Spring quarter we will refine and complete our biorefinery designs. In addition, there will be some
lectures on various topics throughout the quarter. To complete the design will require the following:
1. Detailed material and energy balance.
We will do the balance two ways, ASPEN simulation and on an Excel spreadsheet. We are using two
approaches because of the uncertainty associated with the ASPEN models. If we can get the ASPEN
models up and running quickly and it appears they are accurate we can drop the spreadsheet approach.
2. Detailed capital cost.
The capital cost of the biorefinery needs to be worked out in detail. This means each major unit
operation needs to be sized, materials of construction determined, and its cost estimated. Final sizing of
equipment will rely on the material and energy balance but rough estimates can be used to get started.
Once major capital equipment costs are determined we can estimate total capital cost using approaches
such as the Lang factor. Keep in mind that this will not be a greenfield installation. We will be going into
an existing facility that will have much of the infrastructure needed for the biorefinery. At this point, I
think we can assume the mill will be able to handle any wastewater we generate; however, we should
plan on supplying a boiler to provide the necessary steam for our operations. A biomass boiler supplying
930 psig steam (consistent with mill) should be used. You should also be doing an error analysis to
determine the probable range of the total capital cost.
3. Operating cost and profitability.
Detailed estimates of operating costs need to be established. Like with the capital cost, we should be
able to take advantage of being located in an existing mill to save on operating cost. For example, labor
costs could be considerably lower using mill operators and maintenance personnel. Error analysis to
determine the range of the cost to produce the products should be included. The profitability of the
venture can be determined after the capital cost and operating cost have been established. Profitability
should be assessed using a method that accounts for time value of money such as net present value.
Sensitivity to the future selling price of the products should be investigated. What is the minimum
selling price required to make an acceptable return. The ethanol group needs to investigate any
potential federal subsidies that may impact profitability. Each group needs to provide a definitive
conclusion on potential for their process to be profitable.
4. Environmental and social
By all indications there will not be substantial environmental or social issues associated with the
biorefinery. We still need to address these considerations to have a complete design. We started the
environmental work last quarter and that should be completed this quarter. The objective is to identify
all the emissions (air, water, solid) that the biorefinery may have and what regulations (state and
federal) govern those emissions. Air emissions are especially troublesome and should be looked into
carefully. You should also be investigating what regulations are in place and MAY BE PUT INTO PLACE
governing carbon emissions. Carbon emission regulations may help or hurt the proposed project. For
the social considerations you should investigate the Grays Harbor situation (economic, social,
environmental) and infer if you think the proposed project would be well accepted. (In a larger project
we would talk to the residents of Grays Harbor to find out their feelings). You should look into how the
community responded to the shut down and the restarting of the Cosmopolis mill. In addition, you
should investigate what happened with the proposed Adage project in Shelton WA. There was a lot of
opposition to that proposal and similar objections might be raised for what we plan to do.