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Refineries that allow cost effective on-farm production of biodiesel

BA 468 New Venture Lab. Refineries that allow cost effective on-farm production of biodiesel. Overview. The Team Introductions The Problem Rising fuel costs The Solution Making biodiesel The Opportunity On-farm production of fuel The Process How it works The Economics

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Refineries that allow cost effective on-farm production of biodiesel

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  1. BA 468 New Venture Lab Refineries that allow cost effective on-farm production of biodiesel

  2. Overview The Team Introductions The Problem Rising fuel costs The Solution Making biodiesel The Opportunity On-farm production of fuel The Process How it works The Economics How to make it viable The Way Forward Where to from here

  3. The Team OSU Students Mike Peterson Business & Psychology Andrew Stratton Mechanical Engineering & Entrepreneurship Chris Fenot Business & German Ryan Kirkpatrick General Science & Chemistry & Entrepreneurship Project Mentor Dan Whitaker Entrepreneur, Rogue Wave Software, Software Association of Oregon, Centralia Sawmill, Holderman Paving, Pixio Corporation

  4. TheProblem High petroleum costs affecting economic viability of rural industries 69.45 as of June 1st 2006(NYMEX) Limited viable fuel alternatives Ethanol Gasoline Replacement Not compatible with most current farm equipment Compressed Natural Gas High Conversion Costs Biodiesel Compatible with most farm equipment

  5. The Solution On-farm Production of Fuel

  6. TheSolution - Canola Canola is the preferred oil seed crop Canola will be used as a rotational crop Canola cropping uses existing farm equipment No major capital investment to harvest Canola converts to: Biodiesel Glycerin Seedcake

  7. Current Biodiesel Production Method A ‘by-batch’ process… • Mix, agitate, settle • Drain off biodiesel • Wash glycerin and catalyst out of biodiesel • Let washed biodiesel settle • Drain off water • Results in… -Questionable quality -Easy to make mistakes • -Poor quality glycerin

  8. Current Biodiesel Production Method

  9. The Opportunity Breakthrough technology has now been developed by OSU scientists that allows for: Small scale, high quality biodiesel production Increased purity of by-products

  10. TheProcess

  11. TheTechnologyOregon State University and ONAMI Microchannel Reactor Benefits: • Continuous flow technology • Developed by • Dr. Goran Jovanovich • Size benefits- reactor less than 12”x12” • Greatly reduced reaction time (10 seconds vs. 4 hrs) • High quality biodiesel • and USP glycerin • Solid state catalyst • No waste

  12. TheOpportunity – Refinery The AGRIFUEL200 A refinery that allows cost effective on-farm production of biodiesel

  13. TheAGRIFUEL200 • “Farmer tough” • 4”x4” mild steel frame • 6’X6’X7.5’ • Runs on electricity • 1-15 micron particulate and water filter

  14. The AGRIFUEL200 Benefits: Compatible with a variety of seed crops Converts seed to high quality biodiesel Creates by-products that have value Pharmaceutical grade glycerin Seed Cake – High protein feedstock Operates unattended for up to 2 weeks 2 gallons of biodiesel per hour Over 17,500 gallons per year Equals approx $45,000 at current diesel price

  15. Refinery Development • Technical development timeline • May 2006- August 2006 • Acquire seed press, filters, pumps and begin process testing • Construct prototype chassis and all fluid control systems • Sept 2006- Jan 2007 • Receive finalized reactor and separator design and begin production

  16. Target Market Primary Market- Eastern Oregon and Western Washington Canola farmers located in eastern Oregon and western Washington Average farm size of 3,006 acres is well above state and national averages No current canola limitations Currently growing canola which allows for accurate prediction of yields and customer revenue Secondary Market- Canada Canola is consistently either the first or second most valuable field crop in Canada Farmers, grain handling companies, processors, and researchers joined forces to support canola research and promote production

  17. What it Means to the Customer

  18. Business Model • Three revenue streams: • - Sale of Refineries • - Servicing Refineries • Performing maintenance • Changing Filters • Supplying methanol • Retrieval of glycerin and seed cake • - Margin from glycerin

  19. Income Statement

  20. The Way Forward Year 1- 2007 The entrepreneurial team will: Begin development of initial refineries Proceed beta testing of initial refineries Assemble key business infrastructure Begin sales in Eastern Oregon and Western Washington Milestones we would like to reach Sell 8 refineries Secure production relationship Secure sales relationships for by-products Implement service team Become active in canola legislation to allow for the use of our refineries within the Willamette Valley

  21. TheWay Forward Year 2- 2008 Add second location Concentrate sales in Canada Add a salesman Sell 30 units Expand product line Larger units for CO-OPS and larger farms Increase service capabilities Year 3-2009 Third sales location Midwest and Eastern locations

  22. Where We are Today Negotiating the specifics of our license agreement with the university Waiting for the testing of larger scale micro reactor Completing design of machine Dependent upon results of microreactor capability Researching Federal and State grants available for these kind of projects. Though the USDA and ONAMI In the process of market and customer research

  23. Contact InfoContact Superior Agrifuels at:OSU-Biodiesel@googlegroups.com

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