THE FEASIBILITY AND BENEFITS OF BIODIESEL AT THE UNIVERSITY OF FLORIDA BY: TELLY S. CONCEPCION

Transcription

1 THE FEASIBILITY AND BENEFITS OF BIODIESEL AT THE UNIVERSITY OF FLORIDA BY: TELLY S. CONCEPCION

2 Pre-Face Environment In circumstances of uncertainty and economic hardship, utilizing all available resources becomes essential in creating a sustainable competitive advantage. This holds true in the higher education market as well, being able to provide the most comprehensive education is essential in securing the best and brightest students. The university system is a setting that people look to for solutions. Today, a new school of thought prevails - advancing the present without sacrificing the future. In this respect, the University of Florida has a tremendous opportunity. Our proposal will secure the University of Florida s standing as the premier school of higher education by productively cutting costs and leading the nation in sustainable application. Opportunity In every corner of the globe, Gators accomplish remarkable feats with innovative thinking and inspired collaboration. Gators know no boundaries. The Gator Nation is Everywhere. We take this to heart and it is what drives us to continue to find solutions for the University, especially during these trying times. The University of Florida is home to over 50,000 students and is ranked 7 th by the Sierra Club among the nations top 10 Green Schools. The University of Florida strives to be the best, and to be a shining example for the rest of the nation on the field, in the classroom, and in sustainability. More so today, then at any other point in history, resources are being utilized to discover new forms of renewable and sustainable energy options both in the U.S. and abroad. Here at the University of Florida we have a tremendous opportunity to become a world leader in the next renewable energy solutions. We are fortunate to have a large demand and a large supply both within our structure. These resources can be utilized by the University in order to provide a sustainable competitive advantage through cost cutting and revenue steam addition. Our Solution We propose the building of a semi-industrial biodiesel production facility at the University of Florida. Given the University s current situation, we feel this is the best option to mitigate some of the University s costs. A facility will not only cut costs, but will also provide additional funding and be able to serve as a teaching tool as well. Having a biodiesel facility is both environmentally and economically viable for the University of Florida. The University is fortunate to have both a large demand and a large supply within its structure. This allows for the production of a low cost, tax free fuel which would provide cost savings to the University along with many great opportunities.

3 Benefits to the University of Florida 1. Provide cost savings to the University of Florida 2. Provide additional revenue drivers for the University of Florida 3. Make the University of Florida the national leader in biodiesel development and production 4. Create a sustainable, no waste closed looped system model within the University of Florida A biodiesel production facility at the University of Florida will be a megaphone and a model for sustainability through bioenergy. A place where the media, senators, and citizens can come and see that sustainability is possible and that the future in energy is here and now. Cost Savings Reduction in University of Florida diesel fuel spending Reduction in University of Florida hazardous waste collection spending Keeps additional funds within the University of Florida A biodiesel production facility located at the University of Florida offers a cost savings to the University. The mitigation of fuel costs allows for more accurate budgeting and better allocation of school funds. The cost of biodiesel is dependent on several factors. The main factor is feedstock, which can often make up to 80% of the total cost of biodiesel production 1. The University is in a position to obtain guaranteed feedstock at no charge. 2 Free feedstock allows for a substantially lower cost of production, which leads to a lower cost fuel to the University. Although the lower cost fuel may not always be lower then the market price for fuel, the price provided by the facility will be steady and consistent. A consistent price is 1 Information collected from Purada Processing LLC. World Energy A biodiesel processing plant located in Lakeland, FL that we have visited and collected data from 2 Provided by Gator Dining Services- ARAMARK

