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Study on Re-refining of used lubricating oil in Bagmati Zone, Nepal.

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 TRIBHUVAN UNIVERSITY

INSTITUTE OF ENGINEERING

PULCHOWK CAMPUS

Study on Re-refining of Used Lubricating Oil in Bagmati Zone

By

Guru Prasad Chaudhari

Rabin Basnet
Rudra Mani Ghimire
Sudeep Raj Subedi

A PROJECT REPORT

SUBMITTED TO THE DEPARTMENT OF MECHANICAL ENGINEERING

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

DEGREE OF BACHELOR OF ENGINEERING

DEPARTMENT OF MECHANICAL ENGINEERING

LALITPUR, NEPAL

March 2009
 COPYRIGHT

The author has agreed that the library, Department of Mechanical Engineering,
Pulchowk Campus, Institute of Engineering may make this report freely available for
inspection. Moreover, the author has agreed that permission for extensive copying of
this project report for scholarly purpose may be granted by the professor(s) who
supervised the project work recorded herein or, in their absence, by the Head of the
Department wherein the project report was done. It is understood that the recognition
will be given to the author of this report and to the Department of Mechanical
Engineering, Pulchowk Campus, and Institute of Engineering in any use of the
material of this project report. Copying of publication or the other use of this report
for financial gain without the approval of the Department of Mechanical Engineering,
Pulchowk Campus, Institute of Engineering and author’s written permission is
prohibited.

Request for permission to copy of to make any other use of the material in this report
in whole or in part should be addressed to:

Head
Department of Mechanical Engineering
Pulchowk Campus, Institute of Engineering
Lalitpur, Kathmandu
Nepal

2
 TRIBHUVAN UNIVERSITY
INSTITUTE OF ENGINEERING
PULCHOWK CAMPUS
DEPARTMENT OF MECHANICAL ENGINEERING

The undersigned certify that they have read, and recommended to the Institute of
Engineering for acceptance, a project report entitled ‘Study on re-refining of used
lubricating oil in Bagmati zone’ submitted by Guru Prasad Chaudhari, Rabin Basnet,
Rudra Mani Ghimire, Sudeep Raj Subedi in partial fulfillment of the requirements for
the degree of Bachelor of Mechanical engineering.

Supervisor, Dr. Bhakta Bahadur Ale

Professor
Department of Mechanical Engineering

Co-supervisor, Er. Rajesh Kaji Kayastha

Lecturer
Department of Mechanical Engineering

External Examiner,

Committee Chairperson, Dr. Rajendra Shrestha

Head of the Department
Department of Mechanical Engineering

March, 2009

3
 ABSTRACT

The aim of this project was to study the possibility of re-refining used lubricating oil
generated in Bagmati zone. The total lubricating oil that can be collected was found
out by data collection and it`s analysis.
Hydrotreating with wiped film evaporation was found to be suitable process to re-
refine the amount of used lubricating oil that can be collected.
The project has been found feasible according to the financial analysis techniques
such as payback period, discounted payback period, present worth analysis and
internal rate of return analysis.
Nepal is totally dependent on imported lubricating oil. In Nepal up to now there has
not been proper management of used lubricating oil. Re-refining used lubricating oil
would reduce the dependency on lubricating oil import as well as safeguards the
environment.

4
 ACKNOWLEDGEMENTS

We would like to thank and acknowledge the Department of Mechanical Engineering

(DME) for providing us an opportunity in undertaking such a venture.

We would like to express our sincere gratitude to our supervisors Professor Dr.
Bhakta Bahadur Ale, Department of Mechanical Engineering, Pulchowk campus and
Lecturer Rajesh Kaji Kayastha, Department of Mechanical Engineering, Pulchowk
campus for their continuous guidance, suggestions and efforts towards us.

We would also like to express our gratitude to Lecturer Mohan Krishna Shrestha,
Department of Mechanical Engineering, Pulchowk campus for his guidelines and
suggestions in shaping the project.

We are also grateful to Mr. A. S. Thapa and Er. Deependra Yadav, Factory Manager,
of Nepal Lube Oil Pvt. Ltd., for their support for lab testing and suggestions in
shaping the project.

We would like to thank Er. Nirab Shah, Sipradi Trading Pvt. Ltd., for his continuous
help.

Its honour to thank Mr. Shanti Lal Daya, Director, Daya Lubricants Pvt. Ltd.,
Maharashtra, Mumbai, for continuous help through email for the success of the
project.

There are many others, without whom the project could not be completed. Our sincere
gratitude is always with all of those who helped us in data collection and other works
of the project.

And all other teachers, friends and well wishers without whom, this project wouldn’t
be successful. We can only express our gratitude.

5
 TABLE OF CONTENTS
COPYRIGHT 2
APPROVAL PAGE 3
ABSTRACT 4
ACKNOWLEDGEMENTS 5
LIST OF TABLES 9
LIST OF FIGURES 10
LIST OF ACRONYMS AND ABBREVIATIONS 11
LIST OF SYMBOLS 12

CHAPTER ONE: INTRODUCTION 13

1.1 Background 13
1.2 Lubricating oil 14
a. Definition 14
b. Properties of lubricating oil 14
c. Additives of lubricating oil 15
1.3 Scope of the project 18
1.4 Objectives 18
a. Main objective 18
b. Specific Objectives 18
1.5 Methodology 18
1.6 Limitations 20

CHAPTER TWO: LITRETURE REVIEW 21

2.1 Definition of used oil 21
2.2 Contaminants in used oil 21
a. Extraneous contaminants 21
b. Products of oil deterioration 22
2.3 Effects of oil contaminants 22
2.4 Used oil management 23
a. Necessity of used oil management 23
b. Used oil management options 23
c. Current uses of used lubricating oil in our country 24

6
CHAPTER THREE: RE-REFINING OF USED LUBRICATING OIL 25
3.1 History 25
3.2 Re-refining technologies 26
a. Acid clay process 26
b. Vacuum distillation with clay treatment 28
c. The solvent extraction technology 29
d. Vacuum distillation with hydrotreating 31

CHAPTER FOUR: DATA ANALYSIS 32

4.1 Background 32
4.2 Calculating lubricating oil output from the number of vehicle 32
4.3 From the data of consumption of virgin lubricating oil 39
4.4 Findings of data analysis 40

CHAPTER FIVE: LAB TEST 41

5.1 Background 41
5.2 Results of lab test 41
5.3 Findings of lab test 42

CHAPTER SIX: USED OIL COLLECTION SYSTEM 43

6.1 Background 43
6.2 Precautions to be taken during collection 43
6.3 Collection trend 44
6.4 Used oil collection 45
6.5 Container 45
6.6 Container location 46
6.7 Method of loading the collected oil 46
6.8 Collection routes 46
6.9 Transportation 46
6.10 Used oil storage at refining station 46

7
CHAPTER SEVEN: RE-REFINING USED LUBRICATING OIL BY
WIPED FILM EVAPORATION WITH HYDROTREATING 47
7.1 Background 47
7.2 Process description 47
a. Primary treatment 47
b. Vacuum distillation 48
c. Wiped film evaporation 48
d. Finishing treatments 48
7.3 Equipments description 50
a. Settling chamber 50
b. Intermediate storage tank 50
c. Distillation tower 50
d. Wiped film evaporator (WFE) 54
e. Hydrotreating system 56

CHAPTER EIGHT: FINANCIAL ANALYSIS OF PROJECT 57

8.1 Costs of the project 57
8.2 Testing the financial feasibility of the project 62
a. Simple payback period 62
b. Discounted payback period 62
c. Net present worth calculation 63
d. Internal rate of return (IRR) 63

CHAPTER NINE: CONCLUSIONS AND RECOMMENDATIONS 65

9.1 Conclusions 65
9.2 Recommendations 65
REFERENCES 66
ANNEX-I 67
ANNEX-II 74
ANNEX-III 77

8
 LIST OF TABLES

Table 1.1 Common additives in lubricating oil and their use 17

Table 2.1 Table showing the hierarchy of used oil management 24
Table 4.1 Data analysis for buses 31
Table 4.2 Data analysis for mini buses 33
Table 4.3 Data analysis of truck and mini truck 34
Table 4.5 Data analysis for motorcycles 35
Table 4.4 Data analysis for car, jeep, van 36
Table 4.6 Data analysis for micro buses 37
Table 4.7 Data analysis for total vehicles 38
Table 5.1 Results of lab test 42
Table 8.1 Basis for the financial calculation 58
Table 8.2 Requirement of the utilities for 1000 l (1m3) of used oil processing 58
Table 8.3 Composition of output on the basis of mass 58
Table 8.4 Table showing various costs and revenues of the project 61
Table 8.5 Calculation of simple payback period 62
Table 8.6 Calculation of discounted payback period 62
Table 8.7 Variation of net present worth with interest rate 63

