ECONOMICSECONOMICS
JATROPHA BIODIESEL PRODUCTION
The final stage of bio-diesel production is the transesterification stage in which raw oil is transesterified to bio-diesel, which is methyl or ethyl ester based on whether methanol or ethanol is used in the production process. The capacity of the transesterification plant is dependent on the amount of raw oil that has to be transesterified into bio-diesel. The capital cost of the transesterification plant depends on its capacity. This affects the economics of the bio-diesel production process differently. Larger the yield of bio-diesel, better the economic viability of its production. In the transesterification stage, the by-product generated is glycerol, which is 8%-10% of the raw oil by weight. Glycerol yield cannot be more than 10% by proportion of the weight of raw oil, and a better conversion to glycerol means greater revenue, given the price of the glycerol is constant. Revenues generated from by-products like glycerol can reduce the net marginal cost of bio-diesel production.
The cost of building a Biodiesel plant depends on many factors, including plant capacity, location, plant design, and equipment cost, which varies by the type of feedstock used. A general rule of thumb for estimating the cost of installing a small Biodiesel plant is about $0140-160per ton of annual capacity However, due to economies of scale, the installation costs begin to decrease as plant size exceeds about 5 million gallons(approx 17000 tons) per year.
When assessing the cost of producing Biodiesel, Jatropha oil has a lower cost than some other feed stocks like Soya, rapeseed etc. but these alternatives cost more to process. The processing cost per gallon of Biodiesel, including the cost of materials, labor, energy, plant depreciation, and interest averages about <$0.50 per gallon. The cost of the feedstock is by far the largest expense for a Biodiesel producer. And Jatropha feedstock reduces it considerably
Hence we have analysis the COST/BENEFIT of BIODIESEL PRODUCTION in the context of oil produced from seeds purchased as well as purchased loading the cost of oil production from all 4 scenario as detailed on oil page as detailed below:
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SCANERIO: I Oil from purchased seeds |
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SCANERIO: II Oil from own seeds : 1000 ha Plantation | ||||
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CAPITAL COST |
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|
|
CAPITAL COST |
|
|
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PLANT CAPACITY T/Y |
3000 |
|
|
PLANT CAPACITY T/Y |
3000 |
|
|
P& M |
$350,000 |
|
|
P& M |
$350,000 |
|
|
L& B |
$50,000 |
|
|
L& B |
$50,000 |
|
|
TOTAL |
$400,000 |
|
|
TOTAL |
$400,000 |
|
|
PRICES-RAW MATERIALS |
|
|
|
PRICES-RAW MATERIALS |
|
|
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Jatropha crude oil per ton(Produced) |
$401.00 |
|
|
Jatropha crude oil per ton(Produced) |
$112.25 |
|
|
Cost of Methanol per ton of Biodiesel |
$20.00 |
|
|
Cost of Methanol per ton of Biodiesel |
$20.00 |
|
|
Potassium hydroxide per ton of Biodiesel |
$60.00 |
|
|
Potassium hydroxide per ton of Biodiesel |
$60.00 |
|
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Utilities per ton of Biodiesel |
$10.00 |
|
|
Utilities per ton of Biodiesel |
$10.00 |
|
|
PRICES |
|
|
|
PRICES |
|
|
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BIODIESEL |
$700.00 |
|
|
BIODIESEL |
$700.00 |
|
|
Glycerol |
$700.00 |
|
|
Glycerol |
$700.00 |
|
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Revenue- CDM-Biodiesel |
$10.00 |
|
|
Revenue- CDM-Biodiesel |
$10.00 |
|
|
SALES |
|
|
|
SALES |
|
|
|
BIODIESEL |
|
$2,100,000.00 |
|
BIODIESEL |
|
$2,100,000.00 |
|
Glycerol |
|
$210,000.00 |
|
Glycerol |
|
$210,000.00 |
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Revenue- CDM-Biodiesel |
|
$30,000.00 |
|
Revenue- CDM-Biodiesel |
|
$30,000.00 |
|
TOTAL |
|
$2,340,000.00 |
|
TOTAL |
|
$2,340,000.00 |
|
COGS |
|
|
|
COGS |
|
|
|
OIL |
|
$1,203,000.00 |
|
OIL |
|
$336,750.00 |
|
Personnel |
|
