President, Dr. Chou Technologies, Inc. USA. Chairman/Founder, Wellbrookfoundation, Inc.

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SIT Technical proceeding May, 2016, New York, New York 50 years of progress in sugar technologies From 1 G to 5th Generation --- a Benchmark Dr. Chung Chi Chou, drchouusa@gmail.com President, Dr. Chou Technologies, Inc. USA www.esugartech.com Chairman/Founder, Wellbrookfoundation, Inc. www.wellbrookfoundation.org

(l) Benchmark

1. Progress of Sugar Technology/Engineering 1960 to 2015 from 1 st generation to 5 th G Steam on melt Ton/ton Sucrose Yield % Electricity Usage kw/ton sugar Pre 1970 > 1.7 < 97% >125 1970-1980 s (1G with good processing practices) 1980-1990 s (2G with VHP raw sugar) 1990-2000 s (3G with low head vacuum pans, etc.) 2000-2010 s (4G with thermal recompression) Future (5 G) 4 G plus no molasses produced < 1.4 97 to 97.5% 100 to125 <0.8 97.5 to 98% 75 <0.5 98 98.5% 50 <0.3 >99% 85 <0.3 >99.5% 80

2. Comparison of performance standard Criteria Conventional Refinery Updated refinery a) Sugar Yield 96 to 96.5% 98.5 to 99.2% b) Energy 85 L #6 oil/ton raw sugar 55 to 60 L #6 oil/ton raw c) Electricity 80 kwh/ton raw sugar 50 to 55 kwh/ton raw sugar d) Environment issue yes almost zero discharge e) Labor cost very high few worker and lower salary f) Value added products Nil up to 7 different types g) Management Bureaucratic Motivated and progressive h) Water usage 0.9 ton /raw sugar 0.4 ton/ton raw sugar i) Energy loss to ambient 10 to 20 % 5 (south) to 10 % (north)

3. Refinery design criteria a) Energy usage 0.75 ton of steam per ton of raw sugar b) Electricity 50 KWH per ton of raw sugar c) Water usage 50% of raw sugar d) Sucrose loss 0.55% of raw sugar for carbonation process refineries and 0.75 % for phosphatation refineries. e) Number of operators 7 to 8 per shift f) Capability to produce value-added products g) Environmentally friendly no water discharge out of refinery

(II) Process, Operation, and Engineering

1. Keys to day to day operation efficiency a) acquire and apply basic consistently b) pay attention to detail c) do it now d) do it right the first time

2. Upgrade quality of Staff a) training in process technologies and engineering principle b) Instill financial and business sense (profitability) to managers/department heads/staff for everything they do

3. Stability and consistency in operating parameters is the key to process efficiency

4. Increase the plant capacity a) Reduce the impurities input to the refineries, use VHP raw sugar, etc., a-1) minimize sugar carried to molasses a-2) avoid recycle a-3) reduce chemical usage a-4) reduce physical sucrose loss b) capacity utilization at each unit operation

5. Simplify refining processes a) NO carbonation b) Focus in clarifier design (air diffuser, etc.) c) NO IER, use PAC, NO GAC d) NO Silo, except for storage purpose e) Need phosphatation and filter press f) Alleviate environmental problem and save energy by using surface condenser

6. Value added product introduction a) No Molasses-quantum jump in sugar yield b) Sell non sugar c) Molasses extract--antioxidants production

No molasses produced in refineries (SIT 2014 paper) All 4/5 syrup would be converted into value added brown sugar

1) Operating requirements for Molasses conversion a) Massecuite purity minimum: 88 b) % invert maximum in massecuite: 7% c) Massecuite temperature over 245 o F for high heat of crystallization d) Massecuite brix minimum 94 brix e) Agitation to create surface area for evaporation f) Evaporated vapor must be carried away via vacuum or air

2) Four industrial processes for conversion of molasses a) Micro crystallization continuous process b) Areado process c) Muscavado process d) Spray drying process

7. Function of a Refinery a) Separation of non sucrose from sucrose b) Removal of microbes and heavy metals

8. The most effective way to reduce operating cost a) Increase capacity of 45% by elimination of affination Reduce impurities input by using VHP b) Simplify Refining process c) Less impurities input means less sucrose to molasses d) Sale non sucrose as value added product e) Control water usage to save evaporation cost and sucrose loss to sewer f) Elimination of affination step by using VHP raw sugar as input to the refinery. No IER is would be needed for decolorization

