ECONOMICS
JATROPHA OIL PRODUCTION
The economic scale for cost of bio-diesel production is determined taking into account the amount of raw oil extracted from a seed to be +30%. The amount of raw oil content in the seed again depends on the quality of the seed. The output of the raw oil from the extraction unit is a key determining factor for deciding the capacity of the transesterification unit. The cost of the extraction stage is based on the capacity of the extraction plant, which, in turn, is based on the seed yield.
Together with the oil, by-products of the production are:
The Press cake has mineral contents of nitrogen (6%), phosphorous (2.75%) and potassium (0.94%) similar to chicken manure, the press cake can be used as organic fertiliser. An application of 1 ton press cake is equivalent to 200 kg of mineral fertiliser (NPK 12:24:12).
In the present calculation, the price for the press cake is taken lowest possible (42 $/ton).
The estimated price for 1 ton of residual is 120 US$/ton which is used for making washing soaps.
SEEDS SELF PRODUCTION OR PURCHASING
Now question is that seeds should be purchased or own produced
We have analysis in both scenario and found the in scenario of own seeds the ROI is just 3 times in comparison of seeds purchasing
Further different plant capacities have different fixed and variable costs, which ultimately affect the final pricing of bio-diesel. The other important factor on which the pricing of bio-diesel depends is the extraction efficiency, which raises the yield of raw oil and reduces the long-run marginal cost of bio-diesel production.
Solvent extraction plants are more efficient and may yield +5% more oil than the oil expellers. Since minimum quantity of seeds processed by solvent extraction plant is +200 tons per day, we may only assume to install it if plantation size is +7000 ha.
Following are the analysis of cost/return of SVO production
FOR A
|
SCANERIO I: OIL EXTRACTION With Purchased seeds |
|
SCANERIO II: OIL EXTRACTION With own seeds | ||||
|
CAPACITY: 3000 TON/YEAR |
|
|
|
CAPACITY: 3000 TON/YEAR |
|
|
|
CAPITAL COST |
$250,000.00 |
|
|
CAPITAL COST |
$250,000.00 |
|
|
Required tonnage of seeds |
9625 |
|
|
Required tonnage of seeds |
9625 |
|
|
Oil Production |
3000 |
|
|
Oil Production |
3000 |
|
|
Press Cake |
6000 |
|
|
Press Cake |
6000 |
|
|
Residual |
500 |
|
|
Residual |
500 |
|
|
PRICE |
|
|
|
PRICE |
|
|
|
Oil Production |
$550.00 |
|
|
Oil Production |
$550.00 |
|
|
Cake |
$42.00 |
|
|
Cake |
$42.00 |
|
|
Residual |
$120.00 |
|
|
Residual |
$120.00 |
|
|
SALES |
|
|
|
SALES |
|
|
|
Oil Production |
|
$1,650,000.00 |
|
Oil Production |
|
$1,650,000.00 |
|
Cake |
|
$252,000.00 |
|
Cake |
|
$252,000.00 |
|
Residual |
|
$60,000.00 |
|
Residual |
|
$60,000.00 |
|
TOTAL |
|
