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                                          CHAPTER 1

                         THE PROJECT AND ITS BACKGROUND



I. Introduction

        Activated carbon, also called activated charcoal, activated coal, or carbo activatus, is a

form of carbon processed to be riddled with small, low-volume pores that increase the surface

area available for adsorption , purification and filtration of substances.1 It is generally used in

water filters, medicines that selectively remove toxins, and chemical purification processes as a

cleaning agent. Various manufacturers, businesses, government agencies, scientists and chemists,

and even simple people use this carbon.

        Activated carbon is produced by the oxidation of charcoal made from wood, coconut

shell, sawdust, or fruit kernels. For the purpose of this study, the company will focus on

manufacturing activated carbon made from coconut shells which is seen as dominant in Quezon

Province, the company’s prospected plant site.

        Coconut shell-based activated carbons are the least dusty. Predominantly microporous,

they are well-suited for organic chemical adsorption. Coconut shell-based carbon has the highest

hardness compared to other types of activated carbons, which makes it the ideal carbon for water

purification.2

        In the early years, the use of Activated Carbon was already dominant. Adsorption or

filtration on porous carbons was described as early as 1550 B.C. in an ancient Egyptian papyrus

and later by Hippocrates and Pliny the Elder, mainly for medicinal purposes. In the 18th century,

carbons made from blood, wood and animals were used for the purification of liquids but they

were only available as powders.
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         At the beginning of the 19th century the decolourisation power of bone char was detected

and used in the sugar industry in England which allowed the use of percolation technology,

where the liquid to be treated was continuously passed through a column. Bone char, however

was only used for sugar purification.

         At the beginning of the 20th century the first processes were developed to produce

activated carbons with defined properties on an industrial scale. However, the steam activation

(V. Ostreijko, 1900 and 1901) and chemical activation (Bayer, 1915) processes could only

produce powder activated carbon. During then, powder activated carbon was only known for the

production of gas masks used in the First World War.4

         Today, activated carbon is already used in various areas such as in air treatment, water

treatment, manufacture of foods and beverages, pharmaceutics, and many more. By this change

they are following the modern tendency towards recycling and waste minimisation, thereby

reducing the use of the world's resources.
  Table 1.1 Demand of Activated Carbon
  Source: www.researchinchina.com


                                                            The demand in activated carbon is

                                                    increasing through time as to more and more

                                                    sectors discover the wonders and benefits of

                                                    active carbon. Recently, cosmetic companies

                                                    ventured to it. As water becomes increasingly

needed to satisfy life, the purification of water rapidly grows as well as the purification of foods.

Apparently, the supplies do not match the demand. More and more businesses be it large or not

use it but there are only few manufacturers of activated carbon.

         In Quezon province where there are large number of coconut shells and woods, no one

manufactures activated carbon. As a result, small businesses pay more cost on shipping and
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handling for they still have to order in Manila, Cebu, Central Luzon and even abroad just to have

a supply which is a real burden. But still, the supply is not enough to cater all and it leads to

circumstances such that end user industries have to depend partially on imports and partially on

lowering their consumption.



II. Objectives of the Study

       The main objective of this study is to know the feasibility of manufacturing Activated

Carbon in Quezon Province. In line with this, this study aims to:

   a. know the profitability and marketability of manufacturing Activated Carbon in Quezon

       Province;

   b. identify the possible problems and opportunities in venturing in this kind of industry;

   c. determine the competitiveness of the company from its competitors, whether direct or

       indirect competitors and;

   d. find out the economic practicability of operating this business in Quezon Province.



III. The Company

       A. Company Profile

               The company is directed to be established as one of the top activated carbon

       manufacturers in the country. The company shall be called “Carbon Plus Corporation”

       for practical reasons such that, this corporation is all about carbon and adding chemicals

       to it to level up the value of the simple carbon. When carbon is mixed with chemicals to

       make it active, it will not be another element thus, it will always, and still be a carbon, the

       only difference is that, other chemicals were added to it.
Page |4


       Carbon Plus Corporation is a stock corporation and will have its own plant and

main office at Brgy. Bocohan, Domoit, Lucena City, Quezon. The location will perfectly

suit the nature of the corporation, which is to make coconut shell-based carbons and since

Quezon is one of the top coconut producing region, raw materials are readily available

and accessible at the same time.

