marketability with proper linkages of the manufacturers, especially in the sugar industry and in the sewerage industry. The revenue potential for this idea is estimated at US$202,800 per annum, with a net profit of 50%and a payback period of 1 year and 2 months.

Production Process

The process of making activated carbon from rice husks consists of crushing the rice husks in a hammer mill to required size and then pulverizing them in a ball mill. The husk powder is digested with zinc chloride. The mass is then activated at elevated temperature. The activated pellets are quenched and leached counter-currently by diluted hydrochloric acid and dried in a tray drier.

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ Amount
Hammer mill No 1 4,310 4,310
Open pan evaporation steam boiler No 1 1000 1,000
Rotary Digester No 1 2,000 2,000
Plate and frame filler presses No 1 1,400 1,400
Tunnel dryer No 1 2,200 2,200
Vibrating screens No 1 800 800
Treating and setting tanks No 1 500 500
High pressure steam boilers No 2 4,000 8,000
Rotary Activation kiln No 1 500 500
Activated carbon storage silo No 2 150 300
Non corrosive materials Set 1 600 600
Tank filters press. Etc No 1 1,500 1,500
Total 23,110

Production and Operating Costs in US$

Cost Item Units @ Qty/day Pdn cost Pdn cost/ month
Direct costs
Rice husks kgs 0.17 385 66.605 1,732
Zinc chloride Ltrs 1.31 50 65.5 1,703
Hydrochloric acid Ltrs 2.3 30 69 1,794
Sub-total 465 201.105 5,229

General costs (Overheads

Rent 150
Labour 2,000
Utilities(power) 150
Other costs 500
Depreciation (Asset write off) Exp 481.4583
Sub-total 3,281
Total Operating costs 8,510

1 Production costs assumed 312 days per year with a daily capacity of 500grams of activated carbon.

3Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets 3 Direct costs include materials, supplies and other costs that directly go into production of the product.

Project Product costs and Price Structure in US$

Item Qty /day Qty/ Yr @ Pdn/ Yr UPx
Activated carbon 500 156,000 0.65 102,123 1.3

Profitability Analysis in US$

Profitability Item Per day Per month Per Year
Revenue 650 16,900 202,800
Less production and operating Costs 327.31 8,510 102,123
Profit 322.69 8,390 100,677

Raw Materials and Equipments

Raw materials like rice husks can be procured locally in Bugiri, Gulu, Mbale, Kasese, and highland rice farmers while equipments can be imported from countries China and Japan.

Government Incentives Available

There are government organizations like Private Sector Foundation Uganda which serve as a channel through which subsidies and free advisory services can be obtained.

 

John Doe
John Doe

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Hi, jenny Loral
Hi, jenny Loral

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