Analyzing the Feasibility and Techno Economic Viability of Carboxy Methyl Cellulose (CMC) Manufacturing

Carboxy Methyl Cellulose

Carboxymethyl cellulose (CMC) is a derivative of cellulose, may be more generally known as cellulose gum and is utilized in a wide range of markets, including food, pharmaceuticals, cosmetics, and also oil drilling. CMC is a cellulose-based polymer that is soluble in water and forms a range of uses due to its thickening, emulsifying, and stabilizing properties. CMC has been in demand and growing steadily, which has caused an interest in converting that demand to an actual facility. We will explore the feasibility and techno-economic feasibility of a CMC production facility in the following feasibility study. The feasibility study will explore the technical, economic, and environmental aspects of the project and aims to provide an overview of the production process, the market, and the feasibility of production on a commercial basis.

 

Market Evaluation

Globally, the demand for CMC is expanding due to the increasing demand for food and beverages, personal care products, and oil drilling. The food and beverage industry is the largest user of CMC primarily due to its applications in dairy, processed food, beverages, and sauces. In the personal care sector, CMC is used in lotion, shampoo, and toothpaste products, and finally in the oil drilling industry CMC is used as a viscosifier in drilling fluid to increase fluid viscosity, which ultimately improves the ability for the fluid to transport cuttings to surface locations.

The CMC industry has experienced a greater market concentration in the Asia-Pacific region than in North America or Europe. Growth in the Asia-Pacific region is the result of an increasing populace, rising disposable incomes, and growing demand for processed food and personal care products.

Related Project Profile on: Carboxy Methyl Cellulose (CMC)

 

Raw material inputs

The primary raw material input into value-added CMC production is cellulose, which can be derived from many sources including wood pulp, cotton, or hemp. The choice of wood pulp for the raw material input will depend on the availability and price of the raw material inputs in the region the production facility will be located. This is due to the quality of the raw material directly affecting the quality of the final product and the need to ensure the feedstock is of a high quality.

 

Production Process

The procedure of manufacturing CMC consists of several actions as follows:

  1. Cellulose Purification: The first step of the procedure of production is to purify cellulose to remove contaminations, such as lignin and hemicellulose. The cellulose can be purified by sustaining the cellulose in a basic remedy, whereby the base will destroy the impurities and thereafter allow them to be removed.
  2. Derivatization: The cleansed cellulose can then be reacted with a by-product provider (e.g., sodium monochloroacetate) to form CMC. Reaction of the cellulose with a by-product provider is performed in a water solution under warm conditions, like heat and pressure.
  3. Purification and Drying: The CMC that was prepared in the previous step can be cleaned to remove any remaining again contaminations. Cooling the purified CMC enables for residual water removal.
  4. Grinding: The dried product can now be pulverized to the preferred particle size, relative to the intent for use.

The procedure of production is relatively un-involved and can be mass-produced relative to the demand for this product. The production process can be wholly computerized to reduce the workloads and human errors.

 

Related Project report on: Sodium Carboxymethyl Cellulose – Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost And Revenue

 

Techno-Economic Analysis

Techno-Economic Assessment of a CMC Production plant involves assessing the technical and financial feasibility of the Celsius manufacture plant. The possessing of both technical and financial are core components of economy assessments. Both operating costs, required labor, utilities, chemicals, parts, regular maintenance, and chemical utilizations will be mentioned in this facet. The other component possesses an parts, major developments, raw materials, it mgt utility to a componentizing of technical aspects that will address thru onward improvements. Economic development will occur by CMC entry into various primal consumer markets, for example, food, coatings, adhesives and personal care.

The capital cost of a CMC production facility will, of course, depend on the size of the facility and the equipment needed. A small facility with an annual production capacity of 10,000 metric tons would likely require an investment of around $10 million. A larger facility with an annual production capacity of 50,000 metric tons would likely require an investment of around $50 million. Operating costs of a CMC production facility will depend on labor costs, power costs, water utilities, and raw material costs. Labor costs will vary based on the location of the facility, while power and water costs will reflect local tariffs and raw materials costs will depend on the price and availability of the cellulosic feedstock. Revenues from CMC production will depend on how much demand there is for CMC in the market and the price at which CMC can be sold. The price of CMC is anticipated to remain stable over the next several years, although there is likely to be a slight increase in demand.

 

Financial Evaluation

The economic feasibility of the CMC production facility can be better understood by a break-even analysis and discounted cash flow (DCF) analysis. A break-even analysis will establish the minimum production level necessary to cover operating costs and capital investment; whereas, a discounted cash flow analysis will establish the net present value (NPV) of the project, which is the difference between the present value of expected cash inflows and the present value of expected cash outflows. The NPV of the CMC manufacturing facility will be expected to be positive, reflecting a financially feasible project. The internal rate of return (IRR) is also anticipated to be attractive, implying that the task would offer a big return on financial investment to investors.

 

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Ecological Evaluation

CMC production has a minimal effect on the environment as there are no hazardous wastes or pollutants released throughout the manufacturing process. The manufacturing process occurs in a closed environment which reduces the possibility of environmental harm. The facility will also have a wastewater treatment system in place to ensure that any wastewater generated in the manufacturing process is treated prior to being released into the environment.

Conclusion

 

One great opportunity for business and investment could be through CMC manufacturing, given the increasing market demands for CMCs for many applications including food, drugs, cosmetics, and oil drilling. The process to manufacture CMCs is relatively easy, and can be scaled up for large runs to meet demand. The financial viability for the project has been fully evaluated and the assessment indicates the project to be financially viable with favorable Net present value and Internal rates of return.

The environmental considerations for the manufacturing of CMC is minimal, and the manufacturing facility could use a waste water treatment process to reduce the risk of environmental pollution. Manufacturing of CMC’s has distinguished itself to be feasible both theoretically and financially, with a potential opportunity for investors to enter the marketplace.

 

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