FEASIBILITY STUDY & PRELIMINARY BUSINESS PLAN
FOR A MICHIGAN SOYBEAN CRUSH PLANT, SOYBEAN OIL REFINERY
AND/OR BIODIESEL PRODUCTION PLANT
IN GRATIOT COUNTY OR OTHER MICHIGAN SITES
PHASE 2 REPORT – FEASIBILITY OF A STAND-ALONE BIODIESEL PLANT
(WITH SOYBEAN CRUSH PLANT & SOY OIL REFINERY SUBJECT OF A PRIOR PHASE 1 REPORT)
PREPARED BY
&
FOR
THE MICHIGAN DEPARTMENT OF AGRICULTURE
LANSING, MICHIGAN
February 15, 2006
TABLE OF CONTENTS
I.
Statement of Work ……………………………………………………………..
2
II.
Background ……………………………………………………………………..
3
III.
Executive Summary – Phase 1 / Soybean Crush Plant & Soy Oil Refinery ...
6
IV.
Update to Phase 1 Report ...…………………………………………………….
8
V.
Executive Summary – Phase 2 / Stand-Alone Biodiesel Plant …..……………
9
VI.
Introduction to the U.S. Biodiesel Industry …………..………………………. 13
VII.
Supply & Demand for Biodiesel
A. United States ………………………………………………………………... 16
Demand Drivers for Biodiesel …………………………………………. 18
B. Michigan ..…………………………………………………………………… 22
VIII. Biodiesel Manufacturing Technology
A. Process Technology Description …………………………………………... 24
B. Process Technology Suppliers ……………………………………………… 26
C. Environmental Permit Issues ……………………………………………… 30
IX.
Management Requirements …………………………………………………...
X.
Financial Feasibility of a Stand-Alone Biodiesel Plant
A. USDA Loan & Grant Programs …….…………………………………….
st
33
36
B. Michigan’s 21 Century Jobs Fund ………………………………………
37
C. Capital Investment in Plant & Equipment ……………………….……...
38
D. Working Capital Requirements …………………………………………..
40
E. Total Investment & Equity Requirements ……………………………….
41
F. Biodiesel Production Cost …………………………………………………
41
G. Historical Soy Oil & Petroleum Distillate Pricing ……………………….
44
XI.
Site Selection & Related Factors ………………………….…………………..
46
XII.
Conclusions – Phase 2 / Stand-Alone Biodiesel Plant ….…………………….
49...