A Palm Kernel Oil Mill Project

Author: Noel Wambeck

01. OUR UNDERSTANDING OF THE PROJECT Our understanding is that the client wishes to establish a Processing complex for the production of Palm kernel oil and PK meal. The client has acquired a suitable site for the project. The proposed Palm Kernel Oil Expeller Mill shall have capacity of 10 mt Palm Kernel per hour or approx. an average of 240 mt Palm Kernel per day. The proposed project processing plant will include facilities for: a. Infrastructure & Buildings in the processing complex. b. The Storage of raw material for process and finished produce. c. Main process line machinery, equipment and plant will include the raw material reception and storage, oil extraction by expeller presses, oil filter station, bins, silos, conveyor elements, piping, pumps and storage of produce. d. Utilities such as electrical power, water supply and fire protection systems. e. Consideration for Environment Impact and treatment. f. Design considerations for future expansions.

This proposal is based on our engineering know-how and project management in accordance to the Turnkey Contract conditions for the proposed processing plant including the design, fabrication, the supply C & F port of entry into Indonesia, supervision of erection, commissioning and guarantee for 12 months after handing over of equipment, machinery and plant, manufactured in Malaysia and third country by experienced and proven good sub-suppliers with part supply of manufactured items or construction in buyer's country under good supervision with drawings applied for erection at site. The equipment, machinery, plant and systems offered are essential and regarded as operation requirement process sections of a modern plant and recommend that the buyer gives serious consideration to the advantages the systems we have to offer. 02. METHODOLOGY. OVERALL APPROACH, based on our experience, we anticipate that the turnkey project work will be divided into 3 main stages and later, further sub-divided in accordance with the yet-to-bedetermined Phases of development. We recommend that these work stages be as follows:Stage 1 : Initial assessment of the proposed sites and preparation of a project site report that will include the compilation of additional information regarding soil conditions, survey and logistics data, earth works, local material and cost estimates, required for the preparation of the basic design by the turnkey contractor for submission by the client to and approval of the Authorities. Stage 2 : Detailed Engineering Design, Specifications and Drawings for client's consideration and approval, the submission of the final turnkey contract price, the purchase of proprietary equipment, the manufacture and fabrication works and delivery to site.

Stage 3 : Supervision at Site for construction, erection, commissioning, training of process operators and handing over project for commercial production. The basic design, project requirements and schedule will be established with the Client in the very early stages of the project. We have always considered several factors as being extremely important in our design concept. Maintenance and Operation. This is a very important point to consider in the design concept. It depends very much on the level of the operation and maintenance staff that can be expected to operate and maintain the plant and availability of spare parts. Extraction Efficiency and Performance. The extraction efficiency is a factor, which must be taken into consideration at all times during the design stage that will take into account an efficient plant in terms of extraction rate, throughput and operation cost. Flexibility of Design. Flexibility of the design is equally important factor to be considered although sometimes it means additional cost. In some cases, it may be necessary so that the plant can be operated even under adverse conditions. However in this respect, we would consult the Client to seek agreement. 03. PALM KERNEL OIL EXTRACTION PROCESS. The Oil Palm Industry offers advantage of its resource base and to optimize its profit centres. One such profit centre is the Palm Kernel Oil extraction milling process. Extraction of oil from palm kernel can be processed in three basic processes. 1. Mechanical pressing of palm kernel in high-pressure expeller screw presses are common for capacities between 10 mt PK to 300 mt per day. 2. Direct extraction after suitable preparation of the palm kernel in a solvent extraction plant should be considered for capacities above 300 Mt PK per day. 3. A combination of the above two basic systems whereby the palm kernel after suitable preparation is processed in a pre-pressed to extract 75% of the oil at a comparatively low barrel pressure in the press. The pre-press meal is treated in a solvent extraction plant to remove 23% of the oil with a high total yield of 98% of the total oil input raw material. The direct solvent extraction system is more efficient in terms of extraction yields and operating cost per ton process material, among the three systems for palm kernel oil extraction. Mechanical pressing can be carried out in single or double pressing system. Single pressing has certain drawbacks as to double pressing, as enumerated below : (a) The major portion of the oil ( 80%) will be extracted at the pre-pressing and as the cone pressures are kept low, the oil temperature will not exceed above 80 deg. C resulting in a better grade of oil in terms of FFA and PV increase during the extraction process..

