| Understanding
the Costs of CE Production |
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| (If
you have additional information on CE production costs, please submit
it to us for inclusion here). |
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| The
following figures are from a CE feasibility study done in Oregon several years
back. |
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Construction
Cost
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$300,000,000
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dollars |
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Plant
Life
|
20
|
years |
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Equity
Investment
|
40
|
percent |
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Construction
Loan
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11
|
years |
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Loan
Interest Rate
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8
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percent |
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Equip.
Depreciation Period
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7
|
years |
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Conversion
Rate
|
100
|
gallons/ton |
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Annual
Facility Ethanol Production
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100,000,000
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gallons |
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Lignin
Residue Value
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$2.00
|
$/mmbtu |
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Natural
Gas Cost
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$2.50
|
$/mmbtu |
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Feedstock
Cost (delivered)
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$
46
|
$/ton |
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Annual
Costs
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(based
on 100 million gallons/yr) |
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Feedstock
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$46,000,000
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46
|
cents/gal |
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Lignin
Credit
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($35,000,000)
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(35)
|
cents/gal |
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CSL
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$2,000,000
|
2
|
cents/gal |
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Denaturant
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$3,000,000
|
3
|
cents/gal |
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Natural
Gas
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$24,000,000
|
24
|
cents/gal |
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Other
Raw Materials
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$14,000,000
|
14
|
cents/gal |
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Waste
Disposal
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$6,000,000
|
6
|
cents/gal |
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Electricity
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$7,000,000
|
7
|
cents/gal |
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Fixed
Costs
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$13,000,000
|
13
|
cents/gal |
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Capital
Recovery
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$46,000,000
|
46
|
cents/gal |
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Total
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$125,000,000
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$1.25
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/gal |
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Notes:
Denaturant is used to prepare the ethanol for sale and use as a standard transport
fuel.
Sales price includes all state and federal incentives, and is net of transport
costs to market.
The use of chemicals and enzymes has been estimated at a cost per gallon of
ethanol produced, based on the choice of feedstock and estimated pricing for
individual materials when a project is commercially developed.
CSL reflects the nutrients used in the production process (chemicals &
enzymes)
Lignin
residue is assumed to be a co-product, i.e., lignin is sold and is not burned
onsite for steam and electricity production. The lignin co-product derived
from all biomass types (except rice straw and waste paper) is assumed to provide
a credit based on the energy content of the lignin compared to the energy content
of wood (lignin and wood are assumed to compete in fuel markets). The amount
of the lignin credit (in $/dry ton lignin) is the ratio of the lignin energy
content (Btu/lb) to wood energy content (Btu/lb) times $24 per dry ton.
Capital
Recovery is the return to investors of that portion of their property investment
expected to be lost over the income projection period.
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| The
following two images are from a recent (2008) presentation by RITE in Japan |
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| The
following are assumptions used by Coskata in evaluating its $1.00 per gallon
target |
1.
$50 per ton delivered feedstock, based on sustainably-harvested wood at 20%
moisture content. This same wood is used as the gasification energy source
2. Ethanol produced for under $1 per gallon should equate to 50 cents to $1.00
less than gasoline at the pump.
3. Less
than one gal of water will be used to produce a gal of ethanol (4 gallons is
used in corn ethanol production.) |
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