Chandra, You're discounting the minor detail of market economics called "profit."
Micro-facilities can be profitable, with or without government assistance. The real trick is how big of a slice does the bank or venture capitalist want and whether or not the investor is willing to honor non-disclosure and no-competition agreements that are valid in all international courts. Too many investors too soon want to take a concept originator for a ride, rather than being happy with the profits that the concept produces under originally agreed to premises. Todd Swearingen ----- Original Message ----- From: Shukrainternationals <[EMAIL PROTECTED]> To: <biofuels-biz@yahoogroups.com> Sent: Sunday, June 09, 2002 11:27 AM Subject: Re: [biofuels-biz] DOE Grant > I came back today and noticed your posting on biofuel site about the result > of the application to DOE. > It is too bad the application was rejected. My discussions with others after > the application was submitted kind of hinted me of the outcome. > If you have the confident that this project can be pulled even if there is > no Government help, then let me know. It all boils down to production cost > and the selling price in the market. > -Chandra > ----- Original Message ----- > From: <[EMAIL PROTECTED]> > To: <biofuels-biz@yahoogroups.com> > Sent: Friday, June 07, 2002 4:50 PM > Subject: [biofuels-biz] DOE Grant > > > > I got a reply from the US DOE yesterday saying they found no merit in my > > preliminary grant application. I'm a little disappointed, but thought > there > > might still be something of value here. If you have the time, let me know > > what you think > > > > Tom Leue > > Homestead Inc. > > > > Biomass Research and Development for the Production of Fuels, Power, > Chemicals > > and other Economical and Sustainable Products > > Solicitation 1435-01-02-RP-86382 > > Pre-Application Submitted 5/14/02 > > Submitted to [EMAIL PROTECTED] > > > > Proposal for a Biodiesel Development Center > > > > Submitted by: Thomas S. Leue, President, Homestead Inc. > > 1664 Cape St., Williamsburg, MA 01096 > > 413 628-4533, Fax 413 628-3973 > > [EMAIL PROTECTED] > > > > Introduction > > Biodiesel fuel has been shown to be a superior diesel fuel in terms of > > environmental impact, balance of trade, global warming, toxicity, > emissions, > > engine longevity, etc. However, it has not been generally available to the > > public due to the limited number of producers and their geographic > locations. > > Biodiesel fuel has a potential to supply approximately 6.6% of national > > diesel fuel needs, according to the National Biodiesel Board (NBB). To > date, > > the NBB has concentrated on production of biodiesel made from virgin > soybean > > oil, and all testing has been limited to that product. This proposal will > > lead to the development of an urban biodiesel production facility in > Albany, > > New York that will demonstrate the commercial potential of a fuel > production > > business based on locally available yellow grease and other vegetable oil > > sources, along with providing the educational resources needed for others > to > > duplicate this facility model in many other urban areas throughout the US. > > > > Technical Narrative > > The production of biodiesel has been developed using numerous technologies > > over the past twenty years or longer. The technical know how is largely in > > the public domain, but has not led to widespread production throughout the > > US. For instance, this researcher maintains the only commercial scale > > production facility within a 500 mile radius, located in Western > > Massachusetts. The biodiesel biorefinery operated by Homestead Inc. is a > > pilot scale, batch type production facility. Although each batch produced > is > > small, currently 20 gallons net per batch and soon to go to 100 gallons > net > > per batch, the large number of batches produced, over 300 to date, has > > developed an in-depth understanding of the collection and processing > systems > > needed and the variability inherent in processing used vegetable oil. Over > > four years of development and operating experience has developed the basic > > requirements for a larger processing facility to be developed under this > > proposal. > > > > The development of another mid-sized biodiesel production facility by > itself > > will not significantly change the rate of utilization of this alternative > > fuel. For example, New York State is currently using over 250,000 gallons > > biodiesel per year, a large part of our initial annual production of up to > > 1,000,000 gallons per year. The essence of this proposal is to operate a > > commercially viable biorefinery based on locally available yellow grease; > to > > promote the use and availability to the public of biodiesel fuel in both > B-20 > > and B-100 formulations; to document the technical operations and project > > > economics of biodiesel production for use in other startup ventures; to > make > > the facility accessible to the public for tours and formal training > sessions > > so as to promote the introduction of the technology throughout the urban > > centers of the US; to undertake necessary testing of yellow grease-based > > biodiesel as required by 40 CFR 79 that has not been accomplished to date; > > and to remove the current obstacles that hinder the more widespread > > development of production facilities in other urban centers. > > > > The initial plan would include some advanced energy management operations. > > For example, all normal energy inputs required for operation would be > > site-produced from either on-site biofueled diesel electrical generation, > > biodiesel operated transportation, or from direct utilization of > byproducts > > as an energy source for thermal process heat. The facility would be the > first > > post-petroleum production facility of its kind, having no provisions for > the > > on-site use of fossil fuels. > > > > After the initial startup and operation goals are met, the Biodiesel > > Development Center would undertake research that has not been extensively > > explored by others to date. For example, greasetrap waste represents a > large > > problem throughout the US, both in terms of the burden for maintenance and > > operation of numerous public and private facilities, and also in > > environmentally acceptable disposal options in many locations. The > Biodiesel > > Development Center would undertake basic investigations as to cost > effective > > methods of recapturing and utilizing this abundant resource for additional > > biofuel production. > > > > Statement of Work > > The proposed tasks are as follows: > > A. Assembly of a development team, consisting of > > a) Technical Director > > b) Financial Officer > > c) Engineering team > > d) Marketing specialists > > e) Education consultant from the State University of New York at Albany > > B. Design of a 250,000 gallon per year initial production facility to be > > located in Albany, New York. Current site selection investigations > indicate a > > favorable location in the urban Empire Zone where suitable zoning and > > resources are available. > > C. Construction and operation of the biorefinery. > > D. Documentation of system economics and technical operations. > > E. Testing of product biodiesel under ASTM certifications. > > F. Testing of product biodiesel under 40 CFR 79 Tier 1 requirements. > > G. Development and promotion of a national training program for small > scale > > biodiesel refinery businesses. > > H. Promotion to the public of the advantages of biodiesel based > > transportation. > > > > Resources By Task > > All aspects of the Biodiesel Development Center will be operated with a > team > > approach. A technical development team will plan and design the basic > > facility. The operation and documentation will be conducted with an > Operator > > and a Manager. The education and outreach program will be operated by an > > education specialist, assisted by representatives of the other two groups. > > The production facility will operate as a for-profit business, while the > > educational programs will operate under a non-profit organization. > > > > Financial matching funds have been proffered by several private funding > > organizations, seeking a rate of return. Such private funding will be > reduced > > as appropriate with the possible assistance of New York State Energy > Research > > and Development Authority. > > > > Personnel Resumes > > Thomas S. Leue, B.A., R.S., President of Homestead Inc., located in > Ashfield, > > MA. Homestead Inc. is an energy research and conservation company in > > existence since 1979. Past projects include hydroelectric development and > > cogeneration projects funded in part by the Massachusetts Energy Office, a > > successful solar-based municipal sewage treatment plant for Ashfield, and > the > > current biodiesel refinery pilot project. Further information on current > > operations can be viewed at www.Yellowbiodiesel.com. > > > > M. Chandra Sekhar, President of Shukra Internationals Inc., located at > > 29-2350, Grand Ravine Dr., Oakville, ON. L6H 6E2, Canada, is an electrical > > engineer. He has diversified work experience as staff engineer in > > telecommunications industry, Quality Assurance analyst in software > industry, > > industrial trainer as well as teaching professor at university level. He > has > > been working in the financial world for the past ten years developing > trading > > methods and systems for commodity & equity markets. He has been involved > in > > alternative energy industry for the past three years and currently is > working > > in association with Homestead Inc., to establish a biodiesel refinery in > New > > York State. > > > > Biofuels at Journey to Forever > > http://journeytoforever.org/biofuel.html > > Biofuel at WebConX > > http://www.webconx.com/2000/biofuel/biofuel.htm > > List messages are archived at the Info-Archive at NNYTech: > > http://archive.nnytech.net/ > > To unsubscribe from this group, send an email to: > > [EMAIL PROTECTED] > > > > > > > > Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ > > > > > > > > Biofuels at Journey to Forever > http://journeytoforever.org/biofuel.html > Biofuel at WebConX > http://www.webconx.com/2000/biofuel/biofuel.htm > List messages are archived at the Info-Archive at NNYTech: > http://archive.nnytech.net/ > To unsubscribe from this group, send an email to: > [EMAIL PROTECTED] > > > > Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ > > > ------------------------ Yahoo! Groups Sponsor ---------------------~--> Kwick Pick opens locked car doors, front doors, drawers, briefcases, padlocks, and more. On sale now! http://us.click.yahoo.com/ehaLqB/Fg5DAA/Ey.GAA/9bTolB/TM ---------------------------------------------------------------------~-> Biofuels at Journey to Forever http://journeytoforever.org/biofuel.html Biofuel at WebConX http://www.webconx.com/2000/biofuel/biofuel.htm List messages are archived at the Info-Archive at NNYTech: http://archive.nnytech.net/ To unsubscribe from this group, send an email to: [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
