Hi Ron,

Actually our cost estimates for the existing industry numbers came from
Arkenol's faq where you will find the $5.00/gallon of annual capacity
quote and that's not Texas, folks.  By the way, our biochemist is not a
Texas native.  He comes from a long line of legal industrial beverage
distillers in Kentucky.  Note the commercial producers in this example
are using a concentrated acid process to convert cellulose to sugar, and
are going to the expense of recovering the acid instead of letting it go
to gypsum.  Sulfuric is the cheapest acid on the market.  Then they use
custom designed organisms to digest the sugar.  Dilute acid extraction
and microbial hydrolysis to sugar is cheaper.
 
Click here: FAQ's - Technology
http://www.arkenol.com/Arkenol%20Inc/faq03.html#top  

Also, Ron, I appreciate your observations and comments.  Hopefully, you
can understand the new benefits that are coming available from
innovative sources beyond government interaction.  Because you are a
defender of the current technology, does that mean you are a stake
holder or an employee of the government or academia?  You know it is
possible to improve production quantity and quality in many different
areas including, efficient small scale production, new processing
techniques, new microorganisms, and more.  The main point is that new
small production facilities are not in competition with the big boys.
There is currently enough need and not enough production capabilities.
It seems to me that you would be pleased to learn about expanding the
industry.  If you can offer community projects at a reasonable start-up
investment, then more power to you.  We are not in competition with you
or anyone else.  We offer a ways to an end.  By the way, does being a
Texan qualify a person for your definition of ignorance?  Golly Gee!
I'm not related to the Bush family and they are fairly new comers to
those of us who trace their ancestors to the Alamo.  Mostly Texans are
hard-working grassroots INDIVIDUALS who stand on their own two feet and
lend a helping hand to neighbors.  Also, I did buy my scientific
calculator from Texas Instruments and it seems to work just fine.
Really Ron, I enjoy your posts and would like to be a friendly neighbor.

Best wishes,
Peggy

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of [EMAIL PROTECTED]
Sent: Wednesday, September 22, 2004 5:53 AM
To: [EMAIL PROTECTED]
Subject: Re: [Biofuel] Farmer's Lobby

> "We can provide small distilleries for total biomass processes.  We
have
> manufacturing facilities in Raymondville, Texas to build small reflux
> stills, fermentation vats, and heat exchangers, and we contract with
> other vendors for boilers for making steam and electricity for the
> distillery.  The grid here is required to buy back our surplus
> generation if there is any.  I have quotes from some of the big guys
for
> what they consider a "Minimum" size turnkey ethanol plant, and the
> numbers are scary.  The way I break it down, their quotes are around
> $4.50 - $5.00 per gallon of annual ethanol capacity.  That translates
to
> a small 5 million gallon/year distillery costing about $25 million.
> They would much rather build a 50 million gallon/year distillery for
> about $200 million, since the same time and energy is expended in
> designing each."
========================================
Peggy,

I think your $200 million for a 50 million MGY ethanol plant is a little
on the high side....maybe by 4 times. Maybe in Texas they do a different
style of pencil figuring.

Ron B.


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