1. Team Assignments
On Saturday, four segments
of the Ethanol Project were identified: (1) Manufacturing & Production,
(2) Supply, (3) Government Relations & Policy, and (4) Marketing and
Distribution. People volunteered for the segment team they
were interested in; those that weren’t there Saturday were assigned.
The team assignments are as follows:
2. Key Issues for Each Project
Ethanol Project is essentially a feasibility study to determine if an ethanol
plant on Delmarva would be profitable and if it would benefit regional
grain producers. Each
segment team should answer questions towards resolving the feasibility
1. Manufacturing & Processing:
a. Obtain an understanding of the manufacturing processes
b. What is needed in terms of the physical plant (acreage, equipment, transportation
c. What is the capital investment?
d. What are the annual operating costs?
Raw Product Supply:
a. Determine what grains are in enough quantity in the region to produce
b. Determine the purchase cost and transportation costs of each grain
c. Determine if there are any efficiency differences between the grains
and the manufacture of
a. Compare the economics of ethanol versus gasoline for automobiles
b. Identify the logistical challenges of getting the ethanol to consumers
c. Identify marketing costs
d. Will current automobile engine designs facilitate ethanol use?
Relations & Policy
a. Identify any federal, state, or local laws or regulations that inhibit/prohibit
or sale of ethanol
b. Identify the petroleum industry’s position on ethanol
c. Will a Delaware-based ethanol plant impact regional farmers?
d. Could ethanol production on a national scale impact America’s farmers?
1. The plant will
be located on 50 acres at the Port of Wilmington. All transportation
modes are available.
4. Questions to be Answered
by Each Team:
2. The Board
of Directors have dictated that the Wet Manufacturing Process will
be used. Of course, the main product will be ethanol to be blended
with gasoline. The class must determine the market for two by-products:
(1) by-products for animal feed, and (2) some by-product that can be sold
to manufacturers of any other industrial or consumer product.
1. Total capacity of the plant
in gallons produced per year
a. Dependent on projected sales
b. Dependent on supply
2. Raw product of barley or
corn needed to reach capacity
3. Capital Costs
4. Operating Costs
1. Where will the barley or
corn come from?
2. What is the projected cost
of each crop delivered in to the plant?
3. How much Barley or Corn is
needed (See #2 under manufacturing)?
4. What acreage is needed of
Barley or Corn to supply needs?
1. How much ethanol can we market
to customers in the Mid-Atlantic region?
2. Who are these customers?
3. How do we market the animal
feed products? Where?
4. What is the other by-product
and where should we market it? (Communicate with the Manufacturing
1. Are there regulations that
hinder the marketing of ethanol or the by-products.
2. What legislative actions
could enhance the production or marketing of the ethanol or the by-products.
3. What environmental permits
are needed for the plant?
5. OVERALL QUESTION
FOR THE ENTIRE GROUP:
1. Does it Pay:
Evaluate Expenses and Revenue
2. Does it benefit the agricultural
community through the consumption of grain?