• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Biodiesel plants

Status
Not open for further replies.

Vernon Martin

Senior Member
Joined
Jun 8, 2005
Professional Status
Certified General Appraiser
State
California
There seems to be a collapse in the prices of biofuel manufacturing facilities, and I am trying to think of an alternative use for a soy diesel plant in a very rural location. I'm thinking of maybe some generic food processing use, but there is no cold storage area.
Has someone else tackled this problem before?
 
There seems to be a collapse in the prices of biofuel manufacturing facilities, and I am trying to think of an alternative use for a soy diesel plant in a very rural location. I'm thinking of maybe some generic food processing use, but there is no cold storage area.
Has someone else tackled this problem before?

Is it set up for any other kind of energy/fuel-related production? Gas? Coal? Nuclear? That would seem the logical course to me... keeping in the same "submarket" but just retrofitting the plant to accommodate the new kind of energy/fuel production. Sunoco is HUGE in my area (they're HQed in Philadelphia) so they might be a potential buyer if your property were around here(unless they're the ones that own the property that you're appraising :icon_mrgreen:). Of course, it's not as if they wouldn't consider a plant in CA (yes, I know this is a double negative). Food processing might be a good use... but the existing pipe work might need a good scrubbing before the ultimate conversion. :laugh:
 
T'is what it t'is....needs mo' obamagic 'cause with subsidies and tax breaks, biodiesel is a $7-9 a gallon fuel...but it's very good fuel without sulphur. Wait a year. With rising energy prices, and cap and trade will crash domestic fuel production (Lion Oil has already announced if it passes in its present form they will have to mothball their refineries) then biodiesel will make a comeback.

Perhaps there is some sort of diesel additive that could be manufactured using biodiesel as the basic ingredient. Something that raises the cetane level or cleans injector pumps, etc. The lubricating properties of biodiesel would seem to make it ideal for an additive to replace sulphur. It supposedly lubricates 50 x conventional diesel.
 
I'm with Terrel. If the property is currently shut down, I think the most probable buyer would be an investor who would hold it until the economic conditions turn favorable to resume biodiesel production. Therefore, rather than consider alternate uses, I would focus my discussion and analysis on the economics of biodiesel and at what price per gallon would the plant become viable again.

The lefties have only been in charge for 5 months and already we have seen crude oil go from $40 per barrel to $70 per barrel.
 
T'is what it t'is....needs mo' obamagic 'cause with subsidies and tax breaks, biodiesel is a $7-9 a gallon fuel...but it's very good fuel without sulphur. Wait a year. With rising energy prices, and cap and trade will crash domestic fuel production (Lion Oil has already announced if it passes in its present form they will have to mothball their refineries) then biodiesel will make a comeback.

Perhaps there is some sort of diesel additive that could be manufactured using biodiesel as the basic ingredient. Something that raises the cetane level or cleans injector pumps, etc. The lubricating properties of biodiesel would seem to make it ideal for an additive to replace sulphur. It supposedly lubricates 50 x conventional diesel.

I would also look at the cost to moth ball it and open it back up in a year or two when the market has recovered. We will return to $4 gas.
 
Went to a ground breaking of a bio fuel plant last week in Texas. Supposed to be first of its kind in US. Several state politicians were there. It is proposed to be cellulose based. Planning on using sorghum.
Can plants be retooled for other types of product to turn into fuel?
 
Went to a ground breaking of a bio fuel plant last week in Texas. Supposed to be first of its kind in US. Several state politicians were there. It is proposed to be cellulose based. Planning on using sorghum.
Can plants be retooled for other types of product to turn into fuel?

Now that soybean oil is too costly, I've seen a couple convert to recycling of restaurant grease and/or animal renderings. The Imperium facility in Washington is now used just to store some other company's imported soybean oil.
 
This whole bio-fuel thing boils down to one thing. There is an old Mid-West farm saying that is "Don't eat your seed corn". What are the people going to eat? Going to put ethanol on your morning eggs and pancakes?
 
This whole bio-fuel thing boils down to one thing. There is an old Mid-West farm saying that is "Don't eat your seed corn". What are the people going to eat? Going to put ethanol on your morning eggs and pancakes?

I prefer to consume my ethanol in the accompanying Bloody Mary.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Back
Top