(b) Extraction at lower temperature will reduce the electrical load, the amount of solid matter ( call foots ) discharged with oil that would result in better utilisation and life of the vibrating screen, oil pumps and filter press. (c) Thus, the system selected would intrinsically prolong and life of wear parts that would reduce the operating cost of the complete plant. (d) The 2nd pressing or finish press and associated conveying elements is better utilised because less fines ( foots ) are being recycled with possible excess than rated capacity of machinery and plant. (e) The finish press will extract the balance of the extractable oil ( say 20% ) from the pre-press meal at a cone pressure as high as for a single pressing system but as the quantity is only 60% of the input raw material, therefore the cooling of the press shaft and barrel with water or oil is not required in turn would eliminate the use of heat exchangers and cooling equipment. (f) Deterioration in oil quality is eliminated by not using the extracted oil which is cooled and sprayed on the barrel to lower the temperature of the fresh extracted oil. Design features of double pressing system, which is common in Palm Kernel Mills in Malaysia, take into consideration the following : Easy and lower maintenance. Longer life of wear parts. Higher yield of palm kernel oil and cake. Eliminate or reduce the cost of utilities, such as steam and cooling water. Lower investment cost.

The "double pressing system " eliminates expensive preparation equipment such as roller mills, flakers and cookers. Take one more variable that if inadvertently the mill is not kept at peak efficiency would ruin the quality of the final products and loss of process capacity that could cause considerable embarrassment if not also monetary loss to the company. THE PROCESS DESCRIPTION. The general arrangement of the Palm Kernel Oil expeller extraction mill is relatively simple and can be followed by process flow schematic enclosed. Process lines are made up of a raw material reception area, two rows of expeller presses, each Press with a capacity of 10 mt palm kernel per day ( 24 hours ) and an oil clarification station, housed in a steel structure main process building. The appurtenance consists of the raw material and finished produces storage facilities.

Reception. Palm Kernel with 7% moisture and 5% dirt content are conveyed directly from the kernel silos of the palm oil mill or delivered in bulk or bags from outside source and unloaded in the reception area after being weight and stored in PK storage hoppers by conveyors. Each hopper can hold approximately 100mt palm kernel or provided with larger size silos in accordance to the design capacity of the plant. The raw material of palm kernel are evacuated by screw conveyors at the bottom of the loading storage hopper and thereafter the material is transferred to the milling section of the process. The receiving conveyor is fitted with permanent magnet for the removal of tramp iron, transports the PK into the pre-press buffer bins mounted on a steel structure of the main process building. Pre-Pressing section. Palm Kernel or PK for short is fed into the pre-press, each with capacity of 10 mt PK per day (24 hours ) via a chute fitted with slide valve or feed screw provided for presses with such an arrangement. The pre-press cake or meal discharged is conveyed and fed into the silos of final press line, whilst the crude oil extracted ( approx. 80% of total oil ) flows into the screw conveying gutter and to the oil clarification section for further process. Finish Press section. The pre-press material with an oil content of less than 20% is fed into the finish presses extruding two products, oil and meal. The meal as "finished product" is corrected with a moisture content of 10% and conveyed to the PK meal bulk storage silos or bagging area. Crude Oil section. The crude oil from the oil gutter flows onto the vibrating screen for removal of foots and stored in the head tank which feeds the filter press.

Foots collected from the circular vibrating screen an filter press are recycled back to the finished press for the removal of residual oil in solid matter. The filtered oil is fed into the Vacuum dryer for the removal of moisture content and discharge into the security filter, filled with citric acid where by dosing of the finish oil to minimised the chance of oxidation and to enhance the stability of the PALM KERNEL PRODUCT. Storage of Products. The clean and dry kernel oil with a moisture content of 0.09% is conveyed by stainless steel can pumps to the oil storage tank or filled into steel drums for delivery to BUYER. 04. THE PROJECT BRIEF 4.1 SCOPE OF WORKS. The contract will include the design, manufacture, fabricate, supply of proprietary equipment, delivery to site, unloading, safe keeping, construction , erection, installation, Authority inspection and approval, testing, commissioning, training of operators, handing over for commercial production and guarantee for 12 months after handing over of plant with the limits of the plant complex, Manufactured in Malaysia and third country by experienced and proven good subsuppliers with part supply and manufactured items in buyer's country under good supervision with drawings applied for erection at site. 4.2 PROPOSED PROJECT. A 10 mt Palm Kernel Oil expeller extraction per hour mill complex including the following: ITEM. 1 DETAILS Civil & Structure Internal Roads & drains Guard & weighbridge house Office & Lab. Canteen Palm Kernel Mill Building Store & workshop Warehouse for Meal Storage and packing QUANTITY

