Acid Washed Granulated Activated Carbon Manufacturing Plant Project Report 2025

In 2024, stringent environmental regulations regarding air and water pollution control are driving the demand for activated carbon. Governments worldwide are implementing stricter standards to limit emissions of hazardous pollutants, including mercury. The U.S. Environmental Protection Agency (EPA) has established Mercury and Air Toxics Standards (MATS), which mandate significant reductions in mercury emissions from coal-fired power plants. This regulation necessitates the use of activated carbon for effective mercury capture, leading to increased consumption of acid washed granulated activated carbon in industrial applications. Additionally, many countries are enforcing regulations that require cement producing industries to adopt eco-friendly technologies for waste treatment and emissions control. This is prompting manufacturers to invest in advanced filtration systems that use activated carbon, thereby enhancing its market presence.

Other elements to consider while establishing an acid washed granulated activated carbon plant include raw material sourcing, workforce planning, and packaging. The production of acid AWGAC relies on coconut shells, wood, coal, and various biomass materials. Coconut shells are favoured for their high carbon and low ash content, which, combined with the activation process, results in a highly porous material ideal for adsorption. Wood-based activated carbon is valued for its availability and cost-effectiveness and different wood types can yield varying characteristics. Coal serves as a widely used source due to its economic benefits and availability. Additionally, biomass materials such as nutshells from other fruits, paper mill waste, and agricultural residues are used due to their lower environmental impact. The choice of raw materials determines the quality and performance of AWGAC.

Moreover, to help stakeholders determine the economics of an acid washed granulated activated carbon plant, project funding, capital investments, and operating expenses are analyzed. Projections for income and expenditure, along with a detailed breakdown of fixed and variable costs, direct and indirect expenses, and profit and loss analysis, enable stakeholders to comprehend the financial health and sustainability of a business. These projections serve as a strategic tool for evaluating future profitability, assessing cash flow needs, and identifying potential financial risks.

However, recent natural disasters have impacted the availability of coconut shells in key producing countries like the Philippines and Indonesia, leading to price volatility. To combat this, companies like Calgon Carbon have expanded their sourcing strategies to include alternative materials and suppliers to reduce dependency on specific regions. Additionally, Jacobi Carbons has invested in local production facilities in various markets to enhance supply chain resilience and reduce transportation costs. These strategies can effectively mitigate supply chain risks and ensure a more stable supply of AWGAC to meet growing industrial needs.

About Acid Washed Granulated Activated Carbon

Acid washed granulated activated carbon (AWGAC) is a specialised form of activated carbon treated with acid to enhance its purity and adsorption capabilities. This process removes impurities and reduces ash content, making it ideal for applications in water purification, food processing, and pharmaceuticals. The history of AWGAC began in the mid-20th century when the demand for high-purity materials in industrial processes increased, leading to the development of acid-washing techniques to improve activated carbon performance. Today, acid washed granulated activated carbon is widely used in water treatment, food and beverage processing, and pharmaceuticals industries. 

Properties of Acid Washed Granulated Activated Carbon

AWGAC has a high surface area, typically exceeding 900 mg/g for iodine adsorption, and a neutral pH range of 6.5 to 8.0, which is suitable for various applications. It has low ash content (often below 1.5%) and minimal heavy metal leachability due to the acid washing process. The granulated form also provides excellent flow characteristics. Additionally, it has high hardness, ensuring longer operational life.

Manufacturing Process of Acid Washed Granulated Activated Carbon

The production of acid washed granulated activated carbon begins with carbonisation, where raw materials such as coal or coconut shell are heated in the absence of oxygen. This process removes non-carbon elements. The next step is activation, which typically uses steam or chemicals to create a highly porous structure with a large surface area. Following activation, the carbon undergoes acid washing. This step involves treating the activated carbon with an acid, such as hydrochloric acid (HCl), to remove impurities, reduce ash content, and lower the pH to a neutral range. After acid washing, the carbon is neutralised with a base, such as sodium hydroxide (NaOH). The carbon is then dried to remove moisture, followed by screening to obtain the desired granular size fraction. Finally, the processed granulated activated carbon is packaged for distribution.