9
 LIST OF FIGURES

Figure 2.1: Cycle of re-refined lubricating oil 21

Figure 3.1 Schematic diagram of acid clay process 27
Figure 3.2 Schematic diagram of vacuum distillation process with clay treatment 29
Figure 3.3 Simplified conceptual process flow diagram of solvent
Extraction method 30
Figure 3.4 Schematic diagram of vacuum distillation with hydro treatment 31
Figure 4.1 Graph showing the trend of increase in number of buses and lubricating oil
33
Fig4.2 Graph showing the trend of increase in number of mini buses and lubricating
oil 34
Figure 4.3 Graph showing the trend of increase in number of truck and mini truck
and lubricating oil 35
Figure 4.4 Graph showing the trend of increase in number of car, jeep, van and lube
oil 36
Figure 4.5 Graph showing the trend of increase in number of motorcycles and lube oil
37
Figure4.6: Graph showing the trend of increase in number of micro buses and lube oil
38
Figure 4.7: Graph showing the trend of increase in number of total vehicles and lube
oil 39
Figure 6.1 Used lube oil collection and transportation system 43
Figure 7.1 Block diagram of the vacuum distillation with hydrotreating 48
Figure 7.2 Schematic diagram showing the distillation process 51
Figure 7.3 Schematic diagram showing re-boiling process 52
Figure 7.4 Schematic diagram showing reflux process 52
Figure 7.5 Flow of liquid and vapour in a tray column 53
Figure 7.6 Column internal 54
Figure 7.7 Schematic diagram of WFE 55
Figure 7.8 Schematic diagram of hydrotreating process 56
Figure 8.1 Cash flow diagram 61
Figure 8.2 Variation of net present worth with interest rate 64

10
 LIST OF ACRONYMS AND ABBREVIATIONS
IC internal combustion
VI viscosity index
MSRTC Maharashtra State Road Transport Corporation
LOBS lube oil base stock
DLPL Daya Lubricants Pvt. Ltd.
ReTAP Recycling Technology Assistance Partnership
UN United Nation
PCBs polychlorinated biphenyls
DIY do it yourself
WFE wiped film evaporator
DME Department of Mechanical Engineering
IOE Institute of Engineering
IRR Internal Rate of Return
MARR Minimum Attractive Rate of Return
MJ Mega Joule

11
 LIST OF SYMBOLS
% Percentage
O
C Degree Centigrade
°F Degree Fahrenheit
bar Unit of Pressure
L litre, unit of volume
g Gram
hrs Hours
Kg Kilogram
Km Kilometer
m Meter
m3 Cubic Meter
Mpa Mega Pascal
mg MilliGram: Unit of Mass
ml MilliLitre: Unit of Volume
N Newton
P Pressure
PB Pay Back Period
s Second
V Volume

12
 CHAPTER ONE
INTRODUCTION

1.1 Background
The reciprocating internal combustion engine has a large number of moving parts.
Without an adequate film of lubricating oil between the surfaces of the reciprocating,
oscillation and rotating metal parts, the force required to overcome the frictional
resistance and the wear on the parts would be very high. In IC engines during the
combustion process, high temperature is experienced and during the cycle the
temperature varies widely, moreover the bearings loads also fluctuate. All these make
the lubrication problem more difficult. Inadequate or improper lubrication of the
engine may cause the serious engine troubles, such as scored cylinders, stuck piston
rings, damaged bearings, engine deposits and sludge, and dirty spark plug.
The role of the lubricant is multiple:
1. It acts between the surfaces of the mechanical parts in relative movement to
decrease friction and avoid wear.
2. It helps in keeping the various parts of the engine clean and the particles that may
be formed in the cold parts of the engine in suspension.
3. It should have an excellent thermal stability and a good resistance to oxidation.
4. It contributes to the removal of heat from the heated parts of the engine.
5. It should neutralize acidic compounds formed during fuel combustion.
6. It should also have rust proofing, antifoaming, and anticorrosion properties
Oil begins to lose its effectiveness the day it is poured into the engine. This loss is
largely a result of the depletion or “wearing out” of the additives of oil. Rubbing of
metal engine parts inevitably produces some microscopic metallic particles from the
wearing of the surfaces. Sludge also accumulates in the engine. Such particles could
circulate in the oil and grind against the moving parts, causing erosion and wear. Also
engine oil gradually becomes contaminated with carbon that forms in the combustion
chamber.
Automotive manufacturers recommend periodic oil changes. How often the oil should
be changed depends primarily on how the vehicle is used. There are normally two
recommendations in the maintenance schedule.
Schedule 1 calls for changing engine oil filter every 5000km if;
1. Most trips on the warm weather are less then 6km.

13
 2. Most trips in below freezing temperature are less then 16km.
3. Most trips include extended idling and low speed stop- and -go operation.
4. Operating in dusty condition
5. Towing a trailer.
Schedule 2 calls for changing oil every 12,500km change the oil filter the first oil
change and every other time after that. These intervals apply if the vehicle is driven
several kilometers daily and none of the items in schedule 1 apply.
(Source: automotive mechanics by Williams Crouse/Donald l. Angling tenth edition).
Thus every vehicle owner changes the oil more or less regularly. As number of the
vehicle is increasing, the amount of this used oil is also increasing. This creates the
disposal problems because the used oil has adverse effect on the environment as it
causes the soil, water and air pollution when it is burned. Also causes the loss of the
resources because new oil is required for the lubrication.
This problem can be overcome to the great extent if we can reuse the oil through re-
refining. Re-refining can be done to the used oil because the additives are depleted but
its base oil does not change.

1.2 Lubricating oil

a. Definition
Lubricating oils are extensions of basic hydrocarbon structures, containing from 20 to
70 carbon atoms per molecule, often in an extremely complex arrangement of straight
chains, side chains and five and six member ring structures. Lubricating oil molecules
never wear out (i.e., they are stable) - all that happens is that the additives in the oil
wear out or deplete and need replacing.

b. Properties of lubricating oil

Lubricants must possess certain basic properties to meet the lubrication requirements
in engine. The important properties of the lubricating oil are enumerated below:
1. Viscosity
This is one of the most important properties of the oil and used to grade lubricants.
The viscosity of the oil is measure of its fluid resistance to flow. It should be able
to maintain an oil film between the bearing surfaces for desired load and speed to
provide hydrodynamic lubrication conditions.

14
 2. Viscosity index
This is the measure of how much the viscosity of an oil changes with temperature.
All the oils don`t become less viscous at the same rate as the temperature rises.
3. Pour point
The pour point indicates the temperature below which the oil loses its fluidity and
will not flow or circulate in the lubricating system.
4. Flash and fire points
The flash point is defined as the lowest temperature at which the oil will vaporize
sufficiently to form a combustible mixture of oil vapor and air above the surface
of the oil. The fire point is the lowest temperature which must be reached before
enough vapors can rise to produce continuous flame above the liquid oil. Both the
flash and fire points give the relative measure of the safety properties of
lubricating oils.
5. Stability
The ability of oil to resist oxidation that would yield acids, lacquers and sledges is
called stability.

c. Additives of lubricating oil

The oils from refining by conventional methods are not completely satisfactory for
use as lubricants. Therefore, lubricants are highly refined and properties are improved
by the addition of chemicals. The additives, at a concentration of 12-15 wt %, play a
considerable role in obtaining the qualities of the finished oil:
1. Antioxidants
Without additives, base oil, even a sophisticated one, would undergo rapid
oxidation during its use, leading to an increase in its viscosity, the formation of
corrosive oxidized products, and leading to deposits and varnishes. More precisely,
the rate of oxidation of a hydrocarbon doubles with each 10°C increase in
temperature.
2. Detergents
The role of detergents is to prevent deposits on the surfaces of the engine at high
temperature and to keep the lubricant distribution network clean. These additives
can be made to have an alkaline reserve by incorporating colloidal calcium or
magnesium carbonates. This colloidal dispersion is absolutely limpid and its
solution in oil is completely stable in spite of the addition of a quantity of

15
 carbonate up to 35 % of the mass of the additive. The reserve of alkalinity
neutralizes the acids formed during the oxidation of oil or resulting from the
combustion of the fuel. These additives are calcium or magnesium salts of organic
acids.
3. Dispersing additives without ash
Dispersing additives came into use owing to the necessity to maintain in fine
suspension the materials susceptible to settle in the lubrication circuits. This
property was improved owing to the development of additives without ash; the first
ones of this type, proposed on the market, were alkenylsuccinimides, which are
surfactants whose oleophilic part is a polybutene radical with molecular mass
ranging from 800 to 1,500.
4. Antiwear additives
When the pressure between surfaces becomes important, there is a risk of breaking
the film of oil and then of fast deterioration of surfaces. In order to overcome this,
one incorporates additives into the oil, which are then adsorbed onto surfaces in
contact, thereby forming a solid protection film. These additives are:
a) Polar organic compounds of type alcohols, fatty esters, fatty amines, or acids
with the risk of desorption beyond 150°C.
b) Organic compounds containing sulphur, phosphorus, chlorine, nitrogen,
oxygen, lead, or zinc.
5. Viscosity modifiers
The dithiophosphates of zinc, as an antioxidant, are also good antiwear additives.
The process of manufacturing conventional or unconventional base oils (by mild
hydro-refining) makes it possible to obtain a viscosity index (VI) of the oil ranging
from 95 to 105. This range of VI does not correspond to multi-grade oils used in
cars. The objective is, to obtain oil that is fluid at low temperature and sufficiently
viscous at high temperature. The additive improves the VI shifts, for example, the
15W20 oil, almost mono-grade, to the grade 15W40 or 15W50 by selective increase
of the viscosity at high temperature. The commonly used additives are either alkyl
polymetacrylates (rather expensive), or, more generally, copolymers of olefins or
hydrogenated diene/styrene copolymers.
6. Pour-point depressant
These additives hinder the process of growth of the crystals of paraffin wax, which
form in the oil at low temperatures. Polymetacrylates with low molecular masses are

16
used. In fact, the same effect is also obtained with some additives, which improve the
VI as described in the previous subsection.
7. Antirust and anticorrosion additives
These additives are inhibitors, either oxygenated or nitrogenous:
a) The oxygenated inhibitors are essentially carboxylic acids with long organic
chains.
b) The nitrogenous inhibitors are essentially fatty amines and their derived
products.
c) Detergent additives and dispersing agents also have antirust properties. Rust is
due to the combined action of water and oxygen of the air on the iron,
resulting in the formation of ferrous and then ferric hydroxides. Corrosion is
due more specifically to the action of the acidity of sulphur compounds and of
acids resulting from the oxidation of oil or fuel.
8. Antifoam additives
To decrease the tendency of oil foaming, mostly due to the presence of detergents
and dispersing agents, a very small quantity (mg/kg) of antifoam additive is added.
Products like silicone or alkyl polymetacrylate with low molecular weight are used:
they are insoluble in oil and concentrate at the liquid/air interface.