4 possible because of the price of our inputs. A steady price for fuel allows the University to better account for and allocate funds. Revenue Drivers Provide a focus for future University funding and grant opportunities Provide additional curriculum through practical learning experience for students Provide consulting to counties and other universities wanting to adopt biodiesel programs in order to become self-sustainable entities Provide biodiesel testing and certification services to biodiesel production plants Provide a platform to conduct national workshops concerning biodiesel/bioenergy Provide consulting to private national/international firms interested in sustainable biodiesel production on all issues concerning biodiesel and biodiesel production A biodiesel production facility located at the University of Florida provides an additional focus for future funding opportunities. It lends itself to the application of grants and is a great opportunity for corporate sponsorship as well. These factors demonstrate that the facility is to be a self-sustaining entity at the University of Florida. Although the main focus of the facility is to supply the campus fleet with fuel, it can also serve as a topic for additional research. Converting UVO (used vegetable oil) is tried, true and efficient, that will not change. Additional research can be conducted concerning alternative feedstocks, lipid extraction from algae (and other sources), along with the efficiency of the utilization of additional sustainable technologies and how they each contribute to biodiesel production. Different research aspects not only allow for partnering with private firms 3 and additional avenues for grant funding but will also lead to a better understanding of bioenergy and its surrounding technologies as well. Research aspects also provide basis for interdepartmental collaboration among faculty and staff along with an opportunity to offer interdepartmental curriculum to students. This environment allows the University to provide a practical, hands-on learning experience; which will not only attract a wider array of students and researchers but will serve as an additional revenue stream as well. Along with conducting research and furthering the technology, there are many needs within the industry which can provide additional funding opportunities to the University of Florida. In order to ensure ASTM Standards 4 biodiesel must go through a 3 At the Florida Center for Renewable Chemicals and Fuels Dr. Lonnie O. Ingram received $1,000,000 from Bioenergy International LLC. fcrc.ifas.ufl.edu/research.html 4 All engines are designed and manufactured for a fuel that has certain characteristics. In the US, the industry organization that defines the consensus on fuels is the American Society for Testing and Materials

5 series of tests. Many firms are unable to perform these tests in-house due to a lack of proper facilities, equipment and/or materials 5. The University, having most of the necessary materials, is in a position to provide that service to private firms for a fee. The funds from the fee can be used to sustain the biodiesel program and facility. Having an operational biodiesel facility will make the University of Florida, the City of Gainesville and the State of Florida a destination for researchers and industry leaders from around the world. It provides an arena to host workshops and conferences concerning sustainability and its practical application. Conferences and workshops will not only provide an additional revenue stream to the University and an influx of capital to the community, it will place the University of Florida atop the Nation in bringing sustainability to light. National Leader Provides an additional selling point for the University of Florida to continue attracting the best and brightest interested in sustainability Allows for further development of a world leading bioenergy program at the University of Florida by collaborating interdepartmentally /w IFAS extensions Offers a one-of-a-kind bioenergy program combining multiple sustainable technologies Provide an area for interdepartmental partnerships and private sponsorships in furthering the development of superior bioenergy technology The University of Florida strives to be the best; whether on the football field, the basketball court, the classroom, or in industry. The University of Florida prides itself on being a national leader in bringing forth the practical application of developing technologies. A biodiesel production facility operated by The University of Florida demonstrates the University s commitment to the practical application of sustainable technologies while showcasing its economic value. The facility will be a platform from which to demonstrate the practicality of bringing forth sustainable technology from the university setting. The University can make a tremendous difference to its surrounding communities while providing itself with additional cost savings by working through its extensions. The (ASTM). In the case of diesel fuel (and biodiesel), the responsibility for setting standards lies within ASTM Committee on Petroleum Products and Lubricants. ASTM fuel standards are the minimum accepted values for properties of the fuel to provide adequate customer satisfaction and/or petroleum 5 Our group, UF Biodiesel, has already been contacted by several private firms regarding standards testing

6 University of Florida has over 60 extensions throughout the state 6. Facilities at those sites will not only promote sustainability but make an impactful difference to the State of Florida and its people 7. Through conferences and workshops, the University will educate people throughout the state, the nation and the world about practical self-sustainability. The facility provides the opportunity to consult different municipalities, universities and even nations regarding the benefits of utilizing a cost cutting self-sustaining entity such as biodiesel. The facility also allows for further development of world leading bioenergy programs by providing a tangible demonstration of application. It will be a great complement to the research currently being conducted at the University concerning bioenergy 8. Once again, a production facility provides the model which will bridge the gap between the lab and industry. It allows for the research currently being done at the University to have applied industrial data, which puts the University at the forefront of bringing technology to industry. Closed-Loop Model Create a carbon-neutral University of Florida Create a self-sustaining energy producing facility Produce and utilize a green and sustainable solution for fossil fuels Offer a sustainable solution for University of Florida waste-vegetable oil Offer a sustainable solution for University of Florida solid waste Provide a sustainable solution for University of Florida diesel fuel consumption Provide job opportunities for University of Florida students and employees Closed-Loop System: System in which some or all of its output is used as an input The facility is closed-loop and self-sustaining on two fronts. Environmentally, the facility offers solutions to University waste and brings the University to a near carbon 6 UF/IFAS has extension offices in each of Florida s 64 counties. 12 Research and Education Centers (RECs), Research and Demonstration Sites (RDSs), and several other offices are located throughout the state 7 Extension is a partnership between state, federal, and county governments to provide scientific knowledge and expertise to the public. UF/IFAS Extension encompasses thousands of Extension faculty memebers, scientists, educators, administrative staff, and volunteers, all working to provide solutions for your life 8 Currently the University has the Florida Institute for Sustainable Technology and the Florida Center for Renewable Chemicals and Fuels

