ESW-RPI Biofuel/Biodiesel Business Plan Presentation

Questions?

"Profit"

Revenue is not only

for program maintenance

Engineers for a

Sustainable World

Past projects:

• Ghana - water pumping & filtration
• Peru - milk pasteurizer
• Haiti - solar-powered computing classroom
• Haiti - shipping container medical ward

Current projects:

• *Haiti - shipping container daycare center
• *Mexico - eco hogar (home)
• *On campus - RPI biodigester
• *Troy High School - K12 solar

Biofuel and ESW

The Big Picture

Achievements to Date

Milestones

• $15,000 worth of equipment purchased

• Process researched and tested

• Proposal drafted

Next Steps

• Acquire funding and grants

• Acquire parts and materials

• Renovate facility

• Acquire approval to sell biodiesel/biofuel

• Disseminate to other colleges

• Research improved processes

Current Partners and

Supporters

• RPI Chemical & Biological Engineering

- Professor Wayne Bequette

- Jeff Marquis

• RPI Mechanical, Aerospace, and Nuclear Engineering

- Professor Michael Jensen

- Professor Wally Morris

• RPI Center for Future Energy Systems

- Marty Byrne

• Sodexo - Hospitality Services at Rensselaer
• Rensselaer Director of Parking, Transportation & Grounds Keeping

Nonprofit Model

"Profit"

It's not just

biodiesel and biofuel

The Leadership Team

Project Coordinator: Ray Parker '16

Operating Officer: Jacob Weber '16

Student Advisor: Andrew Chung '13

Faculty Advisor: Professor Dr. Michael Jensen

Project History:

• 2006 - Initial student interest
• 2009 - Proposal drafted
• 2012 - Current production model

Engineers for a

Sustainable World

Past Projects:

• Ghana - water pumping & filtration
• Peru - solar milk pasteurizer
• Haiti - solar-powered computing classroom
• Haiti - shipping container medical ward

Current Projects:

• Haiti - shipping container daycare center
• Mexico - eco hogar (sustainable home)
• RPI on-campus bio-digester
• Troy High School - solar power & education

The Proposal

A biodiesel and biofuel production facility at RPI that fosters environmental, economic, and social sustainability.

Engineers for a Sustainable World (ESW)

Biodiesel & Biofuel

Business Plan

Phase II

•Build biofuel/ethanol production

plant alongside biodiesel plant

•Gain tax credit for biofuel

production

•Ads through newspaper and radio

Phase III

Why Biodiesel

and Biofuel?

Evidence

Open Source

To encourage and provide support to other universities and establishments that seek to start a biodiesel or biofuel production plant

•Renewable, safe, biodegradable

• Produces about 70% fewer toxins than petroleum-based fuels -100% sulfur free

•Tested, widespread technology

•No modifications to existing engines

•Cheap

Problem: Diesel and

Petroleum-Based Fuels

The Plan

•Produce many harmful wastes when burned

•Current usage will deplete reserves in 59 years

•Over 90% of all energy comes from fossil fuels

•Consumer costs are rising and prices are

becoming even more expensive

•Large contributor to global climate change

Local Impact

•RPI and the Capital District Region are contributing to this problem.

•Engineers for a Sustainable World is committed to changing this.

• Fleet of 30 RPI maintenance vehicles
• Capital District public bus system
• Private diesel vehicles

Presenters: Ray Parker, Andrew Chung, Jacob Weber

The Problem: Energy & Environment

Biodiesel

and Biofuel

Financial Information

Phase I

Build biodiesel production plant at RPI

•Biodiesel Plant - $4,000 - 6,000

•Biofuel Plant - $7,000 - 10,000

•Facility Costs - $25,000

•Already Purchased -$15,000

•Currently applying for grants

•Gallons per week: 100

•Cost per gallon: $1.50

•Projected Income: $4,160 per year

•Projected Costs/Maintenance: $1,000 per year

• Acquire RPI and government approval

• Collect waste vegetable oil

• Propose funding and acquire Blaw Knox facility

• Sell biodiesel out of a pump in North Lot

• Use radio and newspaper ads to attract

customers

•Biodiesel - Fuel made from vegetable

oils or greases that burns like diesel.

•Biofuel - Ethanol made from organic

material and oils that can be used as

an additive to gasoline.

Sell biodiesel at $1.50 per gallon to RPI & consumers

Difference between

Biodiesel and Biofuel

The Location: Blaw Knox

•Biodiesel is refined used-

vegetable oil that can be used in

any existing diesel engine or

turbine.

•Biofuel is ethanol and can be

mixed with standard petroleum

to create hybrid gasoline.

•Only “full-scale” production facility on campus

•Systems & Chemical Engineering and Supply-Chain Management experience

•Reduction of RPI diesel expenses

•Reduction of environmental footprint

•Close proximity to campus and room for expansion

•Ability to adapt to fire code/government standards.

Business Model

Phase I - Create a biodiesel production plant and

sell biodiesel to RPI

Phase II - Create a biofuel/ethanol production

plant and sell biodiesel/biofuel to gas

consumers

Phase III - Expand this system to other colleges

Solution: Biodiesel

and Biofuel

•Build a biodiesel & biofuel production plant

•Sell fuel to RPI, public transportation and community at half the current cost

•Profit of 30% goes towards funding future sustainability projects at RPI

How to make the Biofuel/Ethanol and Biodiesel

Chemical Process

A base catalyzed transesterification reaction

KOH

Waste vegetable oil pretreatment

(filtration, drying, converting free fatty acids)

Main chemical reaction

WVO + MeOH -> biodiesel + glycerol

Post treatment

separation, distillation, refining

Methanol

+

Triglycerides (WVO)

Glycerol

+

Methyl Esters (biodiesel)

Market and Demand

Milestones and Award

Increments

Competition

- Renovate facility room - $25,000

- Acquire parts and material - $15,000

- Implement idea to other colleges - $0

Local Market:

•Capital District Transport Authority (200 vehicles)

•RPI grounds keeping vehicles (40 vehicles)

•Other private diesel vehicles in the area

Marketing: Radio and Newspaper Ads

•2500 gas stations in New York.

•2 Biodiesel companies in New York.

•15 Biofuel companies in New York.

•Avg. price of diesel: $3.90 per gallon

•Price of our biodiesel: $1.50 per gallon

Differences between us and competition:

•Sustainability driven nonprofit

•Supplements student experience

through research and education