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Some numbers from the past. (blogs) 8

Let's continue with the math on a industrial algae
system that converts 25,000 scfm of CO2 into crude algae oil and dry algae meal.
BTW, what is going to happen to the very 'thin' market
of high priced speciality products when, let's say 50
of these systems come on line? Can you say ""POOOF""!

ANSWER TO QUESTION #3 OF "MONDAY MATH." POST 2
Question #3: What is the GROSS returns in dollars for the production of two algae products....oil and protien meal? We assume that the algae production will be equally divided; 50% oil and 50% meal.

Here are some additional assumptions: oil sells for $80.00 per barrel, algae meal sells for $300.00 dollars per ton.

OK, here we go.....

Lets solve this problem for one days production first.

We know from Q #2 that we are producing 793.368 tons
of dry algae per day from a CO2 source of 25,000 scfm.

We assume that this dry algae is 50% oil and 50% meal.

793.368 tons per day of dry algae
./. 50% 50/50 oil and meal
= 396.684 tons of oil and tons of meal per day

Lets work with the meal first.

396.684 tons of meal per day
X $300 $300.00 per ton = ~what SBOM is worth
119,005.20 Dollars per day for algae meal

Now lets work the returns for the algae oil.

396.684 tons of oil per day
X 2,000 lbs. per ton
= 793,368 lbs. oil per day

793,368 lbs. oil per day
./. 7.5 lbs. per gallon of oil
105,782 gals of oil per day

105,782 gals of oil per day
./. 42 gals of oil per barrel
=2,518.6 barrels of oil per day
X $80 $per barrel
=$201,488 Dollars per day from algae oil
119,005.20 Dollars from algae meal per day
=$320,493.20 Total gross dollars per day

WHAT IS RETURN PER MINUTE?

320,493.20 returns per day for oil and meal
./. 1,440 # of minutes in a day
= $222.56 Dollars per minute

WHAT IS THE DOLLARS PER YEAR??

$320,493.20 returns per day for oil and meal
X 365 Days per year
=$116,980,018.00 GROSS Return per year 25,000 scfm

NOW THERE IS A WORTH WHILE GOAL!

HAVE A GREAT WEEKEND

A man and his dog.

Alan Schaefer and "Annie"


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Sun August 22 2010 03:58:42 PM by SAMDevelopment algae  |  algae math  |  Alan Schaefer 2090 views

Comments - 3

  • Shankar wrote:
    Sun August 22 2010 08:19:53 PM

    That is it Alan ! Way to go !

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  • Shankar wrote:
    Sun August 22 2010 08:27:45 PM

    $ 11.7 m pa !! Shankar, what do you mean, I would like to answer this but I need to be sure of what you are saying.
    Cheers, Alan Schaefer

    That is fantastic !
    So, what does it take to set up a system / PBR that takes in 25000 scfm of CO2 and converts it into algae oil ?
    What material ?
    How does the material flow ? What nutrients ?
    Mixing ? Energy required ?
    And ofcourse the standard questions of what strain and how does one control heating up etc ?
    Your maths has always been right althrough 72 years :-)


    Shankar, All very good questions and they will be answered when the time is right.

    I have the answers but the time is not right.

    We need to run 'proof of concept' tests first. Actually there are no new concepts involved, just applying them in
    a common sense way and on a very large scale.

    I like Scipio's motto; "GET BIG OR GO HOME".

    I like the old saw, "FORM FOLLOWS FUNCTION"

    If one puts the two together......it's awesome!!

    Alan Schaefer

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  • Shankar wrote:
    Sun August 22 2010 08:28:25 PM

    What do u mean " thin " market of speciality products ?

    Shankar: By 'thin' market I mean a market that can be easily disturbed. i.e. the speciality alga product market is artifically high because the supply is very limited,"thin"
    and the demand is relatively speaking, high. This market will quickly lower price when supply quickly satisfies demand. If diamonds where as common as gravel, where would the price be?? Alan Schaefer

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