S.N Additive Compounds Used

1 Antiwear Zincdithiophosphates, Acidic phosphates, Organic phosphates,
Organic sulphur and chlorine compounds,sulphurised
fats,sulphides and disulphide
2 Detergent Metallo-organic compounds of sodium, magnesium and calcium
phenolates, phosphonates and sulphonates
3 Anti corrosion Zincdithiophosphates, Metal phenolates, Fatty acids and amines
4 Dispersant Alkylsuccinimides, Alkylsuccinic esters
5 Friction Organic fatty acids, Lard oil, Phosphorus
modifier
6 Pour point Alkylated naphthalene and phenolic polymers, Polymetacrylates
depressant
7 Viscosity Polymers of olefins, Methacrylates, Di-enes or Alkylated
modifier styrenes
8 Antifoam Silicone polymers, Organic copolymers
9 Antioxidant Zincdithiophosphates, Hindered phenols, Aromatic amines,
Sulphurised phenols
10 Metal Organic complexes containing nitrogen and sulphur amines,
deactivator sulphides and phosphides
Source: Derived from Lubrizol 2000
Table 1.1 Common additives in lubricating oil and their use

17
1.3 Scope of the project

• Saves on energy. It takes 1/3 the amount of energy to re-refine used oil than to
refine crude petroleum.
• Helps prevent pollution of land, water and air.
• Reduces community cost in cleaning up oil spillages.
• Supports responsible recycling.
• Reduces overseas spending.
• Helps to defer the day when the world’s oil supply runs out.

1.4 Objectives
a. Main objective
• To study the possibility of re-refining used lubricating oil generated in
Bagmati zone.
b. Specific Objectives
• To collect the data of the daily amount of the used oil produced in the Bagmati
zone.
• To study different ways of re-refining technologies for the used lubricating oil
• To compare the properties of refined used oil available in the market with the
virgin oil
• To recommend a suitable re-refining technology.
• To do the financial analysis of the recommended technology.

1.5 Methodology
Following activities were carried out to achieve the project`s goal.
• Literature review

We did extensive study on internet for literature review. Different research papers,
reports about re-refining used oil were studied.
• Data collection

Data collection was done do determine the used oil generation rate to know the
treatment capacity of re-refining plant. Primary data collection was done by preparing
survey questionnaire and carrying out field survey. Field survey was done at different
regions of Kathmandu(e.g Kalanki, Balaju, Naikap, Maharajgunj, Tripureswor,

18
Mulpani, Bijulibazar, Satdobato, Bagdol, Tinkune, Swyambhu, Gausala etc.). Primary
data collection was done to
a. Find out the amount of used oil drained at workshops
b. Know the current uses of drained used oil
c. Type of vehicles changing oil
d. Current market price of used oil
e. Find out average driving distance and oil changing interval in case of motorbikes
Secondary data collection was done by visiting Department of transportation
management, Lalitpur and central custom office, Tripureshwor. Numbers of different
type of vehicles in Baghmati zone at different years were obtained from department of
transportation management. Virgin oil import data was obtained from custom office.
• Lab test

We went to National academy of science and technology and Nepal bureau of

standards and metrology to know about the facilities available in their laboratories.
Used oil testing facilities were not available in their laboratories.
Lab test was done in laboratory of Nepal lube oil, Amlekhganj, Bara. Three samples
of re-refined oil and one sample of used oil from motorcycle under free servicing
period were collected for lab test.
• Data analysis

Amount of used oil generated per day was calculated from two methods
a. By determining Used oil changed at a time, interval between oil changes, type
and number of vehicles
b. By determining amount of used oil drained at workshops and number of
workshops.

• Selecting suitable re-refining technology

Suitable technology for refining amount of used oil that can be collected was selected
by literature review.
• Financial analysis

Financial feasibility of the project was determined by calculating payback period, Net
present worth and internal rate of return.

19
1.6 Limitations
• All the properties of used lubricating oil were not tested due to lack of proper
lab facility.
• Lubricating oil collection system is designed for Kathmandu valley only.
• Detailed design of the plant was not performed.

20
 CHAPTER TWO
LITRETURE REVIEW
2.1 Definition of used oil
Any petroleum based or synthetic oil that has been used for the lubricating purposes
and has become unsuitable for the original purposes is known as the used oil.

Figure 2.1: Cycle of re-refined lubricating oil

2.2
.2 Contaminants in used oil
The automotive lubricating oil loses its effectiveness during operation due to the
presence of certain types of contaminants. These contaminants can be divided into:
a. Extraneous contaminants
ontaminants
Extraneous contaminants are introduced from the surrounding air and by metallic
particles from the engine. Contaminants
Contamina from the air are dust, dirt and moisture. Air
itself may be considered as a contaminant since it might cause foaming of the oil. The
contaminants from the engine are:
1. Metallic particles resulting from wear
we of the engine.
2. Carbonaceous particles due to incomplete fuel combustion.
3. Metallic oxides present as corrosion products of metals.
4. Water from leakage of the cooling system.
5. Water as a product of fuel combustion and Fuel or fuel additives or their
byproducts, which might enter the crankcase of engines.

21
b. Products of oil deterioration
Many products are formed during oil deterioration. Some of these important
products are:
1. Sludge: A mixture of oil, water, dust, dirt, and carbon particles that results
from the incomplete combustion of the fuels. Sludge may deposit on various
parts of the engine or remain in colloidal dispersion in the oil.
2. Lacquer: A hard or gummy substance that deposits on engine parts as a result
of subjecting sludge in the oil to high temperature operation.
3. Oil-soluble products: The result of oil oxidation products that remain in the oil
and cannot be filtered out and deposit on the engine parts. The quantity and
distribution of engine deposits vary widely depending on the conditions at
which the engine is operated. At low crankcase temperatures, carbonaceous
deposits originate mainly from incomplete combustion products of the fuel
and not from the lubricating oil. While, at high temperature, the increase in
lacquer and sludge deposits may be caused by the lubricating oil.

2.3 Effects of oil contaminants

The lubricating oil properties are affected by any contaminants that may occur during
operation. The effects of the contaminants are as follows:
1. Water: Even in small amounts, water causes rusting of iron or steel. The water
also results in forming water sludge (emulsions), which may clog oil passages,
pump valves and other oil handling equipment. Water also contributes to
foaming problems.
2. Solid particles of dirt, dust, grit and metallic fragments, which were circulated
by the lubricant: These contaminants cause excessive wear, scoring of bearing
surface, and possible failure due to seizing of metal fatigue.
3. Sludge and lacquers: The sludge deposits clog small oil passages and
clearances. Lacquers or varnish causes sticking of valves, and resist against
the continuous operation of oil pump.
4. Liquid contaminants such as unburned fuel from engines dilute lubricating oil
and possibly reduce their viscosity beyond a safe load. Contaminants of the
lubricant with heavier oil increase viscosity and interfere with the oil
circulation. This affects the lubricating valve and heat transfer capacity.

22
2.4 Used oil management
a. Necessity of used oil management
Used oil are one of the greatest source of pollution worldwide mainly because of the
high quantity generated, their high toxicity level and mostly because of their
mismanagement. Well organized waste oil management system will result in positive
economical and environmental impacts.
1. Environmental issues
Oil in any form is potentially harmful to the environment. In aquatic communities oil
residue tends to settle on the bottom, coating the substrate and whatever organisms
live there. Oil film on water can reduce the penetration of light into the water and,
consequently, reduce the rate of photosynthesis. When photosynthesis is reduced,
oxygen production is also reduced. The oil film may also inhibit the movement of
oxygen from the air through the surface of the water.
In ground, oil can rapidly percolate through the soil particles and create similar
problems for soil microbes and macroscopic invertebrates. Eventually this oil may
make its way into the water table or into a water body such as a lake.
2. Economic impact
The energy saved by collecting and recycling used motor oil can help reduce our
dependence on foreign oil imports. One gallon of used oil can be re-refined into 2-1/2
quarts of quality lubricating oil. In contrast, 42 gallons of crude oil must be refined to
produce the same 2-1/2 quart volume (though many other products are derived from
the 42 gallons of crude). (Source: Pit stops fact sheet-DEP-P2-PITSTOPS-FS-017)
3. Human health effects
The contaminants in used oil can induce a variety of illnesses and diseases in humans
and other mammals through inhalation, ingestion or skin contact.

b. Used oil management options

The first option in the waste oil management hierarchy is reducing the amount of
waste oil generated by using efficient engines, improving the quality of lubricating oil
etc. Second option is re-refining the used oil, which means upgrading the quality of
used oil so that it can again be used as lubricating oil. Re-refining is given second
preference because it is environment friendly practice and results in saving of
valuable foreign exchange. Re-refining is especially useful in our country as we are
totally dependent on import for virgin lubricating oil.