       Carbon Plus Corporation saw the felt need on purification these days as our world

becomes more polluted. Everything must be sanitized first before it gets to the final users

of the product. Before coming up with the final good, other manufacturers and producers

sanitize first their product offerings making sanitation processes in demand. And Carbon

Plus Corporation aims to help these manufacturers, small or big, meet their product

standards at the same time lower their production cost.

       Carbon Plus Corporation also saw the great difference in demand and supply.

There is a very great demand on activated carbon as it caters to almost all industries, but

such low and lacking supply. There are only a number of manufacturers of activated

carbon in the Philippines and they offer in great bulks. Some others are just distributors.

Businesses and other industries who needs activated carbon in their operation generally,

commit a large transportation cost for they have to order in far places. The Carbon Plus

Corporation found it odd especially for those within and near Quezon, where there is an

abundant amount of charcoal. In making a plant in Quezon, there is a certainty that we

can offer the product in a much lower price.

       Other businesses on the other hand, having no choice as to buying big bulks of

activated carbon, suffer great cost discharges such as maintenance cost which is a real

burden. If we manage to offer them products in small quantities, they can effectively

control their order cost and can efficiently manage their production processes.
Page |5


        Carbon Plus Corporation aims to help not only big corporations but also those

little entrepreneurs who can only afford to buy in small quantity. The company aims to

grant businesses with much effective and efficient production generating customer

satisfaction.

B. Logo of the company




                                      Fig. 1.1 Company Logo

        The color of the words “CARBON PLUS CORPORATION” is inspired by the

color of activated carbon itself, which varies within the shades of black and gray, while

the six circles at the side represent the atomic number of the element carbon, six.

        Activated carbon works with the idea “black attracts black”, the circles started

from a dark toned one, which represents a substance with impurities. With the aid of the

insertion of Carbon Plus product, the shade of each circle lightens, until it reached a clear

one, representing the process of adsorption of the residues, dirt and other impurities of the

substance, which specifically, is the main function of activated carbon.



C. Vision

        Carbon Plus Corporation is an integrated manufacturing entity providing

sufficient supply of high quality activated carbon and relevant services to respond to the

growing demands of the public while minimizing the cost of the product to make it more

affordable to the users. Equipped with dedication to be on the top of the industry to

further enhance the quality of purifications of our generation and generations to come,
Page |6


providing more job opportunities, a better industry and for the satisfaction of the

customers.



D. Mission Statement

       a.     Enthusiastically ensure the success of our company by effectively

              satisfying the needs of our customer, shareholders and employees.

       b.     Consistently manufacture reliable and high- quality products and related

              services.

       c.     Interdependently accelerate competence of our company through intensive

              development, quick response to modernization and cooperation with the

              society.

       d.     Be a responsible citizen that makes a difference by helping build and

              support sustainable communities.

       e.     Maximize long-term return to shareowners while being aware of our

              overall responsibilities; environmental, governmental and overall welfare.

       f.     Minimizing costs and offering variety of products.



E. Opportunities and Advantages

       Being the first manufacturer of Activated carbon here in Quezon, provides the

company the assurance of no direct competition as the users would prefer availing

products minimizing the cost of transportation and handling. In addition, Quezon is

known for abundance in coconut supply which gives the company a great advantage in

supply, as it is sufficient and readily available in the region. Compared to other raw

materials used, Coconut is the most renewable at the quickest time possible, making it
Page |7


        possible to have enough supply to ensure continuous production. Furthermore, activated

        carbon from coconut shells is more reliable compared to other sources. According to

        Grimwood,”Shell carbons are generally dense, very hard and highly retentive. They have

        a very fine pore structure and their rate of adsorption is generally faster than that of coal

        carbons.”5



IV. The Product

        Carbon is one of the most abundant elements

in the world. With this, Carbon Plus Corporation

maximized the potentials of this element by turning it

into something very useful.

        Activated Carbon (AC) is a crystalline

substance which has the ability to adsorb or purify

substances. It undergo through the activation process

whether thermal or chemical.         Hydrocarbons are

removed from the carbon material thus producing             Fig 1.2 Activated carbon in water filtration

network of tunnels and pores which gives the ability of adsorption.

