Egypt’s Online Gateway to Climate Resilient and Environmentally Sound Investments - Production of Amorphous Silica from Rice Straw

FULL-FLEDGED PRE-FEASIBILITY ANALYSIS

Targeted market	Silica is used as an intermediate material for sodium silicate production in the glass industry, raw material in the building and construction industry, thickening agent in the rubber, automotive, paints, chemicals, and cosmetics industries. Additionally, silica is used as a raw material in electronics for applications such as chips, optical fibers, and telescope glasses. Biochar is produced as a byproduct which has a wide range of applications including use as soil amendment material, biochar compost by mixing with another fertilizer, or used to produce activated carbon. Sodium sulfate is produced as a byproduct that can be used in various applications such as fertilizer, filler in detergents, fining agent in glass manufacturing, chemical solution in pharmaceutical products, additive to cattle feed, and paper pulping.
Project description	The project aims to produce amorphous silica by utilizing 150 ton/day of rice straw using wet process technology. The facility is recommended to be located close to the areas where collected rice straw is available in the Delta mainly in five governorates: Al- Dakahlia, Kafr El Sheikh, Al-Beheira, Al-Gharbia, and Al-Sharkia.
Competitive edge	Valorization of an abundant unutilized raw material (rice straw) into a high value-added product. Decreasing the imported silica and saving foreign currency. Shift towards renewable and sustainable materials boosts the demand on green chemicals like amorphous silica from rice straw compared to alternative silica from natural resources. It is widely used in the manufacturing of green tires to improve fuel efficiency and reduce carbon emissions compared to alternatives.
Market features	The global market size of silica was valued at 468 Million tons in 2022. It is projected to reach 818 Million tons by 2031, expanding at a compound annual growth rate (CAGR) of 6.40% during the forecast period (2023–2021).

	Amorphous Silica Plant	Amorphous Silica Plant with Power Plant
Total annual amount of the products	Amorphous Silica = 6,686 tons Biochar = 3,343 kg Sodium Sulphate = 21,730 tons	Amorphous Silica = 6,686 tons Biochar = 3,343 kg Sodium Sulphate = 21,730 tons Electricity generated = 43 GWh
Selling price (EGP/ton)	Amorphous Silica = 107,000 Biochar = 5000 Sodium Sulphate = 20,000	Amorphous Silica = 107,000 Biochar = 5000 Sodium Sulphate = 20,000 kWh= 1.4 EGP
Land area required	For the manufacturing plant = 1,500 m2 Storage area for the rice straw = 25,200 m2	For the manufacturing plant = 1,500 m2 Storage area for the rice straw = 25,200 m2 Power plant = 2000 m2
Investment	538 Million EGP	1.03 Billion EGP
IRR	39%	22%
Simple payback	3.1 years	4.1 years

Required Input	Rice straw = 150 ton/day Sulfuric acid = 2 ton / 1 ton of amorphous silica Sodium hydroxide = 1.7 ton / 1 ton of amorphous silica Suitable site with good access to main roads for raw material and product transport. Availability of water and electricity. It is preferable to be in the industrial zone situated in one of the five governorates (Al- Dakahlia, Kafr El Sheikh, Al-Beheira, Al-Gharbia, and Al-Sharkia) that produce rice straw waste.
Process/Technology	Chemical extraction of silica from rice straw using (wet process) technology
Equipment	Washing tanks, leaching tanks, heat exchangers, dryer, grinder, incinerator, filters and neutralization tanks.
Human Resources	Technicians, machines operators, engineers, managers and drivers

Risks and Mitigation Measures

Risk: limited availability of rice straw as raw material for silica production due to potential decrease in rice cultivation.
Mitigation: Utilize alternative feedstocks such as rice husks, corn cobs, and bagasse.
Risk: rice straw storage since it is only available for 3 months of the year and requires a large storage area.
Mitigation: Compress the collected rice straw into bales to reduce storage space needed.
Risk: supply chain Disruptions for other necessary materials.
Mitigation: Develop a resilient supply chain with multiple suppliers and a contingency plan.
Risk: fire hazards during storage, handling, and processing of rice straw.
Mitigation:
- Provide adequate space between stacks for ventilation
- Ensure good airflow to prevent mold growth and spontaneous combustion
- Implement firebreaks or barriers between stacks
- Install fire suppression systems such as sprinklers or fire extinguishers
- Maintain easy access for transport vehicles for both loading and unloading

Environmental impact	Preventing open burning of rice straw which reduces toxic air pollution. Uncontrolled combustion of rice straw results in significant ecological threats, causing damage to the land and surrounding areas.
Social impact	Providing direct and indirect job opportunities, especially for youth in the Delta Region. Raising the standard of living for farmers by benefiting from selling rice straw waste.

Location of Supply

Around 95% of the rice straw is available in the Delta mainly in Al- Dakahlia, Kafr El Sheikh, Al-Beheira, Al-Gharbia, and Al-Sharkia. Accordingly, the location of the production facility is recommended to be in one of the above-mentioned Governorates.

* Source of the information: The above figures were updated by Chemonics Egypt for UNIDO in 2023

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FULL-FLEDGED PRE-FEASIBILITY ANALYSIS

Production of Amorphous Silica from Rice Straw

Market

Financial Features

Process

Risks and Mitigation Measures

Impacts

Location

Studies

FULL-FLEDGED PRE-FEASIBILITY ANALYSIS

Production of Amorphous Silica from Rice Straw

Market

Financial Features

Process

Risks and Mitigation Measures

Impacts

Location

Studies

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