$45,000.00 |
|
Personnel |
|
$45,000.00 |
|
Methanol |
|
$60,000.00 |
|
Methanol |
|
$60,000.00 |
|
Potassium hydroxide |
|
$180,000.00 |
|
Potassium hydroxide |
|
$180,000.00 |
|
Utilities |
|
$30,000.00 |
|
Utilities |
|
$30,000.00 |
|
Equipment Maintenance |
|
$6,000.00 |
|
Equipment Maintenance |
|
$6,000.00 |
|
TOTAL |
|
$1,524,000.00 |
|
TOTAL |
|
$657,750.00 |
|
Gross Margin |
|
$816,000.00 |
|
Gross Margin |
|
$1,682,250.00 |
|
Other Expenses: |
|
|
|
Other Expenses: |
|
|
|
Placing into operation |
|
$15,000.00 |
|
Placing into operation |
|
$15,000.00 |
|
Advertising/Promotion |
|
$5,000.00 |
|
Advertising/Promotion |
|
$5,000.00 |
|
Interest Expense |
9.00% |
$36,000.00 |
|
Interest Expense |
9.00% |
$36,000.00 |
|
OTHERS |
|
$6,000.00 |
|
OTHERS |
|
$6,000.00 |
|
Depreciation (service life 10 years) |
10.00% |
$35,000.00 |
|
Depreciation (service life 10 years) |
10.00% |
$35,000.00 |
|
Total Other expenses |
|
$97,000.00 |
|
Total Other expenses |
|
$97,000.00 |
|
PBT |
|
$719,000.00 |
|
PBT |
|
$1,585,250.00 |
|
Taxes Incurred |
30.00% |
$215,700.00 |
|
Taxes Incurred |
30.00% |
$475,575.00 |
|
NET Profit |
|
$503,300.00 |
|
NET Profit |
|
$1,109,675.00 |
|
ROI |
|
1.26 |
|
ROI |
|
2.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCANERIO: III : Oil from purchased seeds |
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SCANERIO: IV : Oil from own seeds: 10000 ha | ||||
|
CAPITAL COST |
|
|
|
CAPITAL COST |
|
|
|
PLANT CAPACITY T/Y |
34650 |
|
|
PLANT CAPACITY T/Y |
34650 |
|
|
P& M |
$4,700,000 |
|
|
P& M |
$4,700,000 |
|
|
L& B |
$350,000 |
|
|
L& B |
$350,000 |
|
|
TOTAL |
$5,050,000 |
|
|
TOTAL |
$5,050,000 |
|
|
PRICES-RAW MATERIALS |
|
|
|
PRICES-RAW MATERIALS |
|
|
|
Jatropha crude oil per ton(Produced) |
$340.00 |
|
|
Jatropha crude oil per ton(Produced) |
$67.80 |
|
|
Cost of Methanol per ton of Biodiesel |
$20.00 |
|
|
Cost of Methanol per ton of Biodiesel |
$20.00 |
|
|
Potassium hydroxide per ton of Biodiesel |
$60.00 |
|
|
Potassium hydroxide per ton of Biodiesel |
$60.00 |
|
|
Utilities per ton of Biodiesel |
$10.00 |
|
|
Utilities per ton of Biodiesel |
$10.00 |
|
|
PRICES |
|
|
|
PRICES |
|
|
|
BIODIESEL |
$700.00 |
|
|
BIODIESEL |
$700.00 |
|
|
Glycerol |
$700.00 |
|
|
Glycerol |
$700.00 |
|
|
Revenue- CDM-Biodiesel |
$10.00 |
|
|
Revenue- CDM-Biodiesel |
$10.00 |
|
|
SALES |
|
|
|
SALES |
|
|
|
BIODIESEL |
|
$24,255,000.00 |
|
BIODIESEL |
|
$24,255,000.00 |
|
Glycerol |
|
$2,425,500.00 |
|
Glycerol |
|
$2,425,500.00 |
|
Revenue- CDM-Biodiesel |
|
$346,500.00 |
|
Revenue- CDM-Biodiesel |
|
$346,500.00 |
|
TOTAL |
|
$27,027,000.00 |
|
TOTAL |
|
$27,027,000.00 |
|
COGS |
|
|
|
COGS |
|
|
|
OIL |
|
$11,781,000.00 |
|
OIL |
|
$2,349,270.00 |
|
Personnel |
|
$415,800.00 |
|
Personnel |
|
$415,800.00 |
|
Methanol |
|
$693,000.00 |
|
Methanol |
|
$693,000.00 |
|
Potassium hydroxide |
|
$2,079,000.00 |
|
Potassium hydroxide |
|
$2,079,000.00 |
|
Utilities |
|
$346,500.00 |
|
Utilities |
|
$346,500.00 |
|
Equipment Maintenance |
|
$69,300.00 |
|
Equipment Maintenance |
|
$69,300.00 |
|
TOTAL |
|
$15,384,600.00 |
|
TOTAL |
|
$5,952,870.00 |
|
Gross Margin |
|
$11,642,400.00 |
|
Gross Margin |
|
$21,074,130.00 |
|
Other Expenses: |
|
|
|
Other Expenses: |
|
|
|
Placing into operation |
|
$173,250.00 |
|
Placing into operation |
|
$173,250.00 |
|
Advertising/Promotion |
|
$5,000.00 |
|
Advertising/Promotion |
|
$5,000.00 |
|
Interest Expense |
9.00% |
$454,500.00 |
|
Interest Expense |
9.00% |
$454,500.00 |
|
OTHERS |
|
$69,300.00 |
|
OTHERS |
|
$69,300.00 |
|
Depreciation (service life 10 years) |
10.00% |
$470,000.00 |
|
Depreciation (service life 10 years) |
10.00% |
$470,000.00 |
|
Total Other expenses |
|
$1,172,050.00 |
|
Total Other expenses |
|
$1,172,050.00 |
|
PBT |
|
$10,470,350.00 |
|
PBT |
|
$19,902,080.00 |
|
Taxes Incurred |
30.00% |
$3,141,105.00 |
|
Taxes Incurred |
30.00% |
$5,970,624.00 |
|
NET Profit |
|
$7,329,245.00 |
|
NET Profit |
|
$13,931,456.00 |
|
ROI |
|
1.45 |
|
ROI |
|
2.76 |
For Detailed Financial Analysis Kindly Obtain Our JATROPHA BIODIESEL BUSINESS PLAN
Director
Business Development, C J P