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U.S. Department of Energy
Office of Scientific and Technical Information

Technical/economical feasibility study for the Apex Oil Company alcohol/gasohol plant near Carville, Louisiana

Technical Report ·
OSTI ID:6122107
The results of a study conducted to determine the feasibility of constructing and operating a 33 million gallon-per-year ethanol plant in Carville, Louisiana are presented. Under current market conditions the 33 million gallon per year ethanol plant under consideration by Apex at its Carville, Louisiana site does not appear to be attractive at this time. There are five major factors which contribute to this outcome: (1) the market for ethanol/gasohol is not developed to the point where there is sufficient demand to assure full plant utilization in the near future; (2) the price required to provide a reasonable rate of return is 80 cents per barrel above the current estimated market clearing price of $1.50 per gallon; (3) the capital costs to construct a plant of this size has increased from $30 million at the onset of the study to $86 million; (4) Louisiana gasohol blending incentives cannot be assured since there is insufficient local feedstock production to meet the minimum import requirements; and (5) lack of participation by major oil companies in the gasohol program limits both the distribution and potential retail outlets for the product. Apex plans to place the project on hold pending satisfactory resolution of these items.
Research Organization:
Schaffer (F.C.) and Associates, Inc., Baton Rouge, LA (USA); URS Engineers, Metairie, LA (USA); EMPCO, Inc., Baton Rouge, LA (USA)
DOE Contract Number:
FG07-80RA50336
OSTI ID:
6122107
Report Number(s):
DOE/RA/50336-T1; ON: DE82002615
Country of Publication:
United States
Language:
English