7 neutral state. Economically, the facility sustains itself through revenues generated from its fuel production. A closed-loop system utilizes most, if not all waste. A biodiesel production facility at the University of Florida provides a closed-loop system to the University, which brings it closer to achieving carbon neutrality. The facility converts UVO, which is considered a waste, into fuel to power its vehicles. This creates a greener and cleaner environment at the University of Florida through the cleaner emissions, proper waste disposal and carbon offsets provided by biodiesel. Often UVO is improperly disposed of. It is either dumped out, included with garbage or poured down the drain. These actions are extremely harmful to the local soil, water supply and environment. A facility provides an appropriate avenue for the handling of UVO, which is considered a hazardous waste. Economically, the facility provides a cost savings from fuel it provides to the university, cost avoidance from having had to have its UVO collected by an outside private company, and by avoiding possible fines due to improper housing or disposal. Biodiesel provides an inexpensive and sustainable alternative to the current fueling situation at the University of Florida. It is a green and sustainable solution for fossil fuels which help provide a closed-loop, carbon-neutral, cost-cutting solution to the University. The Market Market Analysis The market for The University of Florida biodiesel production facility is The University of Florida s Physical Plant Division, which houses the University s vehicle fleet. University of Florida Fleet Facts 9 Currently owns and operates over 1900 motor vehicles o Over1200 of which are sedans, light & medium trucks, vans and SUVs Currently over 30 different manufacturers of vehicles Over 200 new vehicles are purchased every year o 257 in FY Data from University of Florida Physical Plant Division Vehicle Management Plan revision

8 Diesel Consumption Physical Plant s Diesel Usage / / / / /2009 Gallons Purchased 84, , , , Amount Spent 165, , , , Average Price $1.97 $2.52 $2.60 $3.30 $3.18 Physical Plant currently purchases nearly 500,000 gallons of fuel per annum in order to keep its vehicles running. Over 80,000 of those gallons each year are diesel fuel, in order to keep its 219 diesel vehicles running. Past Biodiesel Consumption The University of Florida s Physical Plant Department has purchased biodiesel from a facility housed within the University in the past. The University s previous biodiesel operation was housed within the IFAS department and primarily used for research 11. From the information we gathered, the Physical Plant Department never experienced any problems with biodiesel until the on-campus facility was shut down and they began to purchase from the private sector. Potential Problems from Private Industry When purchasing biodiesel from private firms, quality becomes a major concern. Since the private sectors primary objective is to make profit, their quality is often dependent on costs. Feedstock makes up to 80% of a private biodiesel firm s total costs 12. Through our research we found that many private firms substitute virgin oils with animal byproducts in order to mitigate costs. Animal byproducts can be used to produce biodiesel, but facilities that are not specifically designed to handle those feedstocks cannot produce a high quality fuel from them. The University of Florida s Physical Plant Department suffers the effects of this cost mitigation strategy when purchasing biodiesel from private firms. Using a low grade fuel puts the Physical Plant Department in danger; as it puts vehicles at risk and it prevents the department from honoring warranties on vehicles. Since such a large amount and variety of vehicles are serviced and fuel at Physical Plant, it is important that those vehicles are provided with the highest standard and quality fuel possible to ensure longevity. 10 Data from University of Florida- Motor Pool Department Fuel Usage 11 Research conducted by graduate student Doug Renk under the direction of Dr. Pullammanappallil Pratap of IFAS 12 Information collected from Purada Processing LLC. (Worldenergy) A biodiesel processing plant we visited located in Lakeland, FL

