OK, so my algae project is not going to make me rich in the short term.

So I am doing due diligence on a proposal on my desk at the moment.

Part of this is pressing 35 000 tons of soy beans every day, 5 days a week to make 8000 litres of oil. If I turn this into Bd it is already sold to a local distributor.

What I would like some feed back on is whether I would be able to sell the raw oil as SVO. I am still guessing on costs but I think it would work out at around 80 cents a litre to give me some profit.

What do you guys think?

__________________
Slippery
Small steps taken one at a time.

Gday, 35000 tons of beans for 8000 litres of oil. Must have a lot of beans that dont have any oil in them. regards westwinds

ive heard that soy aint much chop for SVO something about gumming up etc. 80c per litre sounds good for new oil though.
Cheers Nick.

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Cheers
Nick.

Roidio 2001 Holden Rodeo 4x4 2.8L TD. 2.5" Straight through exhaust sytem, heat exchanger shower system. 2" Body Lift,
And lots of fruit, B100 for 25,000 no problems.

Elsa 1983 Mercedes-Benz W123 300D. The Fastest Merc in Oz, Loving B100 Burgers

I think this idea is ridiculous! Surely you must be joking about this.

35,000 ton of beans to get 8000L of oil means you are going to press 4.3 tons of beans to get one litre of oil.
You are then going to sell each litre of oil for .80C ???
And you think you are going to make a profit on that.
I think you better double check your Due diligence on that one because I don't thing you have put any into this idea at all!
60 seconds of research showed me the current price of soybeans in oz is over $500 a ton and you want to sell the oil from 4.3 tons for .80C????
Even if you have made a typo here and are thinking 80,000L of oil, your still only working on less than 2.3L per ton of oil or a $1.84 return on a raw material alone worth $500+

Of course you do realize that 35000 tons = over 700 standard semitrailer loads..... A day?????? I doubt there is a facility anywhere in Australia that can handle that many trucks a day. if your running 24 hours a day, that is unloading one truck every 30 seconds.
I don't think so!!! Forget about the Facility to handle this, your going to have to start off with a new Highway network to get all those trucks there!

If you do it by rail car, you might have a chance but at 35K ton of beans a week and running the plant for 48 weeks a year, that will be 8.4 Million tons of beans a year. Another 60 seconds of research shows that the total annual production of soybeans in Oz is around 10 Million tons per year. Even if you can get hold of 80% of the total annual production, that sort of demand will for the price to multiply many times what it is now.

If the typo is 3500 tons of beans for 8k L of oil, then your still going to come up woefully short working the numbers this way as well.

OK, I give up. Whats the joke I'm missing?

Either this is a completely mis written post or Perhaps that crop you call algae has a more common name to most folks like " weed" and the reason you can't make a profit out of it is your dedicating too much to " product testing" ???

Geez, a bloke makes a typo,(could we agree that it is more likely that rather than he wants to sell $2000+ worth of beans for 80c?) and someone can find the time to write a 1/2 page reply......at 3.32 am, suggesting he is a druggy etc. Nice.
Here's an alternative......Gee Slippery, those numbers dont seem to add up......repost the quantities and we can give it some thought.
The joys of the internet and annonymity.

Thanks DJ,

Just goes to show you should not do maths after a 12 hour day.

Should have been 8000 litres from 35 tons ( 20% oil at SP of .88).

Oil will be degummed.

__________________
Slippery
Small steps taken one at a time.

Gee slippery, Those numbers STILL don't seem to add up, especially when one considers all the ancillary costs that would be involved with this sort of operation.
Maybe I just didn't get enough sleep either.

At that rate, you are still pressing 4.3 Kg of beans to get 1L of oil. At $500 a ton, that makes 1 KG of beans worth .50C. The numbers are better at this price but you still seem to be pressing at least $2.15 worth of beans for an .80C return. Maybe you can find someone to pay you $5.00 a kilo or more for the pressed meal? I think the bank manager or your investors would be very happy if you could.

If you can do the oil at .80c/L I'm sure whoever you are supplying will be a very happy and loyal customer for as long as you are able to supply them.

Best you get some sleep before you finish your proposal so you can pick up any other 1000% " typos" before you send it to whoever it's for.
If the recipients have seen people make grandiose claims before like I have read on this site in the past, they would have no reason to think the people didn't mean exactly as they have written in their proposal and would expect they know the numbers off by heart.

Good luck with it anyway.

DJ,

Thanks again for taking the time to respond.

The economics of this venture are actually quite sound, as long as the feed stock remains available, so let me worry about the economics.

What I am asking is if there is a market for selling the oil, 8000 litres a day, at a guesstimated price of $0.80 per litre. I might get to a lower price once the final venture goes ahead - if it does.

Are there any large earthmoving contractors out there using high volumes of fuel who maybe will use this as svo? or a dino/svo blend?

__________________
Slippery
Small steps taken one at a time.

As fuel, I don't think so.
For new oil, clean and dry, $0.80 per litre would be a bargain price. My take-away pays $42 for a 20 litre drum.
8000 litres/day - There could be a market, if you could get a big transport company, or several big transport companies, to convert their trucks to run on SVO, but you would have to guarantee them the oil supply. They would be currently paying around $1.50/litre for diesel.
Why would you sell it for $0.80 per litre when you could sell it for cooking for $2/litre?

I'm sure there is a market out there, or several markets to use that volume. Problem is see is this:-

1/ large earthmoving machines are horendously expensive and the owners being 'in the dark' about SVO/WVO are going to be very reluctant to try something new. Also Mr CAT will wipe the warrantee on the fuel system/engine so this would be scary for the owners.
The other thing is they also move the machinery around and some times over long distances to whereever the contract takes them and would then source fuel from a local supplier.

2/ Transport companies would shy away from SVO/WVO unless local. For longhaul drivers supply is the problem. Yes they can fill up there but what can they then get 1,000k down the track?


But if you can find someone that used heaps of fuel locally all the time then educate/show them that SVO/WCO is an alturnative viable fuel supply I am sure your cause will gather momentum. But it is going to take hard work and time to build up to 8,000 litres/day sales.