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Synthesis of Acid-Washed Granulated Activated Carbon

Below is a detailed overview of the processes involved in the production of acid-washed granulated activated carbon:

1. Carbonisation of Raw Material

The raw materials, typically coconut shells, coal, or wood, are subjected to high temperatures in an oxygen-free environment. This process decomposes the raw material into a char, removing volatile components such as water, tars, and gases.

General Reaction:

C₆H₁₀O₅ (biomass) → C (char) + H₂O + CO₂ + other volatile compounds (heating in the absence of oxygen)

2. Activation Process

In this step, the char is exposed to an oxidising gas, typically steam or carbon dioxide, at high temperatures (800-1000°C). The activation process increases the surface area and develops the porous structure of the carbon.

Chemical Reactions:

1. Steam Activation:

C (char) + H₂O (steam) → CO + H₂

C (char) + CO₂ → 2 CO (g)

3. Acid Washing

The activated carbon is washed with acids such as hydrochloric acid (HCl) to remove any remaining impurities, such as metal oxides. This process improves the purity of the activated carbon and prepares it for its final applications.

Chemical Reaction:

Metal oxides (impurities) + HCl → Metal chloride (soluble) + H₂O

4. Granulation and Drying

The acid-washed activated carbon is then granulated to the desired particle size. After granulation, the product is dried to remove any residual moisture, ensuring the final product meets industry standards.

Applications and Drivers of Acid Washed Granulated Activated Carbon

Acid washed granulated activated carbon is widely used in various industries, including water treatment, food and beverage processing, pharmaceuticals, and electronics manufacturing. Its applications include dechlorination, removal of organic compounds, and improving water taste and odour. The market for acid washed granulated activated carbon is driven by the increasing demand for clean water and safe food products, as well as stringent regulations regarding contaminants in industrial processes. For example, acid washed granular activated carbon is essential in reverse osmosis systems to protect membranes from fouling and in the semiconductor industry for ultra-pure water applications.

Key Features of the Acid Washed Granulated Activated Carbon Production Cost Report

A detailed overview of production cost analysis that evaluates the manufacturing process of acid washed granulated activated carbon is crucial for stakeholders considering entry into this sector. Furthermore, stakeholders can make informed decisions based on the latest economic data, technological innovations, production process, requirements of raw materials, utility and operating costs, capital investments by major players, pricing strategies, and profit margins. For instance, in 2023, global coal production reached approximately 8,694.9 million tons, with China leading as the dominant producer, accounting for over 50% of the total output at around 4,362.1 million tons. India followed as the second-largest producer, increasing its output to nearly 968.8 million tons, a growth of about 12% from the previous year. Indonesia and the United States produced approximately 781.3 million tons and 728.4 million tons, respectively. Other notable producers included Australia with 554.8 million tons, Russia at 423.1 million tons, and South Africa with 277.9 million tons.

Similarly, in 2023, India exported approximately 141,862 tons of activated carbon, with the U.S. being the largest importer at 14% of these exports. Sri Lanka exported 51,539 tons in 2023, marking a 6% decline from 2022; however, early 2024 showed a recovery with a 30% increase in exports compared to the previous year. This abundance of coal and coconut shells supports the activated carbon industry by providing a readily available raw material for manufacturing. Manufacturers will benefit from increased production capacity, enabling them to meet the growing need for clean water. This heightened output can lead to economies of scale, potentially reducing production costs and increasing profit margins.

Below are the sections that further detail the comprehensive scope of the prefeasibility report for an acid washed granulated activated carbon production plant:

Market Dynamics and Trends: Factors such as increasing demand for clean and drinkable are influencing market conditions in the acid washed granulated activated carbon sector. As of 2024, approximately 4.4 billion people globally lack access to safely managed drinking water, highlighting a significant public health crisis. Unsafe drinking water contributes to waterborne diseases, with at least 1.7 billion people using sources contaminated with feces. In terms of wastewater treatment, while 76% of total wastewater generated receives some treatment, only 60% of this is processed safely. This gap underscores the urgent need for effective water treatment solutions. In India, groundwater contamination affects millions, particularly in states like Rajasthan and Assam, where harmful substances complicate access to clean water. This drive the increasing demand for acid washed granulated activated carbon, which is essential for removing contaminants from both drinking water and wastewater. Understanding these factors helps businesses align their production plans.

