SIEE CELLULOSIC ETHANOL PROCESS

BIOFUEL TECHNOLOGY FOR THE FUTURE

This new process/technology, known as the SIEE Cellulosic Ethanol Process, incorporates the use of the recently developed SIE enzyme, (Selective Indiscriminate Electro-chemical). This enzyme is the result of five plus years of laboratory research and testing undertaken on behalf of and in conjunction with the US Department of Defense. Once the SIEE process was completed, the entire rights were transferred to our client and the production process along with the SIE enzyme has undergone an extensive patent process.


There are a number of significant differences with the SIEE process over traditional ethanol enzyme processes with some of the major points being as follows:



The SIE enzyme creates an electro-chemical reaction to achieve molecular dissociation unlike traditional enzyme processes that rely on agitation and acids for separation of the sugars from the fillers. This results in the SIEE process producing larger quantities of ethanol in shorter timeframes, at significantly lower cost per gallon than traditional methods.


The SIE enzyme is indiscriminate and can be used with nearly every cellulosic feedstock imaginable allowing the use of more than one source of feedstock to be utilized within the ethanol making process at any given time, unlike traditional enzyme (feedstock) specific processes.


The SIEE process does not require pre-treatment of feedstocks prior to fermentation as other cellulosic ethanol processes do.


The SIEE process only requires the feedstock to be reduced to ¼” particle size which is easily achieved with the incorporation of a hammer mill into the production process, as opposed to smaller particle sizes required in traditional processes.


The SIEE process is not affected by foreign bacteria with the process able to recycle waste products back into the production of the ethanol without additional treatment.


Some of the major benefits of this process over traditional ethanol manufacturing processes are as follows:


The total time required to undertake the complete SIEE process is a small percentage of the time required under traditional processes. Independent tests results have shown that the SIEE average processing time is 2.5 days, whereas traditional methods range from 30 to 65 days depending on feedstock being processed. A major contributing factor to this reduction in processing time (and increase in overall ethanol production) is that the SIEE process targets specific molecules while traditional methods kills off both the good and the unwanted molecules indiscriminately.


The percentage of ethanol extracted out of the feedstock is considerably greater under the SIEE process than that achieved through traditional methods. Attached is a yield comparison sheet which shows (in white) the maximum theoretical amount of ethanol that can be produced from different feedstock and (in yellow) the actual amount that was produced under the SIEE system. Additionally, the introduction of a pyrolytic converter into the SIEE process has proven to increase the amount of ethanol extracted per ton of feedstock by up to 15% while decreasing the processing time by up to 15%. These yield tests were undertaken by an independent ASTM (American Standard Testing Methodology) facility and full reports are available upon request.


The overall cost an SIEE produced gallon of ethanol from almost any feedstock is but a small percentage of the production costs of traditional methods. Attached to this letter is a table showing comparisons in traditional production methods and costs verses the SIEE methods and costs utilizing specific feedstocks.


With the SIEE system, any feedstock used in the process does not necessarily need to be an exclusive material, e.g., if bamboo was the base feedstock being used and a percentage of grass clippings or waste material was added into the production process, the SIEE enzyme is indiscriminate as the SIEE process does not require any pre-treating of feedstock’s prior to fermentation: blending of feedstocks is able to be undertaken.


The SIEE process has been undertaken with a wide variety of feedstocks within both laboratory conditions and in the scale model feedstock test plant that our client has. All plant methodologies and designs have been finalized and Ocilla is in the process of negotiating with interested parties for the development of SIEE plants globally, which will be established on a joint venture basis with our client and be exclusive to either a geographical area or selective feedstock supply.


The SIEE plants have been designed within the following parameters:


The SIEE process has been designed around a base plant that can be increased in size to a mid size or large plant to provide additional production, with one-off plant designs available upon demand.


The base plant is designed to consume up to one hundred tons of feedstock per day, (twenty four hour rotation) and the methodology involved in the SIEE process is such that expansion of the plant to handle larger quantities of feedstock and thereby increase ethanol production expediently is a relatively simple exercise. Increased production is obtained by the installation of additional tanks and associated pipe-work, all of which are made off-site out of Cerarmix, thereby making the expansion process relatively inexpensive and able to be completed within minimal timeframes with little interference to the existing operation or discarding of original plant.


Set out below is a table showing a range of stats for either a base plant, midsize or large SIEE Ethanol plant as established in the USA. The revenue numbers will vary (either increase or decrease) from country to country as will the government and state rebates / credits. The table below assumes averages and is nonspecific regarding feedstock.


SIEE ETHANOL PLANT:
Average Stats



(Based on USA location)
Average plant cost in US dollars


(costs vary according to site location)
Average daily Feedstock Intake

(based on a 24 rotation, up to a maximum of)
Average Pure Ethanol produced Annually
(US Gallons)

(varies depending on Feedstock)
Average Annual Revenue from Ethanol sale only:
( based on a market price of US$2.85 per gallon)
Average Government Fuel Credit and Tax Rebate
(RINS and Tax credit both US$1.50 per gallon)
Total Annual Revenue


(Ethanol sales plus Government rebates)

Base Plant $ 5,000,000 100 Tons 2,840,000 $ 8,094,000 $8,250,000 $ 16,344,000
Mid Size Plant $10,000,000 200 Tons 6,385,700 $18,199,245 $19,157,100 $ 37,356,345
Large Plant $32,000,000 500 Tons 18,250,000 $52,012,500 $54,750,000 $106,762,500




(The average production costs for the above equal 21% of the market sell price: e.g: 21% of $2.85 = 0.59c therefore net sales revenue per gallon is: $2.26)


Ocilla are also in negotiations with a fuel trading company who have presented an offer to purchase 100% of all ethanol produced from every plant that is established, on a continuing basis. A fixed price has been offered per gallon of ethanol supplied and the purchase price will be locked in for a set period of time similar to the way commodities are bought and sold on the commodities trading market.

