Grain pricing: What is the local grain price for corn? What is the historic basis (difference between local price and Chicago price)?
• Natural gas or coal availability: What is the most economical fuel? A nearby pipeline is needed to use natural gas and coal requires expensive handling facilities. Figure about 35,000 BTUs per gallon of ethanol produced. Estimate delivered cost of each. • Power: Calculate about 1 kWh of electricity per gallon of ethanol produced. • Site issues: Site needs rail access, road access, and availability of 3.5 gallons of water for each gallon of ethanol produced. • Distillers grain: Dried distillers grain can be sold by rail, but wet distillers grain should be used within 100 miles of the plant. DDG can be used for hogs, poultry, and cattle; WDG can be used for cattle. How many livestock are within 100 miles of the plant? Check historic prices for distillers grain in the area. • Financing: There are many possible ownership and financing structures, but most require between 30%-50% equity. Ethanol plant costs decrease on a per gallon basis as plants get larger. • Feasibility studies: There
Related Questions
- I am on the Pricing and Configuration page and notice that there are two columns with pricing. What is the difference between Price and Evaluated Price?
- What is the difference between a National Historic District and a Local Historic District?
- Why isn there much price difference between handwritten & machine pricing?
