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Title: Ethanol production in southwestern New York: technical and economic feasibility. Final report

Abstract

Based upon the analysis conducted for this study, the development of centralized ethanol conversion facilities in the Steuben and Allegany Counties is likely to be commercially feasible if either locally produced cheese whey and/or imported corn are used as feedstocks. Development is shown to be profitable under a broad range of potential economic conditions and technical considerations. Four plant designs varying in annual production capacity from 1.675 to 27.5 million gallons of ethanol (and utilizing alternative conversion technologies and feedstocks) are investigated. In general, all of the various plant sizes investigated are economically viable. Although economic profitability is enhanced by the existence of federal subsidies, in the form of $0.40 per gallon from federal gasoline tax rebates, energy investment tax credits and low interest loans, a public subsidy is not necessary, under most conditions, to ensure the economic feasibility of any of the plant design investigated. In all cases, a by-product in the form of an animal feed is produced, thereby generating additional revenue for the conversion facility and adding to the likelihood of commercial feasibility. In the case of the corn/whey plant, the by-product takes the form of a distillers dried grain. In the case of the whey plants,more » it takes the form of a high mineral, medium protein feed supplement for low and moderate producing dairy cattle. Both have a ready market in the study region. Fermenting of deproteinized whey to produce ethanol and drying the resulting distillation slops for animal feed completely utilizes the original cheese whey. The techniques developed in this study produce three valuable products and leave no residual requiring disposal.« less

Publication Date:
Research Org.:
Cornell Univ., Ithaca, NY (USA)
OSTI Identifier:
6552211
Report Number(s):
NYSERDA-81-3
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
09 BIOMASS FUELS; 29 ENERGY PLANNING, POLICY AND ECONOMY; BIOMASS CONVERSION PLANTS; FEASIBILITY STUDIES; ETHANOL; BIOSYNTHESIS; MAIZE; FERMENTATION; NEW YORK; WHEY; ANIMAL FEEDS; BY-PRODUCTS; DAIRY INDUSTRY; ECONOMIC ANALYSIS; FINANCIAL INCENTIVES; RENEWABLE ENERGY SOURCES; WASTE PRODUCT UTILIZATION; AGRICULTURE; ALCOHOLS; BIOCONVERSION; CEREALS; ECONOMICS; ENERGY SOURCES; FOOD; FOOD INDUSTRY; GRAMINEAE; GRASS; HYDROXY COMPOUNDS; INDUSTRIAL WASTES; INDUSTRY; MID-ATLANTIC REGION; NORTH AMERICA; ORGANIC COMPOUNDS; PLANTS; SYNTHESIS; USA; WASTES 140504* -- Solar Energy Conversion-- Biomass Production & Conversion-- (-1989); 090222 -- Alcohol Fuels-- Preparation from Wastes or Biomass-- (1976-1989); 299003 -- Energy Planning & Policy-- Unconventional Sources & Power Generation-- Other-- (-1989)

Citation Formats

Not Available. Ethanol production in southwestern New York: technical and economic feasibility. Final report. United States: N. p., 1981. Web.
Not Available. Ethanol production in southwestern New York: technical and economic feasibility. Final report. United States.
Not Available. 1981. "Ethanol production in southwestern New York: technical and economic feasibility. Final report". United States. doi:.
@article{osti_6552211,
title = {Ethanol production in southwestern New York: technical and economic feasibility. Final report},
author = {Not Available},
abstractNote = {Based upon the analysis conducted for this study, the development of centralized ethanol conversion facilities in the Steuben and Allegany Counties is likely to be commercially feasible if either locally produced cheese whey and/or imported corn are used as feedstocks. Development is shown to be profitable under a broad range of potential economic conditions and technical considerations. Four plant designs varying in annual production capacity from 1.675 to 27.5 million gallons of ethanol (and utilizing alternative conversion technologies and feedstocks) are investigated. In general, all of the various plant sizes investigated are economically viable. Although economic profitability is enhanced by the existence of federal subsidies, in the form of $0.40 per gallon from federal gasoline tax rebates, energy investment tax credits and low interest loans, a public subsidy is not necessary, under most conditions, to ensure the economic feasibility of any of the plant design investigated. In all cases, a by-product in the form of an animal feed is produced, thereby generating additional revenue for the conversion facility and adding to the likelihood of commercial feasibility. In the case of the corn/whey plant, the by-product takes the form of a distillers dried grain. In the case of the whey plants, it takes the form of a high mineral, medium protein feed supplement for low and moderate producing dairy cattle. Both have a ready market in the study region. Fermenting of deproteinized whey to produce ethanol and drying the resulting distillation slops for animal feed completely utilizes the original cheese whey. The techniques developed in this study produce three valuable products and leave no residual requiring disposal.},
doi = {},
journal = {},
number = ,
volume = ,
place = {United States},
year = 1981,
month = 1
}