Feedstock / methodology cost comparison chart


Company Process Feedstock Cost per gallon

Novozyme Poet Enzyme corn cobs $2.30

Inbicon Enzyme straw $2.60

Range Fuels Gasification wood waste failed to produce, no ethanol

Enerkemb Gasification waste $2.77

Blue Fire Acid Hydro wood $2.31

Mascoma Enzyme wood $2.25

Coskata Gas & Enz wood $3.11

Abengoa Enzyme straw/cobs $2.00

Iogen Enzyme straw $2.65

KL Energy Enzyme pine $3.62


SIEE Enzyme Sugarcane bagasse $0.68

With government credits included $0.53


Eucalyptus chips $0.66

With government credits included $0.53


Pine chips $0.63

With government credits included $0.51


Switchgrass $1.05

With government credits included $0.66


White Oak $0.78

With government credit included $0.65


Bamboo $1.02

With government credit included $0.66




SIE Enzymes Verses AGT Enzymes


The SIE Enzyme creates an electro-chemical reaction to achieve molecular dissociation unlike traditional Enzyme processes that rely on the addition of acids and agitation for separation of the sugars from the fillers, resulting in the SIEE process producing larger quantities of ethanol in shorter timeframes at significantly lower cost.


SIE Enzyme process averages between 24- 48 hours, regardless of feedstock used whereas traditional processes average between 30 – 60 days depending on the feedstock used. Traditional enzyme based processes eliminate both the good and the unwanted molecules whereas the SIEE is target specific thereby decreasing processing time while increasing yields.


The SIE Enzyme process does not require pre-treating of the feedstock prior to fermentation as other cellulosic ethanol processes require.


The SIE Enzyme is indiscriminate and can be utilized with nearly every feedstock imaginable


The SIE Enzyme process only requires the feedstock to be reduced to ¼ inch particle size, which is easily achievable by the inclusion of a hammer mill into the production process.


The SIE Enzyme process is not affected by foreign bacteria with the process being able to recycle waste products back into the production process.


The production cost of a gallon at SIEE produced ethanol is significantly lower than ethanol produced by traditional methods.


The SIEE process utilizes feedstock outside of the human consumption food-chain.




A Few SIEE Ethanol Production Yields Compared To Industry Accepted Theoretical Maximums


These results have been determined by ASTM E-1821-96 or E-1758-95 testing for C5 and C6 sugar determination



THE SIEE FERMENTATION PROCESS


The ¼ inch particles of feedstock are pumped to a fermentation tank.
The sized feedstock is mixed with make up water and recycled water from previous batches.
Molasses or corn syrup is mixed in to assist in the proliferation of the enzyme, thereby expediting the process.
The SIE enzyme is added in a one time injection along with the sweetener and feedstock mixture.
The SIE enzyme now oxidizes the organic polymer lignin, and converts C5, and C6 sugars within the cellulose and hemicelluloses.
The fermentation mixture’s temperature is maintained between 80 and 90 degrees Fahrenheit.
The fermentation process converting the cellulose and hemicelluloses to ethanol is complete between 24 and 48 hours (depending on type of feedstock being processed).
The beer and solids are now drained and pumped forward for further processing and the tanks are pressure cleaned internally, ready for the next batches of feedstock.




THE SIEE SOLIDS SEPARATION PROCESS


The solids are pumped from the fermentation tank to a centrifuge for separation.


The volume of remaining residual solids is approximately 50% to 80% of the initial weight of the cellulosic feedstock placed in fermentation, (total % dependant on original feedstock being processed).


The residual solids are of a higher BTU value per pound than the initial feedstock due to higher concentration of lignin remaining.


The residual solids can be processed into biomass pellets or combusted on site for steam or electrical power generation.


The beer is now pumped forward to a holding tank to await distillation into ethanol.




SIEE DISTILLATION PROCESS


The beer is pumped from the day tank to the distillation unit.


Distillation units can vary from small column-less stills to high volume flash stills of which size is directly related to the desired production volume.


Upon the separation of the alcohol from the beer the residual fluid called thin stillage can be recycled back into production or sent to a biogas digester for production of biogas to generate electrical power.


The alcohol is then passed through a molecular sieve to remove the remaining 6% water thus raising the purity from azeotrope to 99.9% fuel grade ethyl alcohol.


Should a pyrolytic convertor be incorporated into the process utilizing SIEE waste product or timber as a fuel source, between 0.5 to 2.0 megawatts of electricity can be generated at no additional production cost within a 75 ton a day of feedstock process, this amount increases according to the SIEE plant size.



SIEE WASTE OPTIONS


1. Biomass Pelletizing


When the SIE enzyme is applied to a plant or wood based feedstock the waste solids are separated from the beer by centrifuge and are conveyed to a rotary dryer(s) sized proportionately to the production volume to reduce the moisture content to 10% or less.


