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Feasibility Study for Constructing and Operating a Facility to Manufacture Fuel Pellets from Cotton By-Products

Published by the American Society of Agricultural and Biological Engineers, St. Joseph, Michigan

Citation:  Paper number  031165,  2003 ASAE Annual Meeting . (doi: 10.13031/2013.13981) @2003
Authors:   Greg A. Holt, James L. Simonton, Mario G. Beruvides, Ana Maria Canto
Keywords:   Fuel-Pellet, COBY, Gin Waste, Pellet Stove, Gin Trash, Economic Analysis, Energy

The objective of this study was to explore the cost feasibility of creating a fuel pellet manufacturing operation utilizing cotton gin by-products from a commercial gin processing 55,000 bales of cotton per year. An economic model was developed and evaluated in order to conservatively address the effects of key elements such as marketing, transportation, and manufacturing. The cost system model was developed and analyzed to examine the factors influencing the sensitivity of critical areas such as cost and profits. The cost system model simulated changes for twenty-three cost variables associated with the proposed fuel pellet operation. Results from the analysis indicate the probability of obtaining a 15% return on investment as 34.4% or 59.1% depending on whether the product was shipped to various distribution hubs via truck or rail, respectively. Based upon the information contained in this study, it appears that a fuel pellet operation can be a viable means of utilizing cotton gin byproducts to enhance revenue.

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