Lcw276i PDF

Project document
Design and feasibility study of an

ethanol distillery in Guyana
Eduardo Algodoal Zabrockis

Manlio F. Coviello
Economic Comission for Latin America and the Caribbean (ECLAC)
This document has been prepared by Eduardo Algodoal Zabrockis, consultant of the Natural Resources and Infrastructure
Division of ECLAC and Manlio Coviello, Economic Affairs Officer of the same Division, within the activities of the project
Energas Renovables para el Desarrollo Productivo Endgeno de Pases Alto-Andinos y del Caribe Meridional
(ITA/06/001), in collaboration with the Government of the Republic of Guyana.
The views expressed in this document, which has been reproduced without formal editing, are those of the authors and do
not necessarily reflect the views of the Organization.
United Nations Publication

LC/W.276
Copyright United Nations, october 2009. All rights reserved
Printed in Santiago, Chile United Nations.
ECLAC Project Documents collection
Design and feasibility study of an ethanol distillery in Guyana
Contents
Overview
...................................................................................................................................7
I.
Introduction................................................................................................................................. 11
II.
Basic design data and technical criteria ...................................................................................... 13
III.
Engineering design basis ....................................................................................................19
III.1 Process............................................................................................................................ 19
III.2 Raw material .................................................................................................................. 20
III.3 Product ........................................................................................................................... 20
III.4 Process description......................................................................................................... 22
III.5 Input requirements.......................................................................................................... 25
III.6 Other operating parameters ............................................................................................ 26
III.7 Specifications of inputs .................................................................................................. 26
IV. General investment items............................................................................................................ 31
V. Basic layout and site location ..................................................................................................... 33
VI. Economical - Financial analysis ................................................................................................. 37
VI.1 Guyanas Ethanol demand estimate ............................................................................... 38
VI.2 The Ethanol sales price definition .................................................................................. 39
VII. World economic reorganization.................................................................................................. 59
VIII. Conclusion .................................................................................................................................. 61
VIII.1 The project...................................................................................................................... 61
VIII.2 The macro-economic scenario........................................................................................ 62
VIII.3 The funding .................................................................................................................... 62
IX. Recommendations....................................................................................................................... 63
Bibliography ...................................................................................................................................... 65
Annex A- Suppliers detailed package ....................................................................................... 67
Annex B - Oil, Mogas, Ethanol Prices Statistical General References ...................................... 83
Annex C - Ethanol Production, Import-Export General Statistics.............................................. 89
Annex D - CBI Ethanol Production, Import-Export Data .......................................................... 90
Annex E - PRAJs Project Similar Ethanol Plants ..................................................................... 93
Annex F - Typical Vinasse Fertigation in Dry Land, Brazil....................................................... 94
Tables
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Personnel and shifts ...................................................................................................... 13

Plant capacity ................................................................................................................ 15
Typical molasses specification...................................................................................... 15
Typical viscosity range of cane molasses ..................................................................... 16
Specifications recommended by the Brazilian International Trade
Association (IETHA) .................................................................................................... 16
The vinasse of molasses composition ........................................................................... 18
The preliminary design is based on molasses C............................................................ 20
Fuel grade ethanol as per ASTM D-4806 ..................................................................... 21
Vinasse production and solids concentration ................................................................ 21
Utilities and chemicals .................................................................................................. 25
Lees and steam condensate ........................................................................................... 26
Molasses-c quality process specification ...................................................................... 26
Efficiencies according to volatile acids variation in molasses-C .................................. 28
Yields of ethanol per ton of molasses-C ....................................................................... 28
Petroleum consumption ................................................................................................ 38
Growth of gross domestic product ............................................................................... 38
Project general data....................................................................................................... 38
Mogas average CIF prices............................................................................................. 39
Ethanol world market prices ......................................................................................... 39
Assumptions.................................................................................................................. 40
Revenue and costs ........................................................................................................ 42
Disbursement cronogram ............................................................................................. 43
Capital expenditures ..................................................................................................... 46
Amortization schedule ................................................................................................. 48
Cashflow ...................................................................................................................... 49
Income statement ......................................................................................................... 50
Sensivity........................................................................................................................ 52
Cashflow - price ........................................................................................................... 53
Cashflow - molasses price ............................................................................................ 54
Cashflow - investment ................................................................................................. 55
Macro economical scenarios ......................................................................................... 57
Critical and proprietary equipment provided by suppliers on
CIF Georgetown Guyana basis ..................................................................................... 69
Capital bought out equipment within packet on CIF Georgetown Guyana basis ........ 70
Equipment to be fabricated by project on site under suppliers specification............... 71
Critical and proprietary equipment and components by supplier on
CIF Georgetown Guyana basis ..................................................................................... 71
Bought out items by the supplier on CIF Georgetown Guyana basis ........................... 72
Equipment to be fabricated by the project on site under the suppliers specifications . 73
Critical and proprietary equipment provided by the supplier on CIF
Georgetown Guyana basis............................................................................................. 73
Bought out items by the supplier on CIF Georgetown Guyana basis ........................... 73
Equipment to be fabricated by the project on site under the suppliers specifications . 74
Stage I ........................................................................................................................... 74
Stage II .......................................................................................................................... 74
Bought out items by the supplier on CIF Georgetown Guyana basis Stage I ............... 75
Equipment to be fabricated by the project on site under the suppliers specifications 75
Instrument list for hiferm fermentation section ......................................................... 75
The description relates the instruments which belong to the distillation system,
bought by the supplier................................................................................................... 76
Instrument list for molsieve section .............................................................................. 77
Table
Table
Table
Table
48
49
50
51
Instrument list for ecovap evaporation section .......................................................... 78

PLC & basic specification............................................................................................. 78
Bought out components ................................................................................................ 80
Front - end battery limits............................................................................................... 80
1
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3
4
5
6
7
B1
B2
B3
B4
B5
B6
B7
B8
B9
C1
D1
D2
D3
D4
D5
E1
E2
F1
F2
Project Location ............................................................................................................ 14

Basic Layout ................................................................................................................. 34
Site Location Layout reference drawing ...................................................................... 35
Site Location Aerial View............................................................................................. 36
Variation graph ............................................................................................................. 52
Sensitivity Variation ..................................................................................................... 62
Typical PLC basic control automation system.............................................................. 79
Oil, Mogas, Ethanol Prices Statistical General References........................................... 83
US Real Gasoline Price: Annual Average 1919-2009 .................................................. 84
US Regular Gasoline Prices: Nominal and Real........................................................... 84
US Imported Crude Oil Prices: Nominal and Real ....................................................... 85
Platts Ethanol NY 5-15 x Nymex Gasoline .................................................................. 85
Platts NY 5-15 x Brazilian Domestic Price................................................................... 86
Price Index .................................................................................................................... 86
Landed Costs of Crude Oil Import from Selected Countries ........................................ 87
US Ethanol Market Prices............................................................................................. 88
Ethanol Production, Import, Export General Statistics ................................................. 89
US Ethanol Imports - 2007 ........................................................................................... 90
Dehydration Capacity ................................................................................................... 90
CBI Capacity Share 2007........................................................................................... 91
CBI Capacity x Quota ................................................................................................... 91
US Ethanol Imports from CBI - 2007 ........................................................................... 92
Manuelita, Colombia..................................................................................................... 93
British Sugar, United Kingdom..................................................................................... 93
Typical Vinasse Fertigation in Dry Land, Brazil .......................................................... 94
Typical Vinasse Fertigation in Dry Land, Brazil .......................................................... 94
Figures
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Overview
This study envisages the basic technical and economic-financial model for the implementation of a
fuel ethanol distillery plant in Skeldon, Guyana at the Guyana Sugar Corporations (Guysuco) new
Skeldon industrial site.
Under optimal conditions, the plant will be able to produce, a maximum of about 35,000
cubic meters (m) of ethanol per year or 7.7 million imperial gallons per year. The plant will produce
about 23,400 m during the first operational year, according to the available feedstock.
The Economic Commission for Latin America and the Caribbean (ECLAC) developed a
general study on ethanol production based on the fermentation and distillation of sugar cane molasses.
The molasses for the project will be obtained from the sugar process at Guysuco.
The ECLAC study proposes a mixture of up to 10% ethanol in the imported mogas volume,
which in 2007 reached approximately 124,000 m. This mogas volume indicates, at a 10% blending
level, a demand of 13,000 m of anhydrous ethanol in the first year of operation.
The Guyanese economy is growing and therefore an estimated 2.5% per year growth was
added to the mogas volumes to be imported during the tenor period.
The ECLAC study was not able to foresee or assess a decision recently made by Guysuco
management related to the projects basic construction plans. Guysuco determined that the Skeldon
plant will not be able to supply the distillerys utilities needs, requiring the distillery to install its
own equipment, which substantially increases the overall investment costs. On the operation side,
there will also be a negative impact on costs because the main utility, the required process steam, will
be generated by wood and/or rice waste combustion.
Another fact is the need to process the distillerys main effluent, namely vinasse, which
cannot be disposed of in the existing water canals, because of its negative environmental impact. This
issue was technically solved by the use of an appropriate technology, which obtains a concentrated
vinasse with a solid content level that can be used as a partial feedstock for a fertilizer preparation to
be applied at the sugar cane fields.
The necessary vinasse concentration equipment will also increase the investment cost. The
final costs will have to take these additional expenses into account, as well as the costs for the various
buildings, such as the laboratory, the water treatment station, biomass fuel storage and handling
systems, and other such structures.
After considering this unforeseen situation, a new strategy was designed. The simulation
had to look for an economy-scale project engineering design that could process all the available
molasses, some 90,000 tons per year according to Guysuco. This can be processed by a 120,000 litres
per day distillery, producing 23,400 m per year of anhydrous ethanol, during 205 operation days.
This production corresponds to an ethanol mixture level of up to 17%, which is feasible
in electronic fuel injection engines in existing car models. Flex fuel cars are expected to become more
common in the near future, and this will increase ethanol demand.
The countries that have started using ethanol as fuel have adopted a low blending grade, of
5% to 10%, because they have huge or much higher mogas consumption than Guyana. It would
require a huge amount of ethanol to reach a 20% grade, for instance, at the beginning of the initiative
in those countries. Brazil has an E-23/25 mogas grade currently, but it began blending in 1975.
Guyana has preferential trading arrangements, and is part of the CTP-Caribbean Trading
Partnership and Carican-Canada, which will allow it to access favorable market conditions if it needs
to export surplus ethanol during the first few years of the project.
Capital expenditures are estimated at US$ 18 million, which with the higher project
production cost and with the adopted ethanol sales price conditions does not make the enterprise
feasible. The capital expenditures could be adjusted to approximately US$ 12 million if the vinasse
concentration plant were not necessary.
The ethanol initiative is valid under Guyanas macro-economic scenario, which can
support and create mechanisms that will aggregate value to the ethanol sales price via the elimination
of import duties and consumption taxes, in addition to other incentives that may eventually be
available to make the project viable.
From the macroeconomic perspective, the replacement of about 23,400 m per year of
imported mogas by the ethanol project means a hard currency savings of G$ 16.85 billion or US$ 83
million on the energy import bill , during the ten years of the project analysis.
The oil market price was considered to be between US$ 60 and US$ 80 per barrel.
Official Cooperation in Guyana

Mr. Navin Chandarpal, Presidential Adviser on Sustainable Development.
Mr. Mahender Sharma, Guyana Energy Agency, Chief Executive Officer.
Mr. Geoffrey Da Silva, Guyana Office for Investment, Chief Executive Officer.
Mr. Dhanpaul Dhanraj, Guyana Office for Investment, Investment Officer.
Mr. Badrie Persaud, Guyana Oil Company, Chief Executive Officer.
Mr. Nick Jackson, Guyana Sugar Corporation, Chief Executive Officer.
Mr. Harold B. Davis, Guyana Sugar Corporation, Agriculture Research Director.
Mr. Paul Hough, Booker Tate Limited, Skeldon Project Manager.
Special Assistance in Guyana

Mrs. Charmaine Gomes, Environmental Affairs Officer, ECLAC Port of Spain Subregional
Headquarters.
Technical Support
Praj Industries Limited, Pune, India.
Feasibility Study Assistance

Ricardo Raoni Werlang Prioste, Brazil; Graduation in Economics - University of So Paulo,
Ribeiro Preto, SP, Brazil.
Document Preparation Assistance

Vinicius Agostinho da Nbrega - Management Graduation Course, University Baro de
Mau, Ribeiro Preto, SP, Brazil.
ABBREVIATIONS UNITS AND PREFIXES
s
h
d
h/d
h/y
second
hour
day
hour per day
hour per year
bbl
barrel
1 bbl = 158.99 L = 42 gal = 34.97 Imp. gal
1 m3 = 1,000 L = 264.17 gal = 219.96 Imp. gal
v/v
volume by volume
w/w
weight by weight
g
gram
kg
kilogram
mg
milligram
t
metric ton
t/h
metric ton per hour
W
kW
kWh
MW
MWh
J
kJ
MJ
V
kV
Hz
LV
cfu/mg
pH
ppm
M
max
min
C
Cal
kcal
Mcal
GDP
IRR
NPV
SA
DSCR
CAPEX
OPEX
ERP
G$
US$
watt
kilowatt
kilowatt hour (3.6 mega joule)
megawatt
megawatt hour
joule (0.293 cal)
kilo joule
mega joule
volt
kilovolt
hertz
low voltage
colony forming unit per milligram
acidity-alkalinity scale
parts per million
million
maximum
minimum
degree Celsius
Calorie
Kilocalorie
Mega Calorie
Gross Domestic Product
Internal Rate of Return
Net Present Value
Sensitivity Analysis
Debt Service Coverage Ratio
Capital Expenditure
Operational Expenditure
Enterprise Resources Planning
Guyanese Dollar
United States Dollar
m
cm
mm
m2
m3
m3/d
km
ha
metre
centimetre
millimetre
square metre
cubic metre
cubic metre per day
kilometre
hectare
L
ml
L/s
gal
litre
millilitre
litre per second
gallon (3.785 L)
Imp. gal
Imperial gallon (4.546 L)
mg/kg
g/L
FOB
FOT
Free On Board
Free On Truck
milligram per kilogram

gram per litre
kg/m
kg/h
kgf/cm2
kPa
MPa
hp
FS
kilogram per metre

kilogram per hour
kilogram force per square centimetre
kilo Pascal
mega Pascal
horsepower
fermentable sugars
CIF
CC
PLC
B.O.D.
C.O.D
NBR
ASTM
Cost Insurance Freight

Carbons Credit
Programmable Logic Controller
Biochemical Oxygen Demand
Chemical Oxygen Demand
Brazilian Standards
American Society For Testing and Materials Standards
VA
volatile acid
AISI
Nm/t
American Iron and Steel Institute

Normal Cubic Metre per Ton
10
I.
Introduction
Given the projects location and the fact that sugarcane grows in wet areas, it was necessary to select a
proven system to manage properly the distillation and dehydration effluent. This effluent, normally
known as vinasse, is generated at high volumes and it can not be disposed of in local water sources.
Vinasse has agricultural fertilization properties, and can thus be placed directly on cultivated land via
fertigation, in the ethanol-producing countries.
The adopted design specifies equipment to concentrate the vinasse to levels that can then be
used as fertilizer, as already installed and in operation in Colombia.
In addition to solving the vinasse issue, this technology also involves adequate and up-to-date
parameters for the consumption of molasses, water, steam, energy, and chemicals, and proposes an
efficient control and automation system.
The project is designed to be highly efficient overall.
11
II.
Basic design data and technical criteria
Location
The distillery plant is to be located at the Guysuco Skeldon plant, at Skeldon, East Berbice District,
Courentyne, region 06.
Latitude: N 52 52
Longitude: W 57 08
The location was picked to make use of the molasses supplied by the Skeldon plant and from
Guysucos other mills in the region.
The project envisages a direct pipe connection to the Skeldon plants molasses storage facilities.
The site selection was approved by Guysuco.
Personnel
Manager
Administration chief
Operation chief
Quality control chief
Administration
Operators
Maintenance
Quality control
Services and security
Total
TABLE 1
PERSONNEL AND SHIFTS
N
01
01
01
01
03
05
03
03
03
Source: Prepared by the authors.
13
Shifts
01
01
01
01
03
15
09
09
09
49
FIGURE 1
PROJECT LOCATION
Project
Source: Google Map.

