FULL-FLEDGED PRE-FEASIBILITY ANALYSIS

Collection of Used Cooking Oil (UCO) and Production of Bio-diesel

Collection of Used Cooking Oil (UCO) and Production of Bio-diesel

Market

Targeted market Collection of Used Cooking Oil (UCO) and production of bio-diesel to be exported to Europe. Glycerol will be a byproduct from the bio-diesel process, which could be sold in Egypt or exported.
Project description Collection of 10,000 ton/year of used cooking oil (UCO) by a licensed company that own its vehicles and storage area. The company will collect UCO from different sources within Cairo such as restaurants, hotels, homes and fried food factories.
Competitive edge

Importing UCO from Egypt is considered the best option for Europe because Egypt is closer to Europe compared to Asia (the main UCO exporter). Thus, the price of UCO will be cheaper.

Production of bio-diesel may be eligible for carbon credits

Market features Size 6 billion USD globally in 2021 - Growth 5% (between 2022 and 2029)

Financial Features

Collection Price Collecting UCO
27,000 EGP/ton
Producing Biodiesel
27,000 EGP/ton
Investment 60 million EGP 92.4 million EGP
IRR 161% 47%
Simple payback 1.56 years 4.1 years

Process

Required Input Licensed company that owns its vehicles.
Storage area for the collected UCO.
Land for the bio-diesel facility.
Process/Technology Material handling and chemical transesterification
Equipment

The system requires:

  • Vehicles such as tricycles for collection and transportation, while providing them with safety equipment.
  • Suitable storage area built with safety specifications for ventilation system, firefighting system, etc., away from dwellings and close to the collection point.
  • Production equipment for the bio-diesel including reactors, separators and purifying equipment.
Human Resources
  • Technicians, Machines operators, and Drivers
  • Integrating informal sectors into the system.

Risks and Mitigation Measures

Risks and Mitigation Measures
  • Risk of UCO collection by informal sectors at high prices with the target of returning it to the food chain. This can be mitigated by signing contracts between UCO generators and licensed UCO collectors. Periodic monitoring and legal enforcement by the regulatory authorities will be essential.
  • Risk of the inability to export UCO with the required specifications. This could be mitigated by pre-treating the collected UCO to match the European specifications.
  • Risk of no/low availability of UCO as raw material for bio-diesel production at reasonable prices. This could be mitigated by reducing the exporting amount of UCO to satisfy the capacity of bio-diesel production plants. Also, bio-diesel producers should be allowed to collect UCO by themselves.

Impacts

Environmental impact
  • Reducing the impact on wastewater treatment plants by collecting UCO at the source instead of it being disposed in the wastewater network
  • Reducing the contamination of Municipal Solid Waste (MSW) by UCO by collecting it at the source instead of it being disposed with MSW.
  • Reducing the depletion of natural resources by utilizing a waste material to produce alternative fuel, bio-diesel.
Social impact Reducing the harmful effect of UCO on human health by eliminating the large fraction of the UCO returned to the food chain.

Location

Location of Supply Different sources within Cairo such as restaurants, hotels, homes and fried food factories
* Source of the information: The above figures were updated by Chemonics Egypt for UNIDO in 2023

Studies

Serial File name Download
1 UCO-Fact Sheet- Eng-Ar

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