23
Waste management ranking
(From environmental
perspective)
Most preferable
Option Considered action
Prevent the waste in Source reduction(e.g.
first place Extended oil drain intervals)

Reuse and reclaim the Re-refine used oil

Least preferable
product
Recover energy by Combust used oil for
burning heating value recovery
Disposal of waste by Recover and collect used oil
land filling or for proper disposal
incineration

Table 2.1: Table showing the hierarchy of used oil management

(Source: Used oil re-refining study to address energy policy act of 2005 section 1838)

Third option is reprocessing the used oil so that it can be used as fuel oil. Normally,
used oils for use as fuel need to be subjected to treatments involving settlement to
remove sludge and suspended matter. Simple treatment of this type can substantially
improve the quality of the material by removing sludge and suspended matter, carbon
and heavy metals. Last preference is given to collection of the used oil and its proper
disposal.

c. Current uses of used lubricating oil in our country

In Nepal used oil is used mainly for two purposes viz., as a fuel oil and primarily
treated to sell as lubricating oil. Burning of used oil as fuel results in emission of
harmful air pollutants and this practice should be prohibited. In primarily treated
lubricating oil, lubricating properties are only partially recovered and use of this oil
may result in malfunctioning of engine and shorten engine life.

24
 CHAPTER THREE
RE-REFINING OF USED LUBRICATING OIL
3.1 History
The used oil re-refining industry has existed for many years and has evolved over
time, being subject to pressures from both industry and society. In the early years,
used oil was sometimes filtered and re-used but most often dumped on the ground and
in water, and occasionally burned as a fuel.
South Africa is dependent on imported crude oil to meet its requirement of lubricating
oil. They started re-refining used oil as early as 1940. First specification for re-refined
oil was drafted in 1942 and by 1946 it was merged with virgin engine oil
specification.
In United States, efforts were made to recover used oil and by the mid-1960's there
were more than 150 small companies re-refining over three hundred million gallons of
used oil. These companies generally employed the "acid/clay" re-refining process,
wherein a large amount of sulfuric acid and clay was used to treat the used oil. The
technology produced acceptable, although sub-standard, base oil. However, it also
created substantial hazardous waste by-products, including acid tar and oil saturated
clay.
Daya Lubricants Pvt. Ltd. (DLPL), one of the pioneers in used oil recycling in India,
started the re-refining in the year 1969. In 1972 Maharashtra State Road Transport
Corporation (MSRTC), largest fleet owner in the world, agreed to have their 10
barrels of used oil re-refined by DLPL in the presence of their officer on a condition
that the re-refined engine lubricating oil should pass the engine performance tests.
Starting in the 1970s, the use of acid clay re-refining was discouraged by
environmental regulators and is currently outlawed in most developed countries
around the world. In the late 1970s, alternative processes were developed to treat the
used oil in a more environmentally friendly manner.
In context of Nepal, neither the issue of the proper management of the used oil nor
the impacts of mismanagement of the same has been noticed by the government.
Also, any extensive study has not been done about the recycling of lubricating oil. In
recent days, Nepal Petro Pvt. Ltd and some other private firms have started to re-
refining the use lubricating oil. No standard specifications about the quality of the re-
refined oil have been set by the government.

25
3.2 Re-refining technologies

a. Acid clay process

It was considered for a long time as the standard process, it remains the most globally
applied. However, its application is on the decline, and is even prohibited in
industrialized countries, for ecological reasons. But, low capital investment makes it
most cost effective for small and tiny scale plants for the under- developed countries
like Nepal.
After a coarse filtration using coarse filters ranging from simple gratings to catch
unwanted objects, to eliminate particles, for example, >3 mm, the oil is processed as
follows:
1. Dehydration
Dehydration is almost always the first step. The temperature is of the order of 160-
180°C at atmospheric pressure. Heat is supplied by steam or heated fluid through a
heat exchanger. The dehydration column is in two sections: in the lower section, oil is
pumped at a high flow rate to avoid formation of deposits and oil cracking by
ensuring a good heat transfer. A part of the oil is injected at the top of the upper
section where dehydration is achieved. This column helps to eliminate variable
amounts of water in the lower section and, finally, dehydrate the oil in the upper
section. The lighter fractions removed at the top are used as fuels.
2. Acid treatment and clay adsorption
Dehydrated oil is cooled to about 30°C before reacting with sulphuric acid. Settling
time is of the order of 24 h. Decanted oil is mixed with clay before injection into the
high temperature vessel, (high-speed flash boiler), heated at 270°C by a heated fluid
to avoid superheating of the oil. During clay treatment, small acid droplets as well as
sulphonic acids and oxidized or sulphurized products resulting from acid action in
suspension are coalesced and adsorbed. Diesel and spindle oils are removed at the top
and the oil at the bottom is cooled to a maximum of 120°C before filtration. The
pressure in the vessel is 80 mmHg. According to this process, clay consumption is of
the order of 3.5 wt % of the settled oil.

26
 Acid Diesel
Water+ Gasoline Clay

Light
Pre - Vacuum
Used oil Acid
distillation Medium
flash treatment

Heavy

Used oil
Figure 3.1 Schematic diagram of acid clay process

The advantages and disadvantages of the process are as follows:

Advantages
1. Acid-Clay process is old and popular. This is a proven technology worked for
many years worldwide. This can be set-up for very small capacity.
2. Low capital investment makes it most cost effective for small and tiny scale
plants.
3. Non sophisticated, very simple process, simple to operate, no advanced
instruments, low energy input.
Disadvantages
1. Causes Environmental pollution due to generation of acid sludge and acid gas
emission. Disposal of acid sludge is a problem.
2. Causes corrosion of equipments reducing its life.
3. Gives lower yield, due to loss of oil in sludge as well as clay since higher
dosage of clay is required.
4. As most of the government has adopted stringent pollution control regulations,
this process is on its way out.
5. Unable to treat modern multi-grade oils
6. Difficult to remove asphaltic impurities.

Re-refiners and re-cyclers, now have to use only environmentally sound technologies
(EST) while re-cycling and refining waste oil. In case of oil re-refiners using acid clay

27
process or modified acid clay process have been advised to switch over to
environmentally sound technologies only or close down.
The following processes have been approved as environmentally sound processes,
1. Vacuum distillation with clay treatment
2. Thin film evaporation process
3. Vacuum distillation with hydro treating
4. Solvent extraction technology

b. Vacuum distillation with clay treatment

In this process the used oil is passed through three distillation column viz;
dehydration column, light distillation column, lubricating oil distillation column after
centrifugation. The lube oil distillate is finally treated with 2-3 % clay.
This process involves the following steps:
1. Centrifuging/Filtration
The used oil passed through filters and centrifuge under high centrifugal force to
remove suspended impurities and moisture in the form of sludge and water.
2. Preparation of feed stock
Sample of used oil is tested in lab and based on this sample the contamination quality
is determined and the process cycle is formulated.
3. Dehydration column
In the dehydration column the used oil is heated at 110° C by circulating thermic fluid
from the boiler which is made to flow in the internal coil.
4. Light distillate column
The dehydrated oil is heated at 250° C in this column. The entire light distillate
content is distilled and converted into vapors.
5. Lube Oil distillation column
The vapors condensed are collected in receiver and heated to the maximum
temperature of 300° to 350° C under 1 Torr vacuum so that the lube oil is condensed.
6. Bottom Residue Collection
After the entire lube oil distillate is distilled, it leaves behind some residue.
7. Clay finishing/Polishing
The lube distillate oil recovered need partial clay treatment which is around 2 % to
saturate.
8. Filtration

28
The clay treated oil is then passed through cloth filter pass under pressure where the
cloth filter of 5 micron filter traps the clay particles.
9. Percolation
In certain oils this process is carried out to make the product odorless and colorless.
10. Blending
Based on the analysis of base oil, the suitable additive blending is carried out on the
base oil to get the finished product.
(Source: http://ifp-petro.com/technology.htm)

Clay
Water
Diesel oil Acid

Light
Used oil Pre- Vacuum Vacuum
Mediu
flash distillatio distillatio
m
n n Heavy

Residue
Used clay

Figure 3.2 Schematic diagram of vacuum distillation process with clay treatment

c. The solvent extraction technology

The solvent extraction technology has the potential to produce oil products that are
superior to those produced by the low-temperature distillation process currently in
use. Figure shown below presents a simplified, conceptual process flow diagram for
the solvent extraction technology. Used oil is mixed in the reactor column with an
aliphatic solvent such as liquefied propane (butane, heptanes or hexane may also be
used). In this unit, the solvent acts selectively, dissolving the oil fraction and leaving
the less soluble impurities. The oil-laden solvent is transported from the top of the
reactor column to the solvent still (a distillation column) where the solvent fraction is
separated from the oil for recycling within the process. The impurities (bottoms)
slowly settle and coalesce in the bottom of the reactor column where they are pumped
to the bottoms still (a second distillation column). Residual solvent is also separated in
this unit. The recovered solvent is liquefied through a compressor and cooling system

29
and re-injected into the reactor column through the solvent recycle tank to repeat the
cycle.
Solvent extraction is reported to be well suited for re-refining multi-grade motor oils
formulated with high concentrations of pour point improvers, viscosity index
improvers, and other additives; and containing large amounts of varnish, gums, and
other asphaltic compounds generated by heat and friction in their use. The solvent
removes the mineral portion (phase) of the detergent present and precipitates water
which is loosely bound chemically and contained in the detergent and the
metalloorganic compounds. The solvent solubilization of the hydrocarbon phase also
disassociates it from the deteriorated portion of the antioxidant compounds allowing
the heavier antioxidant groups (also containing heavier metalloorganic compounds) to
precipitate. Similarly, solubilization of the hydrocarbon phase of other additives such
as the viscosity index improvers, the polar organic rust inhibitors, and the pour point
depressants causes a similar disassociation of the deteriorated portion of these
additives from the oils.
(Source: final report on ‘Solvent extraction technology for used oil treatment’
published by Recycling Technology Assistance Partnership (ReTAP) published in
December 1995)

Figure 3.3 Simplified conceptual process flow diagram of solvent extraction method
Advantages
1. In this process propane is used as solvent to remove bitumen, additives,
metals, tar etc.