Note: The boundaries and names shown on this map do not imply official endorsement or acceptance by the
United Nations.
14
TABLE 2
PLANT CAPACITY
Plant capacity
1 - Nominal ethanol production capacity
2 - Operation
3 - Time efficiency
4 - Continuous operation (2x3)
5 - Full production capacity (4x1)
6 - Ethanol per molasses
7 - Molasses required for full capacity(5/6)
8 - Molasses availability
9 - Ethanol project production(8x6)
10 - Operation days for production (9/1x3)
120 m3/d
310 d/y
95%
294 d
35,280 m3/y
260 L/t
135,700 t/y
90,000 t/y
23,400 m3
206 d/y
Typical Molasses Specification

The exact composition of the molasses is difficult to predict. It is influenced by soil and climatic
conditions, variety and maturity of cane and the processing conditions in the factory. For this reason,
only ranges with indicative averages of the composition can be given. Dry matter ranges between 7479%; the analysis below is based on 75%.
TABLE 3
TYPICAL MOLASSES SPECIFICATION
Total Sugars
Sucrose
Reducing Sugars
Unfermentable Sugars
Raffinose
Non-Sugar Organic Matter
Nitrogen components as protein (6.25 * N)
Betaine
Glutamic Acid
Non-nitrogen bodies
Soluble gums/other carbohydrates
Organic acids
Crude Ash
Sodium (as Na)
Potassium (as K)
Calcium (as Ca)
Phosphorus (as P)
Chloride (as Cl)
Cane
46-52%
30-40%
15-20%
2 - 4%
9-12%
2-3%
8-11%
0.1-0.4%
1.5-4.0%
0.4-0.8%
0.6-2.0%
0.7-3.0%
Source: Schuumans & Van Ginneken
Cane molasses contains small amounts of citric acid, succinic acid, waxes, stereols and
vitamins. The viscosity of molasses varies widely. It depends on several factors: dry matter, the area
of production and temperature.
15
TABLE 4
TYPICAL VISCOSITY RANGE OF CANE MOLASSES
Temp. (C)
Viscosity Range (centipoises)
10
20.000-40.000
15
10.000-25.000
20
5.000-10.000
25
3.000-5.000
30
2.000-3.000
35
1.500-2.500
40
1.000-2.000
Source: Schuumans & Van Ginneken
Anhydrous Fuel Ethanol Specification

Considering that ethanol is a relatively new fuel, there are international standardization committees
working to establish the standards for different ethanol grades. Committees from Europe, the United
States, and Brazil are working together in a special task force.
The growing global consumption of ethanol as fuel or for industry feedstock requires accurate
methodologies for analysis and derived procedures for certification and trading.
The following specifications are the ones recommended by the Brazilian International Trade
Association (IETHA).
TABLE 5
SPECIFICATIONS RECOMMENDED BY THE BRAZILIAN INTERNATIONAL
TRADE ASSOCIATION (IETHA)
Characteristics
Unit
Density @
Alcoholic strength @
Alcoholic strength @
Ethanol Content
Water (Karl Fischer)
Water (Karl Fischer)
Total Acidity
Electrical Conductivity
pHe
Copper
Chloride
20C kg/m max. 790.8

20C %m/m min. 99.5*
20C %v/v min. 99.7*
%v/v min 97.1**
%m/m max. 0.5
%v/v max. 0.4
-max mg/L max. 30
uS/m max. 500
6.5 -9.0
mg/kg max. 0.07
mg/kg max. 1
Solvent-washed gum
Aspect
Methanol
C3-C5
Sulphur
Sulphate
Non-volatile material
mg/100mL max. 5
Clear Visual
%v/v max. 0.5
%v/v max. 2.0
mg/kg max. 10
mg/kg max. 4
mg/L max. 100
NBR 5992 / ASTM D4052

NBR 5992 / ASTM D4052
NBR 5992 / ASTM D4052
ASTM D5501
ASTM E203 / E1064
Calculated
NBR 9866 / ASTM D1613-06
NBR 10547
ASTM D6423
NBR 10893/ASTM D1688A
NBR 10894, ASTM D7319-07, ASTM
D7328-07e1
ASTM D381
ASTM D5501
ASTM D5501
ASTM D2622, D3120, D5453, D6428
NBR 10894, ASTM D7319-07, D7328-07e1
ASTM D1353
Source: IETHA International Ethanol Trading Association , Oct 1st 20.

* Densimetry
** Chromatography
(100 -% water-%methanol -%C3-C5)
Calculated =
Density @ 20C x water% m/m / 1000
16
Process
As described in chapter III.
Equipment
As described in annex A.
Process Quality Control

The distillery is to have its own laboratory and specialized personnel, to keep ethanol
specifications according to the established standards. Personnel will control all process segments,
utilities, feedstock, chemical inputs, and the legal limitations of the disposal of effluents.
Plant Flexibility
The plant can operate at 70% of nominal capacity and keep the same efficiency.
Plant capacity allows for the management of different production risks such as labour strikes,
energy defaults, and the lack of molasses and chemicals, among other things.
The plant can produce 35,280 m of ethanol per year if there is a greater availability of
molasses, (approximately 135,700 t/y).
Utilities
Considering the fact that the Skeldon plant cannot supply treated water, steam, electricity,
compressed air, quality control services, or even bagasse as a boiler fuel, the distillery project had to
specify the necessary equipment in order to produce these required utilities and provide the abovementioned services.
The capacities and quality specifications were based on the main suppliers process packet
requirements, as described in chapter III.
Therefore it was necessary to add a compact boiler, 25 steam t/h, burning biomass fuel (rice
waste and/or wood), a turbo-generator that can supply the energy demand, and a water treatment
station, with their peripherical and auxiliary installations.
Operation Control and Maintenance

An up-to-date instrumentation and automation system will be provided, which will allow the
operators to control the process and utilities operations both on-site and remotely.
The project specifies the adequate facilities for day-to-day operation maintenance and for the
storage of spare parts.
Civil Works
All necessary buildings have been included in the project proposal. The technical
specifications for site preparation, soil study, piling, and costs were provided by Guysuco, which has
recent data related to the execution of the new Skeldon project.
Buildings:
Administration
17
Maintenance & Warehouse
Quality Control Laboratory & Operation Control Center
Social assistance & Amenities
Steam and Power Plant
Ethanol Storage
There will be a 5,000 m3 tank for ethanol storage.
An ethanol loading station to fill 30 m3 truck tanks, observing the existing security standards
for the operation, is also specified in the projects plans.
Effluents
The effluents are vinasse, resulting from the distillation process, boiler flue gases, process
lees, general used water, laboratory analysis residues, and human waste.
The vinasse requires a special industrial treatment, because of the huge volume produced: it is
generated in a proportion of 11 litres of vinasse per litre of ethanol, varying according to the molasses
specification. Therefore there will be a daily production of 1,320 m3 of vinasse. According to
environmental protection legislation, the vinasse cannot be directly disposed of into the water canal
because of its B.O.D and C.O.D content.
A special technology is used by the project to concentrate the solid content of this effluent up
to 54-55%. At this concentration it can be used as a component for fertilizer production. As a result,
this requires special equipment, installations and utilities inputs to be resolved, and this negatively
impacts the feasibility study.
Elements
TABLE 6
THE VINASSE OF MOLASSES COMPOSITION
Units
N
P2O5
K2O
CaO
MgO
SO4
*OM
Mn
Fe
Cu
Zn
pH
kg/m
kg/m3
kg/m3
kg/m3
kg/m3
kg/m3
kg/m3
mg/dm3
mg/dm3
mg/dm3
mg/dm3
Source: CTC Sugarcane Technology Center, Piracicaba, SP, Brazil.

*OM: Organic Material Content.
18
Value
0.75 - 0.79
0.10 - 0.35
3.50 - 7.60
1.80 - 2.40
0.84 - 1.40
1.50
37 - 57
6 - 11
52 - 120
3-9
3-4
4.0 - 4.5
III. Engineering Design Basis
The main issue related to the projects technical definition is to establish the adequate quality and
quantity parameters to run the process, and to observe the existing operation periods for selecting the
required personnel, equipment and installation.
The process will also facilitate a study of the procedures for effluent treatment, which will
need to be submitted to the environmental authorities.
The authors researched and concluded that the invited company already had experience in this
field in similar scenarios in India, the Caribbean and Latin America. This supplier can provide an
invaluable contribution to the project in this regard. The annual operation period for the project has
been extended to 310 days per year because there is no process operation connection (utilities) with
the Skeldon plant.
The molasses produced by Skeldon and other mills will be stored during the sugar cane
milling season, for approximately 180 days.
III.1 Process
Ethanol is produced through the fermentation of the molasses in a semi-continuous process. The
fermentation is developed in controlled temperature conditions, by the addition of the suppliers
selected yeasts.
The water used to dilute the molasses for fermentation requires compatible quality standards.
During fermentation there must be continuous bacterial control in order to avoid yeast
infections, which consequently affects efficiency.
The fermentation stage finishes when all fermentable sugars are reduced to almost zero.
Thence there is the formation of the wine, which is sent for distillation. The wine contains about 79% ethanol.
During distillation the ethanol is separated from the wine and the final product is hydrous ethanol.
Hydrous ethanol is continuously sent to the molecular sieves and turned into the final
anhydrous grade ethanol. After cooling, this is sent to the storage tanks.
The whole process is performed in a continuous operation, under instrumentation and
automation control systems, which are supervised by quality control personnel.
19
The selected process envisages the integration of the different production stages in order to
reduce a) steam consumption and, consequently, the necessary fuel (rice, straw, or wood); and b) the
volume of the vinasse by evaporation.
The following process stages will provide more accurate information:
Semi-continuous fermentation;
Total vacuum distillation;
Molecular sieve dehydration; and
Evaporation of vinasse.
III.2 Raw Material

The feedstock specifications were established by information provided by Guysuco and by the
suppliers technical background.
It is necessary to adopt average parameters to specify equipment capacities, but always
considering the related operational security margins.
The suppliers engineering reports confirmed the yields and the process consumption ratios,
such as the daily necessity of 484 tons of molasses to produce 120,000 litres of the specified ethanol,
based on the adopted parameters.
TABLE 7
THE PRELIMINARY DESIGN IS BASED ON MOLASSES C
Parameter (% by w/w)
Molasses C
Fermentable Sugars
44% min.
Unfermentable Sugars
3 4%
Total Sugars as Invert

47 48%
Moisture
18 20%
Volatile Acids
Less than 6000 ppm
Butyric Acid
Less than 140 ppm
Source: PRAJ.
Note: Requirement of Molasses: 484 t/d (Based on 44% Fermentable Sugars).
III.3 Product
The project will produce fuel grade anhydrous ethanol. As mentioned before, the standards for the sale
and distribution of this type of fuel are being developed by international committees. Once
established, the project will make any needed adjustments to conform to the international standards.
The supplier has offered its ethanol specifications, which are accepted by the market. At this
stage of the study the matter is considered acceptable by the authors.
The project contains a complete quality control laboratory network and its required qualified
personnel, envisaging continuous ethanol production and storage under the related acceptable standards.
20
TABLE 8
FUEL GRADE ETHANOL AS PER ASTM D-4806
Moisture
0.2% v/v or 2000 ppm
Other specifications
ASTM specifications
Methanol
5000 ppm max
Solvent washed gums
50 ppm max
Chloride ions
40 ppm max
Copper
0.1 ppm max
Acidity
70 ppm max
Source: American Society for Testing and Materials
Quantity: Capable to produce 120,000 L/d of Anhydrous Alcohol with 0.2% v/v moisture
(approx. 99.8% v/v alcohol content).
Concentrated Vinasse after Evaporation: This segment of the process provides the solution
to the projects core problem.
Vinasse, the liquid effluent produced during distillation, with an average rate of 11L/ L of
ethanol, can not be disposed of into water canals. The B.O.D and C.O.D levels would harm the
environment.
Vinasse is the non-alcohol content of the wine to be distilled. Its quality depends directly on
the processed molasses contents, which in turn depends on sugar cane quality and sugar production
procedures.
The suppliers technology offers an engineering design that is energy efficient and supports
the solids concentration of the vinasse by evaporation as mentioned below. The concentrated vinasse
can than be used as fertilizer.
TABLE 9
VINASSE PRODUCTION AND SOLIDS CONCENTRATION
Description
Specifications
Vinasse quantity and solids concentration
360 t/d with 54 ~ 55% w/w solids or

approximately 288 m/d or 2.4 L/L of
Ethanol depending upon the exact
characteristics of the molasses.
Source: PRAJ.
Note: Solids composition depends on solids in feedstock and quantity of vinasse (stillage) recycled.
Notes:
The specifications of products such as rectified alcohol shall depend on plant operation.
The plant is capable of producing desired specifications of spirits by changing its
operating parameters.
It is important to have a steady and uninterrupted supply of utilities such as steam and
electricity to obtain a uniform and high quality alcohol.
The test methods for detecting any above-mentioned impurities will be as per
BP 1993/ASTM D4806 or PRAJ standard analytical manuals.
21
III.4 Process Description

The main segments of the process (later detailed in this chapter) offered by the supplier are:
Fermentation (Hiferm)
At this stage the mash, which is prepared with molasses, water and prepared yeast,
develops a controlled process that transforms the sugar into ethanol. The final product is a
wine that has a 7-8% ethanol content, and which will be sent to the distillation columns,
to eliminate the non-alcohol content.
The installation has 4 fermentors and offers an efficiency of 88-89% (percentage of

fermentable sugars transformed into ethanol).
Distillation (Ecofine- TVS)
At this stage the ethanol is separated from the other non-alcoholic content that becomes the vinasse.
There is an intense use of steam in this project design, which is generated in house and comes
from the turbo generator.
The main technical specs are the use of a vacuum and the heat integration of the suppliers
design. These are the strong points of the suppliers engineering design.
Dehydration (Ecomol-XP)
At this stage the hydrous ethanol coming from the columns is processed through a molecular
sieve (MSDH) plant, which also operates with low-pressure steam and with a very small quantity of
medium-pressure steam.
The operation extracts water from the feed hydrated ethanol, and than produces the final fuel
grade according to the required specifications. The resulting product is then sent to the storage tank.
Vinasse Evaporation (Ecovap-FB)
The vinasse is concentrated up to 55% w/w in a combined flubex forced circulation

evaporation system.
The flubex is an installation of 4 stages evaporators.
The concentrated vinasse is sent to a storage tank for further processing into fertilizer by third parties.
Hiferm Semi Continuous Fermentation.
Molasses Receipt Handling and Storage

The molasses is unloaded into the weighted molasses tank and pumped to two yeast activation vessels
and to the four fermentors.
Cell Mass Preparation

During plant start up yeast is propagated in the laboratory. Later, the laboratory grown yeast culture is
propagated in (diluted pasteurized media) yeast vessels. Optimum temperature is maintained in the
yeast vessel by recirculation of cooling water. A specially designed gas sparger ensures optimum mass
transfer for high cell mass generation. The yeast grown in yeast vessels is transferred to the yeast
activation vessel using a cell mass transfer pump for further scale up of the cell mass required to start
fermentation. Optimum temperature is maintained in the yeast activation vessel by using a dedicated
mash cooler. After activation, the activated cell mass is transferred to the fermentor.
22
Fermentation
Fresh biomass propagated in the yeast propagation section is seeded in the fermentor. The yeast
converts the fermentable sugars into alcohol and carbon dioxide under optimum conditions. As
alcohol fermentation is an exothermic process, heat is released during the process. Dedicated forced
recirculation coolers for each fermentor cool the mash to maintain the optimum temperature required
for yeast activity.
After the reaction is completed, the mash is sent to the mash charger and then to distillation.
CO2 scrubbing
CO2 produced during fermentation carries with it some entrained alcohol. This CO2 is taken
to a CO2 scrubber where it is scrubbed with water to remove the entrained alcohol. The scrubbed CO2
can then be taken to a CO2 plant or vented out.
Ecofine-TVS Total Vacuum Distillation