        The adsorption process of Activated Carbon goes through three basic steps. First, the

substance is adsorb on the outside surface of the carbon. Then it goes into the carbon adsorption

pore with the highest adsorption energy. Lastly, the substance is then adsorb into the inner

platelets of the carbon. The two mechanisms wherein the chemicals are adsorbed onto the

activated carbon are either it hates the water or it attracts into the activated carbon.
Page |8


       Activated Carbon is produced from a wide variety of carbon-rich materials like coconut

shell, peat, wood, fruit kernels, or sawdust. The best material to be used is the coconut shell for

it has the following inherent qualities which give them the edge among other sources:

           a. High hardness levels (> 97%):

                      Ensures superior material handling and minimizes dust generation.

           b. High surface area (up to 1500 m2/g):

                      Gives high adsorption efficiency

           c. High microporosity (< 20 Angstroms):

                      Gives high adsorption and retention capacity. This is important for the

                      removal of low-molecular weight organics and trace levels of

                      contaminants.

           d. Low ash content:

                      Gives high purity preventing contamination of adsorbates.

           e. High density

                      Provides for economical containment for the same level of filtration.

           Source: Green Carbon Inc.

                              Common Uses of Activated Carbon

              Air Treatment                Water treatment              Food and Beverage
              Odor Control                  Drinking Water                 Sugar Decolour
              VOC Adsorption                waste water                    Fruit Juice
              Solvent Recovery              Process Water                  Bottled Water
              Flue Gas                      Remediation                    MSG
              Air Condition                 Swimming Pool                  Edible Oil
             Inorganic Abate               Aquariums
              PSA
              Auto Emission
              Cigarette Filter
                          Table 1.2 Common Uses of Activated Carbon
                                      Source: www.kuraraychemical.com
Page |9


                            Summarized Uses of Activated Carbon

States      Purpose               Applications                       Examples
Gas Phase   Recovery              Gasoline Vapor                     Gasoline Fuel recovery,ELCD
                                  Recovery
                                  Solvent Recovery                   MEK, Cyclohexanone, CS2, Furon,
                                                                     Trichloroethane
            Odor Removal          Room Order Removal                 Tobacco, CO, Room filters, Toilet
                                                                     Odor, Pet Odor
                                  Refrigerator                       Deodorizer
                                  Automobile                         Cabin air filters
                                  Tobacco                            Cigarette Filter
                                  Hospital                           Anesthetic gas removal
                                  Ozone Removal                      Copiers, Laser Printers
            Harmful Gas           Closed Environment                 Dioxin removal,Space Ships,
                                                                     Underground CO2
            Gas Separation        Nitrogen PSA                       Nitrogen Gas Separation
                                  Other PSA                          Radio Active Gas
Liquid      Water Treatment       Factory Waste Water                Cleaning Waste Water
Phase
                                  Drinking Water                     Trihalomethane, Chlorine,
                                  Treatment                          VOCs, Lead, Arsenate removal
            Decolorization of     Industrial Use                     Sugar refinement, Pharmaceutical
            Indusrial                                                use, Whisky distilment
            Chemicals
            Medical               Medical and Nursing                Kidney machine, Nursing supplies,
            Applications                                             Respirators
            Electronics           Eletrorodes                        Double Layer Capacitors, Hardisks
            Mineral Recovery      Gold Recovery                      Gold Recovery

                        Table 1.3 Summarized Uses of Activated Carbon
                                   Source: www.kuraraychemical.com
P a g e | 10


V. Business Offerings

        Carbon Plus Corp. offers the market with Activated Carbon made from coconut shells. It

provides consumers different types of Activated Carbon. Below is the list of activated carbons

offered by the company and its corresponding description and uses.

Type                                 Description                          Uses
Powdered                             This type of activated carbon        These are used as water
                                     is usually used for liquid           treatment, decolorization of
                                     phase adsorption. They are           industrial chemicals,
                                     put into liquids to be purified      medicinal applications,
                                     and then removed in the              electronics and mineral
                                     process of sedimentation and         recovery.
                                     filtration.
Granular                             These are irregularly shaped         These are used for
                                     Activated Carbons. These are         deodorization, air purification,
                                     preferably used for absorption       water treatment and separation
                                     of gases and vapors because          of components of flow system.
                                     their rate of diffusion is faster.