The dried biomass is then processed thru multiple cyclones and sizing equipment to be pressed into pellets.


The pressed pellets depending on the volume can be packaged in 80 pound plastic bags and placed on pallets for domestic sale or shipped in bulk to high demand alternate markets.


The residual solids separated from the beer contain a higher lignin content raising the BTU value approximately 9% above the initial cellulosic feedstock’s BTU value.


The higher BTU value material enables a higher profit from the sale of the higher quality biomass pellets.



SIEE WASTE OPTIONS


2. Class A Fertilizer



When the SIE enzyme is applied to a manure or sewage based feedstock a standard dosage of the enzyme reduces the fecal coliform colonies from 10,000 to 2,000, and a slightly higher dosage will eliminate all the fecal coliform colonies creating a highly saleable and profitable class A fertilizer.


106 gallons of ethanol per ton is produced from dried sewage sludge using the SIEE process with the initial ton of feedstock sludge being reduced by 50% throughout the process.


The 50% residual sewage sludge after ethanol production, is a class A fertilizer fit for organic farming and a highly saleable by-product.


There is potentially 672 million gallons of ethanol available from human sewage sludge alone in the United States. Animal waste is additional to the quantities.



CO-GENERATIONAL POWER PLANTS


With the use of a pyrolytic convertor a Co-Generational Power Plant can be designed to operate on multiple types of materials from Syngas, to waste pellets to agricultural waste.


The residual solids in lieu of manufacturing pellets can be conveyed directly to a biomass boiler where steam is produced.


The steam generated from biomass is low pressure in the range of 10 to 14 bar.


This lower pressure steam can be utilized to power a micro-turbine to offset the electrical power consumption of the facility.


The decision on producing pellets or combusting residual solids is site specific bio-geographic and related to the cost and availability of electrical power.



TRADITIONAL CORN ETHANOL PLANT CONVERSION TO SIEE PROCESS


Little or no cost to convert to SIEE’s process


January 28, 2011 a bushel of corn cost $6.40 or $2.37 per gallon of ethanol just for the cost of the corn


One ton of corn (35.71 Bushels) produces approximately 96.42 gallons of ethanol at $256.00 per ton.


SIEE yields


Corn cob yields 87.5 gal/ton at $50.00/ton or $0.57/gal ethanol.


Corn Stover yields 93 gal/ton at $50.00/ton or $0.54/gal ethanol.



SIEE ETHANOL COMPARED TO GASOLINE


Ethanol contains an average of 80,000 BTU per gallon.

Ethanol has an average octane level of 113.

Average SIEE ethanol from corn cob cost $0.57 per gallon.



Gasoline contains an average of 115,000 BTU per gallon.

Premium gasoline has an Octane level of 93.

Average EIA rack rate gasoline cost $3.85/gallon.



SIEE ethanol from corn cob cost: $0.000007 per BTU.


Gasoline cost: $0.000033 per BTU.


64 gallons of ethanol is equivalent to 42 gallons of gasoline.

64 Gallons of SIEE corn cob ethanol cost: $ 36.48.

42 gallons of gasoline cost: $161.70.



SIEE COMMERCIALLY VIABLE FEEDSTOCK


CORN COB
WHEAT STRAW
PINE
POLAR
GRASS CLIPPINGS
BLACK LOCUST
HEMLOCK
OIL PALM EFB
COCONUT HUSKS
MISCANTHUS
FATS
GREEN WASTE
CORN STOVER
SEWAGE SLUDGE
OAK
SWITCHGRASS
RICE HUSKS
LEMON PEELS
HEMP
BALSAM
SAW DUST
CASTOR STALK
OILS
HUMAN WASTE
SUGARCANE BAGASSE
PAPER SLUDGE
EUCALYPTUS
BAMBOO GRASS
ORANGE PEELS
BIRCH
POTATO PEELS
SISAL
CHICKEN MANURE
CASTOR MEAL
STARCHES
ANIMAL WASTE



U.S. BIOMASS SOURCES:
AGRICULTURE & FOREST


Source Annual Dry Tons
Fuel-wood from forest land 52MM
Wood processing, paper and pulp mills 145MM
Logging & Site clearing residuals 64MM
Reduction of forest fire hazards 60MM
Urban wood residue construction debris 47MM
Crop residue 428MM
Perennial energy crops 377MM
Animal Manure 106MM
Dry grains 87MM
Total annual biomass 1.366 Billion Dry Tons



1.366 Billion tons processed by SIEE on an average of 90 gals of ethanol per ton is 122.94 billion gallons of ethanol or 2.92 billion annual barrels of ethanol cutting our oil imports 75%.



SIEE FEEDSTOCK EXAMPLES
HIGHWAYS, STREETS, ROADS


Every mile of 25 foot wide swale area on a highway produces 9 tons of grass clippings in a seasonal climate annually.


There are 48,340 miles of interstate in the U.S..


There are 161,000 U.S. Highways in the U.S.


There are 4,374784 Miles of municipal roads in the U.S..


If only 50% of the grass clippings from just the Interstates & Highways were processed by the SIEE method it would generate 65.94 million gallons of ethanol annually.


Tree trimmings by municipalities produces 9.4 million tons of waste per year in the United States.