The Ecofine-TVS vacuum distillation scheme has all the distillation columns operating under a
vacuum. Fermented mash is preheated and fed to the de-gasifying column. Top vapors are fed to the
degassifier column while bottom liquid is stripped in the mash column. Heat input is given to the mash
column reboiler and vapors from the reboiler are fed to the mash column as a source of energy.
A head cut of 2% can be drawn from the aldehyde column if required. While the bottom of
the aldehyde column is sent to an exhaust column.
The vapors of the mash column are fed to the rectifier column, which is also operated under
vacuum pressure. The rectifier column vapor is condensed and the condensate is sent back to the
column as a reflux. The fusel oil draws are taken out from a few plates above the feed plate and fusel
oil is decanted out. Rectified spirit is drawn from the top trays and is sent to the MSDH plant or to
storage. Heat input is supplied to the exhaust column through the reboiler assembly. Liquid from the
exhaust bottom is sent to the reboiler where vapors are generated and fed back to the exhaust column.
The exhaust column reboiler is driven by MSDH vapors.
Ecomol-XP Molecular Sieve Dehydration Plant (MSDH)

Rectified spirit containing at least 94% v/v alcohol is pumped from the rectifier draw tank/RS
collection tank to the dehydration section. The rectified spirit is preheated in a feed pre-heater with the
help of product vapors and then fed to the vaporizer flash tank. The objective of the vaporizer is to
evaporate rectified spirit. The vaporizer operates under pressure. Energy is supplied to the vaporizer
flash tank by the vaporizer reboiler with low pressure exhaust steam condensing on the shell side. The
steam condensate can be recycled back to the boiler.
Overhead feed alcohol vapors from the vaporizer flash tank are then passed through a super
heater. Energy for superheating is supplied by medium pressure steam condensation on the shell side
of the super heater.
Superheated hydrous alcohol vapors are sent to twin adsorbent beds. The twin adsorbent beds
operate in a cyclical manner. Twin beds are provided to allow for bead regeneration in continuous
operation. While one bed is in dehydration mode, the other is in regeneration mode. Depending on the
feed and product specifications, dehydration-regeneration exchange takes place approximately every
few minutes. The feed alcohol vapors are passed through the bed under dehydration mode. The
adsorbent bed will absorb moisture present in feed vapors and dehydrated product alcohol vapors
(with moisture content less than 0.2%v/v) are obtained from the bottom of the bed.
The product alcohol vapors are then passed through the regeneration pre-heater and feed preheater for heat recovery. Condensed alcohol is collected in the product receiver.
23
The alcohol from the product receiver is pumped to the product cooler and then sent to the
anhydrous alcohol storage.
During regeneration mode, a vacuum is applied to the bed under regeneration. A small
amount of product alcohol vapors are purged through the bed in regeneration mode under a high
vacuum, to prepare the desiccant for cycle changeover when this bed goes online. The purged alcohol
vapors act as a carrier for the removal of moisture from the bed. These alcohol vapors along with
moisture are obtained from the top of bed. These alcohol-water vapors (regeneration stream) are
condensed in the regeneration condenser, which is attached to a vacuum eductor.
The vacuum is pulled in the system with the help of a vacuum eductor. Regeneration stream is
used as motive fluid for the vacuum eductor. The regeneration stream coming from the regeneration
condenser is pumped, preheated in the regeneration pre-heater and fed to the rectifier column for the
recovery of alcohol.
Moisture present in the feed alcohol is removed from the bottom of the rectifier column in the
form of spent lees containing less than 500 ppm of ethanol.
After one cycle is over, the beds are interchanged, that is, the bed on dehydration mode will
switch over to regeneration mode and the bed on regeneration mode will switch over to dehydration
mode, with the help of an automated system.
Ecovap-FB Evaporator
Effect Combination of Flubex Finisher System on Steam:
There are two stages in the evaporation section. The first stage consists of a two effect falling film
evaporator that operates on steam. The second stage consists in a train of four effect flubex followed
by a finisher and also operates on steam. The finisher will be a forced circulation type evaporator. For
stage one falling film will have one common standby and for second stage forced circulation
(Finisher) evaporators will have one standby.
Stage I (2 Effect FF Reboiler)

Vinasse from the distillation section will be preheated with steam condensate and then fed to the first
falling film effect. Steam will be used as a heat source for first effect evaporation. Steam condensate
from the shell of the first effect will be collected in the steam condensate tank in stage two. Water
vapors generated from the first falling film effect will be used as a heating source for the second
falling film effect. Partially concentrated vinasse will be fed to the second effect. Water vapor
generated in the second falling film effect will be sent to the mash column in the distillation section.
Condensate generated from the second effect will be collected in the process condensate tank from
where it will be sent for further treatment. Partially concentrated vinasse from the reboiler stage will
be pumped to the second stage.
Stage II (4 Effect Flubex + Finisher)

Partially concentrated vinasse from the first stage is fed to the first effect flubex in the second stage.
Steam will be used as a heating medium for this effect. Steam condensate will be collected in
steam condensate tank and will used to preheat the vinasse. After that it will be recycled to the boiler.
Vapors generated from the first effect will be sent to the second effect as a heat source. Partially
concentrated vinasse will be fed to the second effect flubex. Vapors generated in the second effect will
be sent to the third effect and the finisher. Partially concentrated vinasse will be fed to the third effect
flubex. Vapors generated in the third effect will be sent to the fourth effect and partially concentrated
vinasse will be send to the fourth effect Flubex. Vapors generated in the fourth effect will be
condensed in a surface condenser followed by a vent condenser. Partially concentrated vinasse will be
24
fed to the finisher where it will be concentrated up to 54~55% w/w. Vapors generated in the finisher
will also be condensed in the same condenser. Process condensate generated from the second, third,
and forth effects, the condensers and the finisher will be collected in the process condensate tank and
will be sent for further treatment. The necessary vacuum will be created by a water ring vacuum
pump. Concentrated vinasse from the finisher will be collected in a concentrated syrup tank and then
will be sent for further treatment or storage.
III.5 Input Requirements

The following inputs, classically known as utilities, are the basic support to run the process.
The specified necessities support the engineering design. Furthermore they are a relevant part
of the ethanol production cost estimate.
TABLE 10
UTILITIES AND CHEMICALS
Process Water
Fermentation
Cooling water circulation rate
Fermentation
Distillation
Dehydration
Evaporation
Electricity
All figures are approximate
For Fermentation
For Distillation
Dehydration
For Evaporation
Steam for:
Distillation, Dehydration
including integrated
evaporation at 1.5 kgf/cm
Dehydration at 3.5 kgf/cm
Stand Alone Evaporation at

1.5 kgf/cm for 36650 kg/h
water evaporation rate
Instrument air:
Fermentation
Distillation
Dehydration
Evaporation
Cleaning / sealing water
Ammonium Sulfate / Urca /

DAP - For Fermentation
Sulphuric Acid - For

Fermentation
Antifoam Agent
1235 ~ 1245 m/d

1350 Mcal/h
4520 Mcal/h
1600 Mcal/h
7720 Mcal/ h
Operating
210 - 220 kW
40 - 50 kW
25 - 30 kW
740 - 760 kW
Connected
290 - 300 kW
75 - 85 kW
48 - 58 kW
980 - 1000 kW
** 284 t/d or 11.8 t/h. (2.38 kg/L of Fuel Ethanol)
6 t/d or 0.25 T/h (0.05 kg/L of fuel ethanol)

298.2 t/d or 12.43 t/h (2.48 kg/L of fuel ethanol)
50 - 60 Nm/t
70 - 80 Nm/t
40 - 50 Nm/t
70 - 80 Nm/t
As necessary
240 - 300 kg/d - to be confirmed after analysis of
nitrogen content of molasses
240 - 360 kg/d approximately - to be confirmed after
molasses analysis
Sulfonated castor oil (turkey red oil). Consumption
will depend on type of anti foam being used
Source: PRAJ.
Notes:
- Electricity consumption figures depend upon the final layout, pipe routing, and the efficiency of the pumps.
- If the FAN content of the molasses is less than 0.5% w/w, the additional nitrogen required would be
supplemented by using ammonium sulphate, apart from DAP.
25
- The above parameters are indicative and the exact parameters can be confirmed only after analysis of
molasses-C samples and after detailed engineering.
- Process water should be filtered potable water and shall not contain any E. COLI or COLIFORM bacteria
with total the germ count being limited to 60 Nos/ml. The chloride content shall be less than 25 ppm.
III.6 Other Operating Parameters

These parameters come from the intermediate process and utilities items which are reutilized or
reprocessed within the continuous operation. These inputs are also basic for the detailed engineering
design of the plant.
TABLE 11
LEES AND STEAM CONDENSATE
Parameters
Spent lees generated
Steam condensate
generation
Process condensate
generated
160 - 170 m/d (to be sent for treatment).

540 - 550 m/d (to be sent back as boiler feed water).
1095 m/d (to be sent for treatment).
Source: PRAJ.
III.7 Specifications of Inputs

This section specifies the basic utilities, the chemicals used by the process, and the effluents. It also
remarks on matters related to norms and efficiencies.
Furthermore the main mechanical, hydraulic, ground and climate impacts or specs are
referred to in order to establish the limits of liability and compliance with applicable standards.
Molasses-C
Molasses-C should be free from caramelisation products and known inhibitory elements of
yeast metabolism, such as lead and arsenic polyelectrolytes or microorganisms producing side
products. The molasses-C will have:
TABLE 12
MOLASSES-C QUALITY PROCESS SPECIFICATION
Fermentable sugars
44% (w/w) min
F/N Ratio
Min 1.2
Sulphated ash
Max 15% (w/w)
Organic Acids
Max. 4000 ppm
Bacterial content
Max. 1000 cfu/mg
Caramel content
< 0.3 absorbance at 375 Nm
Butyric Acid content
140 ppm max
FAN Content
0.5% w/w min
Source: PRAJ.
26
Process Water
Process water should be filtered, potable and shall not contain any E. COLI or COLIFORM
bacteria with the total germ count limited to 60 Nos/ml. The chloride content shall be less than 25 ppm.
Cooling Water For Circulation
Cooling water should be at a temperature of 32 C maximum and 2.5 kg/cm pressure, with a
total hardness of 500 ppm total dissolved solids of 3000 ppm. The cooling water shall be available at
constant pressure at cooling water headers in the fermentation section.
Sulphuric Acid
Concentrated, Commercial Grade, Composition as below value in % w/w
Sulphuric Acid
Lead
Arsenic
Iron
Moisture
:
:
:
:
:
98 min
0.001 max
0.0001 max
0.03 max
2 max
Diammonium Phosphate (D A P)
In the form of granules. Composition as below. Values in % w/w
P 2O 5
Nitrogen
Arsenic
Iron
Lead
:
:
:
:
:
50 min
20 min
0.0001 max
0.01 max
0.001 max
Antifoam
Turkey red oil. Composition as below, Value in % w/w
Degree of sulphation
Total alkali (KOH)
Total fatty matter
Total Ash
pH
:
:
:
:
:
50 min
20 min
0.0001 max
0.01 max
0.001 max
Steam for Fermentation and Distillation

Dry, saturated steam should be provided at the respective steam header in the plant. The
maximum variation in the steam pressure shall not be more than +/- 1.0 kgf/cm. The steam supply
during the fermentation process and for steaming of equipment can be at 1.0 kgf/cm.
Distillation:
Minimum pressure of steam: 1.5 kgf/cm.
Dehydration:
Minimum pressure of steam: 1.5 kgf/cm. for vaporizer
Minimum pressure of steam: 3.5 kgf/cm. for sper heater
Evaporation:
Minimum pressure of steam: 1.5 kgf/cm.
27
Instrument Air
Compressed, dry and oil free air should have a pressure of 7.0 kgf/cm with a dew point of (-) 40 C.
Vinasse (stillage) For Evaporation
Vinasse solids
:
Vinasse temperature :
Vinasse pH
:
12 13 % w/w total solids

37 38C
4.0 4.5
Electric Power
For all motors: 480 +/- 5 % V, 3 phase, 60 Hz supply, 4 - wire supply.
For control system: 120 V, 60 Hz (+3), 1-phase, 2-wire supply.
Performance Parameters Norms
The unit design shall meet the local applicable codes for this type of operation. The supplier
will demonstrate the units capability to achieve the key process objectives to include the ethanol
production rate, product ethanol specifications, and other key process objectives as outlined herein.
Capacity of plant
The plant has a capacity of 120,000 L/d of anhydrous ethanol with 0.2% v/v moisture
(approx. 99.8% v/v ethanol content) at a steady state.
Yield of Alcohol
Performance norms for various raw materials having a volatile acid content less than 5000 ppm.
TABLE 13
EFFICIENCIES ACCORDING TO VOLATILE ACIDS VARIATION IN MOLASSES-C
Raw Material
Overall Efficiency (Fermentation + Distillation + Dehydration)
at different volatile acids in Molasses-C:
Molasses C
87.7% when VA of
86.33% when VA of
85.35% when VA of
Molasses C < 5000 ppm
Molasses C > 5000 ppm
Molasses C > 7000 ppm &
& < 7000 ppm
< 9000 ppm
Source: PRAJ.
Notes: For the molasses C with VA of 9000 to 11,000 ppm, the fermentation efficiency will be 86%.
The butyric acid content of molasses C should be less than 140 ppm. Molasses C should also
be free from any caramelized products that inhibit yeast activity.
Yield: Based on the above the exact yield of alcohol per t of raw material is as follows:
TABLE 14
YIELDS OF ETHANOL PER TON OF MOLASSES-C
FS % w/w in Raw Material Yield of Alcohol in litre of 99.8% Raw Material consumed for
v/v t of raw material
120,000 L/d of 99.8% v/v alcohol
Molasses C: 44%w/w F.S.
245.10 - 247.80
484.3 - 489.6
Molasses C: 46%w/w F.S.
256.25 - 259.13
463 - 468.3
Source: PRAJ.
28
Steam consumption for Plant Capacity of 120,000 L/d of Anhydrous Ethanol