Profiling of Key Industry Players: Leading manufacturers of acid washed granulated activated carbon (AWGAC) include CG Carbon, Raj Carbon, and Jay Maa Bhavani Chemicals. CG Carbon offers high-quality products for municipal water treatment and air purification. Raj Carbon, with a capacity of 50 metric tons per day, focuses on meeting stringent water quality standards. These companies are pivotal in providing sustainable filtration solutions that comply with increasing environmental regulations.

Economic Analysis: Capital expenditure (CAPEX) analysis provides stakeholders the knowledge about required investments in advanced technologies, efficient machinery, and necessary infrastructure. Investing in high-capacity mixing equipment, such as a continuous mixer or high-shear mixer, can improve production efficiency by 20-30%. Investing in energy-efficient systems, such as combined heat and power (CHP) systems could reduce energy consumption by up to 30%, as these systems use waste heat from production processes to generate electricity and provide heating. 

Historical, Current, and Forecasted Price Trends

Fluctuations in acid washed granulated activated carbon (AWGAC) prices are influenced by several key factors, particularly the costs of essential raw materials such as coconut shells and coal. In 2023, the price of coconut shell charcoal ranged from approximately USD 349 to USD 461 per metric ton, with early 2024 indicating a potential upward trend in prices due to increased demand, particularly from India and Sri Lanka. 

Coal prices have also experienced notable fluctuations. As of late 2023, thermal coal prices were around USD 130 per metric ton, with projections indicating a decline of over 20% in 2024. However, this decline is tempered by strong demand from countries like China and India, which could influence future pricing. Overall, these trends in coconut shell and coal prices significantly impact the production costs of AWGAC, contributing to its market volatility.

Financial Investment Overview for Acid Washed Granulated Activated Carbon Manufacturing Facility

Establishing an acid washed granulated activated carbon manufacturing facility requires a comprehensive financial investment that encompasses various elements critical to the project's success. The following sections detail these components:

• Labour: Personnel costs must be factored in, covering wages for skilled and unskilled workers involved in production and administration.
• Packaging: Expenses related to packaging materials and processes are crucial, as they ensure the product is safely transported and presented to customers.
• Utilities: Key utilities needed to produce acid washed granulated activated carbon, such as electricity, steam, and process water along with their cost assessments help investors to develop more accurate financial models and budget forecasts, ultimately enhancing profitability. In acid washed granulated activated carbon market, energy costs are significant, typically representing around 10-15% of operating expenses. This includes electricity and water necessary for the manufacturing processes.
• Transportation: Costs analysis associated with the logistics of delivering raw materials to the facility and distributing finished products to markets enable investors to select suitable location for manufacturing facilities, improve supply chain strategies, and negotiate better terms with suppliers and distributors.
• Land Acquisition: The purchase or lease of land for the facility is a substantial upfront investment as it aids stakeholders identify areas with lower land acquisition costs and favourable zoning regulations, ultimately reducing initial capital expenditures.
• Construction: Building the manufacturing plant involves significant capital expenditure, including site preparation, construction materials, and labour.
• Machinery: Investment in specialized machinery for mixing, foaming, and curing processes is essential for efficient production.

Profit Margins and Pricing Strategies

Projected profit margins and effective product pricing strategies improve overall profitability. Manufacturers might target a profit margin of around 20-30%, achieved through strategic pricing based on raw material costs and prevailing market demand. Effective pricing strategies should consider fluctuations in raw material prices and competitive positioning within the market.

Key Questions Addressed:

• What are the detailed unit operations for acid washed granulated activated carbon production?
• Who are major technology licensors with their process evaluation?
• How are raw materials or catchem procured and what are their cost implications?
• What utilities are essential for production and what will they cost?
• What are the labour requirements and how does this affect operational costs?
• What packaging solutions are optimal for cost and efficiency?
• What logistical arrangements are necessary for efficient product distribution?
• What are the estimated land and construction costs for a new acid washed granulated activated carbon plant?
• How can profitability be maximised in the acid washed granulated activated carbon market?
• What pricing strategy should be adopted for acid washed granulated activated carbon to remain competitive?

This prefeasibility report aims to equip potential investors and existing manufacturers with crucial insights to make informed decisions in the acid washed granulated activated carbon industry.