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Explanatory plan for the treatment of burnt oil Explanatory plan for recycling and refining engine base oil

  The explanatory plan for the treatment of burnt oil is a way to get the necessary facilities and permits to start or invest in this industry. According to the increasing demand of the market, the raw material i.e. burnt oil is too much for refining and by recycling and refining it, the income from this large industry can be provided to domestic units. In addition, it is possible to enter foreign markets by complying with international standards. Below is a summary of the justification plan related to the recycling of this product.  

Introduction to lubrication in industry

Lubrication is a method to prevent friction and wear of moving surfaces that are placed on each other. Lubrication facilitates the relative movement of surfaces in contact with each other. Lubricants in high pressure and high temperature conditions increase the useful life of devices and reduce energy consumption and costs by lubricating equipment and establishing favorable thermodynamic conditions of the environment. For this reason, the production of all kinds of lubricants and industrial engine oils has become a big business in the world.

Production statistics of lubricants

Currently, there are more than 1700 large lubricant manufacturers in the world, and about 200 companies are also operating side by side with other lubricant production. The size of the global engine oil market in 2017 was equal to 35.67 billion dollars and it is expected to face a growth of 3.7% during the years 2018 to 2025 and the market of all types of base oils, engine oil, hydraulic fluid, metalworking fluid, transport lubricants and synthetic oils and Minerals will reach from 157 billion dollars in 2020 to 182 billion dollars in 2025.

Why is the recycling and treatment industry profitable?

Industrial lubricants are consumer goods with a relatively short life span, whose production is not only very expensive, but also the disposal of used and burnt oils that have reached the end of their useful life poses great risks to the environment. Therefore, this industry is not only very profitable but also serves the environment. For this reason, in developed countries, in order to prevent environmental pollution, after collection and through a special standard system, the used oil is returned to the oil producing company and refined again. Considering that the most important component in the production of lubricants in terms of volume is base oil, and in terms of weight, it makes up more than 95% of the formulation of a lubricant on average; Many countries supply their base oil through the re-refining of spent oils.

Explanatory plan for the treatment of burnt oil Introduction of products

More than 60% of the market volume of lubricants is made up of motor oils. The base oil produced according to the API Group I standard is a very suitable feed for producing and formulating a wide range of engine, turbine, hydraulic, gear and grease oils. The majority of industrial oils are base oils. One of the ways to produce oil is to use used oil and rehabilitate it in order to reuse it in different devices. Unlike the majority of petroleum products that can be used only once, used oil can be reused due to the fact that the main components do not change. In used oil, additives and additives generally lose their properties and there is a slight change in the percentage of hydrocarbons that make up it. After some time, engine oil becomes contaminated and loses its desirable properties; The main source of this pollution is the materials produced due to the combustion of engine fuel and the wear of parts. The acid gases from the fuel make the engine oil acidic and insoluble impurities in the oil such as soot, carbon particles, asphalt materials, light and heavy metals, water, dust appear in it in an insoluble form. The energy consumption for purification and recycling of used engine oil is less than one third of the energy consumption for refining crude oil, and in addition to the economic benefits, it is also very important in protecting the environment.

Explanatory plan for the treatment of burnt oil Bituminous residue

This type of waste contains a large amount of polymer and metal, which can be used in the production of street asphalt, bitumen protective coating, or as fuel in factories such as cement.

Explanatory plan for the treatment of burnt oil Properties of base oil

The base oil is the main product in the process line of refining and re-purifying used oils, which after mixing and adding appropriate additives, features such as heat transfer, anti-corrosion, anti-oxidation, anti-rust, anti-wear and anti-foam and ease of separation from water and It also ensures no damage to sealed parts and hoses and gaskets. Examining the physical and chemical properties of oil is a good measure to control the quality of the manufactured product. These properties can be measured with the following indicators according to the standard in the laboratory.

Viscosity of the base oil

Viscosity is the resistance of fluid oil to flow. Since the engine oil expands and becomes more fluid under the conditions of increasing temperature, and its viscosity increases as the temperature decreases; Therefore, oil viscosity should always be determined with the temperature at which it is measured. A good oil should be processed in such a way that it shows less viscosity changes under temperature changes.

