The cost of installed plant would be 114 MM $

2. You are interested in building a building a plant in Houston to make 40 MM gal/yr biodiesel (referred to as FAME-fatty acid methyl ester) from soybean oil. The overall process is expected to give a biodiesel yield of 94% from soybean oil, and is shown below: 3 mol soybean oil + 3 mol methanol 1 mol glycerol + 3 mol biodiesel Here are some properties of the raw materials and products: soybean oil methanol glycerol density (g/cm3) 0.92 0.79 1.26 molecular weight (g/mol). 238 32 92 biodiesel 0.88 296 You should be able to get $0.48/1b for the glycerol. The going rate of regular diesel in Houston is $1.86/gal, and you plan to sell your biodiesel directly to consumers. The operating costs for the plant, not including raw materials, are $20 million per year. What price per gallon would you need to sell the biodiesel in order for your project to have a ten year simple payback? The government would like to encourage competitive biodiesel production, so decides to offer an incentive as a one-time cash grant to cover some of your capital costs. How much incentive money would you need in order for your plant to have a simple payback of ten years if you sell your biodiesel product at the same price as regular diesel? 2. You are interested in building a building a plant in Houston to make 40 MM gal/yr biodiesel (referred to as FAME-fatty acid methyl ester) from soybean oil. The overall process is expected to give a biodiesel yield of 94% from soybean oil, and is shown below: 3 mol soybean oil + 3 mol methanol 1 mol glycerol + 3 mol biodiesel Here are some properties of the raw materials and products: soybean oil methanol glycerol density (g/cm3) 0.92 0.79 1.26 molecular weight (g/mol). 238 32 92 biodiesel 0.88 296 You should be able to get $0.48/1b for the glycerol. The going rate of regular diesel in Houston is $1.86/gal, and you plan to sell your biodiesel directly to consumers. The operating costs for the plant, not including raw materials, are $20 million per year. What price per gallon would you need to sell the biodiesel in order for your project to have a ten year simple payback? The government would like to encourage competitive biodiesel production, so decides to offer an incentive as a one-time cash grant to cover some of your capital costs. How much incentive money would you need in order for your plant to have a simple payback of ten years if you sell your biodiesel product at the same price as regular diesel