20 m2 120 m2 72 m2 600 m2 200 m2 600 m2

Reception station Weighbridge Receiving Hopper & Feed conveyor Palm kernel silo or Bin ( 250 mt ) Pneumatic conveyor Crusher / Breaker Mill Screw Conveyor Bucket Elevator Horizontal Screw Conveyor & Feed chutes

1 1 1 1 2 1 1 1

Pre - Pressing station Kernel Hopper & Steel structure

Vibro Feeder & Metal trap Pre - Press Expeller Scraper conveyor Breaker mill Cross Bucket conveyor Screw Conveyor 4 Finish - Pressing station Hopper & Steel structure No.2 Vibro Feeder & Metal trap No.2 Final Press Expeller Scrapper conveyor No.2 Breaker mill No.2

8 8 1 1 1 1

6 6 6 1 1

PK Meal Bulk Storage Bucket Elevator Screw Conveyor Meal Bulk Silo

1 1 1

PK Oil Clarification Oil Gutter Oil Transfer Tank & Pumps Filter Pressure Press Solids discharge tray and chute Circular Vibrating screen Oil Purifier Vacuum Dryer & pumps Piping, Valves, Fittings & insulation

1 2 2 2 2 1 1 Lot

Electrical works Main switch gear and MCC Cable & wiring to motors Lighting & power points Stand by Diesel generating set - 300 kw

Lot Lot Lot 1

Fire Protection System Alarm system Fire hose reel system Fire Hydrants Fire fighting equipment

Lot 4 4 Lot

Shipping & Insurance

600 mt

10 11 12

Commissioning & Training of operators Operation & Maintenance Manuals As built Drawings

10 days 3 sets 3 sets

4.3 SPECIFIED OFFER. The offer is based on the buyer's invitation to bid for the specified requirement and does not include the following : Application and approval for Authority Licenses. Land for the project site. Site soil investigation and surveys. Application and supply for site facilities such as Electrical power and water supply. Site preparation and earthworks. Port clearance, customs, SGS inspection. All insurance requirements in buyer's country. All duties and taxes from or in buyer's country. Inbound transport, haulage and forwarding charges and unloading at site. All raw material, lub-oils, fuel, management, staff and labour for commissioning & hand over of plant for commercial operation. All other supply and works outside the limits of the plant complex.

4.4 TIME OF DELIVERY. We confirm a delivery time from the date of the contract award provide that all technical and financial obligations are finalized as follow: Eighteen months from the date of award of contract and provided we receive the proposed site three ( 3 ) months from the date of award of contract. 4.5 VALIDITY OF OFFER. The price offered in this bid shall be valid for 60 days. 4.6 PERFORMANCE AND GUARANTEE. We guarantee that the complete equipment, machinery and plant supplied by us for the proposed project are brand new and of first class quality and workmanship that is proven in operation shall be supplied in the contract. We guarantee that the complete equipment, machinery and plant supplied by us in the proposed project will be able to process good quality Palm kernel in accordance to the accepted standards after an appropriate start up time in regular uninterrupted operation of the plant. Quality of raw material for process. Tenera type Palm kernel of normal standard will consist and based on 1,000 kg input material are as follows: Oil ( including FFA ) contents 43.15% Dry substance 43.85% Moisture 8 % Dirt ( impurities ) at Max. 5%

Quality & Quantity of Products. FFA increase in process 0.25%

Moisture 0.09% Dirt 0.10% Filtered Kernel oil 42% PK Meal ( Moist.9% Oil 7% ) 58%

4.7 LIABILITY LIMITS. We are not liable for personal injury and damage to property, equipment, machinery and plant or third party claims during the execution of the contract and outside the battery limits of our scope of supply and works and in particular will not pay for any loss of profit, compensation and production. 4.8 CONDITION OF SUPPLY. Conditions of supply shall be in accordance to the IEM conditions of turnkey contract for design, build and hand over of project.