9. Energy efficiency - Environment Assurance 1) Minimize sweetwater generation (a) Avoid process with need for regeneration such as GAC & IER (b) Use Process to filter phosphatation scum instead of 3 stages scum desweetening system 2) Increase liquor Brix across the refining process (a) A liquor of 75 brix minimum (b) Melt liquor at 68 brix (c) Avoid use of high pressure drop process such as GAC, IER (d) Eliminate redundant process, such as phosphatation vs IER, both practically remove same type of colorant

9. Energy efficiency - Environment Assurance 3) Reduce % recycle stream by introduction of value added product Micro Crystalline Brown Sugar to increase yield by 2% 4) Do not remix separated non sucrose with sucrose 5) Use of surface condenser at pan 6) Vapor melting of raw sugar 7) 2nd vapor for sugar boiling using low head vacuum pan

9. Energy efficiency - Environment Assurance 8) Control of sweet water production (a) Reduce sweet water from scum desweetening (b) Extend filter press cycle to reduce sweet water (c) Reduce carry over from phosphatation in order to extend IER liquor cycle time laminar flow inside clarifier with sufficient depth (d) Optimize clarification process to avoid secondary floc which block IER columns (e) Minimize back washing recycle liquor from deep bed filters (f) Use filter presses to replace Deep bed filter (which only remove particulates over 5 micron size) and IER (g) Control use of flocculent. Excessive use increase sweet water and may be in violation of governmental regulation (h) Reduce sweet water from floor washing (avoid spillages)

9. Energy efficiency - Environment Assurance 9) Minimize process water usage Any time you put process water into the refinery, you either have to evaporate it or it will carry sucrose with it to the sewer (sucrose loss)

9. Energy efficiency - Environment Assurance 10) Pan house control--up to 65 % of energy is consumed in sugar boiling (a) Reduce recycle (5 % maximum) (b) Boil sugar with good CV (c) Increase brix of feed syrup (d) No water for sugar boiling (e) Good pan scheduling-- no live steam make up (f) Smooth scheduling and good maintenance of centrifugal, massecuite mixer and pan operation --no downtime and pan waiting time (g) Optimal boiling scheme to minimize boiling time (h) 100% of pan condensate to return to boiler house ( i) Feed liquor brix of average 75

10. Boiler house operation a) Minimize excess air b) Recover heat from stack gases c) Minimize boiler blow-down d) Return condensate to boiler house e) Boiler efficiency: 85% ---Good. New boiler may be 90 % f) Feed water treatment to remove hardness, silica, and iron

11. Optimizing Power generation a) Produce high pressure steam b) Maintain high turbine efficiency; Example c) Back pressure control to maximize power generation d) Minimize steam loss to the atmosphere via pan scheduling e) Minimize demand charge via proper centrifugal sequencing and careful planning during start up f) Power factor control; surcharge for low power factor

12. Thermal vapor recompression a) require only 5 to 10% of energy necessary to generate the same steam in a boiler b) limited to inlet pressure of over 14.7 psia and compression ratio of about 2

12. Thermal vapor recompression

13. Mechanical vapor recompression a) Commonly used in the China corn industry b) multistage needed to reduce the steam consumption to 0.2 tons/tons sugar steam (5th Generation) c) applicable where electricity is less expensive

14. Automation for high process efficiency, consistent product quality and labor cost

(III) Management

1. Organization/management (a) Flattening management structure (b) Restructuring/downsizing (c) Re-engineering, automation, IT implementation

2. Management Operational Practices for the 21st century a) Instill financial and business sense of urgency for enhanced profitability to managers/department heads, and staff for everything they do. b) Training program to elevate the quality of staff c) Change the management approach from problem solving to problem prevention d) Change staff attitude from a traditional concept of from my job is to fight fire to my job is to improve process and operations On daily basis

2. Management Operational Practices for the 21st century e) Each Staff should justify his/her existing position by process Improvement f) Performance evaluation of each employee/staff on an annual basis. The last ten percent performers should be trained or dismissed. g) Send CEO and other upper level management to Executive programs at US Ivy league universities h) Institute an annual technical and engineering audit by international sugar consultants

Have a good day