30
 2. Solvent is recyclable.
3. Does not cause pollution.
4. Produce good quality base oils.
Disadvantages
1. Has to operate at higher pressure (10 atm.) at ambient temperature (270 0C)
require high pressure sealing systems (making system expensive and
complicated).
2. Involves operational solvent losses and highly skilled operating and
maintenance personnel and system is required.
3. Economical only for high capacity plants.
4. Propane being very hazardous, fire & explosion hazard is associated with this
process.

d. Vacuum distillation with hydrotreating

This process of re-refining procedure involves the following steps:
1. Heat soaking the used oil.
2. Distilling the heat soaked used oil to produce a distillate and residue.
3. Passing the distillate through a guard bed of activated material.
4. Hydro treating the guard bed treated distillate to produce a re-refined oil
product suitable for lube oil base stock.
(Source: US Patent number 4512878, used oil re-refining, by Lioyd E. Reid,
Keith C. Yao)

Diesel Acid
Water + Gasoline
Light
Vacuum Vacuum Fractional
Waste oil Pre-
distillation distillation distillation Heavy
flash

Thin film evaporator

Bitumen

Figure 3.4 Schematic diagram of vacuum distillation with hydro treatment

31
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35
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37
38
39
40
 CHAPTER FIVE
LAB TEST
5.1 Background
Standard chemical and physical tests are used to evaluate the nature and the extent of
the contaminants in the used automotive oils. These tests involve the following
measurements:
1. Viscosity: viscosity testing can indicate the presence of contamination in used
lubricating oil. The oxidation and polymerization products that were dissolved
and suspended in the oil cause the increase of oil viscosity. While a decrease
in the viscosity of lubricating oil indicates the fuel contamination.
2. Pour point: pour point is the lowest temperature at which the oil will flow.
Low pour point indicates good lubricating oil.
3. Flash point: flash point is the lowest temperature at which the vapors in air
will burn momentarily if ignited by flame or spark. A decrease in flash point
indicates contamination by dilution of lubricating oils with unburned fuel.
Increasing of flash point indicates evaporation of the light components from
the lubricating oil.
4. Acidity or neutralization number: this is a measure of the amount of alkali
required to neutralize one gram of the oil. An increase in acid number is due to
oxidation of lubricating oil.
5. Ash content: the remaining solid ash, when the oil is completely burned, is a
measure of oil purity.
6. Carbon or coking test: this evaluates the solid residue obtained when the oil is
heated to complete vaporization and it refers to the amount of deposit formed.
7. Water content: this test is done by distillation and indicates the amount of
water emulsified in the oil.
8. Fuel contaminants: this test indicates the amount of fuel diluting in the
lubricating oil during automotive operation.

41
5.2 Results of lab test
The lab test of three samples (1, 2 and 3) of re-refined used oil collected from the
market and a single sample 4 of used oil drained from the motorcycle in the service
period was done in the lab of Nepal lube ltd., Amlekhganj, Bara. Due to the lack of
proper lab facility we were unable to measure all the properties of used oil. The
results of the test have been given below in table.

S. Particular Standard Sample1 Sample2 Sample3 Sample4

N
1 Kin.Viscosity@400C, 115.7 66.1 63 70.4 159.9
cST
2 Kin.Viscosity@1000C 18.4 9 8.96 9.67 18
,cST
3 Viscosity Index 178 111 118 117 125
4 Flash Point. DegC 232 190 190 165 215
5 Total Acid no., Base no 0.05 0.06 0.06 0.06
mgkoh/gm >12.2
6 Solid Contents 0 0.1% 0.1% 0 0.1%
7 Colour L3.5 L3.5 L5 Does not
match
standard
8 Water content% 0 0.1 0.1 0.1 0.1
Table 5.1: Results of lab test

5.3 Findings of lab test

a. Used oil
The viscosity of used oil was found to be higher than the standard. The higher
viscosity of used lubricating oil is due to oxidation, soot or excessive dirt (insoluble).
The flash point of used lubricating oil was lower than the standard. The lower flash
point of used lubricating oil is due to the dilution of the oil by the unburned fuel.
The used lubricating oil was found to be acidic. The acidic nature of used lubricating
oil is because of natural reaction of oil with oxygen and water which is promoted by
entry of metal particles and rise in temperature.
The lubricating oil losses its color during use. Hence the color of used oil didn’t
match the standard.
b. Re-refined oil

42
The viscosity of re-refined oil samples is found to be lower than the standard. The
viscosity recovery was found to be almost 60 % only. The flash point was found to be
lower than the standard. The re-refined oil was acidic containing both solids and
water. Hence it can be concluded that the re-refined oil found in the market is not
fully re-refined oil. The re-refined oil found in the market is actually primary treated
only.
CHAPTER SIX
USED OIL COLLECTION SYSTEM

6.1 Background
Collecting the used oil is the first step in the process of refining used oil. Used oil
drained at workshops and that drained by users themselves, is collected at various
collection centers. Oil thus collected is transported to refining centre. At the refining
centre, the oil is tested for several types of contaminants including water, bottom
sediments (which contain heavy metals from engine wear), and in some cases, PCBs
(polychlorinated biphenyls).Used oil that fails this testing must receive special
treatment before reprocessing. We have to set up used oil collection centers for
collecting used oil generated at different places. Locating collection centers at proper
places is important for designing efficient and economic used oil collecting system.

Re- refining
Center

Start of Loaded vehicle to the

collection Re -refining centre

C1, C2, C3 are collection centers

C1 C2 C3

Figure 6.1 Used lube oil collection and transportation system

6.2 Precautions to be taken during collection
• Avoid pumping water and sludge from the bottom of storage tanks.

43
 • Sludge from the storage tank should be periodically removed and transferred
to an incinerator.
• Collection system should take into account the necessity of avoiding
contamination by any potentially harmful oil.

6.3 Collection trend

Almost all used oil is drained in workshops and they use drum for the collection.
Those drums are not properly covered, so they absorb the moisture and dust particles.
This will increase the contamination of the used oil which will cost more during the
refining. Few organized workshops have reservoirs to store used oil (Sipradi
Trading,Soltimode and Naikap have these type of storage facilities).Some people
change used oil themselves and they just throw the used oil.
There is a need of awareness in the local workshop for the proper collection and
storage of the used oil. The used oil shouldn`t be mixed with other chemicals like
antifreeze, battery acid and fuel oil because it will increase the cost of re-refining.

6.4 Used oil collection

The volume of the oil to be collected depends on the following factors:
a. Density of the workshops
b. Type of the workshops
c. Number of do it yourself (DIY) oil changers
a. Density of the workshops
Greater the density of the workshop in a area, greater will be the volume of the used
oil drained. Density of workshop varies widely in different areas. Density of the
workshops servicing four wheelers is higher in regions like Kalanki and Balaju area
where as density of motorcycle workshops is higher in regions inside ring road
specially at Tripureswor and Teku area.
b. Type of the workshops
Workshops which are authorized servicing centers for the mostly used vehicles drain
more used oil. Workshops servicing trucks, semi trucks, bushes generate more oil but
motorcycle workshops generate lesser amount of oil.
• Sipradi Trading Pvt ltd, Solteemod; authorized servicing center for medium
and light duty vehicles of Tata, drains 2600l of used oil/month(86.66 l/day).

44
 • Cube international Pvt ltd, Sitapaila, Kathmandu; authorized servicing center
for Eicher, drains 5310 l of used oil per month (177l/day).
Semi organized and unorganized workshops drain relatively small amount of used oil.
• Manakamana workshop, Dhungaadda which services busses and trucks
drains 200l/month(6.6l/day).
• Baba auto works, Kalanki drains 250l/month(8.33l/day).
c. Number of DIY oil changers
Number of DIY oil changers in Nepal is very small. Used oil from DIY changers is
relatively difficult to collect as oil drained is small in volume and is drained at
different places. DIY changers should be encouraged to deposit the changed oil to
collection centers.
Collecting used oil from small generators is difficult and requires a well established
and efficient infrastructure to accomplish the task. While determining the location of
the collection center amount of the oil drained as well as distance to be travelled to
deposit the used oil in the collection center should be considered.
We can establish the collection centers in coordination with the local workshops,
clubs, business concerns, industries etc. Agency having responsibility of collection
center will pay the people and workshops supplying used oil to the collection center.
Payment system should be designed according to volume of the used oil supplied.
Re-refiners should buy collected oil from collection centers.
Used oil collection system can`t be efficient and successful without the active
participation of the public. Each resident in a community can and should contribute to
the successful operation of the used oil collection, management system. Public should
be aware of the harmful effects of used oil on environment, human beings as well as
other living beings. They should also know the benefits of re-refining used oil.