Technical Report:
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  • The development of one or more centralized ethanol conversion facilities in the Southwestern portion of New York State is likely to be commercially feasible if either locally-produced cheese whey and/or imported corn are used as a feedstock. Development is shown to be highly profitable under a broad range of economic conditions and technical considerations. Four plant designs ranging in annual production capacity from 1.675 to 27.5 million gallons of ethanol (utilizing alternative feedstocks) are investigated. Although all are found to be economically viable, maximum profitability per unit production are obtained from a 2.5 million gallon plant using only whey. Inmore » all cases, a by-product in the form of animal feed is generated, which will result in additional revenue for the conversion facility. In the case of corn/whey plants it takes the form of a distillers dried grain. In the case of whey plants, it takes the form of a high-mineral, medium protein feed supplement for low and moderate producing dairy cattle. Both have a ready market in the region. Also the cheese whey is assumed to be deproteinized at the cheese manufacturing plant prior to delivery to an ethanol conversion plant to obtain a valuable, human-grade food protein.« less
  • This is the fourth of five region-specific feasibility studies on regional production of ethanol. The results indicate that conventional ethanol production from potatoes and corn, the candidate crops available in Suffolk County, is not strongly attractive for several reasons -- storage problems, seasonality, and high cost. As for corn, which is not grown locally in large quantities, the study shows that transportation costs of corn from other locations would present a disadvantage to a plant of this type based in Suffolk County. Ethanol is an octane booster which can be used as a gasoline extender to produce gasohol.
  • The following are discussed: biomass availability for ethanol production, plant designs and costs, and economic and financial evaluation. (MHR)
  • An investigation was conducted to determine the technical and economic feasibility of developing an ethanol conversion facility within Suffolk County, New York. Two plant designs of 25 million gallons and 50 million gallons of annual production capacity are studied. Corn is selected over other potential feedstocks due to its availability throughout the year, and its lower cost even after transportation from remote locations is considered. Uncertainty is simulated by incorporating random fluctuations in feedstocks costs and by-product prices directly into the analyses, and by systematically varying key assumptions. Uncertainty with respect to expected outcomes is measured as variability about anmore » expected after tax net present value (ATNPV). Given the base assumptions, variability about the expected ATNPV is substantial enough to lead to a four percent chance of unprofitable development for the 25 million gallon plant, and a one percent chance for the 50 million gallon plant. Uncertainty from systematic changes in parameters is measured by comparing individual cases against a base assumptions case. ATNPV is quite sensitive to the transportation cost of inputs, feedstock and ethanol prices, debt-equity ratios, commercial loan rates, and rates of return on equity. A pessimistic divergence from the base assumptions on any one of these parameters would seriously impair plant feasibility. One critical aspect, for instance, is the future price trend of ethanol. Only under an assumed real rate of price increase of 1 percent or more annually will be expected ATNPV be positive for either plant, while a rate of 5 percent or above is required to insure plant feasibility against all factors of incorporated uncertainty.« less
  • The purpose of this study is to determine whether or not ethanol conversion facilities would be economically feasible in various regions of New York State. The regions under investigation are Franklin, Jefferson, Lewis and St. Lawrence Counties. Results indicate that ethanol conversion facilities are likely to be commercially feasible if either locally produced cheese whey and/or imported corn are used as feedstock. The study involves a systematic investigation of all aspects of the ethanol conversion process. Four factors are considered for each option: biomass availability, optimal plant site, plant design, and economic analysis of plant profitability.