Steam for:
Distillation, Dehydration including

integrated evaporation at 1.5 kgf/cm
: 284 t/d or 11.8 t/h (2.38 kg/L of fuel ethanol)
Dehydration at 3.5 kgf/cm
: 6 t/d or 0.25 t/t (0.05 kg/L of fuel ethanol)
Stand Alone Evaporation at 1.5 kgf/cm
for 36650 kg/h water evaporation rate. : 298.2 t/d or 12.43 t/h (2.48 kg/L of fuel ethanol)
Mechanical design basis
For the design of static equipment such as distillation columns, condensers, reboilers, and
tanks, among others, the following factors have been taken into consideration:
Wind Velocity = 100 km/h
Seismic coefficient = Zone 2 (High Risk-0.15 G Acceleration)
However, in case the seismic factor is higher, the structure on which the equipment is
supported will have to be designed for a higher factor.
All equipment excluding columns will be supported laterally to the structural members;
the direct load due to wind and seismic forces has not been considered. All tanks and
vessels will be supported/rested on existing foundations. All columns will be selfsupporting.
The construction material for the equipment will be specified as per ASTM 240 for
stainless steel sheets and coils.
The construction material for all body flanges and bolts will be carbon steel (CS) and the
gaskets will be EPDM.
All pressure vessels such as distillation columns and condensate pots, among others, will
be generally designed as per Good Engineering Practices of PRAJ.
All shell and tube type heat exchangers will be generally designed as per Good
Engineering Practices of PRAJ.
Hydro testing of critical equipment wherever applicable will be carried out at the Praj
fabrication facility before dispatch.
Piping and valves will be specified as per ANSI standards.
The safe bearing capacity of soil in the area under consideration = 20 - 22 t/m.
Note: If the seismic factor changes, the cost and structural thickness of the equipment will change.
29
IV. General Investment Items
This chapter identifies the main items needed for the project, which weere reasonably assessed
through specific research procedures for the investment cost estimate.
It comprises licenses, services, equipment, installations, civil works and vehicles.
Permits
Project Management
Organizational, Management and Legal Expenditures
Pre-Operational Tests and General Cleaning
Terrain and Soil Preparation
Piling and Structural Bases
Pavement, Parking, and Rainfall Water Drainage
Fencing
Buildings
Internal Illumination
Topography
Transportation
Erection on Site
Quality Inspection
Molasses Piping Connection to the Skeldon Plant
Molasses Tank
Treated Water Tank
Water Treating Station
Fermentation Vats/Steel Structures, etc
Yeast Treatment Cubes Wine Tank - Ethanol Storage Tank
Distillation Plant
Dehydration Plant
31
Vinasse Concentration Plant
Ethanol Truck Loading Station
Miscellaneous Tanks
Chemicals and Nutrients Storage Tanks
Inlet Water Pumping Station
Steam Generation
Power Generation
Electrical System
Fire Protection and General Security Systems
Piping and pipe racks
Process Screens and Filters
Thermal Isolation Applications
Painting
Laboratory Equipments and Instruments
Furniture, Utensils, Communications, Informatics and Disposal
Vehicles
32
V.
Basic Layout and Site Location
The concept for the site location was based on the assessment of the existing Skeldon plant facilities,
its molasses storage unit location and its expansion program.
The project location within the Skeldon plant layout optimizes the shipment of the molasses.
The study also offers an alternative for the location, as shown in V.2. This second location
would leave more space for the Skeldon mill expansion, when considering that the mill will only
supply the molasses and not the utilities. This issue will depend on final approval by Guysuco.
The project layout concept is based on the inputs/outputs logistics and by the process, utilities
and effluent flow sheets.
Different areas within the layout are basically for:
a) social, administration, services and quality control; b) boiler biofuel yard, power plant,
water treatment, process and utilities tanks; c) fermentation, distillation, dehydration and evaporation
units; and d) ethanol storage tank and truck loading station.
33
FIGURE 2
BASIC LAYOUT
Block
12345678910 11 -
Description
Gate
Administration
Social Assistance and Amenities
Maintenance warehouse
Quality control laboratory
Molasses storage tank
Inlet water storage tank
Water treatment station
Treated water storage tank
Fermentation
Distillation, dehydration
Block
12 13 14 15 16 17 18 19 20 21 22 23 -
Source: The Authors, July 2008.
34
Description
Ethanol storage tank
Ethanol truck loading station
Chemical storage tanks
Chemicals warehouse
Fire protection central station
Electric energy gate
Effluent treatment plant
Auxiliary oil tank
Steam and power plant
Fuel biomass storage/handling
Water pumping station
Yeast preparation plant
FIGURE 3
SITE LOCATION
LAYOUT REFERENCE DRAWING
35

Note: Basic layout drawing by Guysucos Skeldon Engineering.
FIGURE 4
SITE LOCATION AERIAL VIEW
Source: Prepared by the authors, July 2008.
36
VI. Economical - Financial Analysis
The scope of the study is to assess the Internal Rate of Return (IRR), the Net Present Value (NPV) and
the different possible scenarios though the Sensitivity Analysis (SA).
The first stage was to determine the possible ethanol consumption volumes, using data
provided by the Guyana Energy Agency and from the authors experience.
A 2.5% annual increase was included to account for economic growth during the project period.
The ethanol production was fixed at 23,400 m3 per year because the molasses availability is
also fixed at 90,000 t/y.
A methodology was defined for the project ethanol price, taking into account the historical
mogas CIF prices and the estimate of future oil prices, as demonstrated at VI.2.
Table 20 shows all the considered inputs for the calculation, which are derived from the
technical project and from the historical official data. It shows a negative percentage of minus 23.60%
and an NPV of minus US$ 21.94 million, which determines that the enterprise is not feasible.
Tables 21 through 25 contain the linked and crossed calculations that converge to the IRR and
NPV values.
Table 26 assumes variations of plus to minus 10% and 5% on a) ethanol price, b) molasses
price and c) investment. Tables 27, 28, and 29 show the respective cash-flow calculations.
Table 31 demonstrates that, within this broader approach, it is still an interesting project to be
considered, because in 13 years, beginning at the zero point, the country could save up to US$ 83 million.
Reference: US$ 1= G$ 203.
37
VI.1 Guyanas Ethanol Demand Estimate

TABLE 15
PETROLEUM CONSUMPTION (1,000 IMP. GAL)
2000
2001
2002
2003
2004
2005
24 764
25 562
25 572
25 085
26 143
25 495
68 064
67 516
66 534
62 644
67 407
63 792
8 411
6 914
7 018
6 937
6 513
6 518
32 969
30 633
32 301
40 456
31 517
23 684
477
231
251
301
285
205
2 568
3 250
3 509
3 773
4 589
4 319
137 253 134 107 135 186 139 197 136 454 124 014
3.2%
0.0%
-1.9%
4.2%
-2.5%
-2.3%
0.8%
3.0%
-2.0%
-9.1%
Year
Mogas
Gasoil
Jet A-1/Kero
Fuel oil
Avgas
L.P.G
TOTAL
% Mogas*
% TOTAL*
2006
25 192
55 641
5 654
19 899
352
4 470
111 209
-1.2%
-10.3%
2007
27 205
64 813
6 141
32 654
307
3 814
134 933
8.0%
21.3%
Source: Guyana Energy Agency.

Note:* % = Percentage Growth.
TABLE 16
GROWTH OF GROSS DOMESTIC PRODUCT (1.000.000)
GDP (G$)
GDP
(MUS$)
% GDP
2000
108 087
533
2001
112 219
553
2002
117 762
580
2003
123 261
607
2004
130 405
642
2005
137 633
678
2006
154 000
759
2007
171 190
843
3.8
4.9
4.7
5.8
5.5
11.9
11.2
Source: Bureau of Statistics of Guyana.
TABLE 17
PROJECT GENERAL DATA
Year*
Mogas Consumption
(m) (+ 2.5%/y)
Molasses (t)
Ethanol Production (m3)
Ethanol Production
(1.000 Imp. Gal)
Mixture (%)
10
11
12
13
136 513 139 926 143 424 147 010 150 685 154 452 158 313 162 271 166 328 170 486 174 748
90 000
90 000
90 000
90 000
90 000
90 000
90 000
90 000
90 000
90 000
90 000
23 400
23 400
23 400
23 400
23 400
23 400
23 400
23 400
23 400
23 400
23 400
5 147
5 147
5 147
5 147
5 147
5 147
5 147
5 147
5 147
5 147
5 147
17.14
16.72
16.32
15.92
15.53
15.15
14.78
14.42
14.07
13.73
13.39
Source: The Author.

Note: Project year 3 eventually corresponds to 2011.
38
VI.2 The Ethanol Sales Price Definition
US$/L
US$/Imp. Gal
%
2000
0.252
1 145
TABLE 18
MOGAS AVERAGE CIF PRICES
2001
2002
2003
2004
0.230
0.227
0.282
0.350
1 047
1 030
1 284
1 590
-8.6%
-1.6%
24.6%
23.9%
2005
0.464
2 107
32.5%
2006
0.537
2 439
15.7%
2007
0.581
2 642
8.3%
Source: Guyana Energy Agency.
Brazil (US$/Imp. Gal)
TABLE 19
ETHANOL WORLD MARKET PRICES
2005
2006
2007
1.83
2.07
1.86
2008
2.20
Source: CEPEA/ESALQ/Brazil.
Note: USA: See Annex B - Figure B9.
Price Establishing Methodology

The ethanol FOB project price is calculated at 70% of the CIF mogas price, which depends directly on
the petroleum price and its supply logistics.
The recent global economic crisis has distorted most of the international markets and as a
result, the authors have set the ethanol price over the price of a barrel of petroleum of approximately
US$ 70.
This seems to be a reasonable price for petroleum in the long term, when the world economy
returns to its normal standards.
It is estimated that the mogas C.I.F price is US$ 760 per m or US$ 3.45550 per imperial
gallon (G$ 701.36 per imp. gallon) in Guyana. Therefore the ethanol project price is considered to be
70% of that price, US$ 0.53 per litre or US$ 2.41 per imp. gallon. This value corresponds to
G$ 107.59 per litre or G$ 489.10 per imp. gallon.
Economic-financial analysis
The economic-financial analysis evaluates the projects viability. For this purpose, three main
parameters are used, the Internal Rate of Return (IRR), the Net Present Value (NPV) and the
Sensitivity Analysis (SA):
IRR: The Internal Rate of Return is a capital budgeting parameter used to check the
efficiency of an investment. It is the rate that makes the Net Present Value of all cash
flows equal to zero. The project is a good investment if the IRR is higher than the interest
rate used that would be earned if the capital was invested in another project.
NPV: The Net Present Value is a capital budgeting parameter used to check the
magnitude of an investment. It consists of the present value of cash flows, comparing the
time value of the money. If the NPV is higher than 0 the project is a good investment.
SA: The Sensitivity Analysis is used to determine how variations in the data used for a
study weighs more on its conclusions. It is a way to predict the outcome of a decision if a
situation turns out to be different from the key prediction.
39
TABLE 20
ASSUMPTIONS
Abbreviations
Product and Operation Criteria
VAT
Value Added Tax
1. Product:
Imp. Gal
Imperial Galloon
Specifications:
Year
- Maximum acidity (mg/L)
day
- Maximum conductivity (micro Siemens)
tm
ton of molasses
- Specific weight (kg/m3)
Eth
Ethanol
- Ethanol by weight (%)
IRR
Internal Rate of Return
NPV
Net Present Value
WK
EBITDA
Working Capital
Earnings Before Interest,
Tax, Depreciation and
Amortization
Unity
m3
Cubic meter
Litre
2.1 Imp. Gals (thousands)
791.5
99.3
ton
kg/m3
kilogram per cubic meter
27,205
123,674
2.5
3.1 Molasses
- Purity:
milligram per liter
3.3 Molasses per year (000 t)
83.2
35
90
4. Ethanol per Molasses

4.1 Litres/ton
4.2 Imp Gals/ton
Financial
Tenor (y)
2.2 Litres (thousands)

2.3 Yearly Growth rate (%)
3. Feedstock for Ethanol Production
3.2 Specifications:
- Brix:
mg/L
Grace Period (y)
30
500
2. Mogas Consumption (2007)
Interest Rate (%)
Anhydrous Ethanol
7.5
2
5. Litres per Imp. Gal

6. Operation days per year
260
57
4.54609
310
10
7. Ethanol Blend (%)
VAT (%)
16
8. Plant Capacity
Working Capital (d)
60
8.1 Plant Maximum Capacity (m3/d)
Fees on Bank Guarantee

(%)
Market
1.5
8.2 Plant Maximum Capacity (1000 Imp.

Gals/y)
8.3 Plant Operational Capacity (m3/d)
8,183
8.4 Plant Operational Capacity (1000 Imp.

Gals/y)
9. Plant Utilities
7,774
9.1 Steam, own generation (fuel; wood

chips/rice straw) (t/h)
9.2 Process water, treated, own plant (m3/h)
25.00
$/Imp Gal
Guyana
2.41
Brazil
2.35
US
2.84
9.3 Cooling water, untreated, from existing canal

9.4 Electric energy, own plant (kW)
Source: Prepared by the Authors.
40
17.14
120
114
50.00
NA
2,000
Revenue and costs

This table shows the yearly costs and revenues of the plant, obtaining the EBITDA (Earnings Before
Interest, Taxes, Depreciation and Amortization) which is the companys raw income.
In the table there are also yearly data about the estimated ethanol consumption, the plants ethanol
production capacity and the molasses consumption. These data show when the plant has production higher
than demand, creating the possibility of exportation, or also when the molasses provided by Skeldon is not
enough for the plant to operate at full capacity. The table also shows the working capital loan schedule.
For operational purposes it was established that the plant will use all the molasses Skeldon can
provide, which will lower the ethanol blend year by year because the mogas consumption is increasing and the
ethanol production is constant (due to the molasses constraint).
Disbursement Schedule
The disbursement table identifies the different items of the investment, pointing out the value to be
paid and the period when the items should be purchased or executed. Interest is calculated during the
projects construction. This interest shall be paid during the construction period.
41
Discrimination
Mogas Consumption Per year (m)
Mogas Consumption Per year (000 Imp. Gal)
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
126 766 129 935 133 183 136 513 139 926 143 424 147 010 150 685 154 452 158 313 162 271 166 328 170 486 174 748 179 117
27 885
28 582
29 296
30 029
30 779
31 549
32 338
33 146
33 975
34 824
35 695
36 587
37 502
38 439
39 400
Ethanol Production Capacity (m)
23 400
23 400
23 400
23 400
23 400
23 400
23 400
23 400
23 400
23 400
23 400
23 400
Ethanol Production Capacity (000 Imp. Gal)
Molasses Consumption per Year (t)

Ethanol Blend (%)
01
Project Years
02
5 147
5 147
5 147
5 147
5 147
5 147
5 147
5 147
5 147
5 147
5 147
5 147
90000
90000
90000
90000
90000
90000
90000
90000
90000
90000
90000
90000
17.14
16.72
16.32
15.92
15.53
15.15
14.78
14.42
14.07
13.73
13.39
13.06
03
04
05
06
07
08
09
10
11
12
13
14
12 405
12 405
12 405
12 405
12 405
12 405
12 405
12 405
12 405
12 405
12 405
12 405
TABLE 21
REVENUE AND COSTS (000 US$)
Revenues
Ethanol Sales (US$)
US$/L
42
0.3270
7 652
7 652
7 652
7 652
7 652
7 652
7 652
7 652
7,652
7,652
7,652
7,652
Energy (steam and electric power)
0.0883
2 067
2 067
2 067
2 067
2 067
2 067
2 067
2 067
2 067
2 067
2 067
2 067
Chemicals
0.0303
709
709
709
709
709
709
709
709
709
709
709
709
Wages
0.0097
227
227
227
227
227
227
227
227
227
227
227
227
Maintenance
0.0082
192
192
192
192
192
192
192
192
192
192
192
192
Other Fixed Costs
0.0051
119
119
119
119
119
119
119
119
119
119
119
119
Total Costs
0.4686
10 966
10,966
10 966
10 966
10 966
10 966
10 966
10 966
10 966
10 966
10 966
10 966
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 803
1 803
1 803
1 803
1 803
1 803
1 803
1 803
1 803
1 803
1 803
1 803
162
162
162
162
162
162
162
162
162
162
162
162
Ebitda
Working Capital Loan
Days of WK
Interest
Equivalent Amount
Interest Payment
60
9%
Costs
Molasses
Discrimination
11
12
50
1 Studies and projects

1.1 Permits
2 Pre operational expenditures
2.1 Project Management
TOTAL
Year 2
Bimesters
9
10
50
50
800
60
60
2.2 Organizational, Controlling and Legal Expenditures
60
60
60
60
60
60
60
60
60
660
80
80
2.3 Pre Operational Tests and General Cleaning
60
60
60
120
3.2 Piling and Structural Bases
75
75
75
75
3.3 Pavement, Parking and Rainfall Water Drainage
43
3.4 Fencing
75
75
70
70
450
70
210
30
30
5
3.6 Internal Illumination
90
90
20
30
185
30
80
1 030.5
4 Services
4.1 Topography
40
40
4.2 Transportation
4.3 Erection on Site