6.5 Container
Drums of suitable sizes can be used as containers in collection centers. These
containers must have lid and should be leak proof. Size and number of the containers
required also depend on the collection frequency and the space available for placing
the containers. Used oil generation rates at various areas should be estimated to know
the size of the used oil collecting tank required. Volume of used oil generated can be
calculated by different methods.

45
We determined the amount of used oil generated by two methods. Average distance
travelled before oil is changed and amount of used oil collected in workshops. Drums
of 200 L will be suitable for collection of used oil in our case, as amount to be
collected is not too large and these drums are easily available.

6.6 Container location

Container location is mainly determined by the density of the workshop in the area
and type of the workshops. Oil from workshops generating more than 800 L/month
should be transported directly from their storage.

6.7 Method of loading the collected oil

Pumps should be used to pump used oil to transportation vehicles. Each vehicle
should have a driver and a helper. Helper is responsible for connecting the supply
pipe, starting and switching off the pump.

6.8 Collection routes

Selection of collection routes depend on the following factors
1. Frequency of collection
2. Labor available
3. Type of vehicle used for transportation
4. Routes should be laid out so that the last container to be collected on the route
is located nearer to the refining station.
5. Oil from the traffic congested location should be collected as early in day as
possible.
6. Oil from scattered pick up points ,where small volume of oil is collected
should be collected in single trip.

6.9 Transportation
For refining station in Kathmandu valley used oil should be transported from
collection centers to refining station using diesel powered motor vehicles.

6.10 Used oil storage at refining station

46
From our calculations volume of used oil that can be collected is 7500 L/day. If used
oil requirement for 3 days is taken as safety stock and weekly transportation system is
used then volume of the storage tank required at refining station is 80,000 L.

CHAPTER SEVEN
RE-REFINING USED LUBRICATING OIL BY WIPED FILM
EVAPORATION WITH HYDROTREATING

7.1 Background
Historically, the most successful technology for treating used oils was the acid clay
process. This process is capable of producing good quality lubrication stocks, but it is
of diminishing applicability due to complexity of the additives employed in modern
lubricating oils, as well as in light of sludge disposal problem. The applicability of
vacuum distillation with hydro-treating increased tremendously after 1980’s when the
use of acid was banned due to environmental concern.
An essential characteristic of this hydro-treating process is to implement a vacuum
distillation step after the standard pre flash according to wiped film evaporator (WFE)
technology. This technology offers the advantage of retaining the essential properties
of the oil, owing to short residence time and high vacuum in the column. The
evaporator design facilitates a very low drop in pressure that creates a high vacuum
and consequently, temperature lower than in other technologies.
The concept of use of WFE marked its beginning after third international conference
on waste oil recovery and re use held in 1978, where I. Bishop and D. Arlidge
presents the article “Recent technology development in evaporative refining of waste
oil” and “thin film distillation as a tool in re- refining used oil” by D.F Pauley.

7.2 Process description

This technology comprises of following four processes:
a. Primary treatment to remove the solid contaminants
b. Distillation to remove water and fuels.
c. Wiped film evaporation for separating lube oil base stock (LOBS).

47
 d. Finishing treatment by catalytic hydrotreating to purify LOBS.
a. Primary treatment
Primary treatment is the physical separation process which involves the settling, and
filtration. Settling aims at separating the water and heavier suspended particles, from
the used oil, taking advantage of the gravity and viscosity difference. The water and
suspended sediments settle at the bottom of the tank which can be drained from the
tank.

Hydrogen
Used oil

Removal of Separation of Purification

Pre- of LOBS by
water and fuels LOBS by wiped
treatment hydrotreating
by distillation film evaporation

Residue Base oil

Waste water
and fuel oil

Off gas

Figure 7.1 Block diagram of the vacuum distillation with hydrotreating

Oil filtration, before and after being received in the storage tanks, is achieved by
means of coarse filters ranging from simple grating to catch unwanted objects such as
rags, to filters calibrated to a pore size of 150-250 micrometer, generally arranged in
parallel and cleaned alternatively.
b. Vacuum distillation
The primary objective vacuum distillation is to remove all compounds like water and
fuel as water, gasoline, glycol, phenols and diesel etc, at the top of the distillation
column.
The temperature should be nearly 2200C and pressure should be nearly 2KPa. A
reflux system is used for the distillate i.e diesel oil. The reflux ratio should be within
0.5/1 to 2/1. The column bottom is heated and sends to wiped film evaporator (WFE).
Distillate is cooled in the condenser and is passed to the fuel oil separator.
c. Wiped film evaporation

48
This step involves the vacuum distillation with falling film. The WFE constitutes the
heart of this process. This technique consists of introducing dehydrated waste oil at
the top a cylindrical column warmed by double walls. The oil flows along the internal
wall, drawn downwards by blades that control the falling film. This device allows a
complete control of film thickness, the residence time of given flow rate and the
exposure of the product to be distilled to a large surface area warmed by thermal fluid
or steam that prevents the local risk of superheating.
Dewatering and defueling is best followed by a heat soaking step. The heat soaking is
conducted at a temperature range of 250- 3400 C, preferably 250-3200 C and most
preferably 300-3200C. A high heating soaking temperature results in a complete
decomposition of dispersant type additives as results sludge suspends in oil about 2 %
vol., starts to settle, thus temperature of 3200C is maintained. The residence time
should be sufficient to maximize halides (chlorides) formation, phosphorus and
sludge precursors’ removal, such time typically being 15-120 minutes.
The heat soaking is followed by the coke formation resistant distillation step. The
distillation is conducted in the manner such that coking in the unit is employed is kept
to minimum under the condition of residence time, temperature and pressure. The key
advantage of preferred WFE distillation is its ability to fractionate unstable material
under the high temperature/ short residence time condition of minimal degradation or
coking. The asphalt residue is extracted from the bottom of the WFE.
d. Finishing treatments
Catalytic hydro-treatment stood as the modern and successful re refining treatment
from the point of view of the yield and quality of the finished product. Finishing steps
for the catalytic hydro-treatment involves the following two steps:
• Hydrotreater guard bed
• Hydro-finishing reactor
Prior to being introduced into the hydro refinery unit the distillate coming from the
previous step is subjected to the passage through the guard bed of the material suitable
for removing various remaining contaminants from the distillate. These contaminants
include halides, trace phosphorus and residual sludge remaining in the distillate after
distillation.
The suitable materials for the guard bed are charcoal, lime and activated alumina. The
use of activated alumina is preferred since, in addition to adsorbing the residual

49
sludge from the distillate, the alumina can also remove residual phosphorous as well
as high concentration of halides. It is desirable to remove halides prior to hydro-
treating to avoid the formation of corrosive compounds such as hydrogen chloride and
hydrogen bromides in the hydro-treating reactor.
The final processing step is the hydro-treating. The alumina treated oil over a
conventional catalyst to produce the re- refined base oil. The operating conditions are:
temperature in the range of 260-4000C, more preferably 260-3200C, and pressure in
the range of 3-11Mpa, more preferably 3-5Mpa of hydrogen pressure. As a result of
the improvement on the hydro-refiner feedstock quality due to processing in the guard
bed, smooth hydro-refiner operation and good quality base oil is secured as well as
service life of the catalyst is increased.

7.3 Equipments description

a. Settling chamber
Per day feed=7500L
Let us assume that the settling chamber reserves a feedstock for 10 days.
Therefore, the size of settling chamber= 7500*10= 75000L
So, we can select the settling chamber of 80,000L.
Feed rate = 7500/(16*60)=5.2L /min.

b. Intermediate storage tank

The used oil is stored in the intermediate storage tank for nearly 2 days.
Size of storage tank= 7500*2=15000L

c. Distillation tower
Distilation is a process in which a liquid or vapour mixture of two or more substances
is separated into its component fractions of desired purity, by the application and
removal of heat. Distillation columns should be designed to achieve this separation
efficiently.
Distillation is based on the fact that the vapour of a boiling mixture will be richer in
the components that have lower boiling points. Therefore, when this vapour is cooled
and condensed, the condensate will contain more volatile components. At the same
time, the original mixture will contain more of the less volatile material.

50
Separation of components from a liquid mixture via distillation depends on the
differences in boiling points of the individual components. Also, depending on the
concentrations of the components present, the liquid mixture will have different
boiling point characteristics. Therefore, distillation processes depends on the vapour
pressure characteristics of liquid mixtures.
The vapour pressure of a liquid at a particular temperature is the equilibrium pressure
exerted by molecules leaving and entering the liquid surface. Vapor pressure increases
with the energy input and is related with the boiling. Liquid boils when its vapour
pressure equals the surrounding pressure which depends on its volatility of the liquid.
Liquids with high vapour pressures (volatile liquids) will boil at lower temperatures.
Thus the vapour pressure and the boiling point of a liquid mixture depend on the
relative amounts of the components in the mixture. Hence distillation occurs because
of the differences in the volatility of the components in the liquid mixture.

Distillation columns are made up of several components, each of which is used either
to transfer heat energy or enhance material transfer. A typical distillation contains
several major components:

1. A vertical shell where the separation of liquid components is carried

out.
2. Column internals such as trays/plates and/or packings which are used to
enhance component separations.
3. A reboiler to provide the necessary vaporisation for the distillation
process.
4. A condenser to cool and condense the vapour leaving the top of the
column.
5. A reflux drums to hold the condensed vapour from the top of the
column so that liquid (reflux) can be recycled back to the column.
The vertical shell houses the column internals and together with the condenser
and reboiler, constitutes a distillation column.