Pelletized                           These are cylindrical shaped         These are mainly used for gas
                                     Activated Carbons. They              phase applications such as air
                                     have low pressure drop, high         purifications, solvent vapour
                                     mechanical strength and low          recovery, clarification of
                                     dust content.                        industrial gas, gas masks and
                                                                          cigarette filters.

                                      Table 1.4 Business Offeings

References:
1 http://www.wikipedia.com
2 http://www.watertechonline.com
3 http://www.bambootech.org
4 http://www.chemvironcarbon.com
5 Coconut Palm Products: Their Processing in Developing Countries by Brian E. Grimwood, Ashman, F., Jarman,
C.G., Dendy, D.A.V

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Questionaire
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Chapter 4
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Chapter 3
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Chapter 2
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Chapter 1

  • 1. Page |1 CHAPTER 1 THE PROJECT AND ITS BACKGROUND I. Introduction Activated carbon, also called activated charcoal, activated coal, or carbo activatus, is a form of carbon processed to be riddled with small, low-volume pores that increase the surface area available for adsorption , purification and filtration of substances.1 It is generally used in water filters, medicines that selectively remove toxins, and chemical purification processes as a cleaning agent. Various manufacturers, businesses, government agencies, scientists and chemists, and even simple people use this carbon. Activated carbon is produced by the oxidation of charcoal made from wood, coconut shell, sawdust, or fruit kernels. For the purpose of this study, the company will focus on manufacturing activated carbon made from coconut shells which is seen as dominant in Quezon Province, the company’s prospected plant site. Coconut shell-based activated carbons are the least dusty. Predominantly microporous, they are well-suited for organic chemical adsorption. Coconut shell-based carbon has the highest hardness compared to other types of activated carbons, which makes it the ideal carbon for water purification.2 In the early years, the use of Activated Carbon was already dominant. Adsorption or filtration on porous carbons was described as early as 1550 B.C. in an ancient Egyptian papyrus and later by Hippocrates and Pliny the Elder, mainly for medicinal purposes. In the 18th century, carbons made from blood, wood and animals were used for the purification of liquids but they were only available as powders.
  • 2. Page |2 At the beginning of the 19th century the decolourisation power of bone char was detected and used in the sugar industry in England which allowed the use of percolation technology, where the liquid to be treated was continuously passed through a column. Bone char, however was only used for sugar purification. At the beginning of the 20th century the first processes were developed to produce activated carbons with defined properties on an industrial scale. However, the steam activation (V. Ostreijko, 1900 and 1901) and chemical activation (Bayer, 1915) processes could only produce powder activated carbon. During then, powder activated carbon was only known for the production of gas masks used in the First World War.4 Today, activated carbon is already used in various areas such as in air treatment, water treatment, manufacture of foods and beverages, pharmaceutics, and many more. By this change they are following the modern tendency towards recycling and waste minimisation, thereby reducing the use of the world's resources. Table 1.1 Demand of Activated Carbon Source: www.researchinchina.com The demand in activated carbon is increasing through time as to more and more sectors discover the wonders and benefits of active carbon. Recently, cosmetic companies ventured to it. As water becomes increasingly needed to satisfy life, the purification of water rapidly grows as well as the purification of foods. Apparently, the supplies do not match the demand. More and more businesses be it large or not use it but there are only few manufacturers of activated carbon. In Quezon province where there are large number of coconut shells and woods, no one manufactures activated carbon. As a result, small businesses pay more cost on shipping and