9 Benefits from UF Biodiesel Having a biodiesel production facility operated by the University of Florida, the Physical Plant Division specifically, allows the University to provide the highest quality fuel possible and to maintain a safe, cost-efficient environment to the department and the University. The over 500,000 gallons of fuel per year the Physical Plant Department purchases makes it very sensitive to market changes in fuel price. The facility allows PPD to have a stable price and better forecast the cost of fuel throughout the year. Supply Feedstock Supply Currently feedstock is provided to the University biodiesel project at no charge by Gator Dining Services- ARAMARK. This provides a great advantage to private industry, because as previously stated, the majority of the cost of producing biodiesel comes from feedstock. We are fortunate that there is a large enough supply of UVO (Used Vegetable Oil) at the University of Florida to be able to satisfy its demand for biodiesel. Approximate UVO Supply Approximate UVO Supply Price Quantity Cost Weekly $0.00 per gallon 350 gallons $0.00 Monthly $0.00 per gallon 1,400 gallons $0.00 Yearly $0.00 per gallon 16,800 gallons $0.00 Our assumption for UVO is based on amounts that we have previously collected from Gator Dining Services- ARAMARK. The locations from which we previously collected include: Gator Corner Dining Center Fresh Food Company (Broward Dining Center) Chili s/ Moe The Racquet Club Wendy the Reitz Union 13 the Hub Other On-Campus Sources We believe that there are a number of additional options from which to expand our supply of feedstock. One is Fraternity and Sorority houses. They are located oncampus, provide meal plans and would be an ideal source for additional UVO. Another is home football games as well as other sporting events. During home football games, for example, many vendors set up in and around Ben Hill Griffin Stadium in order to sell 13 Wendy s will no longer be at the Reitz Union, but it is to be replaced with a Cheebuger Cheeburger, which will provide a similar amount of UVO

10 fried goods to the over 90,000 that attend. Utilizing these additional on-campus UVO sources would be great in order to ensure that all of Physical Plant s demand for biodiesel is always met. Additional On-Campus Sources Although the above would have immediate impacts on the amount of feedstock for biodiesel conversion, there are several other on-campus options that can be explored as well. These programs would have a hand in creating a truly sustainable environment throughout the University of Florida. Along with the on-campus eateries, students, faculty and staff also cook or use vegetable oil at some point. The University can have a number of UVO collection points throughout campus in order to encourage the proper disposal of used vegetable oil, which is considered hazardous waste. All are welcome to use the collection points including students who cook in the dorms, students who cook off-campus, along with faculty and staff 14. Not only will the program provide the biodiesel facility with additional feedstock, it will also promote a more environmentally conscience community on-campus and throughout the City of Gainesville as well. Possible Off-Campus Sources There is always the possibility of collecting UVO from off-campus sites. Our research indicates that many owners of off-campus businesses are in favor of sustainability but have no real options when it comes to the disposal of their UVO 15. If given the opportunity those owners and managers would like to see their UVO go to a sustainable option such as biodiesel Currently a number of municipalities in the State of Alabama use community collection points to provide feedstock (UVO) to their biodiesel programs 15 Many local business owners are almost forced to use Griffin Industries to collect their UVO because they are not aware of any other reliable source 16 Many local business owners support the Gainesville Community and shared with us that if given the opportunity they would donate and contribute to a University of Florida biodiesel effort

11 Our Proposal Situation Biodiesel is typically used as a 20% blend with diesel fuel. Physical Plant s average demand of diesel fuel for the last five years has been 84,394.5 gallons 17, twenty percent of which would be 16,878.9 gallons. Our assumption for UVO collection per week is about 350 gallons, which would yield 16,800 gallons per year, enough to satisfy the demand for biodiesel from Physical Plant. Given The University of Florida Physical Plant Department s demand for diesel fuel and Gator Dining Services- ARAMARK s supply of UVO it is the ideal situation to create a closed-loop, sustainable system through biodiesel. Proposal Therefore we propose the building of a biodiesel facility, the size to satisfy the Physical Plant demand, at the University of Florida. A facility of this size would be relatively inexpensive and provide tremendous benefits to the University along with satisfying the Physical Plant Department s demand for biodiesel. The best approach for a University of Florida biodiesel production facility is to account for being a model for the state and the nation, keeping in mind that the eyes of the media, senators and local citizens will be on the facility. Our proposal is for a Stainless Steel facility, in order to be a suitable example for sustainable technology through biodiesel to others. Facility Costs The cost of a biodiesel facility at the University of Florida depends on a number of factors, location of the facility being the main factor. Location affects the initial cost of constructing the facility. Bringing a location up to safety and code standards is essential and, if necessary, will add to cost. The costs our research has yielded include materials, fabrication and the cost of labor to construct a facility. All the numbers provided are based off of actual industry prices and costs. Although our direct proposal is for a Stainless Steel facility we have included the costs for a plastic based facility as well. We feel that having a facility, of either material will greatly benefit the University of Florida, its constituents, as well as the Great State of Florida. 17 Based on an average of PPD consumption numbers provided to us by Mr. Jon Priest Head of UF Motor Pool

