The Biofine process was developed by BioMetrics.Inc with funding from the U.S. D

Question

The Biofine process was developed by BioMetrics.Inc with funding from the U.S. Department of Energy (DOE). It is a relatively high temperature, dilute acid-catalyzed rapid hydrolysis of lignocellulosic biomass. The process refines the biomass feed into three products: levulinic acid, formic acid, and furfural. The process is flexible enough to utilize a wide range of feedstocks - from wood and agricultural residues to paper sludge and municipal wastes. In the literature, it is claimed that this process is economically viable. In fact, a commercial plant was built in Caserta, Italy in 2005. It processes 50 dry tonnes of feedstock per day. [One tonne is 1000 kg or 2,204.62 lb.] Estimated costs for a plant processing 1000 dry tonnes of feedstock per day and producing ethyl levulinate as a final product are presented in the table below. The plant will produce 15,833 kg/h of ethyl levulinate. Assume the plant operates 24 hrs/day and 350 days/year. Consider a MACRS depreciation of 7 years, a tax rate of 42%, and an interest rate of i = 10% over a project period of 20 years. Calculate the breakeven ethyl levulinate selling price per tonne. The use of a spreadsheet is recommended. If the following variations occurred, build a 'spider graph' by plotting PW as a function of % deviation from the most likely estimate. Your graph will look similar to the one shown on Example 8.5 on your textbook (page 220).

Explanation / Answer

process 50 tonnes per day Fixed capital investment             150,000,000 Salvage value                  1,500,000 net cost             148,500,000 Depreciation at 14.29%                21,220,650                                                       -   post tax depreciation                12,307,977 21220650*(1-.42) Total cost Utilities                      500,000 Labor and Maintenance                  9,200,000 overheads                  2,300,000 waster disposal                      600,000 raw material cost                27,000,000 Depreciation                12,307,977 Total cost per year                51,907,977 Ethul levulinate per hr                        15,833 per day                      379,992 (15833*24) per year             132,997,200 (379992*350) Break even Selling price per tonee 390.29 (51907977/132997200*1000)

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