Oil appearance condition

The appearance of oils should be uniform, clear and free of water and foreign particles. usually existToo much water in the oil or mixing the oil with diesel or other substances that contain solid wax will make it cloudy.

Oil paint

The color of oils is usually determined by comparing them with a series of standard colored glasses. The standard of oil color is determined from 5.0 to 8 with intervals of 5.0.

Oil flash point

The ignition point is the lowest temperature at which the oil has turned into vapor enough so that it ignites and then extinguishes when the flame approaches. The flash point is a measure of the oil's flammability and volatility.

Oil ignition point

The temperature at which the oil ignites and continues to burn. This temperature, like the ignition point, represents the amount of volatile gas compounds and the ability to evaporate, and is usually 30 degrees Celsius higher than the ignition point.

Specific weight of oil

The specific gravity of oil in relation to the specific gravity of water at a certain temperature is called relative specific gravity.

oil carbonization index

The thermal degree at a pressure of 1 mmhg, where 90% of the oil is distilled, is called the carbonization index, and the higher it is, the greater the amount of deposits in the engine.

Pour point and cloud point of oil

Pour point is the lowest temperature at which cooled petroleum products flow under standard conditions, or in other words, the lowest temperature at which oil is still fluid. The cloud point is the temperature at which the oil loses its waxy properties and becomes opaque. This temperature is higher than the pour point.

Oil sulfate ash

The amount of material that remains after burning the oil sample and does not burn is called ash. In many cases, to obtain more accurate results, the ash is reacted with concentrated sulfuric acid and thus the sulfated ash is determined. Base oil ash represents the non-combustible material left over from the accompanying crude oil. The amount of ash for oil without additives is 1% and for oils containing additives is up to 3%.

Oil saponification number

This test shows the amount of fatty substances (saponifiable) in the oil. These substances are added to some oils that are in contact with water and gear oils to make them more oily.

Oil neutralization number

The neutralization number of an oil is the amount of milligrams of acid or base needed to neutralize the acidic or basic substances in one gram of oil. The number of neutralization in oils includes four ways; The numbers of acidity, total acidity, alkalinity strength and total alkalinity are expressed. In a well-refined base oil, the neutralization number is usually not more than 1. Unless the base oil is the result of re-purification of used oils and the sulfuric acid used in the purification process is not completely neutralized. Generally, the functioning of oils increases their acidic property due to decomposition and oxidation due to heat and proximity to water. Based on this, the reduction of the neutral number in the case of engine oils indicates the level of performance.  

Explanatory plan for the treatment of burnt oil ISIC code of the product

According to the classification of the Ministry of Mining Industry and Trade, base industrial oils are part of the chemical products manufacturing group with the head of group 23 and based on the eight and ten digit product code, they have ISIC codes as follows.

Table – ISIC code of products related to base oil

product name ISIC code
base oil 2120712711
Refining burnt oil 23201240
distilled fuel oil 23201213
Hydrocarbons from burning oil refining 23201245
bitumen obtained from burnt oil refining 23201247
Asphalt compounds from burnt oil waste 23201425
refined base oil 2320412449
Car gear oil (first refinement) 2320512439
Industrial gear oil (first refinement) 2320512440
Refined engine oil 2320412450

Explanatory plan for the treatment of burnt oil Product standards (national or international)

In order to gain the trust of consumers and comply with all the points related to product quality control, it is necessary to pay attention to the existing standards. The level of oil quality indicates that the oil is suitable for which type of engine and with which model and which type of fuel. In other words, the quality level of an engine oil is determined by its standard. The important thing is that different engines need oils with different standards. The difference between these oils, apart from the quality of their base oil, is in the type and amount of additives in them. The quality level of engine oil is indicated by abbreviations that briefly indicate the most important ones.

