Submitted to: National Cotton Council Beltwide Cotton Conference
Publication Type: Proceedings
Publication Acceptance Date: 1/30/2004
Publication Date: 6/1/2004
Citation: Canto, A.M., Sandoval, A., Chiu, D., Beruvides, M., Altintas, P., Holt, G.A., Shields, S., Simonton, J. 2004. Multi scenario case study of a fuel pellet manufacturing operation utilizing cotton waste [CD-ROM]. Proceedings of Beltwide Cotton Conferences. Memphis, TN: The National Cotton Council of America. p. 979-985.
Interpretive Summary: A model was developed to assist in evaluating the feasibility of building and operating a fuel pellet manufacturing facility utilizing cotton gin byproducts in Morton, TX. Several scenarios were evaluated for return on investment, internal rate of return, and number of years till payback. The scenarios evaluated had basically the same general equipment with the exception of whether or not extruders were used. The equipment variations of the three scenarios were: 1) 2 large extruders (350 Hp each), 2) 6 small extruders (150 Hp each), and 3) no extruders. Results from the analysis showed the best scenario to be scenario three using two twelve hour work shifts and producing 15,000 tons per year of product. This scenario yielded a payback in less than one year and resulted in a return on investment of over 100%.
Technical Abstract: The investigation for utilizing cotton processing waste or byproducts as a raw material for manufacturing fuel pellets has continued with the assistance from the USDA. The goal of this project was to develop an economic model to validate the cost feasibility for establishing a fuel pellet operation using cotton gin byproducts. The objectives required a complete and comprehensive analysis of marketing, transportation, and manufacturing aspects. The results concluded within the confines of the analysis that manufacturing fuel pellets from cotton byproducts is a feasible operation. Crystal Ball 2000 simulation software, optimizing for Return on Investment (ROI), resulted in the selection of a two-shift, 12-hour work scenario with a 15,000 ton production capability. This yielded a payback period of less than one year and ROI over 100%.