  • 3. Page |3 handling for they still have to order in Manila, Cebu, Central Luzon and even abroad just to have a supply which is a real burden. But still, the supply is not enough to cater all and it leads to circumstances such that end user industries have to depend partially on imports and partially on lowering their consumption. II. Objectives of the Study The main objective of this study is to know the feasibility of manufacturing Activated Carbon in Quezon Province. In line with this, this study aims to: a. know the profitability and marketability of manufacturing Activated Carbon in Quezon Province; b. identify the possible problems and opportunities in venturing in this kind of industry; c. determine the competitiveness of the company from its competitors, whether direct or indirect competitors and; d. find out the economic practicability of operating this business in Quezon Province. III. The Company A. Company Profile The company is directed to be established as one of the top activated carbon manufacturers in the country. The company shall be called “Carbon Plus Corporation” for practical reasons such that, this corporation is all about carbon and adding chemicals to it to level up the value of the simple carbon. When carbon is mixed with chemicals to make it active, it will not be another element thus, it will always, and still be a carbon, the only difference is that, other chemicals were added to it.
  • 4. Page |4 Carbon Plus Corporation is a stock corporation and will have its own plant and main office at Brgy. Bocohan, Domoit, Lucena City, Quezon. The location will perfectly suit the nature of the corporation, which is to make coconut shell-based carbons and since Quezon is one of the top coconut producing region, raw materials are readily available and accessible at the same time. Carbon Plus Corporation saw the felt need on purification these days as our world becomes more polluted. Everything must be sanitized first before it gets to the final users of the product. Before coming up with the final good, other manufacturers and producers sanitize first their product offerings making sanitation processes in demand. And Carbon Plus Corporation aims to help these manufacturers, small or big, meet their product standards at the same time lower their production cost. Carbon Plus Corporation also saw the great difference in demand and supply. There is a very great demand on activated carbon as it caters to almost all industries, but such low and lacking supply. There are only a number of manufacturers of activated carbon in the Philippines and they offer in great bulks. Some others are just distributors. Businesses and other industries who needs activated carbon in their operation generally, commit a large transportation cost for they have to order in far places. The Carbon Plus Corporation found it odd especially for those within and near Quezon, where there is an abundant amount of charcoal. In making a plant in Quezon, there is a certainty that we can offer the product in a much lower price. Other businesses on the other hand, having no choice as to buying big bulks of activated carbon, suffer great cost discharges such as maintenance cost which is a real burden. If we manage to offer them products in small quantities, they can effectively control their order cost and can efficiently manage their production processes.
  • 5. Page |5 Carbon Plus Corporation aims to help not only big corporations but also those little entrepreneurs who can only afford to buy in small quantity. The company aims to grant businesses with much effective and efficient production generating customer satisfaction. B. Logo of the company Fig. 1.1 Company Logo The color of the words “CARBON PLUS CORPORATION” is inspired by the color of activated carbon itself, which varies within the shades of black and gray, while the six circles at the side represent the atomic number of the element carbon, six. Activated carbon works with the idea “black attracts black”, the circles started from a dark toned one, which represents a substance with impurities. With the aid of the insertion of Carbon Plus product, the shade of each circle lightens, until it reached a clear one, representing the process of adsorption of the residues, dirt and other impurities of the substance, which specifically, is the main function of activated carbon. C. Vision Carbon Plus Corporation is an integrated manufacturing entity providing sufficient supply of high quality activated carbon and relevant services to respond to the growing demands of the public while minimizing the cost of the product to make it more affordable to the users. Equipped with dedication to be on the top of the industry to further enhance the quality of purifications of our generation and generations to come,
  • 6. Page |6 providing more job opportunities, a better industry and for the satisfaction of the customers. D. Mission Statement a. Enthusiastically ensure the success of our company by effectively satisfying the needs of our customer, shareholders and employees. b. Consistently manufacture reliable and high- quality products and related services. c. Interdependently accelerate competence of our company through intensive development, quick response to modernization and cooperation with the society. d. Be a responsible citizen that makes a difference by helping build and support sustainable communities. e. Maximize long-term return to shareowners while being aware of our overall responsibilities; environmental, governmental and overall welfare. f. Minimizing costs and offering variety of products. E. Opportunities and Advantages Being the first manufacturer of Activated carbon here in Quezon, provides the company the assurance of no direct competition as the users would prefer availing products minimizing the cost of transportation and handling. In addition, Quezon is known for abundance in coconut supply which gives the company a great advantage in supply, as it is sufficient and readily available in the region. Compared to other raw materials used, Coconut is the most renewable at the quickest time possible, making it