If 50% of the tree trimmings by municipalities were processed by the UEC method it would generate 977 million gallons of ethanol.


The residual biomass after fermentation of the highways tree and combusted in a Co-Generational power plant would generate 44.75 million megawatt hours of electricity.



Sugar Cane Bagasse Cost Production Parameters


48 HOUR FERMENTATION PROCESS 36 TANKS

PARAMETERS OF CELLULOSIC ETHANOL PROCESS


36- 7450 GALLON FERMENTATION TANK


48 HOURS FERMENTATION TIME CYCLE


182.5 FERMETATION BATCHES PER YEAR PER TANK


4542 GALLONS OF WATER PER BATCH


894 GALLONS OF MAKE UP WATER UTILIZED EVERY 4542 GALLON BATCH


2.23TONS BONE DRY OF BAGASSE CHIPS PER BATCH


198.47 GALLONS OF HIGH FRUCTOSE CORN SYRUP PER BATCH


226.75 POUNDS OF ENZYME CULTURE PER BATCH


176 TO 277 GALLONS OF ETHANOL PRODUCED PER BATCH


ANNUAL PRODUCTION OF 36 TANKS x 182.5 BATCHES x 238 GALLONS OF ETHANOL PER BATCH=
1,563,660 GALLONS



COST OF FEEDSTOCK PER BONE DRY TON $58.344to $62.00


238 GALLONS OF ETHANOL PRODUCED PER BATCH


80 BRIX MOLASSES AT 1.416SPECIFICGRAVITY WEIGHS 11.8 POUNDS PER GALLON NO BIOGAS DIGESTER


NO CO-GENERATIONAL POWER PLANT



Ethanol Production Costs From Sugarcane Bagasse


COST CALCULATIONS OF ONE 7400 GALLON BATCH MATERIALS


Cost Basis of Bagasse Feedstock: 1 ton delivered to Ethanol Plant at 4000 Btu per lb.8OO lbs. returned to 8454 Btu per lb. SUGARCANE

1 ton wet Bagasse in at 8 mm Btu then 800 lbs dry out for pellets or combustion at 6.76 mm Btu 15.5% reduction in Btu BAGASSE


COST OF BAGASSE= 2.23 tons x $26.612 per ton = $58.344 x ( 0.155) / 238 gallons of ethanol per batch= $0.0379971 0.0379971

COST OF ENZYME = 453.5 lbs x $0.06 per lb = $ 27.21 / 238 gallons ethanol per batch= $0.1143277 per gallon 0.1143277

COST OF CORN SYRUP= 189 GALLONS x $0.6726 per gallon= $127.12 / 238 gallons= $0.5341176 0.5341176


TOTAL COST PER GALLON OF ETHANOL PRODUCED FOR INPUTS $0.6864424 0.6864424



COST CALCULATION OF UTILITIES AND LABOR ANNUALLY



ELECTRIOTY (SEE SCHEDULE) 3098 KWH PER YEAR AT $9.35PER KWH= $28966.3 / 1,563,660 GAL= $0.0185246 per gal 0.0185246

WATER 894GAL x 182.5 BATCHES x 36 TANKS+ 1000 Gal x $10.12 per 1000 GAL / 1,563,660 GAL= $0.0380137 per gal 0.0380137

DISTILLATION PERSONNELANNUAL $105,120 / 1,563,660 gal ethanol annually= $0.0672268 per gal 0.0672268

MATERIAL HANDLING PERSONNEL ANNUAL $87,600 / 1,563,660 gal ethanol annually= $0.0560224 per gal 0.0560224

FERMENTATION PERSONNEL ANNUAL $96,360 / 1,563,660 gal ethanol annually= $0.0626246 per gal 0.0626246



TOTAL COST PER GALLON OF ETHANOL PRODUCED FOR UTILITIES AND LABOR 0.2424121 0.2424121





CREDITS AND OFFSETS



Enzyme recovery 453.51bs x 30% x $0.06 x 6570 annual batches / 1,563,660 annual go/Ions= 0.0342983 per gal -0.0342983

Molasses Recovery 17%x 2.23 tons cellulose= .379 tons of molasses x $175 per ton / 238 gallons= 0.2786764 per gal -0.2786764

Mass Production Credit for enzyme production 453.5lbs x $0.04 x 6570 annual batches / 1,563,660 gals= .0762184 -0.0762184