4.4 Quality Inspection
0
4
88
31.3
31.3
31.3
31.3
31.3
31.3
31.3
31.3
62.5
62.5
62.5
62.5
62.5
62.5
62.5
62.5
62.5
562.5
10
10
10
10
10
20
20
90
250
3.5 Buildings
4.2.2 Equipment
60
1 075
3 Civil works
3.1 Terrain and Soil Preparation
4.2.1 Personnel
Item
TABLE 22
DISBURSEMENT CRONOGRAM (000 US$)
Year 1
Bimesters
1
2
3
4
5
6
Item
1
44
Facilities and equipment

Molasses Tank
Treated Water Tank
Ethanol Storage Tank
Miscellaneous Tanks
Steam Generation
Power Generation
Electrical System
Painting
Laboratory Equipments and Instruments
Furniture, Utensils, Communication, Informatics and
Disposal
Vehicles
PRAJ Equipment, Components, Services, etc.
CIF Georgetown
Services
Contingencies (3%)
5.22
6
6.1
6.2
7
Total
Accumulated debt
Interest during implementation
100
37
100
37
75
150
Year 2
Bimesters
9
10
50
25
50
38
75
150
62.5
62.5
75
150
75
150
160
40
120
62.5
62.5
30
30
20
3 213
62.5
20
12
40
25
50
90
75
200
150
200
11
50
25
50
40
150
250
TOTAL
100
62.5
20
75
140
40
75
200
62.5
100
112.5
20
75
140
40
70
40
65
1 377
1 469
1 469
1 652.4
20
20
20
20
20
20
20
20
20
98
6
18
49
10
68
14
77
30
36
55
56
3 375 210
626 1 698
329 2 318
485 2 642 1 019 1 230 1 882 1 919
3 375 3 585 4 212 5 910 6 239 8 557 485.4 3 127 4 147 5 376.9 7 258.5 9 177
685
734
4 902
140
75
150
112
500
600
160
80
120
90
450
850
250
200
300
90
150
280
120
100
85
9 360
9 180
180
517
17 734
9 177
1 419
5
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
5.13
5.14
5.15
5.16
5.17
5.18
5.19
5.21
Year 1
Bimesters
3
4
TABLE 22 (CONTINUED)
Capital expenditures
The Capital Expenditures table lays out the expenditures for the industrial site, as well as the
depreciation and amortization schedules.
Depreciation is calculated dividing the value of the depreciating items by the time (in years)
that they will take to fully depreciate. The amortization is calculated dividing the total investment
amount by the tenor (length of time until the loan is due). Consequently, the yearly amortization has
the same value during the repayment period. The interest on the amortization is calculated over the
amount that is outstanding. The sum of the amortization payments and the interest expenses are the
total annual payment for the capital expenditures.
Cash Flow
The Cash Flow table shows the projects receipts, consisting of the EBITDA minus loan and interest
repayments.
In the first ten years of operation the projects cash flow is always negative. This fact is
reflected by the Internal Rate of Return: - 23.62% (an acceptable IRR would be 7.5%, the interest rate
that the invested money would receive if it was used for another purpose). The Net Present Value is
US$ 21.94 million when the minimum acceptable value should be US$ 0 (the company would be able
to pay for all its liabilities by itself, acquiring no additional debts). These values demonstrate that
under the given parameters the project is not profitable and therefore not feasible from the financial
point of view.
Income Statement
The Debt Service Coverage Ratio (DSCR) is found in the income statement.
The DSCR is a measure that indicates if the amount of cash flow available is sufficient for the
company to pay its annual interest and principal repayments. The DSCR should be over 1.
In this case, the DSCR is below 1 in the first ten years, showing that in these years the enterprise
cannot pay its debts with its own net income and will have to use other funds to continue its activity.
45
Discrimination
Pre Operational Tests and General Cleaning
Years to Year 1
depreciate
1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Terrain and Soil Preparation
10
124
Piling and Structural Bases
10
155
309
5
5
0
31
216
0
Buildings
Internal Illumination
10
10
0
0
191
82
10
144
Molasses Tank
10
77
Treated Water Tank
10
155
10
115
10
103
412
Ethanol Storage Tank
10
464
618
10
165
Miscellaneous Tanks
10
82
10
124
93
Steam Generation
10
309
155
Power Generation
10
464
412
Electrical System
64
258
206
309
Pavement, Parking and Rainfall Water Drainage

Fencing
46
62
10
11
12
Year 9 Year 10 Year 11 Year 12
TABLE 23
CAPITAL EXPENDITURES (000 US$)
Years to Year 1
depreciate
1
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
1 422
1 422
1 422
1 422
1 422
1 422
1 422
1 422
1 422
1 422
Beginning Balance
14 216
12 794
11 373
9 951
8 530
7 108
5 686
4 265
2 843
1 422
Ending Balance
12 794
11 373
9 951
8 530
7 108
5 686
4 265
2 843
1 422
397
397
397
397
397
Beginning Balance
1 985
1 588
1 191
794
397
Ending Balance
1 588
1 191
794
397
Total
1 819
1 819
1 819
1 819
1 819
1 422
1 422
1 422
1 422
1 422
93
155
Painting
288
Laboratory Equipment and Instruments
124
10
31
72
5
10
88
4 728
0
4 728
6 560
9 645
Furniture, Utensils, Communication, Informatics

and Disposal
Vehicles
PRAJ Equipments and Components
TOTAL
47
10 Year Items
10
6 376
7 840
5 Year Items
183
1 803
6 559
9 643
Year 1
Year 2
Total
Depreciation

9
10
11
12
10 years items
Ethanol
5 years items
Ethanol
Year 2
Discrimination
TABLE 23 (CONTINUED)
TABLE 23 (CONCLUDED)
Months
Disbursement
1-6
%
To be disbursed
7-12
13-18
19-24
Total
23.7%
24.5%
23.4%
28.4%
100%
4 212
4 345
4 147
5 030
17 734
TABLE 24
AMORTIZATION SCHEDULE
(000 US$)
Discrimination
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
48
0 17 734 15 961 14 187 12 414 10 640
8 867
7 094
5 320
3 547
1 773
Amortization
1 773
1 773
1 773
1 773
1 773
1 773
1 773
Debt EB
0 15 961 14 187 12 414 10 640
8 867
7 094
5 320
3 547
1 773
Interest Expenses
1 419
1 277
1 135
993
851
709
567
426
284
142
3 192
3 050
2 908
2 767
2 625
2 483
2 341
2 199
2 057
1 915
Total Payment
1 773
1 773
1 773
Debt BB
Year
01
03
04
05
06
07
08
09
10
11
12
13
14
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
Interest Payments
1 419
1 277
1 135
993
851
709
567
426
284
142
Debt Principal Repayment
1 773
1 773
1 773
1 773
1 773
1 773
1 773
1 773
1 773
1 773
Total Disbursements
3 192
3 050
2 908
2 767
2 625
2 483
2 341
2 199
2 057
1 915
-1 753
-1 611
-1 470
-1 328
-1 186
-1 044
-902
-760
-618
-477
1 439
1 439
Receipts
02
EBITDA
Loan Receipts
8 557
9 177
Total Receipts
8 557
9 177
Disbursements
TABLE 25
CASHFLOW (000 US$)
Cash-flow
Cash Flow with Financing
-8 557
-9 177
49
IRR (%)
NPV (US$)
-23.62
- 21 937 000.00
Financial Parameters
Returns at US$/gal: 2,94
Debt
Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14
1 277
162
3 050
162
0.45
Year 4
12 405
10 966
1 439
3 592
-2 153
1 277
162
1 439
-3 592
1 277
162
2 908
162
0.47
Year 5
12 405
10 966
1 439
3 592
-2 153
1 135
162
1 297
-3 451
1 277
162
2 767
162
0.49
Year 6
12 405
10 966
1 439
3 592
-2 153
993
162
1 155
-3 309
1 277
162
2 625
162
0.52
Year 7
12 405
10 966
1 439
3 592
-2 153
851
162
1 013
-3 167
1 277
162
2 483
162
0.54
Year 8
12 405
10 966
1 439
3 592
-1 756
709
162
872
-2 628
1 277
162
2 341
162
0.57
Year 9
12 405
10 966
1 439
3 592
-1 756
567
162
730
-2 486
1 277
162
2 199
162
0.61
Year 10
12 405
10 966
1 439
3 592
-1 756
426
162
588
-2 344
1 277
162
2 057
162
0.65
Year 11
12 405
10 966
1 439
3 592
-1 756
284
162
446
-2 202
-3 592
0
-718
-718
0
-3 592
-3 451
0
-690
-690
0
-3 451
-3 309
0
-662
-662
0
-3 309
-3 167
0
-633
-633
0
-3 167
-2 628
0
-526
-526
0
-2 628
-2 486
0
-497
-497
0
-2 486
-2 344
0
-469
-469
0
-2 344
-2 202
0
-440
-440
0
-2 202
1 277 1 021 1 021

162
162
162
1 915
0
0
162
162
162
0.69
7.29
7.29
Year 12 Year 13 Year 14
12 405 12 405 12 405
10 966 10 966 10 966
1 439 1 439 1 439
3 592
0
0
-1 756 1 439 1 439
142
0
0
162
162
162
304
162
162
-2 060 1 277 1 277
-2 060
0
-412
-412
0
-2 060
1 277
0
255
255
255
1 021
1 277
0
255
255
255
1 021
50
Debt Service Coverage Ratio:

1. Net Income+Depreciation+Senior loan Interest 1 277
2. Working Capital Interest
162
3. Senior Loan Principal + Interest
3 192
4. Working Capital Interest
162
Coverage Ratio: (1+2+)/(3+4)
0.43
Income statement
Year 3
Revenues
12 405
Industrial Costs
10 966
Ebtida
1 439
Depreciation & Amortization
3 592
Ebit
-2 153
Interest on LT Debt
1 419
Working Capital Interest
162
Total Interest
1 581
Earnings Before Tax & Profit Sharing
-3 734
Employee Participation
Earnings before Tax
-3 734
Tax Rate
0
Tax Expense/Credit
-747
Tax Expense/Credit Balance
-747
Income Tax Expense
0
Net Income
-3 734
TABLE 26
INCOME STATEMENT
(000 US$)
Sensitivity study scenarios
Price Variation
International Petroleum Market

As established above, the ethanol price depends on the mogas and petroleum prices.
Therefore, variations in the international oil market will directly affect the ethanol price either in a
positive or in a negative way.
Tax Incentives
When developing a new area of the economy, it is customary that the host government will
concede tax incentives in order to protect and incentivize the new project and allow it to be
competitive during its early years. The price sensitivity analysis will stand for variations that can
happen in both cases above.
Investment Cost Variations
Due to changes in the exchange rate, in prices, and moreover, the value of the investment,
costs may vary from the one estimated in this study. The investment sensitivity analysis will consider
the impact of these variations on the return of the project.
Operation Cost Variation
The operational costs are a key issue when evaluating the viability of an industrial
undertaking. The operational cost sensitivity analysis will check the impact of variations in these costs
on the return of the project. Note that the molasses cost represents almost 70% of the operational cost,
which makes the price of molasses the main determinant in this case. Because of this, the sensitivity
analysis for operation cost will be done by examining variations in the molasses price in the range of
plus or minus 10%.
a) Ethanol Price Variation

The sensitivity analysis using the IRR as a comparison parameter shows that the project is more
sensitive to variations in the price of ethanol (derived from changes in the petroleum market or taxes,
as explained above). When the ethanol price ranges from -10% to +10 %, the IRR varies by 60%,
which is a considerable change.
b) Molasses Price Variation

The price of molasses is the second factor that causes the most variation in the projects returns: for
the range between -10% to +10% the IRR varies by almost 31%.
c) Investment Cost Variation

The factor the project is least sensitive to is the value of the investment, with the IRR varying only 5%
when the investment value varies in the range of -10% to +10%.
Note that even in the most positive scenarios, the project is still not viable: if the ethanol price
increases +10%, the IRR will be -8%, a value well below the 7.5% minimum attractiveness rate.
51
TABLE 27
SENSIVITY
Ethanol prices
-10%
-5%
0%
5%
10%
2.17
2.29
2.41
2.53
2.65
-68.4%
-38.5%
-23.6%
-14.4%
-7.8%
-10%
-5%
0%
5%
10%
76.5
80.75
85
89.25
93.5
Cost (US$/Litre)
0.2943
0.3107
0.327
0.3434
0.3597
IRR
-12.7%
-17.5%
-23.6%
-31.8%
-43.5%
-10%
-5%
0%
5%
10%
Investment
15,961
16,847
17,734
18,621
19,507
IRR
-20.9%
-22.3%
-23.6%
-24.9%
-26.1%
Price (US$/Imp Gal)

IRR
Molasses price
Price (US$/t)
Investment
IRR
FIGURE 5
VARIATION GRAPH
-0.1
0
-0.1 -12.7%
-0.2
-0.3 -20.9%
-0.4
-0.5
-0.6
-68.4%
-0.7
-0.8
-0.05
-17.5%
0
-23.6%
0.05
0.1
-14.4%
-7.8%
-24.9%
-22.3%
-31.8%
-38.5%
Ethanol Price
Molasses Price
52
Investment
-26.1%
-43.5%
Cash Flow
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14
For -10% Price :

Total Receipts
8 557
9 177
198
198
198
198
198
198
198
3 192
3 050
2 908
2 767
2 625
2 483
2 341
2 199
2 057
1 915
-8 557 -9 177 -2 994 -2 852 -2 710 -2 568 -2 426 -2 284 -2 143
-2 001
-1 859
-1 717
198
198
Total Disbursements
IRR
198
198
198
198
198
-68.4%
TABLE 28
CASHFLOW - PRICE
(000 US$)
For -5% Price :

Total Receipts
8 557
9 177
819
819
819
819
819
819
819
819
819
819
819
819
3 192
3 050
2 908
2 767
2 625
2 483
2 341
2 199
2 057
1 915
-8 557 -9 177 -2 374 -2 232 -2 090 -1 948 -1 806 -1 664 -1 522
-1 380
-1 239
-1 097
819
819
Total Disbursements
IRR
-38.5%
53
For +5% Price :

8 557
9 177
2 059
2 059
2 059
2 059
2 059
2 059
2 059
2 059
2 059
2 059
2 059
2 059
3 192
3 050
2 908
2 767
2 625
2 483
2 341
2 199
2 057
1 915
-8 557 -9 177 -1 133
-991
-849
-707
-566
-424
-282
-140
144
2 059
2 059
2 679
2 679
2 679
2 679
2 679
2 679
2 679
2 679
2 679
2 679
2 679
2 679
3 192
3 050
2 908
2 767
2 625
2 483
2 341
2 199
2 057
1 915
-513
-371
-229
-87
55
197
338
480
622
764
2 679
2 679
Total Disbursements
IRR
-14.4%
For +10% Price :