51
 Figure 7.2 Schematic diagram showing the distillation process

The liquid mixture that is to be processed is known as the feed and this is introduced
usually somewhere near the middle of the column to a tray known as the feed tray.
The feed tray divides the column into a top (enriching or rectification) section and a
bottom (stripping) section. The feed flows down the column where it is collected at
the bottom in the reboiler.
Heat is supplied to the reboiler to generate vapour. The source of heat input can be
any suitable fluid, although in most chemical plants this is normally steam. In
refineries, the heating source may be the output streams of other columns. The
vapour raised in th reboiler is re-introduced into the unit at the bottom of the column.
The liquid removed from the reboiler is known as the bottoms product or simply,
bottoms.
The vapour moves up the column, and as it exits the top of the unit, it is cooled by a
condenser. The condensed liquid is stored in a holding vessel known as the reflux
drum, a part of this liquid is recycled back to the top of the column and this is called
the reflux. The condensed liquid that is removed from the system is known as the
distillate or top product.

52
 Figure 7.3 Schematic diagram Figure 7.4 Schematic diagram
showing re-boiling process showing reflux process

Thus, there are internal flows of vapour and liquid within the column as well as
external flows of feeds and product streams, into and out of the column.

The column internal consists of trays or plates. The terms "trays" and "plates" are
used interchangeably. A tray essentially acts as a mini-column, each accomplishing a
fraction of the separation task. There are many types of tray designs, but the most
common ones are :
i. Bubble cap trays
A bubble cap tray has riser or chimney fitted over each hole, and a cap that
covers the riser. The cap is mounted so that there is a space between riser and
cap to allow the passage of vapour. Vapour rises through the chimney and is
directed downward by the cap, finally discharging through slots in the cap, and
finally bubbling through the liquid on the tray.

ii. Valve trays

In valve trays, perforations are covered by liftable caps. Vapour flows lifts the
caps, thus self creating a flow area for the passage of vapour. The lifting cap
directs the vapour to flow horizontally into the liquid, thus providing better
mixing than is possible in sieve trays.

iii. Sieve trays

Sieve trays are simply metal plates with holes in them. Vapour passes straight
upward through the liquid on the plate. The arrangement, number and size of
the holes are design parameters.
Because of their efficiency, wide operating range, ease of maintenance and
cost factors, sieve and valve trays have replaced the once highly thought of
bubble cap trays in many applications.
The figures below show the direction of vapour and liquid flow across a tray, and
across a column.

53
 Figure
ure 7.5 Flow of liquid and vapour in a tray column
olumn
Each tray has two conduits, one on each side, called
‘downcomers’. Liquid falls through the downcomers
by gravity from one tray to the one below it. The flow
across each plate is shown in the above diagram on the
right.
A weir on the tray ensures that there is always some
liquid (holdup) on the tray and is designed such that
the the holdup is at a suitable height, e.g. such that the
bubble caps are covered by liquid.
Being lighter, vapour flows up the column and is
forced to pass through the liquid, via the openings on
Figure
ure 7.6 Column internal
each tray. The area allowed for the passage of
vapour on each
ach tray is called the active tray area.
As the hotter vapour passes through the liquid on the tray above, it transfers heat to
the liquid. In doing so, some of the vapour condenses adding to the liquid on the tray.
The condensate, however, is richer in the
the less volatile components than is in the
vapour. Additionally, because of the heat input from the vapour, the liquid on the tray
boils, generating more vapour. This vapour, which moves up to the next tray in the
column, is richer in the more volatile components.
components. This continuous contacting
between vapour and liquid occurs on each tray in the column and brings about the

54
separation between low boiling point components and those with higher boiling
points.

d. Wiped film evaporator (WFE)

For certain evaporation application, particularly those involving heat sensitive
products, liquid with suspend solids, viscous materials or chemical constituents that
exhibit fouling and foaming tendencies wiped film evaporator are often selected for
more conventional evaporators because of their better performance and process
economics. The wiped film evaporator can be used to concentrate, refine or recover a
valuable product through distillation or similar thermal separation processes. Due to
its inherent design features, it is ideal for thermal treatment of viscous media and heat
sensitive.

Figure 7.7 Schematic diagram of WFE

55
In WFE, the mixture is fed from above on to the surface of cylindrical evaporator via
a rotating distribution system, and then flows downward on the internal evaporator
wall as a thin film. A mechanical wiper system, connected to the distribution system,
uniformly distributes the mixture on to the evaporator surface area and permanently
assitates the downward flowing materials. The cylindrical evaporator is jacketed to
facilitate consistent heating of the evaporator surface through a heat carrier
medium(e.g.,thermal oil and steam). Depending upon the temperature of the liquid
and the operating pressure inside the evaporator, the volatile substances are
evaporated from the downward flowing liquid material film. In a reverse flow to the
liquid, the vapour lead upward and exhaust through a nozzle. Particularly when using
a WFE for low operation pressures, the above mentioned increase in volume must be
considered when designing the apparatus. Cross section as large as possible
minimizes the flow resistance, enabling low operating pressure.

e. Hydrotreating system
Hydrotreating is an established refinery process for improving product qualities.
Hydrotreating process is an advanced process technology which high-performance
catalyst systems and efficient reactor internal designs.

Recycled hydrogen
Reactor

Hot separator

Furnace Cold separator

LOBS

Base oil

Figure 7.8 Schematic diagram of hydrotreating process

56
The feed to be hydrotreated is heated in a set of exchangers, then mixed with the
recycling gas, rich in hydrogen and the hydrogen make-up. The mixture is introduced
into a furnace. The feed is then introduced into hydrotreatment reactors, flowing
through one or several catalytic beds in downflow mode. As the hydrotreatment
reactions are exothermic, a temperature gradient is established between every bed
inlet and outlet. In case of severe treatment, it can be necessary to cool the reactant
fluid by an injection of recycled hydrogen between two beds or between two
successive reactors. The reactor effluent is received in a hot or cold separator. The top
effluent is cooled and can be washed with amines allowing the elimination of
hydrogen sulphide. Hydrogen and hydrocarbons that are not condensed are recycled
to the initial inlet. In this way finished base oil is obtained.

CHAPTER EIGHT
FINANCIAL ANALYSIS OF PROJECT

8.1 Costs of the project

Investors want to invest in the projects that give them adequate return. It is thus
imperative to carry out the financial analysis of the lubricating oil re-refining system.
From our data analysis, the daily output of the used lube oil which can be processed is
7500 L. So, we have designed a plant for the capacity of 7500L/day. The yearly
working days is taken about 300days. For establishing the plant of required size 1200
m2 land is required.

Total land cost = Rs. 11,793,840 (assuming 50, 00,000 per ropani)
Cost of building =Rs. 3,000,000
Cost of transportation vehicles =Rs. 3,000,000
Cost of collecting & storage container = Rs. 200,000
Cost of the catalyst expenses (20 tons) = Rs. 6,120,000
Cost of machinery (I1) = Rs. 140,000,000
(Source: Derived from process economics of Kinetics technology international)
Investment in the auxiliary equipment =I1 *20%
=Rs. 140,000,000* 0.2

57
 (I2) = Rs. 28,000,000
Then total machinery cost = Rs. 140,000,000 + Rs 28,000,000
= Rs. 168,000,000
For the import of the machinery import tax rate is 5%
(Source: Arthik Ain 2065)
Then import tax amount = Rs. 8,400,000
VAT collected at the custom is 13% and local development cost is 1.5% then,
(Source: http://customs.gov.np/en/tariff.php)
VAT amount = Rs. 21,880,000
Local development tax = Rs. 2,520,000
Assuming the transportation cost of machinery is 5% then,
Transportation cost of machinery = Rs. 8,400,000
Then, total engineering cost = (I1 + I2) * 12%
= Rs. 20,160,000
Then total investment cost = Rs. 241, 680,000

S.N. Item Calculated basis

Project life 20 yrs
Construction period 3 yrs
Depreciation Straight line with 4%
Salvage value Zero
Income tax rate 10%
Inflation 0
Capital expenditure
1st year 20% of fixed capital
nd
2 year 45% of fixed capital
rd
3 year 35 of (fixed capital +working capital)
Capacity utilization
1st and 2nd year 60%
rd
3 and subsequent years 100%
Table 8.1 Basis for the financial calculation
SN Utilities Consumption
1 Electricity 90 kwh

58
 2 Heat 18000 k cal
3 Water 700 L
4 Catalyst 0.4 kg
5 Hydrogen 0.2%
Table 8.2 Requirement of the utilities for 1000 l (1m3) of used oil processing
(Source: www.sequoia-global.com)
SN parameter Quantity (mass %)
1 Base oil 75%
2 Fuel (diesel) 6%
3 Reside 11%
4 Waste water 8%
5 Off gas 0.%
Table 8.3 Composition of output on the basis of mass
(Source: www.sequoia-global.com)
Then, calculating annual operating cost
From our survey, present rate of the used oil is Rs. 20- Rs. 25 per L, so we assumed
the used oil purchase cost to be Rs. 30/L (including collection and transportation cost
and increasing cost of used oil due to the high demand).
Used oil purchase cost for the 300 day operating condition = 7500*300*30
= Rs. 67,500,000
Our total used oil amount per year =7500*300 = 2, 250,000 L = 2250 m3
Cost of the electricity for the industrial use is Rs. 12 per unit.
Then,
Cost of electricity = 2250 * 90 *12
=Rs. 2, 430, 000
Cost of catalyst removal = 2250 * 0.4 *306
= Rs. 275,400
Cost of hydrogen = 2250000 * 0.002 * 100
= Rs. 450,000
Total heat required = 18000 * 4.2
= 75600 k Joule
Assuming the heating value of furnace oil = 38 MJ/Kg
Total amount of the fuel required = 75600 kJ/ 38 MJ *2250 = 4476.31 Kg