TOTAL CREDITS AND OFFSETS PER LITER OF ETHANOL PRODUCED FOR INPUT RESOURCE RECOVERY -0.3891931




TOTAL COST PER LITER OF ETHANOL PRODUCED 0.1427675

TOTAL COST PER GALLON OF ETHANOL PRODUCED0.6864424 + 0.2424121- 0.3891931 = $0.5396614 0.5396614



Eucalyptus Cost Production Parameters


48 HOUR FERMENTATION PROCESS 36 TANKS


PARAMETERS OF CELLULOSIC ETHANOL PROCESS


36- 7450GALLON FERMENTATION TANK


48 HOURS FERMENTATION TIME CYCLE


182.5 FERMETATION BATCHES PER YEAR PER TANK


4542 GALLONS OF WATER PER BATCH


894 GALLONS OF MAKE UP WATER UTILIZED EVERY 4542 GALLON BATCH


2.23TONS BONE DRY OF EUCALYPTUS CHIPS PER BATCH


198.47 GALLONS OF HIGH FRUCTOSE CORN SYRUP PER BATCH


226.75 POUNDS OF ENZYME CULTURE PER BATCH


263 GALLONS OF ETHANOL PRODUCED PER BATCH


ANNUAL PRODUCTION OF 36 TANKS x 182.5 BATCHES x 263 GALLONS OF ETHANOL PER BATCH = 1,727,910 GALLONS


COST OF FEEDSTOCK PER BONE DRY TON $62.00


80 BRIX MOLASSES AT 1.416 SPECIFIC GRAVITY WEIGHS 11.8 POUNDS PER GALLON NO BIOGAS DIGESTER


NO CO-GENERATIONAL POWER PLANT



Ethanol Production Costs From Eucalyptus Chips


COST CALCULATIONS OF ONE 7400 GALLON BATCH MATERIALS


Cost Basis of Eucalyptus Feedstock: 1 ton delivered to Ethanol Plant at 4050 Btu per lb.8OO lbs returned to B510 Btu per lb EUCALYPTUS

1 ton wet Eucalyptus in at B.1mm Btu then BOO lbs dry out for pellets or combustion at 6.B1 mm Btu 15.5% reduction in Btu CHIPS



COST OF Eucalyptus = 2.23 tons x $62.00 per ton= $138. x ( 0.155) / 263 gallons of ethanol per batch= $0.081484 0.081484

COST OF ENZYME = 453.5 lbs x $0.06 per lb = S 27.21 / 263 gallons ethanol per batch= $0.10346 per gallon 0.10346

COST OF CORN SYRUP= 189 GALLONS x $0.6726 per gallon = $127.12 / 263 gallons= $0.4833513 0.4833513



TOTAL COST PER GALLON OF ETHANOL PRODUCED FOR INPUTS $0.6682953 0.6682953




COST CALCULATION OF UTILITIES AND LABOR ANNUALLY



ELECTRICTY (SEE SCHEDULE) 3098 KWH PER YEAR AT $9.35PER KWH= $28966.3 / 1,727,910 GAL= $0.0167637 per gal 0.0167637

WATER 894 GAL x 182.5 BATCHES x 36 TANKS+ 1000 GAL x $10.12 per 1000 GAL / 1,727,910 GAL= $0.0344003 per gal 0.0344003

DISTILLATION PERSONNEL ANNUAL $105,120 / 1727,910 gal ethanol annually= $0.0608365 per gal 0.0608365

MATERIAL HANDLING PERSONNEL ANNUAL $87,600 / 1,727,910 gal ethanol annually= $0.050697 per gal 0.050697

FERMENTATION PERSONNEL ANNUAL $96,360 / 1727,910 gal ethanol annually= $0.0557667 per gal 0.0557667



TOTAL COST PER GALLON OF ETHANOL PRODUCED FOR UTILITIES AND LABOR 0.2424121 0.2184642



CREDITS AND OFFSETS


Enzyme recovery 453.5/bs x 30% x $0.06 x 6570 annual batches / 1,727,910 annua/ gallons= 0.03429B3 per gal -0.031038

Molasses Recovery 17% x 2.23 tons cellulose= .379 tons of molasses x $175 per ton / 263 gallons= 0.2521863 per gal -0.2521863

Mass Production Credit for enzyme production 453.5lbs x $0.04 x 6.570 annual batches / 1,727,910 gals= 0.0689733 -0.0689733



TOTAL CREDITS AND OFFSETS PER LITER OF ETHANOL PRODUCED FOR INPUT RESOURCE RECOVERY -0.3521976




TOTAL COST PER LITER OF ETHANOL PRODUCED 0.1414184

TOTAL COST PER GALLON OF ETHANOL PRODUCED 0.6682953 + 0.2184642- 0.3521976 = $0.5345619 0.5345619



Pine Chips Cost Production Parameters


48 HOUR FERMENTATION PROCESS 36 TANKS


PARAMETERS OF CELLULOSIC ETHANOL PROCESS


36- 7450 GALLON FERMENTATION TANK


48 HOURS FERMENTATION TIME CYCLE


182.5 FERMETATION BATCHES PER YEAR PER TANK


4542 GALLONS OF WATER PER BATCH


894 GALLONS OF MAKE UP WATER UTILIZED EVERY 4542 GALLON BATCH


2.23 TONS BONE DRY OF PINE CHIPS PER BATCH


198.47 GALLONS OF HIGH FRUCTOSE CORN SYRUP PER BATCH


226.75 POUNDS OF ENZYME CULTURE PER BATCH


276.5 GALLONS OF ETHANOL PRODUCED PER BATCH


ANNUAL PRODUCTION OF 36 TANKS x 182.5 BATCHES x 276.5 GALLONS OF ETHANOL PER BATCH= 1816,605 GALLONS


COST OF FEEDSTOCK PER BONE DRY TON $62.00


80 BRIX MOLASSES AT 1.416SPECIFICGRAVITY WEIGHS 11.8 POUNDS PER GALLON NO BIOGAS DIGESTER


NO CO-GENERATIONAL POWER PLANT



Ethanol Production Costs From Pine Chips


COST CALCULATIONS OF ONE 7400 GALLON BATCH MATERIALS


Cost Basis of Pine Feedstock: 1 ton delivered to Ethanol Plant at 4050 Btu per lb., 8OO lbs retuned to 8510 Btu per lb PINE

