Sodium Hypochlorite Production in Nigeria (Using Salt Brine As Raw Materials); The Feasibility Report.

Sodium hypochlorite is a clear, yellowish compound with chemical formula NaOCl. It has a characteristic odor. Sodium hypochlorite can be produced using two methods.

The concentrated brine solution of dissolved salts and soft water is electrolyzed under the first method, to form sodium hypochlorite solution in water. The second method involves addition of chlorine gas to caustic soda, thus forming sodium hypochlorite solution, water, and salt. Sodium hypochlorite is primarily used in the water treatment industry.

It can be effectively utilized as a bleaching agent, for removal of foul smell from water, surface purifier, and water disinfectant. The history of sodium hypochlorite market goes back to 1785, when the first commercial use of sodium hypochlorite was identified for making liquid bleaching agent. Traditionally, it was used as a bleaching agent for cotton. Hypochlorite helps in removing stains from clothes.

Sodium hypochlorite market finds numerous applications in end-user including agriculture, chemical, paint, water treatment, and waste disposal. Sodium hypochlorite is a compound that can be easily stored and transported. It is widely used as a disinfectant. However, sodium hypochlorite is a dangerous and corrosive substance.

It is an unstable compound, as there is a high rate of chlorine evaporation from the sodium hypochlorite solution. Furthermore, the solution of sodium hypochlorite disintegrates when heated or it comes in contact with poisonous & corrosive gases, certain metals, sunlight, acids.

The sodium hypochlorite market is anticipated to expand significantly due to the rapid growth in end-user industries such as water treatment, paints, chemicals, and agriculture.

In terms of end-user industry, the sodium hypochlorite market can be segmented into agriculture, chemicals, paints, water treatment, and other industries. The water treatment industry can be further segmented into municipal water treatment and industrial water treatment.

Sodium hypochlorite is employed on a large scale as a disinfectant and to remove foul smell in the water treatment industry. Currently, the municipal water treatment industry dominates the industrial water treatment industry.

The water treatment industry is anticipated to continue its dominance during the forecast period, owing to the increasing population that leads to higher need for safe drinking water.

Rise in industrialization is also leading to discharge of industrial chemicals into water. Moreover, many end-user industries such as chemicals recycle and reuse water. This further drives the demand for water treatment services, and in turn sodium hypochlorite.

Uses and Application

Bleaching

Household bleaching is, in general, a solution containing three to eight percent (3-8%) sodium hypochlorite by weight and 0.01-0.05% sodium hydroxide; the sodium hydroxide is used to slow the decomposition of sodium hypochlorite into sodium chloride and sodium chlorate.

Cleaning

Sodium hypochlorite has destaining properties. Among other applications, it can be used to remove mold stains, dental stains caused by flourosis, stain on crokery, especially those caused by the tannins in tea. It has also been used in laundry detergents and as a surface cleaner.

Deodorizing

Sodium hypochlorite has deodorizing properties, which go in hand with its cleaning properties.

Water Treatment
Sodium hypochlorite has been used to treat dilute cyanide waste water, such as electroplating waste. In batch treat operations, Sodium hypochlorite has been used to treat more concentrated cyanide watses, such as silver cyanide plating solutions.

Sodium hypochlorite is commonly used as a biocide in industrial applications to control slime and bacteria formation in water systems used to power plants, pulp and paper mills.

The national demand estimates for sodium hypochlorite in Nigeria is in excess of five hundred thousand (500,000) tons per annum with most of the demand been met through importation.

Nigeria has an estimated reserve of about one billion, five hundred million (1,500,000,000) tons of salt brine.

This report highlights the financial viability or otherwise of establishing a sodium hypochlorite (Chlorine Bleach at twelve percent (12%) strength) plant in Nigeria using salt of ninety-nine point seven percent (99.7%) purity as the raw material.

The plant would also produce chlorine gas as bye-product. Chlorine is known as a very important industrial chemical and is used in half of the world’s commercial chemical industries. Chlorine is a greenish yellow gas and is characterized by reactive nature and high expansion potential.

This element turns into solid at -103°C (-153°F) and into liquid at -34°C (-29°F). Chlorine market is expected to see a surge in demand due to increasing applications such as bleaching of wood pulp during paper productions.

According to the World Chlorine Organization (WCO), the total production capacity of chlorine is fifty-eight million (58,000,000) metric tons every year. Around thirty percent (30%) of chlorine is used in PVC, five percent (5%) in water sanitation, five percent (5%) in pulp and paper industry, twenty-four percent (24%) in solvents, thirteen percent (13%) for organic compounds, and thirteen percent (13%) for inorganic compounds.

The demand of chlorine from all the major sectors is driving the growth prospects of the chlorine market. Chlorine-based products are used for manufacturing of packaging, blood bags, and sterile tubing. Furthermore, chlorine is used to develop the semiconductors for diagnostic instruments.

Almost all the sectors from industrial to residential deal with chlorine that is creating revenue avenues in the chlorine market which had a market size of around $14 billion as of 2018. Furthermore, the demand for chlorine will observe a compound annual growth rate (CAGR) of around four point eight percent (4.8%) during the forecast period of 2019 to 2025.

The capacity of the proposed plant is fifty thousand (50,000) litres of sodium hypochlorite per day and six thousand (6,000) kilogrammes of chlorine gas per day.

The plant would operate at eighty percent (80%) of the installed capacity working three (3) shifts of eight (8) hours each in three hundred (300) days per annum producing two million (2,000,000) litres of sodium hypochlorite (Chlorine Bleach at twelve percent (12%) strength) and two hundred and forty thousand (240,000) kilogrammes of chlorine gas bi-monthly.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Business Objective 1.4 Value Proposition 1.5 Critical Success Factor of the Business 1.6 Current Status of Business 1.7 Description of the Business Industry 1.8 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of product 2.2 Product Packaging and delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start – Up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6 Profit and Loss Analysis 5.7 Cash Flow Analysis 5.8 Viability Analysis 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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