Total Receipts
8 557
9 177
Total Disbursements
-8 557 -9 177
IRR
-7.8%
Total Receipts
Cash Flow
54
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10 Year 11 Year 12 Year 13 Year 14
8 557
9 177
-8 557
-12.7%
-9 177
12 405
10 201
2 204
3 192
-988
12 405
10 201
2 204
3 050
-846
12 405
10 201
2 204
2 908
-704
12 405
10 201
2 204
2 767
-563
12 405
10 201
2 204
2 625
-421
12 405
10 201
2 204
2 483
-279
12 405
10 201
2 204
2 341
-137
12 405
10 201
2 204
2 199
5
12 405
10 201
2 204
2 057
147
12 405
10 201
2 204
1 915
289
12 405
10 201
2 204
0
2 204
12 405
10 201
2 204
0
2 204
12 405
10 584
1 821
3 192
-1 371
12 405
10 584
1 821
3 050
-1 229
12 405
10 584
1 821
2 908
-1 087
12 405
10 584
1 821
2 767
-945
12 405
10 584
1 821
2 625
-803
12 405
10 584
1 821
2 483
-661
12 405
10 584
1 821
2 341
-520
12 405
10 584
1 821
2 199
-378
12 405
10 584
1 821
2 057
-236
12 405
10 584
1 821
1 915
-94
12 405
10 584
1 821
0
1 821
12 405
10 584
1 821
0
1 821
12 405
11 349
1 056
3 192
-2 136
12 405
11 349
1 056
3 050
-1 994
12 405
11 349
1 056
2 908
-1 852
12 405
11 349
1 056
2 767
-1 710
12 405
11 349
1 056
2 625
-1 568
12 405
11 349
1 056
2 483
-1 427
12 405
11 349
1 056
2 341
-1 285
12 405
11 349
1 056
2 199
-1 143
12 405
11 349
1 056
2 057
-1 001
12 405
11 349
1 056
1 915
-859
12 405
11 349
1 056
0
1 056
12 405
11 349
1 056
0
1 056
12 405
11 731
674
3192
(2 519)
12 405
11 731
674
3050
-2 377
12 405
11 731
674
2908
-2 235
12 405
11 731
674
2767
-2 093
12 405
11 731
674
2625
-1 951
12 405
11 731
674
2483
-1 809
12 405
11 731
674
2341
-1 667
12 405
11 731
674
2199
-1 525
12 405
11 731
674
2057
-1 384
12 405
11 731
674
1915
-1 242
12 405
11 731
674
0
674
12 405
11 731
674
0
674
8 557
9 177
-8 557
-17.5%
-9 177
8 557
9 177
-8 557
-31.8%
-9 177
8 557
9 177
-8 557
-43.5%
-9 177
For -10% Molasses Price :

Revenue
Total Cost
Total Receipts
Total Disbursements
IRR
For -5% Molasses Price :
Revenue
Total Cost
Total Receipts
Total Disbursements
IRR
For +5% Molasses Price :
Revenue
Total Cost
Total Receipts
Total Disbursements
IRR
For +10% Molasses Price :
Revenue
Total Cost
Total Receipts
Total Disbursements
IRR
Year 1
TABLE 29
CASHFLOW - MOLASSES PRICE (000 US$)
Cash Flow
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9 Year 10 Year 11 Year 12 Year 13 Year 14
7 701
8 260
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
15 961
14 365
12 768
11 172
9 576
7 980
6 384
4 788
3 192
1 596
1 596
1 596
1 596
1 596
1 596
1 596
1 596
1 596
1 596
1 596
14 365
12 768
11 172
9 576
7 980
6 384
4 788
3 192
1 596
1 277
1 149
1 021
894
766
638
511
383
255
128
For -10% Investment :

Total Receipts
Debt BB
Debt Repayment
Debt EB
Interest Payments
Total Disbursements
IRR
2 873
2 745
2 618
2 490
2 362
2 234
2 107
1 979
1 851
1 724
-7 701
-20.9%
-8 260
-1 434
-1 306
-1 179
-1 051
-923
-796
-668
-540
-413
-285
1 439
1 439
8 129
8 718
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
16 847
15 163
13 478
11 793
10 108
8 424
6 739
5 054
3 369
1 685
1 685
1 685
1 685
1 685
1 685
1 685
1 685
1 685
1 685
1 685
TABLE 30
CASHFLOW - INVESTMENT
(000)
For -5% Investment :
55
Total Receipts
Debt Repayment
Debt EB
15 163
13 478
11 793
10 108
8 424
6 739
5 054
3 369
1 685
Interest Payments
1 348
1 213
1 078
943
809
674
539
404
270
135
Total Disbursements
3 033
2 898
2 763
2 628
2 493
2 359
2 224
2 089
1 954
1 820
-1 594
-1 459
-1 324
-1 189
-1 055
-920
-785
-650
-516
-381
1 439
1 439

IRR
-8 129
-22.3%
-8 718
Debt BB
Cash Flow
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9 Year 10 Year 11 Year 12 Year 13 Year 14
8 985
9 636
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
16 759 14 897
13 035
11 172
9 310
7 448
5 586
3 724
1 862
1 862
1 862
1 862
1 862
1 862
1 862
1 862
1 862
14 897 13 035
11 172
9 310
7 448
5 586
3 724
1 862
For +5% Investment :

Total Receipts
Debt BB
18 621
Debt Repayment
1 862
Debt EB
16 759
1 862
Interest Payments
1 490
1 341
1 192
1 043
894
745
596
447
298
149
Total Disbursements
3 352
3 203
3 054
2 905
2 756
2 607
2 458
2 309
2 160
2 011
-9 636
-1 913
-1 764
-1 615
-1 466
-1 317
-1168
-1 019
-870
-721
-572
1 439
1 439
10 095
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
1 439
17 557 15 606

IRR
-8 985
-24.9%
For +10% Investment :

Total Receipts
9 412
56
Debt BB
19 507
Debt Repayment
1 951
17 557
Interest Payments
1 561
Total Disbursements
IRR
-9 412 -10 095

-26.1%
11 704
9 754
7 803
5 852
3 901
1 951
1 951
1 951
1 951
1 951
1 951
1 951
1 951
15 606 13 655
11 704
9 754
7 803
5 852
3 901
1 951
1 092
936
780
624
468
312
156
1 405
1 248
3 511
3 355
3 199
3 043
2 887
2 731
2 575
2 419
2 263
2 107
-2 073
-1 917
-1 760
-1 604
-1 448
-1 292
-1 136
-980
-824
-668
1 439
1 439
Debt EB
13 655
1 951
1 951
Basic Data
1 - Mogas Consumption (m3))
2 - Molasses Provision (t)
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
129 935 133 183 136 513 139 926 143 424 147 010 150 685 154 452 158 313 162 271 166 328 170 486 174 748
90000
90000
90000
90000
90000
90000
90000
90000
90000
90000
90000
90000
90000
3 - Ethanol Consumption (m3)
23 400
23 400
23 400
23 400
23 400
23 400
23 400
23 400
23 400
23 400
23 400
4 - Ethanol Blend (%)
0 17.14% 16.72% 16.32% 15.92% 15.53% 15.15% 14.78% 14.42% 14.07% 13.73%
13.39%
Products Prices
5 - Molasses Price (US$/t)
85
6 - Mogas Price (US$/L)
0.756
7 - Ethanol Price (US$/L)
0.53
TABLE 31
MACRO ECONOMICAL SCENARIOS
First Scenario - Molasses Export (000US$)

Year
Receipts
01
02
57
8 - Molasses Exports Gain (2 x 5)
03
04
05
06
07
08
09
10
11
12
13
7 650
7 650
7 650
7 650
7 650
7 650
7 650
7 650
7 650
7 650
7 650
9 - Mogas Imports (1 x 6)
103 204 105 784 108 428 111 139 113 918 116 766 119 685 122 677 125 744 128 887 132 110
10 -Cash flow (8 - 9)
-95 554 -98 134 -100 778 -103 489 -106 268 -109 116 -112 035 -115 027 -118 094 -121 237 -124 46
Second Scenario - Ethanol Consumption

Receipts
11 - Mogas Import Gain (3 x 6)
12 - Enterprise Project Gain
-8 557
-9 177
17 690
17 690
17 690
17 690
17 690
17 690
17 690
17 690
17 690
17 690
17 690
-1 753
-1 611
-1 470
-1 328
-1 186
-1 044
-902
-760
-618
-477
1 439
85 513
88 093
90 738
93 449
96 227
99 075 101 994 104 986 108 053 111 197 114 419
Disbursements
13 - Mogas Imports ([1 - 3] x 6)
14 - Cash flow (12 - 13)
-87 267 -89 705 -92 208 -94 777 -97 413 -100 119 -102 896 -105 747 -108 672 -111 674 -112 98
Balance (Second Scenario x First Scenario)

(10 - 14)
-8 557
-9 177
8 287
8 429
8 571
8 713
8 855
8 996
9 138
9 280
9 422
9 564
11 479
Accumulated
-8 557 -17 734
-9 447
-1 018
7 553
16 265
25 120
34 116
43 255
52 535
61 957
71 521
83 000
Disbursements
VII. World economic reorganization
The current global financial crisis will have an impact on all the parameters in the statistical series
used for the feasibility study, namely, GDP growth, energy production and prices, exports and
imports, interest, payback period, consumption, pricing criteria, and logistics, among others.
The project was developed using a US$ 60-70 price per barrel of oil range. When the study
began, the price of oil was about US$ 140 and in November 2008, it had come down to less then
US$ 50 per barrel.
59
VIII. Conclusion
The conclusion embraces three approaches: a) the project itself, b) the macro-economic scenario and
c) the funding.
a) The project would require special financial support from the government to be feasible. It is
estimated that an IRR of 18.88% could be reached if the FOB ethanol price equals the mogas CIF price.
b) The macro economic scenario is positive and gives a gain of US$ 83 million of the exportimport bill.
c) The funding was based on borrowed capital with an interest rate of 7.50% per year. This
important matter could be further explored if a more efficient financial model is adopted.
VIII.1 The Project

The economic-financial analysis demonstrated no feasibility. This is mainly because the model is a
completely independent operation bearing all investments and operational costs, and is highly
impacted by the necessity of concentrating the vinasse, and also due to the ethanol reference price
being 70% of the mogas CIF price.
From the renewable energy approach, in terms of reducing GHG and introducing a new
technology into the country, the project is positive.
The 17% mixture grade, the E 17, will also reduce the retail price.
Brazilian scientist and energy expert Jose Goldemberg states that at the start of the initiative
only subsidized production of biofuels is possible, until the project matures and finds the adequate
scale-economy size.
Therefore the government of Guyana has to look for a strategic support design and implement
specific legislation to make the initiative viable.
In this case the resulting parameters are:
IRR: 18.88%
NPV: US$ 13.55 million
Sensitivity
61
FIGURE 6
SENSITIVITY VARIATION
-0.1
0.3
-0.05
0.05
0.1
27.3%
0.25
IRR
0.2
22.6%
20.7%
22.5%
23.2%
20.6%
0.15
18.8%
17.1%
15.6%
16.8%
14.1%
14.8%
0.1
9.0%
0.05
0
Ethanol Price
Molasses Price
Investment
VIII.2 The Macro-Economic Scenario

When the project is considered in the broader national interest, there are other positive effects.
One main point is the amount the government will save on the energy import bill by replacing
mogas with the ethanol produced in Guyana.
The analysis estimates that in 13 years, the project would result in savings of approximately
US$ 83 million, see table 16, page 58.
The operation expenditures are stated in Guyanese dollars.
VIII.3 The Funding

The specific financial resources and the strategic funding model were not established prior to the
development of the project feasibility study.
A standard discount rate of 7.50% per annum was applied, as adopted by the authors.
62
IX. Recommendations
A technical and strategic assessment of the Guysuco Skeldon project should be conducted again to
see if capital and operational expenses can be optimized to allow for better feasibility conditions
for the project. If the project were to be implemented as an internal ethanol division at the Skeldon
plant, as happens in all sugar mills, performance would surely garner better results. Notwithstanding,
the vinasse impact issue would be the same.
If the equation to make the project viable is not found, an alternative plan may be possible
to keep the ethanol initiative on track.
This refers to the Brazilian model in which the sugarcane is produced on dry land. An
adequate land area, with the required conditions for sugarcane development and viable logistics should
be found without any impact on food production. In this case the vinasse could be directly sent to the
sugarcane crops to be used through a fertigation system.
Food production territories should be avoided within this land selection.
This project would process evaporated sugarcane juice and the available Guyanese molasses
could proceed through the existing market routes, or eventually also be part of this project model as a
market alternative.
This alternative project should have a higher volume of ethanol production than the
original project, supplying the internal market and maintaining previous negotiated export contracts
with off-takers.
Guyana could take advantage of the Preferential Trade Arrangements that it has with Canada
and the United States.
Similar projects are being implemented in Guatemala, Costa Rica, Colombia, Peru and the
Caribbean, as well as in Brazil, which does not have the above-mentioned Preferential Trade
Arrangements.
63
Bibliography
Coviello Manlio F., (2006) Fuentes Renovables de Energa en Amrica Latina y el Caribe: Dos Aos
despus de las Conferencia de Bonn, Economic Commission for Latin America and the
Caribbean, LC/W 100. Santiago, Chile, September.
Davis H., L Stuart and P. Bhim, (2005) Potential for fuel ethanol in the Guyana sugar industry.
Proceedings of the twenty-fifth Congress of the International Society of Sugar Cane
Technologists. Guatemala.
EIA, Energy Information Administration, DOE - Department of Energy. United States.
GEA, (2008) Westphalia Separator do Brasil. Budgetary Proposal OM-005483-0. Campinas, Brazil.
Goldemberg Jos, (2008) The Challenge of Biofuels, The Royal Society of Chemistry, University of
Sao Paulo. Brazil, September.
Horta Nogueira Luiz, (2007) Biofuels Potential in Guyana, Economic Commission for Latin
America and the Caribbean, United Nations. Santiago, Chile.
IETHA, International Ethanol Trading Association. Sao Paulo, Brazil
JW Indstria e Comrcio de Equipamentos em Ao Inoxidvel Ltda. Proposal 08-020. Sertaozinho,
Brazil, 2008
Pereira Henrique, (2007) New Frontiers of Ethanol, GM Engines Engineering Department Manager.
Ethanol Summit. Sao Paulo, Brazil.
PRAJ Industries Limited, (2008) Proposal BDN: SAM: GSP: O: 034. Pune, India.
Rodrigues Tarcilo Ricardo, (2008) The CBI Market. Bioagencia. Sao Paulo, Brazil.
Schneider Jackson, (2008) Flex Cars, Brazilian Automotive Manufacturers Association
(ANFAVEA), Journal Valor Special - Biofuels. November.
Sharma M., (2002) Ethanol Production from Sugar Cane for Export and Use as a Mogas Blend in
Guyana. Masters Degree Project. University of Calgary.
Szengel Ruediger, (2007) New Frontiers of Ethanol, Volkswagen Engineering Supervisor,
Germany. Ethanol Summit. Sao Paulo, Brazil.
Yete Ambiental Industria e Comercio Ltda. (2008) Proposal PTC 2968/08-0. Sao Paulo, Brazil.
65
Annex A- Suppliers Detailed Package

This Annex exhaustively describes the supply of services, engineering and equipment.
The description is an excerpt from the suppliers offer mentioned in the References on page 63.
Scope of work
Providing process, design, basic and detailed engineering services, supply of critical, proprietary
equipment and supervision services for HIFERM semi continuous fermentation, "ECOFINE
TVS total vacuum distillation, ECOMOL-XP molecular sieve dehydration and ECOVAPFB
evaporation of vinasse within the defined battery limits. This scope includes the following activities:
Process
The scope includes providing a non-exclusive permission to use HIFERM Semi - Continuous
Fermentation, ECOFINE-TVS total vacuum distillation, ECOMOL-XP molecular sieve
dehydration and ECOVAP-FB evaporation plant suitable for production of 120,000 l/d of 99.8 %
v/v fuel ethanol.
Deliverable and Contents
Start-up and shut down procedures
Consumption figures for various inputs & utilities
Log-sheets
Analytical / Instrumental measurement procedures
Operation and trouble shooting manuals
What-if analysis and suggestions for plant operation
Basic Engineering
Prior to procurement, fabrication and manufacture of the plant and machinery by project owner.
Following activities and services will be carried out by the supplier in relation to the battery limits
under the package for the main process plants.
Results of mass and energy balance.
Process flow diagram showing various unit operations.
Preliminary layout and elevation drawings including load data.
Piping and instrumentation (P& I) diagrams for various sections.
Control logic, loop diagrams and interlock safety logic.
Preparation of inputs and data for instrument selection.
Single line electrical diagrams.
67
Detailed Engineering
Typical bill of material, quantities for stainless steel, carbon steel and piping items.
Typical general arrangement drawings for all equipment.
Typical layout and elevation drawings including load data for client to design and
implement civil, structural and foundation work.
Specifications of field instruments and control panel.
Operation & maintenance manual including consumption figure, trouble shooting &
maintenance schedule.
Kick-off Meeting and Review Meetings