1 ton wet Pine in at B.1mm Btu then BOO lbs dry out for pellets or combustion at 6.81 mm Btu 16% reduction in Btu CHIPS


COST OF Pine = 2.23 tons x $62.00 per ton= $138.26 x (0.16) / 276.5 gallons of ethanol per batch= $0.0800057 0.0800057

COST OF ENZYME = 453.51bs x $0.06 per lb = $ 27.21 / 276.5 gallons ethanol per batch= $0.0984086 per gallon 0.0984086

COST OF CORN SYRUP= 189 GALLONS x $0.6726 per gallon= $127.12 / 276.5 gallons= $0.4597518 0.4597518



TOTAL COST PER GALLON OF ETHANOL PRODUCED FOR INPUTS $0.6381661 0.6381661





COST CALCULATION OF UTILITIES AND LABOR ANNUALLY



ELECTRICTY (SEE SCHEDULE) 3098 KWH PER YEAR AT $9.35PER KWH= $28966.3 / 1,816,605 GAL= $0.0159452 per gal 0.0159452

WATER 894 GAL x 182.5 BATCHES x 36 TANKS+ 1000 GAL x $10.12 per 1000 GAL / 1,816,605 GAL= $0.0327207 per gal 0.0327207

DISTILLATION PERSONNEL ANNUAL $105,120 / 1,816,605 gal ethanol annually= $0.0578661per gal 0.0578661

MATERIAL HANDLING PERSONNEL ANNUAL $87,600 / 1,816,605 gal ethanol annually= $0.0482218 per gal 0.0482218

FERMENTATION PERSONNEL ANNUAL $96,360 / 1,816,605 gal ethanol annually= $0.053044 per gal 0.053044



TOTAL COST PER GALLON OF ETHANOL PRODUCED FOR UTILITIES AND LABOR 0.2077978 0.2077978





CREDITS AND OFFSETS



Enzyme recovery 453.5 lbs x 30% x $0.06 x 6570 annual batches / 1,816,605annual gallons= 0.0295226 per gal -0.0295226

Molasses Recovery 17% x 2.23 tons cellulose= .379 tons of molasses x $175 per ton / 276.5 gallons= 0.2399367 per gal -0.2399367

Mass Production Credit for enzyme production 453.5lbs x $0.04 x 6570 annual batches / 1,816,605 gals= 0.0656057 -0.0656057


TOTAL CREDITS AND OFFSETS PER LITER OF ETHANOL PRODUCED FOR INPUT RESOURCE RECOVERY -0.335065



TOTAL COST PER LITER OF ETHANOL PRODUCED 0.1351584

TOTAL COST PER GALLON OF ETHANOL PRODUCED 0.6381661 + 0.2077978- 0.335065 = $0.5108989 0.5108989



Switch-grass Cost Production Parameters


48 HOUR FERMENTATION PROCESS 36 TANKS


PARAMETERS OF CELLULOSIC ETHANOL PROCESS


36- 7450 GALLON FERMENTATION TANK


48 HOURS FERMENTATION TIME CYCLE


182.5 FERMETATION BATCHES PER YEAR PER TANK


4542 GALLONS OF WATER PER BATCH


894 GALLONS OF MAKE UP WATER UTILIZED EVERY 4542 GALLON BATCH


2.23 TONS BONE DRY OF SWITCHGRASS CHIPS PER BATCH


198.47GALLONS OF HIGH FRUCTOSE CORN SYRUP PER BATCH


226.75 POUNDS OF ENZYME CULTURE PER BATCH


160.5 GALLONS OF ETHANOL PRODUCED PER BATCH


ANNUAL PRODUCTION OF 36 TANKS x 182.5 BATCHES x 160.5 GALLONS OF ETHANOL PER BATCH = 1,054,485 GALLONS


COST OF FEEDSTOCK PER BONE DRY TON $42.00


80 BRIX MOLASSES AT 1.416SPECIFIC GRAVITY WEIGHS 11.8 POUNDS PER GALLON NO BIOGAS DIGESTER


NO CO-GENERATIONAL POWER PLANT



Ethanol Production Costs From Switch-grass


COST CALCULATIONS OF ONE 7400 GALLON BATCH MATERIALS



Cost Basis of Switch grass Feedstock: 1 ton delivered to Ethanol Plant at 4000 Btu per lb.@ 800 lbs returned to 8400 Btu per lb PINE

1 ton wet Switch grass in at 8 mm Btu then 800 lbs dry out for pellets or combustion at 6.76 mm Btu 15.5% reduction in Btu CHIPS


COST OF SWITCHGRASS = 2.23 tons x $42.00 per ton= $93.66 x (0.155) / 160.5 gallons of ethanol per batch= $0.0904504 0.0904504

COST OF ENZYME = 453.5 lbs x $0.06 per lb = $ 27.21 / 160.5 gallons ethanol per batch= $0.1695327 per gallon 0.1695327

COST OF CORN SYRUP= 189 GALLONS x $0.6726 per gallon= $127.12 / 160.5 gallons= $0.7920249 0.7920249