59
Sp. gr. of the furnace oil = 0.85
Then, total amount of fuel = 5266 L
Total cost of the fuel = 5266 * 40 = Rs. 210,640
Labor cost for (25 staffs) = Rs. 2,448,000
Extra expenses =Rs. 1,000,000

Maintenance cost = I2 * 4% + I2 * 3%
=140,000,000*4% + 28,000,000 * 3%
= Rs. 6,440,000
Assuming the straight line depreciation with zero salvage value after 20 years.
Then, Depreciation = (I-0)/N
= (168,000,000-0)/20
=Rs. 8,400, 000/year
Insurance and other fees are 2% of the total investment = Rs. 4,831,600
Financial cost is 7% of the capital investment = Rs. 16,847,600

Total operating cost = Rs. 168,792,040

Annual revenue
Unit cost of base oil produce is Rs.130 per L
Assuming, during 1st and 2nd year only 60% of oil is sold
Then, for 1st and 2nd year, revenue =7500*300*0.6*130*0.75
=Rs. 131,625,000
For the remaining years, revenue = Rs. 219, 375,000
Then the variable cost per unit (1m3) = Rs. 73331400/2250 (m3 per year) = Rs.
32591.73
Net revenue in 1st and 2nd years = selling cost – total operating cost
= Rs. 131,625,000 – Rs. 2250*0.6* 32591.73-37,518,000
=Rs. 50,108,164
Income after the 10 % tax = Rs. 45,097,347
For the other years =Rs. 219,375,000- 110,831,400
=Rs. 108,543,600
Income after tax = Rs. 97,689,240

60
S.N. Remarks
particular Amount (NRs. Lakhs)
1 Investment of the project
a. Building 30
b. vehicle 30
c. Container 2
d. Catalyst expenses 61.2
e. Machinery 1400
f. Auxiliary equipment 280
g. Import Tax 84
h. Vat &local dev. Tax 244
i. Engineering cost 201.6
j. transportation of machinery 84
Total 2416.8
2 Variable Cost
a. Used oil purchase 675
b. Electricity 24.3
c. Catalyst removal 2.754
d. Hydrogen 4.5
e. Heating fuel 2.1
f. Labour 24.48
Total 733.134
3 Fixed cost/year
g. Maintenance cost 64.4
h. Depreciation 84
i. Insurance 48.31
j. Financial cost 168.47
k. Extra 10
Total 375.18
S.N. Particulars Amount (NRs. Lakhs)
4 Revenue from the base oil
selling

61
 a. First year 1316.25
b. Second year 1316.25
And Other Years 2193.75
Revenue from the base oil
selling 1316.25

Table 8.4 : Table showing various costs and revenues of the project
Then making the cash flow diagram in lakhs
976.89 976.89 976.89
976.89 976.8
976.8976.8
976.8 976.89
501.081 501.08

0 1 2 3 4 5 6 7 8 ………………………18 19 20

483.36 845.88
1087.5
Figure 8.1 Cash flow diagram
8.2 Testing the financial feasibility of the project

a. Simple payback period

The payback period is the number of years required to recover the investment made in
a project without considering time value of money.
Cash flow (In Cumulative cash
Period Lakhs) flow
0 -483.36 -483.36
1 -1087.56 -1570.92
2 -845.8 -2416.72
3 501.081 -1915.639
4 501.081 -1414.558
5 976.89 -437.668
6 976.89 539.222
Table 8.5 Calculation of simple payback period
Then, payback period = 5 years + 437.668/976.89
= 5.448 years or, 5 years and 5 months
b. Discounted payback period calculation

62
Interest rate = 10%
Discounted payback period is the number of years required to recover investment
made in project considering time value of money.
Year Cash Flow cumulative cash flow
0 -483.36 -483.36
1 -1087.6 -1619.296
2 -845.8 -2627.02
3 501.081 -2388.647
4 501.081 -2126.4308
5 976.89 -1362.18
6 976.89 -521.508
7 976.89 403.2312
Table 8.6 Calculation of discounted payback period
Then the discounted payback period = 6 years + 521.508/924.74
= 6.56 years
c. Net present worth
Interest rate = 10%
NPW (10%) = -483.36 -1087.56/1.1 -845.88/1.12 +501.081/1.13 +501.081/1.14
+976.89 ×(P/A,10%,16) ×(P/F,10%,4)
NPW (10.25%) =NRs 3305.24
Since the NPW is greater than zero, project is feasible.
d. Internal rate of return (IRR)
IRR is the interest rate earned on the un-recovered project balance of investment such
that when the project terminates, un-recovered project balance will be zero. To
calculate internal rate of return net present worth of the project is equated to zero.
IRR is the interest rate at with net present worth of the project becomes zero.
NPW (I) = 0
0= - 483.36 - 1087.56/ i – 845.88/ i2 + 501.08/ i3 + 501.08/ i4 +976.89 × (P/F, i , 4) ×
(P/A, i ,16)
Now we calculate the different values of PW at different i. Table is shown below.
Calculation is done from excel program.
S.N. Interest rate (I %) NPW (Lakhs)
1 2 10613.78

63
2 4 7973.69
3 6 6014.16
4 8 4542.54
5 10 3425.05
6 12 2567.69
7 14 1,903.61
8 16 1384.74
9 18 976.12
10 20 652.04
11 22 393.41
12 24 185.9
13 26 18.66
14 28 -116.61
15 30 -226.31
Table 8.7 Variation of net present worth with interest rate

12000

10000

8000
Net Present Value

6000

4000

2000

0
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30
-2000
Interest rate (%)

Figure 8.2 Variation of net present worth with interest rate

From the calculation IRR is found to be ≈ 26%, which is far greater than MARR.
Thus the project is feasible.

64
 CHAPTER NINE
CONCLUSIONS AND RECOMMENDATIONS

9.1 Conclusions
Mismanagement of use lubricating oil results in severe environmental hazard. Thus,
proper management of used oil is necessary. Re-refining is best alternative among
possible management option of used oil for country like Nepal which solely depends
on import of the lubricating oil.
From our data collection and its analysis, the total amount of used oil that will be
generated in Kathmandu valley is forecasted to be 11314 L/day for the year
2069/2070 BS. Assuming a collection efficiency of 60%, the oil that can be collected
in the year 2069/2070 is 8000L/day. Also assuming the solid contaminants that is
filtered and settled is nearly 5%. Thus a plant processing of 7500L/day is
recommended. We have studied different type of the re- refining techniques. From
different techniques we have selected wiped film evaporator with hydrotreating
because of its higher yield, ability to process multigrade oils and environmental
friendly.
The financial analysis of the selected process was done using different techniques.
From the calculation we get payback period=5.448years, discounted payback

65
period=6.56years, Net present worth=NRs3425.05lakhs, IRR=26%.From the above
values it was clear that the project is financially feasible.

9.2 Recommendations
• Government should bring proper rules and regulations for proper management
of use oil as soon as possible.
• Public awareness programs should be launched to make people aware about
the harmful effect of mismanagement of used lubricating oil and to encourage
them to use re-refined lubricating oil.
• Collection system should be set up to collect the used lubricating oil outside
Kathmandu valley also.
• Study of possibility of used lubricating oil re-refining should be performed for
whole country.
• Detail design of the plant should be performed.

REFERENCES
Books
• Williams Crouse & Donald L. Angling , Automotive Mechanics, Tenth
edition, 2007, Tata McGraw-Hill, New York, ISBN-10:0-07-0634351.
• Francois Audibert, Waste Engine Oils Re-refining & Energy Recovery,
October 2006, Elsevier science & technology books, ISBN: 0444522026
• Firas Awaza & Dumitru Pawel, Design Aspects of Lubricating Oil Re-
refining, First edition 2006, Elsevier science & technology books, ISBN-10: 0-
444-52228-X
• M. V. Joshi & V.V. Mahajani Process Equipment Design , MacMillan India,
third edition 1996, SBN 0333 92418 5
• J. R. Backhurst and J. H. Harker, Process Plant Design, first edition 1973,
Heinemann Educational Books Ltd, London

Journals
• US Patent number 4512878 ,Used Oil Re-refining, by Lioyd E. Reid, Keith C.
Yao

66
 • US Patent number US2006/0231378 , Thin Film Evaporator, by Glasl
Wolfgang, Siebenhofer Matthaeus & Koncar Michael
• US Patent number 4941967 , Process for Re-refining Spent Lube Oil, by
Leonardus M.M. Mannetje & Ashok S. Laghate
• Solvent extraction technology for used oil treatment, Published by ReTap,
December 1995
• assessment of opportunities to increase the recovery and recycling of waste oil
by D. J. Graziano and E. J. Daniels
• US department of energy, waste oil: technology, economics and environment,
health and safety considerations, January 1987
Internet
• http://www.sequoia-global.com/rerefine1.htm
• http://www.sequoia-global.com/rerefine1.htm
• http://fossil.energy.gov/epact/used_oil_report.pdf
• www.p2pays.org/ref/13/12466.pdf

ANNEX-I

67

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