Types of classification and standards in different countries

There are three global and one important domestic reference for standardization in the automotive industry and related industries. American API and European ACE andILSAC Asia and in Iran ISIRI; These references suggest suitable oil for different engines. Engine type, fuel and year of engine design are factors that play an important role in choosing oil for it. The growth and development of the lubricant industry in recent years has been much higher than in previous decades, and the new designs of automobile engines and industrial engines increase the need for newer lubricants day by day. The first classification was presented in 1930, in which gasoline engine oils were indicated with the symbol "S" and diesel engine oils with the symbol "C". In the "S" classification system, the lowest quality level starts with SA, and thus the next levels are indicated by SB, SC, etc. Of course, SI and SK symbols are not used in this system. In the "C" classification system, the letters A, B, C, etc., as well as numbers are used for marking. Gasoline engine oil SA, SB, SC Diesel engine oil CA, CB, CC The marking classification of the European Automobile Manufacturers Association (ACEA) or CCMC is also as follows. Gasoline engine oil 1, C2, C3, C4, C5 C Diesel engine oil 1, D2, D3, D4, D1, D5, PD1

Iranian National Standards :(ISIRI)

The national standards compiled for this product are 1342 standard under the title of characteristics and test methods of basic industrial oil for lubrication (chemical) uses 584 and 585 to determine the quality level of engine oil. In general, the classification of base oils into different cuts, including; SN150, SN300, SN350, SN500 are divided.
Subject standard number
Lubricants - engine oil for gasoline engines at a quality level equivalent to APISN - characteristic 17651
Lubricants - engine oil for diesel engines at a quality level equivalent to APICE 13383
Engine oil and used oil purification - energy consumption criteria in the production process 11593
Procedure of production of engine oil based on second purification 6223
Lubricants, industrial oils and related products (class L, family E internal combustion engine oils (two-stroke gasoline engine oil (air cooled) 6639

Explanatory plan for the treatment of burnt oil Use cases

The base oils obtained from crude oil refining do not have the necessary characteristics for use in industrial and automotive machinery and installations. Therefore, in blending, materials are added to it so that it can have the characteristics required for specific uses in industry and engine. For this purpose, additives and additives are added to the base oils, which improve the various characteristics of the oils for the desired applications. Some of these are as follows: 1- viscosity index improver 2- Anti-oxidation 3. Anti-wear 4. Lowering the pouring point 5. Anti-corrosion and anti-rust 6. Anti-foam 7. Cleaner and suspension Additives are added to the base oil based on the formulation in a certain amount that the manufacturer intends to reach the standard criteria. This operation is done in a unit called blending. In this way, different oils can be produced for various uses, such as types of gasoline and diesel engine oil, generator oil, diesel hydraulic oil, oil for industrial devices and facilities.  

Explanatory plan for the treatment of burnt oil Substitute and complementary product

Since base industrial oils are the result of recycling used oils and are a replacement product, so there is no replacement product for it.

Explanatory plan for the treatment of burnt oil Technical knowledge

In the process of refining and recycling the base oil, all waste materials should be extracted from it and the oil should be returned to its original form (base oil). For this purpose, special technologies and processes of recycling and refining all kinds of industrial oils are used, such as different methods of distillation, hydrogenation, acidic, alkaline, in which the stages or a balanced combination are used as follows.
  • Removing water and solid particles through sedimentation and filtration
  • Sulfuric acid reaction to remove grease, gum and acid-soluble impregnated materials
  • Alkaline reaction to neutralize the acid used in the process
  • Using solvent liquids to remove soapy substances
  • Simple atmospheric distillation to remove moisture and volatile oils
  • Distillation under vacuum or extraction using solvent
  • Using special soil for color removal and absorption of impurities
  • Filtering to remove process mineral additives and other solids
  • Thin film evaporation
  • Hydrogenation to improve oil color and quality
  • Blending to achieve the expected characteristics and standard of oil used in industry

Technology used in Iran

Currently, the technology used for the first purification in Iran is the conventional method of extraction using an acidic solvent. In the world, the importance of this method has decreased and its production is increasing with new non-acidic hydrocracking and hydroismation methods. A limited number of units using the non-acidic method are currently working in our country. All methods of purifying ka oilsReactions (acidic-non-acidic) can purify between 70 and 90% of used oil impurities and turn it into its original form (base oil). Base oil produced through recycling and re-purification of used oils by meeting special conditions and matching the factors determined in standard quality control tests in terms of functional characteristics and service life and SAE classification in terms of viscosity with various polymers and suitable chemical additives with percentages It is mixed according to the expected characteristics of the manufactured product and after meeting the quality control criteria with the characteristics determined at different standard levels in the laboratory, it is transferred to the packaging unit and packaged. base oils that are the result of recycling used oils produced in a non-acidic way; They have better chemical and physical properties than other recycled oils.

