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Blogs under tag Alan Schaefer

Some numbers from the past. (blogs) Posted by SAMDevelopment on Sun August 22 2010 03:58:42 PM 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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