  • 7. Page |7 possible to have enough supply to ensure continuous production. Furthermore, activated carbon from coconut shells is more reliable compared to other sources. According to Grimwood,”Shell carbons are generally dense, very hard and highly retentive. They have a very fine pore structure and their rate of adsorption is generally faster than that of coal carbons.”5 IV. The Product Carbon is one of the most abundant elements in the world. With this, Carbon Plus Corporation maximized the potentials of this element by turning it into something very useful. Activated Carbon (AC) is a crystalline substance which has the ability to adsorb or purify substances. It undergo through the activation process whether thermal or chemical. Hydrocarbons are removed from the carbon material thus producing Fig 1.2 Activated carbon in water filtration network of tunnels and pores which gives the ability of adsorption. The adsorption process of Activated Carbon goes through three basic steps. First, the substance is adsorb on the outside surface of the carbon. Then it goes into the carbon adsorption pore with the highest adsorption energy. Lastly, the substance is then adsorb into the inner platelets of the carbon. The two mechanisms wherein the chemicals are adsorbed onto the activated carbon are either it hates the water or it attracts into the activated carbon.
  • 8. Page |8 Activated Carbon is produced from a wide variety of carbon-rich materials like coconut shell, peat, wood, fruit kernels, or sawdust. The best material to be used is the coconut shell for it has the following inherent qualities which give them the edge among other sources: a. High hardness levels (> 97%): Ensures superior material handling and minimizes dust generation. b. High surface area (up to 1500 m2/g): Gives high adsorption efficiency c. High microporosity (< 20 Angstroms): Gives high adsorption and retention capacity. This is important for the removal of low-molecular weight organics and trace levels of contaminants. d. Low ash content: Gives high purity preventing contamination of adsorbates. e. High density Provides for economical containment for the same level of filtration. Source: Green Carbon Inc. Common Uses of Activated Carbon Air Treatment Water treatment Food and Beverage Odor Control Drinking Water Sugar Decolour VOC Adsorption waste water Fruit Juice Solvent Recovery Process Water Bottled Water Flue Gas Remediation MSG Air Condition Swimming Pool Edible Oil Inorganic Abate Aquariums PSA Auto Emission Cigarette Filter Table 1.2 Common Uses of Activated Carbon Source: www.kuraraychemical.com
  • 9. Page |9 Summarized Uses of Activated Carbon States Purpose Applications Examples Gas Phase Recovery Gasoline Vapor Gasoline Fuel recovery,ELCD Recovery Solvent Recovery MEK, Cyclohexanone, CS2, Furon, Trichloroethane Odor Removal Room Order Removal Tobacco, CO, Room filters, Toilet Odor, Pet Odor Refrigerator Deodorizer Automobile Cabin air filters Tobacco Cigarette Filter Hospital Anesthetic gas removal Ozone Removal Copiers, Laser Printers Harmful Gas Closed Environment Dioxin removal,Space Ships, Underground CO2 Gas Separation Nitrogen PSA Nitrogen Gas Separation Other PSA Radio Active Gas Liquid Water Treatment Factory Waste Water Cleaning Waste Water Phase Drinking Water Trihalomethane, Chlorine, Treatment VOCs, Lead, Arsenate removal Decolorization of Industrial Use Sugar refinement, Pharmaceutical Indusrial use, Whisky distilment Chemicals Medical Medical and Nursing Kidney machine, Nursing supplies, Applications Respirators Electronics Eletrorodes Double Layer Capacitors, Hardisks Mineral Recovery Gold Recovery Gold Recovery Table 1.3 Summarized Uses of Activated Carbon Source: www.kuraraychemical.com
  • 10. P a g e | 10 V. Business Offerings Carbon Plus Corp. offers the market with Activated Carbon made from coconut shells. It provides consumers different types of Activated Carbon. Below is the list of activated carbons offered by the company and its corresponding description and uses. Type Description Uses Powdered This type of activated carbon These are used as water is usually used for liquid treatment, decolorization of phase adsorption. They are industrial chemicals, put into liquids to be purified medicinal applications, and then removed in the electronics and mineral process of sedimentation and recovery. filtration. Granular These are irregularly shaped These are used for Activated Carbons. These are deodorization, air purification, preferably used for absorption water treatment and separation of gases and vapors because of components of flow system. their rate of diffusion is faster. Pelletized These are cylindrical shaped These are mainly used for gas Activated Carbons. They phase applications such as air have low pressure drop, high purifications, solvent vapour mechanical strength and low recovery, clarification of dust content. industrial gas, gas masks and cigarette filters. Table 1.4 Business Offeings References: 1 http://www.wikipedia.com 2 http://www.watertechonline.com 3 http://www.bambootech.org 4 http://www.chemvironcarbon.com 5 Coconut Palm Products: Their Processing in Developing Countries by Brian E. Grimwood, Ashman, F., Jarman, C.G., Dendy, D.A.V