Abstract
A feasibility study for the design and construction of a
pilot plant for the extraction of castor oil in South Africa was
conducted. The study emphasized the four critical aspects of project
feasibility analysis, namely technical, financial, market and
managerial aspects. The technical aspect involved research on
existing oil extraction technologies, namely: mechanical pressing and
solvent extraction, as well as assessment of the proposed production
site for both short and long term viability of the project. The site is
on the outskirts of Nkomazi village in the Mpumalanga province,
where connections for water and electricity are currently underway,
potential raw material supply proves to be reliable since the province
is known for its commercial farming. The managerial aspect was
evaluated based on the fact that the current producer of castor oil will
be fully involved in the project while receiving training and technical
assistance from Sasol Technology, the TSC and SEDA. Market and
financial aspects were evaluated and the project was considered
financially viable with a Net Present Value (NPV) of R2 731 687 and
an Internal Rate of Return (IRR) of 18% at an annual interest rate of
10.5%. The payback time is 6years for analysis over the first 10
years with a net income of R1 971 000 in the first year. The project
was thus found to be feasible with high chance of success while
contributing to socio-economic development. It was recommended
for lab tests to be conducted to establish process kinetics that would
be used in the initial design of the plant.