University Business, Dec Digging out new revenue streams and discovering "Why didn't we think of this before? Today's budgets, of course, tend to leave little to no wiggle room.
Feedstock Think long and hard about what feedstock you are going to refine into biodiesel or biofuel. Carefully consider these words from Lyle Estill of Piedmont Biofuels: Be aware that feedstock is the only thing that matters.
You have a new reactor technology? You can get a complete biodiesel reaction in a tenth of a second and it takes me a whole minute? If my feedstock is cheaper, or more plentiful than yours, I can crush your brand new patent pending reactor with a 55 gallon drum and a canoe paddle.
Not if you have a tenth of a penny per pound feedstock advantage. You can take your tenth of a penny edge and roll it into brainpower and crush the competition with their all-volunteer staff. In light of the above, consider the following. Now, breaking even on selling biodiesel is a good deal if you are a farmer who owns shares in a biodiesel co-op.
In fact, you are making a killing selling high priced soybean oil to the refinery. You are well advised to choose as inexpensive a feedstock as possible. This biodiesel business plan presentation why some smart refineries are using old restaurant fry oil yellow grease or poultry fat.
These feedstocks are more difficult to refine but the net impact to the bottom line makes the added complexity worthwhile. There are even some companies that are using trap grease and even black grease scrapped out of the sewers to make biodiesel.
One quick caveat is that your biodiesel business plan should also try to avoid using a feedstock that environmentalists blame for deforesting the rain forest. I think the argument that palm oil biodiesel is to blame for deforestation is misguided but I will address that issue on another day.
To sum up, for your biodiesel business plan you need to decide on a feedstock and get a signed feedstock supply agreement. You need to have agreement. This is a devilishly difficult issue to overcome and has meant the death of many well-meaning biodiesel plants.
Off-take agreement Your biodiesel business plan should also address how you will sell your production of biodiesel and glycerin. Investors are really concerned about having an off-take agreement in place.
Between you and me, these are pretty easy to secure.
The pricing may not be the best but with a few phone calls you should be able to get a contract with a reputable firm. This is strait forward but have a lawyer look over the contract. Site Control You are going to need to have a site selected and agreement to either lease or an option to purchase.
Key things to consider are: Proximity to Feedstock — Conventional wisdom is that you need to be close to either your feedstock supply or your end customer. Choose to be close to your feedstock. The more of these you have the better. Unless you are a very small supplier, you should have at least two.
You will need at least a month storage capacity each for feedstock, biodiesel, glycerin, methanol, etc. Fire suppression — Fires have wiped out several biodiesel plants in recent years.
You are going to invest some real money in fire suppression equipment. It would be best if at least sprinklers are already provided. And make sure that the water pressure can power the sprinklers. Sprinklers require a tremendous amount of pressure.
Incentives — Certain states and local areas have incentives to attract business — industrial revenue bonds, economic development zones, subsidized employee training, tax incentives, etc. This stuff can really add up. Power, rail siding, loading docks, etc.• Provide information for a business plan Microsoft PowerPoint - Strategies for Small Biodiesel Plants CBC [Compatibility Mode] Author: .
The current energy policy of the United Kingdom is set out in the Energy White Paper of May and Low Carbon Transition Plan of July , building on previous work including the Energy White Paper and the Energy Review Report in It was led by the Department of Energy and Climate Change, then headed by Amber Rudd (the DECC was disbanded on 14 July ).
• Provide information for a business plan Microsoft PowerPoint - Strategies for Small Biodiesel Plants CBC [Compatibility Mode] Author: Rudy Created Date: 9/16/ PM. Completed overall Business Plan for the initial development of five $ million each Energy Centers, to be built over five years, each consuming at least ton of municipal solid waste per day, designed to eliminate huge growing mountains of waste delivered and stored daily at our nations landfills.
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