Explanatory plan for the treatment of burnt oil Equipment and machinery

The main machines and the main equipment of this project include process control and monitoring system, installation skeleton of oil purification facilities, raw material tanks, oil transfer pumps and additives, centrifuge tank of primary purification system, fuel tanks, condenser and cooling tower, Hetero heat exchangers and boilers. , thin film evaporation system and vacuum oil distillation reactors of different bases, types of absorption filters and carbon base, refined oil tanks and mixers, waste tanks, pneumatic system and compressed air compressor, and cooling and heating and steam collection equipment, which can be manufactured There are domestically.    

Market and competitor analysis

Because the recycling of base oils, as the mother of all oils, in addition to numerous environmental benefits, prevents currency from leaving the country. Also, the production of standard export-oriented products in order to be present in the global market is one of the important strategies for the continuation and development of production and stabilization of the position of this activity in the highly competitive international market. A total of 927 thousand 197 cars were produced in Iran during the year 2018, under favorable market conditions, the country's production capacity for car production is 1 million 200 thousand cars per year, which if the number of existing and active cars in the country, facilities and machinery Add an industry that requires the consumption of industrial oils. In the supply sector, until the end of July 2019, a number of 626 licenses have been issued for the purpose of primary and re-purification of base and engine oil in the country, of which 389 units have industrial exploitation licenses and an investment of 2,236 billion Rials with a nominal capacity of 8,096 thousand tons per year. are busy Out of this number, 234 companies with a capacity of 4849 operate in the re-refining of base and engine oil, which often use the acid refining process.
first and re-refining licenses for base and motor oil in the country until the end of 2018
626
Operation license for the first and re-purification of base and engine oil in the country
Number Capital (M.R) Employment capacity Unit
389 2236260 12992 8096080 Ton
operating license for repurifying base and engine oil
Number Capital Employment capacity Unit
234 5184797 5190 4849379 Ton

Investment required

Based on the studies conducted, the construction of the spent oil purification and recycling unit with a capacity of 12,000 tons per year, the internal efficiency rate is more than 36%, and the investment return period is predicted to be about 3 and a half years. In the following, a summary of the requirements for the construction of this unit with the nominal production capacity is presented as follows in the year.

General design specifications

row Subject Berard Unit
1 Earth 6000 square meters
2 Infrastructure of the entire outdoor and indoor production 2500 square meters
 
row Subject Costs (million Rials)
1 Fixed investment
2 Internal rate of return IRR (percentage) 36
3 Payback period (years) 3/5
4 Percentage of activity at the head-to-head point 8/31

Explanatory plan for the treatment of burnt oil Benefits of project implementation

One of the main and determining components in comparative advantageThe product is abundant and easy access to raw materials. Since the raw materials for the purification and recycling of all types of motor and industrial oils are supplied from the collection network and the amount of waste and used oils in our country increases daily and continuously; Therefore, the economic, technical and environmental advantages of recycling used oils in a non-acidic way are described as follows.
  • Much lower enzyme consumption compared to other methods of recycling and first treatment production
  • Possibility of supplying the main raw materials from used oils
  • High level of automation compared to traditional acidic systems
  • Ability to use production line waste in related industries
  • Higher productivity and quality compared to acid methods
  • compatible with environmental standards
  • Higher production speed and more suitable economic efficiency compared to old methods
  • The placement of the product in the group (API I & API II)
  • No need to use acid and colored and acidic soils
  • Reduction of production process and labor force
  • High separation rate and pollutant removal
  • Ability to control more production processes and achieve standard achievement

The result of financial and economic studies

Market research and presentation of calculation criteria for each of the fixed and circulating capital estimates and explanation about the fixed and variable costs of the plan, forecast and cost price as well as the annual profit of the plan have been calculated. Examining the most important financial and economic indicators of the project with financial calculations extracted from the Comfar III Expert software shows a financially acceptable situation for the production of base oil from used oils, and due to the existence of excess demand during the first few years, a favorable environment for creating This unit is available