TOTAL COST PER GALLON OF ETHANOL PRODUCED FOR INPUTS $1.052008 1.052008





COST CALCULATION OF UTILITIES AND LABOR ANNUALLY



ELECTRICTY (SEE SCHEDULE) 3098 KWH PER YEAR AT $9.35 PER KWH= $28966.3 / 1,054,485 GAL= $0.0274696 per gal 0.0274696

WATER 894GALx 182.5 BATCHES x 36 TANKS+ 1000 GAL x $10.12 per 1000 Gal / 1,054,485 Gal= $0.0563693 per gal 0.0563693

Distillation Personnel Annual 105,120 / 1,054,485 gal ethanol annually= $0.0996884 per gal 0.0996884

Material Handling Personal Annual 87,600 / 1,054,485 gal ethanol annually= $0.0830737 per gal 0.0830737

FERMENTATION PERSONNEL Annual 96,360 / 1,054.485 gal ethanol annually= $0.0913811per gal 0.0913811


TOTAL COST PER GALLON OF ETHANOL PRODUCED FOR UTILITIES AND LABOR 0.2077978 0.3579821




CREDITS AND OFFSETS



Enzyme recovery 453.5/bs x 30% x $0.06 x 6570 annual batches / 1,054,485 annual gallons= 0.0508598 per gal -0.0508598

Molasses Recovery 24%x 2.23 tons cellulose= .5352 tons of molasses x $175 per ton / 160.5 gallons= 0.5835514 per gal -0.5835514

Mass Production Credit for enzyme production 453.5lbs x $0.04 x 6570 annual batches / 1,054,485 gals= 0.1128971 -0.1128971


TOTAL CREDITS AND OFFSETS PER LITER OF ETHANOL PRODUCED FOR INPUT RESOURCE RECOVERY -0.7473083



TOTAL COST PER LITER OF ETHANOL PRODUCED 0.1753126

TOTAL COST PER GALLON OF ETHANOL PRODUCED 1.052008 + 0.3579821- 0.7473083 = $0.6626818 0.6626818




White Oak Cost Production Parameters


48 HOUR FERMENTATION PROCESS 36 TANKS


PARAMETERS OF CELLULOSIC ETHANOL PROCESS


36- 7450 GALLON FERMENTATION TANK


48 HOURS FERMENTATION TIME CYCLE


182.5 FERMETATION BATCHES PER YEAR PER TANK


4542 GALLONS OF WATER PER BATCH


894 GALLONS OF MAKE UP WATER UTILIZED EVERY 4542 GALLON BATCH


2.23 TONS BONE DRY OF WHITE OAK CHIPS PER BATCH


198.47 GALLONS OF HIGH FRUCTOSE CORN SYRUP PER BATCH


226.75 POUNDS OF ENZVME CULTURE PER BATCH


223 GALLONS OF ETHANOL PRODUCED PER BATCH


ANNUAL PRODUCTION OF 36 TANKS x 182.5 BATCHES x 223 GALLONS OF ETHANOL PER BATCH= 1,505,250 GALLONS


COST OF FEEDSTOCK PER BONE DRY TON $62.00


80 BRIX MOLASSES AT 1.416 SPECIFIC GRAVITY WEIGHS 11.8 POUNDS PER GALLON NO BIOGAS DIGESTER


NO CO-GENERATIONAL POWER PLANT



Ethanol Costs From White Oak


COST CALCULATIONS OF ONE 7400 GALLON BATCH Materials


Cost Basis of White Oak Feedstock; 1 ton delivered to Ethanol Plant at 4000 Btu per lb.800 lbs. returned to 8454 Btu per lb. WHITE OAK

1 ton wet White Oak in at 8 mm Btu then 800 lbs dry out for pellets or combustion at 6.76 mm Btu 15.5% reduction in Btu CHIPS



COST OF White Oak= 2.23 tons x $62 per ton = $138.26 x( 0.155) / 223 gallons of ethanol per batch= $0.0961 0.0961

COST OF ENZYME =453.5 lbs x $0.06 per lb = $ 27.21 / 223 gallons ethanol per batch= $0.1220179 per gallon 0.1220179

COST OF CORN SYRUP= 189 GALLONS x $0.6726 per gallon= $127.12 / 223 gallons= $0.5700448 0.5700448



TOTAL COST PER GALLON OF ETHANOL PRODUCED FOR INPUTS $0.7881627 0.7881627




COST CALCULATION OF UTILITIES AND LABOR ANNUALLY



ELECTRICTY (SEE SCHEDULE) 3098 KWH PER YEAR AT $9.35PER KWH= $28966.3 / 1,505,250 GAL= $0.0192435 per gal 0.0192435

WATER 894 GAL x 182.5 BATCHES x 36 TANKS+ 1000 GAL x $10.12 per 1000GAL / 1,505,250 GAL= $0.0394888 per gal 0.0394888

DISTILLATION PERSONNEL ANNUAL $105,120 / 1,505,250 gal ethanol annually= $0.0997309 per gal 0.0997309

MATERIAL HANDLING PERSONNEL ANNUAL $87,600 / 1,505,250 gal ethanol annually= $0.0581963 per gal 0.0581963

FERMENTATION PERSONNEL ANNUAL $96,360 / 1,505,250 gal ethanol annually= $0.0640159 per gal 0.0640159



