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Young Entrepreneur Forums » General Business » General Business » how much would it cost to make an ethanol plant? and is it worth it



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Old 10-13-2006, 07:09 PM   #1 (permalink)
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how much would it cost to make an ethanol plant? and is it worth it

Just wondering the gov't here in Canada has a law which says that a required amount of ethanol must be inputted with gasoline,

so how much would it cost to make an ethanol plant? and is it going to make any money?

I think that the gas companies would be looking for suppliers of ethanol, and therefore there will be a demand for it.
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Old 10-13-2006, 07:45 PM   #2 (permalink)
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I really think an ethanol processing plant would be a huge undertaking, especially if you're going to grow plants yourself. Then you'd pretty much need a farm.
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Old 10-13-2006, 08:33 PM   #3 (permalink)
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I have to come up with a good idea for a new venture project for school, were basically just going to make a business plan out of it....and making an ethanol plant is the best thing I have come up with right now....

anyone else got any beter ideas?

I appreciate the help

thanks a lot
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Old 10-13-2006, 09:37 PM   #4 (permalink)
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lol you better break out the hazmat suits.

Seriosuly though, I think you can probably come up with something you like that works better.
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Old 10-13-2006, 11:29 PM   #5 (permalink)
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That would be a very difficult business plan.
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Old 10-13-2006, 11:35 PM   #6 (permalink)
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there was a article that tlked about cost and they said it was fairly inexpensive but i dont rember numbers
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Old 10-13-2006, 11:54 PM   #7 (permalink)
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It is actually fairly in-expensive to do. Work out a contract with the farmers of canada who are starving for one and we grow corn a plenty. The word 'Plant' is what makes it sound so expensive but in all reality you wouldnt really need one. An old warehouse space out in the boondocks with fairly low property value could be converted into an ethanol manufacturing plant where you could probably hire some vaulenteers from greenthumb groups to help you launch.

The converting of the warehouse to a plant would be the most expensive part but you can save a ton of money elsewhere. Then not only can you supply the gas companies with the ethanol they need for the fuel blend but you can also negotiate ethanol pump sales to pump out 95% ethanol gas. All GM vehicles since 2000 have been outfitted with gas tanks able to take up to 95% ethanol fuel.
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Old 10-16-2006, 11:52 AM   #8 (permalink)
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$65MM according to this article http://www.forbes.com/2005/11/15/ene..._jennings.html

$40MM to $65MM according to this site http://www.ag.ndsu.nodak.edu/qbcc/Ho...%20plants1.htm

$80MM+ http://www.motortrend.com/features/a...06/112_news27//
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