How much product (manure) does it take to make a gallon of diesel?
The process utilizes between 55 – 135 pounds of moist product to make a gallon of diesel product, depending on the feedstock characteristics.
How much does it cost to make a gallon of fuel?
Operating costs are expected to vary between $1.25 and $1.65 per gallon, depending on the size of the system, the number of modules and the local costs of utilities and operator/maintenance personnel. AWS’ operating costs are lower than many liquid fuel production facilities because we move the equipment to the feedstock rather than the other way around. AWS minimizes infrastructure and utility costs by keeping the modules small and portable and by producing its own utility needs (e.g. gas, electricity, clean water, heat) where necessary. By selling the fuel directly to a biofuels distributor and taking advantage of available incentives and credits, we reduce the operating costs of additional refining and distribution.
What is the Return on Investment?
The return on invested capital to each of the project’s investors, including the farm partners, is expected to be 3 years or less, based on the feedstock characteristics, energy sales pricing and the size and the number of modules deployed. Each project equity investor will co-own the project and derive net cash returns from the project based on their percentage of ownership.
Based on dairy size how is this project financed?
Project financing will begin as a combination of debt and equity, with larger projects (> 3000 dairy head) requiring a third-party financial partner and/or a project developer as an owner(s) in addition to AWS and the farm partner. We intend to begin with larger projects (> 3000 dairy head) where the higher returns will attract third-party financial investors. Once AWS is able to finance projects without a third party owner, we will have more flexibility to tailor systems to individual, smaller farms and their on-farm energy needs rather than the off-farm energy sales that external investors will require.
Who would install this if I bought one?
AWS does not intend to sell its systems directly to a single owner, but instead will enter into project partnerships. AWS will oversee the engineering, manufacturing, installation, operations and maintenance of its systems, and the project partnership will incur the installation, operations and maintenance costs on the farm.
What does AWS do for me? Does AWS have any risk or incentives for success?
AWS brings to each project its patented process and equipment as well as the licensing rights to utilize its process and equipment in the ag markets. AWS brings the debt and equity financing of the projects and will sell the licensed process/equipment to the project at cost. Having authored successful grant executions and standards, AWS also brings available grant funding to its projects. (e.g. EQIP Gasification, carbon credits). AWS brings the only full operating permit qualifications in the industry from the most stringent air quality district.
Most importantly, AWS brings its expertise in maximizing the revenue and income potential from manure and other ag resources. As our project base expands, we will leverage our continually growing skill and performance enhancements in all of our existing projects to further maximize their income potential. AWS expects to own 50% or more of the projects in which we participate, so we will share the rewards with producers as our preferred project partners. If we can help bring more income to our producer partners, then we will also bring more income to AWS and its shareholders. When the partnerships succeed, individual partners prosper.