TOTAL COST PER GALLON OF ETHANOL PRODUCED FOR UTILITIES AND LABOR 0.2806754 0.2806754





CREDITS AND OFFSETS


Enzyme recovery 453.5 Ibs x 30% x $0.06 x 6570 annual batches / 1,505,250annual gallons= 0.0356292 per gal -0.0356292

Molasses Recovery 17% x 2.23 tons cellulose= .379 tons of molasses x $175 per ton / 223 gallons= 0.2974215 per gal -0.2974215

Mass Production Credit for enzyme production 453.5lbs x $0.04 x 6570 annual batches / 1,505,250 gals= .079176 -0.079176

TOTAL CREDITS AND OFFSETS PER LITER OF ETHANOL PRODUCED FOR INPUT RESOURCE RECOVERY -0.4122267




TOTAL COST PER LITER OF ETHANOL PRODUCED 0.1737067



TOTAL COST PER GALLON OF ETHANOL PRODUCED0.788l627 + 0.2806754- 0.4l22267= $0.6566ll4 0.6566114




Bamboo Cost Production Parameters


48 HOUR FERMENTATION PROCESS 36 TANKS

PARAMETERS OF CELLULOSIC ETHANOL PROCESS


36-7450 GALLON FERMENTATION TANK


48 HOURS FERMENTATION TIME CYCLE


182.5 FERMETATION BATCHES PER YEAR PER TANK


4542 GALLONS OF WATER PER BATCH


894 GALLONS OF MAKE UP WATER UTILIZED EVERY 4542 GALLON BATCH


2.23 TONS BONE DRY OF BAMBOO CHIPS PER BATCH


198.47 GALLONS OF HIGH FRUCTOSE CORN SYRUP PER BATCH


226.75 POUNDS OF ENZYME CULTURE PER BATCH


169.5 GALLONS OF ETHANOL PRODUCED PER BATCH


ANNUAL PRODUCTION OF 36 TANKS x 182.5 BATCHES x 169.5 GALLONS OF ETHANOL PER BATCH = 1,113,615 GALLONS


COST OF FEEDSTOCK PER BONE DRY TON $62.00


80 BRIX MOLASSES AT 1.416 SPECIFIC GRAVITY WEIGHS 11.8 POUNDS PER GALLON NO BIOGAS DIGESTER


NO CO-GENERATIONAL POWER PLANT


Ethanol Production Costs From Bamboo


COST CALCULATIONS OF ONE 7400 GALLON BATCH MATERIALS


Cost Basis of Bamboo Feedstock; 1 ton delivered to Ethanol Plant at 4000 Btu per lb.8OO lbs. returned to 8630 Btu per lb.

1 ton wet Bamboo in at 8mm Btu then 800 lbs dry out for pellets or combustion at 6.76 mm Btu 13.75% reduction in 8Btus BAMBOO



COST OF BAMBOO= 2.23 tons x $62 per ton= $138.26 x( 0.1375) /169.5 gallons of ethanol per batch= $0.1121578 0.1121578

COST OF ENZYME = 453.51bs x $0.06 per lb = $ 27.21 / 169.5 gallons ethanol per batch= $0.1605309 per gallon 0.1605309

COST OF CORN SYRUP= 189 GALLONS x $0.6726 per gallon= $127.12 / 169.5 gallons= $0.7499705 0.7499705



TOTAL COST PER GALLON OF ETHANOL PRODUCED FOR INPUTS $1.0226592 1.0226592




COST CALCULATION OF UTILITIES AND LABOR ANNUALLY


ELECTRICTY (SEE SCHEDULE) 3098 KWH PER YEAR AT $9.35 PER KWH= $28966.3 / 1,113,615 GAL= $0.026011per gal 0.026011

WATER 894 GAL x 182.5 BATCHES x 36 TANKS 1OOO GAL x $10.12 per 1000 GAL / 1,113,615 GAL= $0.0533762 per gal 0.0394888

DISTILLATION PERSONNEL ANNUAL $105,120 / 1,113,615 gal ethanol annually= $0.0943952 per gal 0.0943952

MATERIAL HANDLING PERSONNEL ANNUAL $87,600 / 1,113,615 gal ethanol annually= $0.0786627 per gal 0.0786627

FERMENTATION PERSONNEL ANNUAL $96,360 / 1,113,615 gal ethanol annually= $0.086529 per gal 0.086529



TOTAL COST PER GALLON OF ETHANOL PRODUCED FOR UTILITIES AND LABOR 0.3250867 0.3250867



CREDITS AND OFFSETS



Enzyme recovery 453.5/bs x 30% x $0.06 x 6570 annual batches / 1,113,615 annual/ gallons= 0.0481592 per gal -0.0481592

Molasses Recovery 23% x 2.23 tons cellulose= .379 tons of molasses x $175 per ton / 169.5 gallons= 0.5295427 per gal -0.5295427

Mass Production Credit for enzyme production 453.5lbs x $0.04 x 6570 annual batches / 1,113,615 gals= .1070206 -0.1070206


TOTAL CREDITS AND OFFSETS PER LITER OF ETHANOL PRODUCED FOR INPUT RESOURCE RECOVERY -0.6847225



TOTAL COST PER LITER OF ETHANOL PRODUCED 0.175403

TOTAL COST PER GALLON OF ETHANOL PRODUCED 1.0226592 + 0.3250867- 0.6847225= $0.6630234 0.6630234