$1,962,000.00 |
|
TOTAL |
|
$1,962,000.00 |
|
COGS |
|
|
|
COGS |
|
|
|
Seeds |
$140.00 |
$1,347,500.00 |
|
Seeds |
$50.00 |
$481,250.00 |
|
Crushing Expenses |
|
$45,000.00 |
|
Crushing Expenses |
|
$45,000.00 |
|
Utility |
|
$30,000.00 |
|
Utility |
|
$30,000.00 |
|
H & S |
|
$30,000.00 |
|
H & S |
|
$30,000.00 |
|
Personnel |
|
$15,000.00 |
|
Personnel |
|
$15,000.00 |
|
TOTAL |
|
$1,467,500.00 |
|
TOTAL |
|
$601,250.00 |
|
Gross Profit |
|
$494,500.00 |
|
Gross Profit |
|
$1,360,750.00 |
|
Depreciation |
10.00% |
$25,000.00 |
|
Depreciation |
10.00% |
$25,000.00 |
|
Interest |
9.00% |
$22,500.00 |
|
Interest |
9.00% |
$22,500.00 |
|
PBT |
|
$447,000.00 |
|
PBT |
|
$1,313,250.00 |
|
Taxes |
30.00% |
$134,100.00 |
|
Taxes |
30.00% |
$393,975.00 |
|
NET PROFIT |
|
$312,900.00 |
|
NET PROFIT |
|
$919,275.00 |
|
ROI |
|
1.2516 |
|
ROI |
|
3.6771 |
[US$ ‘January, 2007]
FOR A
|
SCANERIO III: OIL EXTRACTION With Purchased seeds |
|
SCANERIO IV: OIL EXTRACTION With Purchased seeds | ||||
|
CAPACITY: 34650 TON/YEAR |
SOLVENT EXTRACTION |
|
CAPACITY: 34650 TON/YEAR |
SOLVENT EXTRACTION | ||
|
CAPITAL COST |
$450,000.00 |
|
|
CAPITAL COST |
$450,000.00 |
|
|
Required tonnage of seeds |
96250 |
|
|
Required tonnage of seeds |
96250 |
|
|
Oil Production |
34650 |
|
|
Oil Production |
34650 |
|
|
Press Cake |
57750 |
|
|
Press Cake |
57750 |
|
|
Residual |
5000 |
|
|
Residual |
5000 |
|
|
PRICE |
|
|
|
PRICE |
|
|
|
Oil Production |
$550.00 |
|
|
Oil Production |
$550.00 |
|
|
Cake |
$42.00 |
|
|
Cake |
$42.00 |
|
|
Residual |
$120.00 |
|
|
Residual |
$120.00 |
|
|
SALES |
|
|
|
SALES |
|
|
|
Oil Production |
|
$19,057,500.00 |
|
Oil Production |
|
$19,057,500.00 |
|
Cake |
|
$2,425,500.00 |
|
Cake |
|
$2,425,500.00 |
|
Residual |
|
$600,000.00 |
|
Residual |
|
$600,000.00 |
|
TOTAL |
|
$22,083,000.00 |
|
TOTAL |
|
$22,083,000.00 |
|
COGS |
|
|
|
COGS |
|
|
|
Seeds |
$140.00 |
$13,475,000.00 |
|
Seeds |
$42.00 |
$4,042,500.00 |
|
Crushing Expenses |
|
$415,800.00 |
|
Crushing Expenses |
|
$415,800.00 |
|
Utility |
|
$311,850.00 |
|
Utility |
|
$311,850.00 |
|
H & S |
|
$346,500.00 |
|
H & S |
|
$346,500.00 |
|
Personnel |
|
$173,250.00 |
|
Personnel |
|
$173,250.00 |
|
TOTAL |
|
$14,722,400.00 |
|
TOTAL |
|
$5,289,900.00 |
|
Gross Profit |
|
$7,360,600.00 |
|
Gross Profit |
|
$16,793,100.00 |
|
Depreciation |
10.00% |
$45,000.00 |
|
Depreciation |
10.00% |
$45,000.00 |
|
Interest |
9.00% |
$40,500.00 |
|
Interest |
9.00% |
$40,500.00 |
|
PBT |
|
$7,275,100.00 |
|
PBT |
|
$16,707,600.00 |
|
Taxes |
30.00% |
$2,182,530.00 |
|
Taxes |
30.00% |
$5,012,280.00 |
|
NET PROFIT |
|
$5,092,570.00 |
|
NET PROFIT |
|
$11,695,320.00 |
|
|
|
|
|
|
| |
For Detailed Financial Analysis Kindly Obtain Our JATROPHA OIL MAKING BUSINESS PLAN
Director
Business Development, C J P