The supplier will undertake a) kick-off visit: 1 visit to GUYANA of 2 engineers for a period of 3 days
for kick-off meeting, b) design review visit: 1 visit of 2 engineers for 3 days for piping &
instrumentation design review meeting. For all these visits, international travel cost including air
tickets (India-GUYANA-India) and man-day charges are included in the price. All expenses in
GUYANA like lodging (hotel) and boarding (food), domestic flights within GUAYANA and transport
within GUAYANA are to be made by the buyer.
Supply of Critical, Proprietary and Bought-out Equipment

and Components:
The Supplier shall design, manufacture and supply all equipment like static mixers, spargers, CO2
scrubber, distillation column, condensers, coolers and reboilers, plate pack for parallel plate clarifiers,
sieve beds, in distillation, dehydration and evaporation as well as items like pumps, plate heat
exchangers, vacuum pump, piping, manual valves within listed under, on CIF GEORGETOWN,
GUYANA basis in a containerized cargo.
Supervision of Installation and Construction on man-day basis:

This is to guide Project owner, customer's contractors for piping, installation, modification of the
entire plant and machinery in customer's scope. The objective is to ensure accurate assembly and
erection of various equipments as per correct specifications, with high quality of workmanship and as
per predefined time schedule.
These services will be offered on above mentioned basis and include:
Dimensional checks as per drawings.
Technical guidance in erection of various equipments, if required.
Technical guidance in assembly of piping and installation of various equipments.
Checking pipe routing, piping layout and quality of piping work.
Typically 2 visits of 1 engineer 60~75 days each are required for supervision of piping,
installation and 1 visit of 1 engineer for 30 days for instrumentation is required. For vinasse
evaporation, 1 visit of 1 engineer for 20~30 days would be required. The exact schedule is to be
decided jointly.
68
Supervision of Start-up and Commissioning

Based on the start-up schedule, typically 1 visit of 3 expert engineers, technologists for assisting,
guiding customers operating personnel for a period of around 45 days for the distillery and 1 visit of 1
instrumentation engineer for 30 days. Such a visit would be on chargeable basis.Class-room training:
Prior to starting water trials, these 2 personnel will provide class room training to customer's operating
staff on the process, parameters, analytical procedures and operation of the plant.
Pre-commissioning checks for conformity of mechanical completion of the work.
Water trials or pre-commissioning trials with the help of customers operators.
Commissioning guidance including that of start-up and shutdown with the help of
customers operators.
A 1 - Equipment list
This section describes all equipment provided by the Supplier and also the equipment to be bought or
manufactured by the project owner under the suppliers engineering specifications.
The commercial items to be bought locally by the supplier are also specified.
The instruments supply package provided by the upplier is described and specified.
Hiferm Fermentation Section

This item describes and specifies special stainless steel vessels to be manufactured and imported by
the supplier.
TABLE 32
CRITICAL AND PROPRIETARY EQUIPMENT PROVIDED BY SUPPLIERS ON CIF
GEORGETOWN GUYANA BASIS
Description
Molasses broth mixers for fermentors,
YAV
CO2 scrubber
Type of trays
Number of trays
Tray spacing
Culture vessel 1
Culture vessel 2
Culture vessel 3
Sparger system for yeast
Activation vessel
Tech. Data
Mixer with static
mixing elements
Dia.: 1100 mm.
Sieve trays
6
200 mm
Capacity. 0.35 m
Capacity. 2.3 m
Capacity. 15.3 m
Std.
Source: PRAJ.
69
MOC
AISI 304
Qty.
6
AISI 304
AISI 304
AISI 304
AISI 304
1
1
1
AISI 304
The description relates and specifies special commercial items to be bought locally by the supplier.
TABLE 33
CAPITAL BOUGHT OUT EQUIPMENT WITHIN PACKET
ON CIF GEORGETOWN GUYANA BASIS
Description
Tech. Data
MOC
Qty.
Weighed molasses pump
Lobe type, Capacity:

45 TPH
Suppliers design
Standard
Centrifugal,
Capacity: 300 m/t
Centrifugal,
Capacity: 75 m/t
Centrifugal,
Capacity: 70 m/t
Centrifugal,
Capacity: 10 m/h
Diaphragm,
Capacity: 2 m/t
Centrifugal,
Capacity: 1 m/h
Centrifugal,
Capacity: 3 m/h
Centrifugal,
Capacity: 35 m/h
Load cell type,
Capacity: 6 t
HEPA
Capacity: 200 Nm/h
Plate heat exchangers
C.I.
1+1
AISI 304
Wetted
parts:CF8
Wetted
parts:CF8
Wetted
parts:CF8
Wetted
parts:CF8
Teflon Coated
4+1
Safety system for fermentor and YAV

Fermentor re-circulation pump and motor
Yeast activation vessel pump & motor
Mash transfer pump and motor
Fermentor washing transfer pump and motor
Acid dosing pump and motor
Antifoam dosing pump and motor
Nutrient dosing pump and motor
CIP pump and motor
Molasses weighing system
Air filter
Blower-water ring type with liquid separator &motor
Cooler for fermentors
Description
Cooler for yeast activation vessel
Spray nozzles for antifoam

Piping & valves
Tech. Data
Plate heat
exchangers
Supplier std.
Supplier std.
self operated with
360 0 C
self operated
As per Supplier norms
Instrumentation
Agitator for fermentors, YAV and mash charger

Agitator for nutrient tank.
Cleaning nozzles for fermentor, mash charger, YAV
Source: PRAJ
70
1+1
1+1
1+1
1+1
C.I.
1+1
Wetted
parts:CF8
Wetted
parts:CF8
1+1
1+1
1
CS FRAME
C.I.
Plates:AISI 316
Frames:CS
MOC
Plates: AISI 316
Frames: CS
AISI 304
AISI 304
AISI 304
AISI 304
As per enclosed
list
As per enclosed
list
1
1+1
4
Qty.
2
7
1
7
7
Lot
Lot
TABLE 34
EQUIPMENT TO BE FABRICATED BY PROJECT ON SITE
UNDER SUPPLIERS SPECIFICATION
Description
Antifoam tank
Acid dosing tank
Nutrient tank
Yeast activation vessel
Fermentors
Mash charger
Weighed molasses tank
Molasses receiving tank
CIP tank
Tech. Data
Capacity: 1 m
Capacity: 1 m
Capacity: 2 m
Capacity: 102 m
Capacity: 680 m
Capacity: 320 m
Capacity: 119 m
Capacity: 4.6 m
Capacity: 35 m
MOC
AISI 304
CS
AISI 304
AISI 304
CS with Epoxy / AISI 304
CS with epoxy / AISI 304
CS
CS
CS
Qty.
1
1
1
2
4
1
1
1
1
Source: PRAJ
Notes: The above equipment list is tentative and the exact technical specifications will be confirmed only after
detailed engineering.
Construction material mentioned above is only for wetted parts. Construction material for
other parts like flanges and nut-bolts shall be carbon steel (CS).
Ecofine - TVS" Total Vacuum Distillation Section

The description relates and specifies special stainless steel items to be manufactured and
imported by the supplier for the distillation section.
TABLE 35
CRITICAL AND PROPRIETARY EQUIPMENT AND COMPONENTS BY SUPPLIER
Description
Tech. Data
MOC
Qty.
Remarks
Mash column
2750 mm dia.
AISI 304
1
Vacuum
(Rh Grid) trays
20 Nos.
Degassifier column
1535 mm dia.
AISI 304
1
Vacuum
(Sieve) trays
5 Nos.
Aldehyde column
560 mm dia.
AISI 304
1
Vacuum
(Bubble Cap) trays
24 Nos.
Rectifier column
2930 mm dia
AISI 304
1
Vacuum
Sieve trays
42 Nos.
Exhaust column
930 mm dia
AISI 304
1
Vacuum
(Bubble cap) trays
14 Nos.
Aldehyde condenser I
25.4 mm OD
AISI 304
1
Shell under
Shell and tube type,HTA
tubes, 3m long
vacuum
13 m
Aldehyde condenser II
25.4 mm OD
AISI 304
1
Shell under
Shell and tube type, HTA
tubes, 3m long
vacuum
1.4 m
Rectifier condenser I
25.4 mm OD
AISI 304
1
Shell under
Tubes, 3m long
vacuum
445 m
Rectifier condenser II
25.4 mm OD
AISI 304
1
Shell under
Tubes, 3m long
vacuum
163 m
71
Description
Exhaust column
Reboiler I
Exhaust column
Reboiler II
RS cooler
FO cooler
Fusel oil decanter
Alcohol scrubber
Rectifier reflux tank
Aldehyde reflux tank
Rectifier draw tank
FO washing tank
FO draw tank
Steam condensate pot
Flash tank for exhaust column
Vapour bottle & feed bottles
FO washing tank
FO draw tank
Steam condensate pot
Flash tank for exhaust
Column
Vapour bottle & feed
Bottles
Tech. Data
25.4 mm OD
Tubes, 2m long 22 m
MOC
AISI 304
Qty.
1
25.4 mm OD
Tubes, 2m long 76.3 m
AISI 304
25.4 mm OD
Tubes, 3 m long 57 m
25.4 mm OD
Tubes, 2 m long 4 m
Standard
Supplier standard
6.0 m
0.5 m
1 m
0.5 m
0.5 m
2 m
1.5 m
AISI 304
AISI 304
AISI 304
AISI 304
AISI 304
AISI 304
AISI 304
AISI 304
AISI 304
CS
AISI 304
1
1
1
1
1
1
1
1
1
Supplier standard
0.5 m
0.5 m
2 m
1.5 m
AISI 304
AISI 304
AISI 304
CS
AISI 304
Lot
1
1
1
1
Supplier standard
AISI 304
Lot
Remarks
Vacuum
Vacuum
Vacuum
Vacuum
Vacuum
Source: PRAJ
The description relates and specifies the items to be locally bought by Supplier for the
distillation section.
TABLE 36
BOUGHT OUT ITEMS BY THE SUPPLIER ON CIF GEORGETOWN GUYANA BASIS
Description
Mash column bottom transfer pump and motor
Aldehyde column bottom transfer pump and motor
Aldehyde column reflux pump and motor
Rectifier bottom pump and motor
Rectifier reflux pump and motor
Exhaust column bottom pump and motor
FO draw pump and motor
FO washing pump and motor
FO transfer pump and motor
Steam condensate transfer pump and motor
Fermented mash pre-heater
Vacuum pump and motor
Piping and valves within battery limit
Instrumentation & PLC based control automation
Tech. Data
72 m/h
1 m/h
1 m/h
10 m/h
30 m/h
10 m/h
1 m/h
1 m/h
0.5 m/h
20 m/h
Plate Heat
Exchanger
475 Am/h
As per
Supplier
standards
As per
Supplier
standards
Source: PRAJ
72
MOC
Wetted Parts:CF8
Wetted Parts:CF8
Wetted Parts:CF8
Wetted Parts:CF8:
Wetted Parts:CF8
Wetted Parts:CF8
Wetted Parts:CF8
Wetted Parts:CF8
Wetted Parts:CF8
Wetted Parts:CF8
Plates: AISI 316
Frame:CS
Wetted Parts:CF8
Process: AISI 304
Utilities :CS
Qty.
1+1
1+1
1+1
1+1
1+1
1+1
1+1
1+1
1+1
1+1
1+1
1+1
Lot
Lot
Remarks
The description refers to items to be locally manufactured and installed by the project owner
according to the suppliers specification.
TABLE 37
EQUIPMENT TO BE FABRICATED BY THE PROJECT ON SITE UNDER
THE SUPPLIERS SPECIFICATIONS
Description
Installation and insulation for equipment and piping
Tech. Data
As per Supplier Spec.
Qty.
Lot
Source: PRAJ
Ecomol-XP Molecular Sieve Dehydration Section

The item describes and specifies special stainless steel vessels to be manufactured and
imported by the supplier.
TABLE 38
CRITICAL AND PROPRIETARY EQUIPMENT PROVIDED BY THE SUPPLIER
Description
Sieve bed, molsieves and inserts
Vaporiser reboiler
Regeneration condenser
Super-heater
Feed pre-heater
Regeneration pre-heater
Product cooler
Vacuum eductor
Vaporiser flash tank
Regeneration receiver
Product receiver
Sieve control program and software for the control system
Tech. Data
AISI 304
AISI 304
AISI 304
AISI 304
AISI 304
AISI 304
AISI 304
AISI 304
AISI 304
AISI 304
As per Supplier
Standards
Qty.
2
1
1
1
1
1
1
1
1
1
1
Lot
Source: PRAJ
The description relates and specifies special commercial items to be bought locally by the supplier.
TABLE 39
BOUGHT OUT ITEMS BY THE SUPPLIER ON CIF GEORGETOWN GUYANA BASIS
Description
Regeneration pump and motor
Product transfer pump and motor
Feed pump with motor
Regeneration cooler (PHE)
Piping and valves within the battery limits for
process, steam, cooling water, instrument air and
steam condensate.
Instrumentation, sieve bed and all control valves and
control automation
Tech. Data
Wetted part: CF8
Wetted part: CF8
Wetted part: CF8
Plates: AISI 316
Frame: CS
AISI 304: Process
C.S.: Utilities
Qty.
1+1
1+1
1+1
1
As per Supplier
standards
Lot
Lot
Source: PRAJ
The description lists the items to be locally manufactured by the project owner under the
suppliers specifications.
73
TABLE 40
EQUIPMENT TO BE FABRICATED BY THE PROJECT ON SITE UNDER THE SUPPLIERS
SPECIFICATIONS
Description
Tech. Data
Qty.
Installation and insulation for equipment, and piping
As per Supplier Specs. Lot
Ecovap Vinasse Evaporation Section

The description refers to items to be manufactured and imported by the supplier for the
vinasse concentration section.
It also refers to minor items under the project owners responsibility based on the suppliers
engineering.
Critical & proprietary equipment by the supplier on CIF Georgetown Guyana Basis
The description refers to items to be locally bought by the supplier.
TABLE 41
STAGE I
Description
Heat exchanger for effect I (falling film) HTA
Heat exchanger for effect II (falling film) HTA
Vapour liquid separator 1
Tech. Data
675 m
675 m
18 m
24 m
M.O.C.
AISI304 Shell with AISI 316 Tubes.
AISI304 shell with AISI 316 Tubes.
AISI 316
AISI 316
Qty.
1
1+1
1
1+1
Source: PRAJ
TABLE 42
STAGE II
Description
Heat exchanger for effect I (Flubex) HTA
Heat exchanger for effect II (Flubex) HTA
Heat exchanger for effect III (Flubex) HTA
Heat exchanger for effect IV (Flubex) HTA
Heat exchanger for finisher (forced circulation)
HTA
Surface condenser HTA
Vent condenser HTA
Surface condenser for finisher HTA
Vapour liquid separator For finisher
Spent wash feed tank
Process condensate tank
Steam condensate tank
Concentrated product tank
CIP tanks
Tech.
Data
531 m
531 m
531 m
531 m
M.O.C.
Qty.
AISI304 shell with AISI 316 tubes.