12 UF Biodiesel Estimated Facility Cost Plastic Part Amount Price Cost Collection Equipment Truck $ gal Totes 3 $75.00 $ Diesel Sump Pump 1 $ $ Hose 1 $ $ Transfer & Storage System Truck Transfer Station 1 $ $ gpm Magnetic Drive Pump 1 $ $ Reactor Tanks 38 gpm Magnetic Drive Pump 1 $ $ gal Methoxide Mixing Tank 1 $ $ gal Transesterification Reactor 1 $1, $1, gal Cone Bottom Settling Tank 1 $ $ Preprocessing System for UVO (Acid Esterification) 1 $2, $2, Methanol Recovery Column 1 $1, $1, Magnesol Cleaning System 1 $2, $2, Safety System & Lab Equipment Titration Equipment 1 $1, $1, Safety Glasses 3 $14.50 $43.50 Safety Gloves 3 $47.00 $ Aprons 3 $22.50 $67.50 Total Equipment Cost $12, Fabrication Costs 19 Piping, insulation, foundations structural supports, instrumentation and electrical, painting 20% of plant cost $2, Freight, insurance and taxes 5% of plant cost $ Construction overhead 15% of plant cost $1, Contractor engineering expenses 20% of plant cost $2, Labor to install the equipment 10% of plant cost $1, Total Fabrication Costs $8, Total (Plastic) Facility Cost $20, Assuming the use of a physical plant vehicle for collection once per week 19 Based on multiples provided by Perry s Chemical Engineering Handbook

13 UF Biodiesel Estimated Facility Cost Stainless Steel Part Amount Price Cost Collection Equipment Truck $ gal Totes 3 $75.00 $ Diesel Sump Pump 1 $ $ Hose 1 $ $ Transfer & Storage System Truck Transfer Station 1 $ $ gpm Magnetic Drive Pump 1 $ $ Reactor Tank 38 gpm Magnetic Drive Pump 1 $ $ gal Methoxide Mixing Tank 1 $1, $1, gal Transesterification Reactor 1 $2, $2, gal Cone Bottom Settling Tank 1 $1, $1, Preprocessing System for UVO (Acid Esterification) 1 $2, $2, Methanol Recovery Column 1 $1, $1, Magnesol Cleaning System 1 $2, $2, Safety System & Lab Equipment Titration Equipment 1 $1, $1, Safety Glasses 3 $14.50 $43.50 Safety Gloves 3 $47.00 $ Aprons 3 $22.50 $67.50 Total Equipment Cost $16, Fabrication Costs 21 Piping, insulation, foundations structural supports, instrumentation and electrical, painting 20% of plant cost $3, Freight, insurance and taxes 5% of plant cost $ Construction overhead 15% of plant cost $2, Contractor engineering expenses 20% of plant cost $3, Labor to install the equipment 10% of plant cost $1, Total Fabrication Costs $11, Total (Stainless Steel) Facility Cost $27, Assuming the use of a physical plant vehicle for collection once per week 21 Based on multiples provided by Perry s Chemical Engineering Handbook

14 UF Biodiesel Estimated Operating Expenses Per Annum Physical Plant Demand Yearly Diesel Consumption 22 Biodiesel B , gallons 16, gallons Raw Materials Price Quantity Cost UVO Supply Weekly Supply $0.00 per gallon 350 gallons $0.00 Yearly $0.00 per gallon 16,800 gallons $0.00 Liquid Chemicals Price Quantity Cost Methanol $2.91 per gallon 1,400 gallons $4, Sulfuric Acid $7.20 per gallon 77 gallons $ Dry Chemicals Sodium Hydroxide $0.95 per pound - - Potassium Hydroxide $2.39 per pound 1,201 pounds $2, Magnesium Silicate $1.19 per pound 878 pounds $1, Lab Supplies Isopropyl Alcohol $51.00 per liter 1 liter $51.00 Toluene $80.00 per liter 1 liter $80.00 Sodium Hydroxide $34.50 per liter 1 liter $34.50 Potassium Hydroxide 1N (50ml) $20.50 per liter 1 liter $20.50 Total Material Costs $8, Operations Waste Treatment $0.20 per gallon 3,360 pounds $ Energy for production $ per KWH 10,000 kwhr $1, Operating Labor $13.94 per hour 384 hrs per yr $5, Based on the assumption that the facility would pay the PPD employee for labor Based on PPD avg salary for mechanical employee 28-29K 1 day per week Total Operational Cost $7, Total Operating Cost (1 year) $15, Manufacturing Cost per gallon of biodiesel Based on average of last 5 years 23 Biodiesel is mixed with diesel at 20%

