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.
