7

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 filled with small, low-volume pores that increase

the surface area available for adsorption, purification and filtration of substances. 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 thus, it has the highest

hardness compared to other types of activated carbons.

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.

8

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.

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.

The demand in activated carbon is increasing through time as to more and more

sectors discover the wonders and benefits of active carbon. Recently, a new sector, which

is the cosmetic industry ventured to it by introducing activated carbon on facial wash and

toothbrush products. Hence, 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.

According to Philippine Activated Carbon Manufacturers Association Inc., the

world demand for activated carbon is expected to increase more than 10 percent per year

through 2016 to 1.9 million metric tons. It is assumed reasonably that this growth rate is

9

Table 1.1 Demand of Activated Carbon

Source: Philippine Activated Carbon Manufacturers Association Inc.

suitable to Philippine

setting as well because of

the increasing number of

industries and increasing

number of companies in

those industries who will

be using activated carbon. Thus, activated carbon industries will be one of the vastest

expanding industries in the upcoming years making it easier for those prospective AC

manufacturers to expand.

With the large pool of demand for activated carbon, there are however, only few

manufacturers who venture in making carbons. For example, in Quezon province where

there are large number of coconut shells and woods (main raw material in making AC),

no one manufactures activated carbon. As a result, small businesses pay more cost on

shipping and 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. Apparently, in the whole region,

there exists only one manufacturer of activated carbon to support great demands, and the

supply of this manufacturer alone is not enough to cater all demands in the region leading

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

partially on lowering their consumption.

10

II. Objectives of the Study

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

Activated Carbon in Region 4A-Calabarzon. In line with this, this study aims:

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

Calabarzon which is composed of five provinces, namely: Cavite, Laguna,

Batangas, Rizal and Quezon.

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

industry;

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

direct or indirect competitors and;

d. To find out the economic practicability of operating this business in Region 4A-

Calabarzon.

III. The Company

A. Company Profile active

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 intensifies simple

carbon into activated carbon(C+).

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

near Tayabas-Pagbilao Road, Quezon and main office at Brgy. Isabang Lucena

City, Quezon. The plant 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

11

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 some others are just

distributors. Businesses and other industries that need 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 storage cost which

is a real burden. If we manage to offer them products in small quantities, they can

12

effectively control their order cost and can efficiently manage their production

processes.

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.

13

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, 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. Responsibly make a difference through helping build and support

sustainable communities.

e. Consciously regard the responsibilities in the environment,

government and overall welfare while maximizing long-term

return to shareowners.

14

E. Opportunities and Advantages

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

the company the assurance of favourability of consumers as they would prefer

availing products that can minimize their cost of transportation and handling.

Aside from that, Carbon Plus Corporation will be the first corporation to

manufacture powderized AC in CALABARZON which is to be patronized by oil

refineries, one of the most popular businesses in Quezon.

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 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.”

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

15

Fig 1.2 Activated carbon in water filtration

chemical. Hydrocarbons are removed from the carbon material thus producing 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 adsorbed 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.

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

Auto Emission

Cigarette Filter

Table 1.2 Common Uses of Activated Carbon Source: www.kuraraychemical.com

16

Other Uses of Activated Carbon

States Purpose Applications Examples

Gas Phase Recovery Gasoline Vapor

Recovery

Gasoline Fuel

recovery,ELCD

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

Phase

Water

Treatment

Factory Waste Water Cleaning Waste Water

Drinking Water Trihalomethane, Chlorine,

17

Treatment VOCs, Lead, Arsenate

removal

Decolorization

of Indusrial

Chemicals

Industrial Use Sugar refinement,

Pharmaceutical use,

Whisky distilment

Medical

Applications

Medical and Nursing Kidney machine, Nursing

supplies, Respirators

Electronics Eletrorodes Double Layer Capacitors,

Hardisks

Mineral

Recovery

Gold Recovery Gold Recovery

V. Business Offerings

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

shells. It provides consumers two 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 is usually used for

liquid phase adsorption.

They are put into liquids to

These are used as water

treatment, decolorization of

industrial chemicals,

medicinal applications,

Table 1.3 Summarized Uses of Activated Carbon Source: www.kuraraychemical.com

18

be purified and then

removed in the process of

sedimentation and

filtration.

electronics, mineral

recovery and oil

refinement.

Granular

These are irregularly

shaped Activated Carbons.

These are preferably used

for absorption of gases and

vapors because their rate of

diffusion is faster.

These are used for

deodorization, air

purification, water

treatment and separation of

components of flow

system.

Table 1.4 Business Offerings