biofuel plant cost analysis

8/12/2019 Biofuel Plant Cost Analysis

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PART G: BIODIESEL PLANT PROJECT

1. Project Cost

The estimated total investment of RM45,000,000-00, of which RM30,000,000.00 is required for the

purchase of machinery and equipment and RM15,000,000.00 for projected cash flow as follow:

Capital Required (RM`0000)

No. Content Quantity UnitAmount

(RM)Remarks

A Land

1Acquisition

cost/premium10 Acres

2 Filling/Leveling 10 Acres

B Building Construction 2355

1 Factory Plant 3500 Sq/m 875 RM250/sq/m2 Integrated Office 1000 Sq/m 400 RM400/sq/m

3 R&D Center 800 Sq/m 480 RM600/sq/m

4 Road & greening 8000 Sq/m 600 RM75/sq/m

CMachinery &

Equipment30,000

1 Main Machine 3 set 26,200Shanghai / Wuxi /

Hubei

2 Auxiliary Equipment 3 set 1,750 China

3Environmental

protection equipment1 set 450 China

4 Installation materials 400Pipes, valves,

fittings

5Water, electricity,

steam equipment750

Electricity, wiring,

electrical

appliances, boilers

6 Installation costs 450Labor costs,

machinery costs

D Instrumentation 1,000

1 Instrument equipment 450Shanghai, Wuxi,

Shandong2 Detection equipment 250 Shanghai

3 R & D 300 Germany

E Support Facilities 320

1Raw material storage

tank2000 ton 700 Carbon steel

2 Product Storage tank 1500 ton 750 Stainless steel

3 Material Storage tank 500 ton 250 Carbon steel

F Start-up costs 115Conference fees,travel expenses,

business


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G Licensing 200

EIA, planning, fire

safety, quality

supervision

H Cash flow 10,000

The purchase of

raw materials,

materials, fuel, etc.

Total 43,990

BIODIESEL MACHINERY/EQUIPMENT LIST

No. Name SpecificationQuanti

ty

Power/K

WRemarks

1 Washing pot 1900*3500 5 5.5

2 Air Balance tank 600*1500 4 5.5

3 Heater 15M2 8

4 Rotameter BL-45-2000L 25

Vacuum

dehydrator6502500 2

6 Water jet pump PLB180 2

7 Concrete pond 200040000 3

8Dehydrated oil

storage tank19003500 1

9Oil-water

separator tank12001500 1 Stainless steel

10 Enamel Reactor 6300L 12 7.5

11 Methanoltank(High)

1.21.21.2 3

12 Oil tank (High) 1.21.21.2 1

13 Sulfur tank (high) 12001200 2 L316

14 Condenser 20M2 10 Stainless steel

15 Condenser (last) 10 M2 2

16Oil & Water

Separator tank7

17Spiral plate

heater15 M

2 1

18 MethanolDistillation tower

2 Stainless steel

19 Condenser 30M2 10 Stainless steel

20

Methanol

Intermediate

storage tank

30 5 18004000

21

Methyl

temporary

storage tank

50 2 18004000

22 Injection pump QPLB180 2

23 Water circulationpump

8 11

24Other motor

pump56 3 Explosion proof


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2. Project Economic Analysis

i) Estimated Cost Analysis

No Item UnitUnit

Price%

Annual

Quantity

RM

(`0000)Tax

A Raw Material 64,4931 Waste Oil tons 1500 34500 51,075

2 Methanol tons 1100 16% 5520 6,072

3 Sulfuric Acid tons 300 3% 1035 311

4 Alkali tons 1150 1% 345 397

5 Catalyst tons 2000 0.2% 69 138

6Hydrogen

Peroxidetons 650 30% 10,000 6,500

B Power & Fuel 2621 Electricity Ton/M 230 1140 262

2 Water Ton/M

3 Coal Ton/M

C EmployeeWage

900/

mth324 30 persons

D Finance costs -

E AdminExpenses

3,306

1

Depreciation

&amortization

3,000

Depreciation

10 yrs. (10%p.a.)

2Employee

(EPF)324*15% 49 15%

3 Unions funds 324*2% 7 2%

4Pension

Insurance-

5Others

Expenses250

F Cost of Sales 9901%on Sales

Revenue

G Total Cost 69,375

HSales

Revenue99,000

1 Biodiesel ton 3,300 85% 30,000 99,000

ii) Profit & Loss Analysis

Item RM(`0000) Remarks

A) Sales Revenues 99,000 Exclude Sales TaxLessProduction Cost 64,493

Value added Tax -

B) Sales Profits 34,507Less


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Selling expenses 1,576

Management fees & others 3,306

Finance cost -

C) Total Profit 29,625LessIncome Tax 7,406 25%

D)Net Profits 22,218

The above estimates based on the Current Market Price.

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Profit and Loss & Cash Flow Projection (Trading)

i) Projected Profit & Loss (240 tons/day)

Item (RM`000) RemarksA) Sales Revenues 792

LessProduction Cost 621.05

B) Sales Profits 171

LessSelling expenses 8

Management fees & others 3.44

Finance cost -

C) Total Profit 160

LessIncome Tax 40 25%

D) Net Profits 120ii) Projected Cost Analysis (200 tons/Day)

No Item UnitUnit

Price% Quantity RM (`000) Tax

A Raw Material 620 -1 Biodiesel tons 2400 31200 480

2 Methanol tons 1100 - - - -

3 Sulfuric Acid tons 300 3% - - -

4 Alkali tons 1200 1% - - -

5 Catalyst tons 3500 20% 40 140 -

6Hydrogen

Peroxidetons 750 30% - -

B Power & Fuel 0.7 -1 Electricity Ton/M 230 3 0.7 -

2 Water Ton/M 0.30 - - -

3 Coal Ton/M - - - -

C Employee

Wage

900/

month

0.35 10 person

D Finance costs -

E AdminExpenses

3.44


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1

Depreciation

&

amortization

9,000 2.90Depreciation

10 yrs. (10%)

2Employee

welfare0.35*10% 0.04 15%

3 Unions funds 0.35*1% 0.0004 1%

4Pension

Insurance-

5Others

Expenses0.50

F Cost of Sales 81%on Sales

Revenue

G Total 632.5

HSales

Revenue792

1 Biodiesel ton 3,300 240 792

Remarks:

The Net Profit of RM120,000-00 per day (RM3.12 million per month) is relatively high and good

investment project which has edged over most of the industry. The Returned on Investment shall be short

and is expected in 3 months period.

PART H: SWOT ANALYSIS

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biofuel plant cost analysis

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