logo5A_modifiedECONOMICS

 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:

 

SCANERIO: I  Oil from purchased seeds

 

SCANERIO: II Oil from own seeds : 1000 ha Plantation

CAPITAL COST

 

 

 

CAPITAL COST

 

 

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

 

 

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

 

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

 

$2,100,000.00

 

BIODIESEL

 

$2,100,000.00

Glycerol

 

$210,000.00

 

Glycerol

 

$210,000.00

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

 

SCANERIO: IV : Oil from own  seeds: 10000 ha Plantation

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 For further enquiry kindly contact:

Director

Business Development, C J P

jatrophacurcas@gmail.com

 

 


 

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