15 UF Biodiesel Estimated Operating Expenses Per Annum (PPD Labor) Physical Plant Demand Yearly Diesel Consumption* Biodiesel B20* 84, gallons 16, gallons Raw Materials 24 Price Quantity Cost UVO Supply Weekly Supply $0.00 per gallon 350 gallons $0.00 Yearly $0.00 per gallon 16,800 gallons $0.00 Liquid Chemicals Price Quantity Cost Methanol $2.91 per gallon 1,400 gallons $4, Sulfuric Acid $7.20 per gallon 77 gallons $ Dry Chemicals Sodium Hydroxide $0.95 per pound - - Potassium Hydroxide $2.39 per pound 1,201 pounds $2, Magnesium Silicate $1.19 per pound 878 pounds $1, Lab Supplies Isopropyl Alcohol $51.00 per liter 1 liter $51.00 Toluene $80.00 per liter 1 liter $80.00 Sodium Hydroxide $34.50 per liter 1 liter $34.50 Potassium Hydroxide 1N (50ml) $20.50 per liter 1 liter $20.50 Total Material Costs $8, Operations 25 Waste Treatment $0.20 per gallon 3,360 pounds $ Energy for production $ per KWH 10,000 kwhr $1, Operating Labor $13.94 per hour 384 hrs per yr $ Based on the assumption that the facility would pay the PPD employee for labor Based on PPD avg salary for mechanical employee 28-29K 1 day per week Total Operational Cost $1, Total Operating Cost (1 year) $10, Manufacturing Cost per gallon of biodiesel Chemical Costs acquired from Perry s Chemical Handbook, Fisher Scientific and DSI Fabrications 25 Based on University of Florida Physical Plant Department pricing for energy and labor 26 Assuming the employee belongs to PPD or that PPD will pay the once-a-week employee

16 UF Biodiesel Income Statement Facility Supplying Labor / / / / /2014 Biodiesel Sales (Gallons) 16, , , , , Biodiesel $2.00 per gallon 33, , , , , Less: Cost of $ , , , , , Gross Margin 17, , , , , UF Biodiesel Other Revenues: 28 Fuel Standards Testing Grant Funds Received Private Sponsorship Funds Curriculum Fees Workshop Revenue Conference Revenue Consulting Glycerin Revenue UF Soap Misc. Revenue & Donations Tax Credits Total Other Revenues Total Revenue 29 UF Biodiesel Minimal Return on Investment 30 Facility Supplying Labor Net Income Initial Cost 31 1st Year 2nd Year 3rd Year 4th Year 5th Year ROI 32-27, , , , , , % 27 Labor not supplemented by Physical Plant Department, paid for entirely from facility funds 28 Based upon other revenue drivers that a biodiesel production facility will yield; discussed in detail in proposal 29 Total Revenues will exceed the gross margin, which only includes net income from the sale of biodiesel 30 Minimal because it is only taking into account revenue generation from biodiesel itself, without taking into account the additional revenue that would be generated by having a facility 31 Assuming the purchase of a Stainless Steel Facility 32 Return on Investment also know as Internal Rate of Return, to the University of Florida

17 UF Biodiesel Income Statement PPD Supplying Labor / / / / /2014 Biodiesel Sales (Gallons) 16, , , , , Biodiesel $2.00 per gallon 33, , , , , Less: Cost of $ , , , , , Gross Margin 23, , , , , UF Biodiesel Other Revenues: 34 Fuel Standards Testing Grant Funds Received Private Sponsorship Funds Curriculum Fees Workshop Revenue Conference Revenue Consulting Glycerin Revenue UF Soap Misc. Revenue & Donations Tax Credits Total Other Revenues Total Revenue 35 UF Biodiesel Minimal Return on Investment 36 PPD Supplying Labor Net Income Initial Cost 37 1st Year 2nd Year 3rd Year 4th Year 5th Year ROI 38-27, , , , , , % 33 Assuming that Physical Plant Department would still pay the once per week employee through their funds 34 Based upon other revenue drivers that a biodiesel production facility will yield; discussed in detail in proposal 35 Total Revenues will exceed the gross margin, which only includes net income from the sale of biodiesel 36 Minimal because it is only taking into account revenue generation from biodiesel itself, without taking into account the additional revenue that would be generated by having a facility 37 Assuming the purchase of a Stainless Steel Facility 38 Return on Investment also know as Internal Rate of Return, to the University of Florida