1
1
1
1
366 m
1+1
511 m
89 m
374 m
66 m
66 m
66 m
102 m
20 m
20 m
8 m
4.5 m
5 m
50 m
AISI304
AISI304
AISI304
AISI 316
AISI 316
AISI 316
AISI 316
AISI 316
AISI 316
AISI304
CI
AISI 316
AISI304L
1
1
1
1
1
1
1
1+1
1
1
1
1
2
Source: PRAJ
74
TABLE 43
BOUGHT OUT ITEMS BY THE SUPPLIER ON CIF GEORGETOWN GUYANA BASIS STAGE I
Description
Effect I recirculation pump
Effect II recirculation pump
Transfer pump II
Spent wash feed pump
Thin slop intermediate feed pre-heater
Effect I recirculation pump
Effect II recirculation pump
Effect III recirculation pump
Effect IV recirculation pump
Recirculation pump for finisher
Transfer pump I
Transfer pump II
Transfer pump III
Transfer pump IV
Transfer pump for finisher
Process condensate pump
Steam condensate pump
Conc. product transfer pump
Vacuum pump water ring type
CIP pump
CIP drain pump
Piping & valves
Instrumentation
Mist eliminator with spray nozzles
Tech. Data
300 m/h
300 m/h
60 m/h
85 m/h
1900 m/h
1900 m/h
1900 m/h
1900 m/h
550 m/h
55 m/h
30 m/h
35 m/h
40 m/h
25 m/h
55 m/h
40 m/h
25 m/h
1600 Am/h
45 m/h
45 m/h
Supplier standard
M.O.C.
Wetted part CF8M
Wetted part CF8M
Wetted part CF8M
Wetted part CF8M
AISI SS316
Wetted part CF8M
Wetted part CF8M
Wetted part CF8M
Wetted part CF8M
Wetted part CF8M
Wetted part CF8M
Wetted part CF8M
Wetted part CF8M
Wetted part CF8M
Wetted part CF8M
Wetted part CF8
C.I.
Wetted part CF8M
Wetted part C.I. Body
Wetted part CF8M
Wetted part CF8M
Qty.
1
1+1
1
1+1
1+1
1
1
1
1
1+1
1
1
1
1
1+1
1
1
1+1
1+1
1
1
Lot
Lot
10
As per enclosed list

AISI 316
Source: PRAJ.
TABLE 44
EQUIPMENT TO BE FABRICATED BY THE PROJECT ON SITE UNDER
THE SUPPLIERS SPECIFICATIONS
Description
Installation and insulation for equipment, and piping
Tech. Data
As per Supplier specs.
Qty.
Lot
Source: PRAJ.
The description relates the instruments which belong to the fermentation control and
automation system, bought by the supplier.
TABLE 45
INSTRUMENT LIST FOR HIFERM FERMENTATION SECTION
Instrument
Pressure gauges
Temperature sensors
Foam Sensors
Flow-meters
Glass tube rotameters
Magnetic flow meter with
totalizer
Pneumatic Controlled On-Off
Valves
:
:
:
Qty
28
35
4
:
:
6
3
12
Remark
On discharge of pumps
At various locations.
On Fermentors and YAV
75
Instrument
Control loops
Liquid flow control loops
Process water flow control
loop
Orifice flow meter
Transmitter
Flow control valve
Cooling water flow control
loop in
cascade with temperature
Orifice flow meter
Transmitter
Flow control valve
Fermented mash flow control
loop
Magnetic flow meter
Transmitter
Flow control valve
Molasses Feed flow control
Magnetic flow meter
Transmitter
Flow control valve
Total Control loops
Qty
13
Remark
Source: PRAJ
Note: Fermentation section has been designed with the optimum required level of automation.
Instrument list for Ecofine TVS Distillation Section

TABLE 46
THE DESCRIPTION RELATES THE INSTRUMENTS WHICH BELONG TO THE
DISTILLATION SYSTEM, BOUGHT BY THE SUPPLIER
Instrument
Pressure gauges
Vacuum gauges
Temperature indicators (RTD type)
Flow-meters
Metal tube rotameters
Magnetic flow meter with totalizer
Pressure transmitter
Control loops
Steam flow control loops
Exhaust steam flow control
Mash steam flow control
Liquid flow control loops
FO draw control loop
Rectified Spirit to Storage
Cooling water flow control loop
Level control loops
Mash column bottom level control loop
Exhaust column bottom level control loop
Aldehyde reflux tank level control loop
:
:
:
Qty
26 Nos.
6 Nos.
48 Nos.
:
:
:
8 Nos.
1 No.
6 No.
:
:
1 No.
1 No.
:
:
:
2 Nos.
1 No.
2 Nos.
:
:
:
1 No.
1 No.
1 No.
76
Remark
On discharge of pumps and
columns.
At various locations in distillation
columns Single point local
indicators.
Instrument
Rectifier reflux tank level control loop
F.O. draw tank level control loop
F.O. washing tank level control loop
Pressure control loops
Rectifier vacuum control loop
Total control loops
Safe and testers
:
:
:
:
Qty
1 No.
1 No.
1 No.
Remark
1 No.
14 Nos
1 No.
Source: PRAJ
TABLE 47
INSTRUMENT LIST FOR MOLSIEVE SECTION
The description relates the instruments, which belong to the dehydration control and
Instrument
Pressure gauges
Flow-meters
Metal tube rotameters
Glass Tube rotameters
Pressure transmitters
Control loops
Feed flow control valve.
Vortex flow meter
Flow transmitter
Flow control valve
Steam flow to the vaporizer reboiler
control valve
Orifice flow meter
Flow transmitter
Flow control valve
Control valve for Super heater outlet
temperature.
Temperature Sensor (RTD)
Temperature control valve
Pressure control valves for the sieve
beds
Pressure control valves
Vacuum control valves for the sieve
beds
Pressure control valves
Vapor feed isolation valves for sieve
beds
Automated control valve
Level control valve for Vaporizer
Flash Tank.
Level transmitter
Level control valve
Level control valve for Product
Receiver.
Qty
15 Nos.
18 Nos.
1 No.
2 Nos.
5 Nos.
:
1 No.
1 No.
1 No.
2 Nos.
2 Nos.
2 Nos.
1 No.
1 No.
77
Remark
and columns.
At various locations in
distillation columns.
Single point local indicators.
Instrument
Level transmitter
Level control valve
Flow control valve for regeneration
feed to Rectifier column.
Vortex flowmeter
Flow transmitter
Flow control valve
Total Control loops
Qty
1 No.
12 Nos.
Remark
Source: PRAJ
TABLE 48
INSTRUMENT LIST FOR ECOVAP EVAPORATION SECTION
The description relates the instruments which belong to the vinasse evaporation control and
Instrument
Pressure gauges
Flow-meters
Rotameter
On Off solenoid valves
Density meter
Control loops
Steam flow control loops
Steam flow control
Level control loops
Level control loops
Flow control Loops
Vinasse Feed and Product
control loop
Pressure control Loops
Effects vacuum control Loop
Total control loops
Qty
48 Nos.
45 Nos.
2 Nos.
:
:
:
:
:
:
66 Nos.
1 No.
2 Nos.
16 Nos.
3 Nos.
1 Nos.
Remark
and on equipment
Single point local
indicators
At various locations
All VLS, condensate

pots, tanks
22 Nos.
Source: PRAJ
Configuration of PLC control automation

This PLC is common for the sections of fermentation, distillation, dehydration and
evaporation sections. The necessary software licenses for the control system must be bought if PLC is
not included.
TABLE 49
PLC & BASIC SPECIFICATION
Particulars (PLC of SIEMENS or Allen Bradley from India
Control Panel for PLC Consisting of
Marshalling panel
CPU cards with redundancy
Power supply with redundancy
Analog input module
Analog output module
Digital input module
78
Qty
Lot
Particulars (PLC of SIEMENS or Allen Bradley from India
Digital output module
24 VDC field power supply
I/O installation racks
Interposing relay board
Communication device & accessories between PLC & operating station, accessories and
connecting cables
Zener barriers
Operator station with 19" Monitor 2 Nos.
With desktop mounted PC (Dell)
Windows XP operating system
Licensed system software
Licensed report generation software
Licensed engineering software
DeskJet color printer (HP)
Modem
Qty
2 Nos.
1 No.
1 No.
Source: PRAJ
Note on instrumentation: The instrumentation considered is based on a system of instrumentation cables
connecting the field instruments to the PLC.
Typical PLC basic control automation system

All these control loops shall consist typically of a process variable transmitter (like RTD,
Flow meter, Pressure transmitter, level transmitter etc.) I to P converter and a control valve. The
process variable is passed on to a PLC from where it is viewed on a PC. The Set variable can be set
through the PC. The following block diagram shows the schematic sketch of the overall system.
FIGURE 7
TYPICAL PLC BASIC CONTROL AUTOMATION SYSTEM
Source: PRAJ
Variable transmitter, I to P converter and control valve shall be situated in the field. The PLC
and the personal computer are located in the control room. Fermentation, distillation dehydration and
evaporation plant shall be controlled by a common PLC.
List of bought makes

The suppliers proposal for bought-out items, piping and valves and instrumentation and
control is based on the following makes. Change in these makes would call for the change in the price
and other commercial terms.
79
TABLE 50
BOUGHT OUT COMPONENTS
Item
Air compressors- non-lubricated
Agitators for fermentors and digesters
Air and biogas blowers
Vacuum pumps
Cleaning nozzles
Electrical motors
Instrumentation cables
Instrumentation control valves
Instrumentation differential pressure
Transmitter (DPT)
Instrumentation IP converters
Instrumentation level transmitters
Instrumentation magnetic flow-meters
Instrumentation PLC
Instrumentation butterfly control valves
Instrumentation pressure gauges
Instrumentation rotameters
Instrumentation solenoid valves
Instrumentation steam flow-meters orifice
Instrumentation vortex flowmeters
Instrumentation temp. sensors
Plate Heat exchangers
Pumps centrifugal
Pumps hygienic
Pumps metering
Valves ball
Valves butterfly
Valves safety
Variable frequency drives
Standard makes
Ingersall Rand or Chicago Pneumatics (India)
Lightnin
Nash (Brazil) or equivalent
Nash (Brazil) or equivalent
Lechler
WEG or SIEMENS-Brazil
Thermopads or GI
Samson or Fischer
SIEMENS, ABB , E or H
Moore or Samsons equivalent
SIEMENS, ABB, E or H
E & H, Krone (India)
SIEMENS or Allen Bradley (all from India)
Tyco or Flowserve (mostly from India)
Wika or Goa Thermostatic
Eureka
Asco, Avcon or Rotex
Starmech
E&H
E & H, Pyroelectric
ALFA LAVAL or APV ( both from India)
Flowserve India or (Durco design)
Fristam
Milton Roy-Asia LMI or Heidelberg Prominent
Keystone or Microfinish
Tyco-Keystone or Microfinish
Fainger Leser or Darling Muesco
ABB, SIEMENS or Schneider
Source: PRAJ
Battery Limits
The description establishes the points where the supplier receives the feedstock, the utilities and
chemicals and where the ethanol, the by-products and the effluents are delivered.
Outside these limits, whatever is built is under the project owners responsibility although the
main process and utilities connections are built under the suppliers engineering and supervision.
Cane molasses
Process water
Sulphuric acid
Antifoam
Nutrient
Soft water
TABLE 51
FRONT - END BATTERY LIMITS
At the inlet of molasses receiving tank in fermentation
section
At the sectional boundary of each section
Inlet flange of the acid dosing tank in fermentation
section.
Inlet flange of the antifoam dosing tank in fermentation
section.
Inlet flange of the nutrient dosing tank in fermentation
section.
80
Electricity
Rectified alcohol
Fuel ethanol
Spent lees
Fusel oil
Steam
Steam condensate
Instrument air
Vents and drains
Cooling water supply
Warm water (cooling water return)
vinasse /spent mash
At the terminal box of each motor & electrical

instrument in each section
At the outlet of safe and testers in distillation section.
At the sectional boundary in MSDH section.
At the sectional boundary in distillation section
At the sectional boundary in distillation section
At the sectional boundary of evaporation section
Source: PRAJ
Items by direct project responsibility (excluded from supplier)
Dismantling of any existing structure, demolishing existing building, leveling of plot for
civil construction. Contour plan and trial pits for soil data.
Civil design, engineering, architecture, structural engineering, supervision and

construction of all foundations, buildings, structures, supports, cooling tower basins and
other civil, masonry tanks.
Landscaping, construction of internal roads, storm water drains, main drains fencing,
gate, security cabin, yard lighting, plant illumination, etc.
Design and supply of all the structural work including equipment supports, walkways,
pipe racks and pipe bridges.
Design & supply of the entire electrical system including power generation, power distribution,
cables, switch gears, earthing, MCC, starters and switch-gears up to battery limits.
Detailed engineering, fabrication and implementation of bulk alcohol storage system.
Laboratory equipment, apparatus and lab chemicals.
Storage disposal and treatment of other output streams such as vinasse, spent lees, floorwashing streams etc. (floor washings, spent lees and cooling water purge stream can be
mixed with vinasse prior to treatment).
Execution of all site work such as installation of tanks, site erection of columns including
the site weld for the Suppliers column segments, piping, erection, insulation,
instrumentation installation and cabling, electrification, insulation of all columns and hot
piping and painting.
Supply of utilities like steam, cooling water, process soft water, electricity, instrument air
etc. All piping, wiring required for supply of utilities like steam, cooling tower, cooling
and process water, instrument air up to respective battery limits of Suppliers scope.
Foundation, support, roof and various inlet and outlet connections for rectified alcohol,
cooling water, steam, instrument air and electricity.
Boiler, supply of steam from existing boiler and piping of steam up to battery limits.
Supply of molasses up to the battery limits and withdrawal of products from the battery limits.
81
Office equipment, furniture, communication equipment, computers, printers, vehicles, all

offices and administrative facilities.
Applications and license fees to various statutory Government Authorities for obtaining
various clearances permissions, work permits for Suppliers engineers and no objection
certificates etc.
Various facilities for Supplier and Suppliers vendor's personnel visiting for supervision in
Guyana, such as local travel, accommodations like housing, guest house, hotel close to the
site, communication facilities like telephone, fax, email, internet, computer, furnished site
office, access to canteen, cafeteria, restaurant close to the site, first aid and recreation facilities.
Guidance and cost for obtaining work permits, long duration visas including paper work,
formalities and payment of fees to appropriate authorities.
Fire-fighting facility & fire extinguishers for the distillation and dehydration plant.
Workshop, maintenance facilities close to the site required for minor modifications,
repair of equipment and machinery of Suppliers responsibility.
Any other item activity not specifically mentioned in the scope of work and equipment list.
82
Annex B - Oil, Mogas, Ethanol Prices Statistical

General References
FIGURE B1
OIL, MOGAS, ETHANOL PRICES STATISTICAL GENERAL REFERENCES
U.S. Gasoline and Diesel Fuel Prices, 11/24/08
Gasoline (Cents per Gallon)
Diesel Fuel (Cents per Gallon)
11/24/08
11/24/08
Change from
Price
Week
Ago
Year
Ago
Change from
Price
Week
Ago
Year
Ago
U.S.
189.2
-18.0
-120.5 U.S.
266.4
-14.5
-78.0
East Coast
195.3
-16.1
-113.9 East Coast
278.8
-13.6
-66.5
New England
195.1
-17.0
-115.1 New England
299.7
-15.1
-59.3
Central Atlantic 205.0
-15.5
-106.9 Central Atlantic 292.5
-14.7
-64.9
Lower Atlantic 188.0
-16.4
-118.8 Lower Atlantic 271.0
-13.0
-67.9
Midwest
175.0
-18.3
-130.9 Midwest
262.4
-14.0
-79.9
Gulf Coast
180.5
-15.1
-116.1 Gulf Coast
259.8
-14.7
-76.2
Rocky
Mountain
184.7
-18.6
-121.6 Rocky
Mountain
264.4
-17.8
-88.3
West Coast
211.7
-24.0
-118.8 West Coast
260.8
-16.0
-97.9
California
211.2
-26.2
-128.6 California
260.5
-14.9
-101.5
Source: EIA - Energy Information Administration, November 2008.
83
FIGURE B2
US REAL GASOLINE PRICE: ANNUAL AVERAGE 1919-2009
(cents per gallon)
350
300
250
200
150
100
50
Source: EIA - Energy Information Administration, November 2008
FIGURE B3
US REGULAR GASOLINE PRICES: NOMINAL AND REAL
(cents per gallon)
450
400
350
300
250
200
150
100
50
84
Jan 08
Jan 06
Jan 04
Jan 02
Jan 00
Jan .- 98
Jan 96
Jan 94
Jan 92
Jan 90
Jan 88
Jan 86
Jan 84
Jan 82
Jan 80
2007
2003
1999
1995
1991
1987
1983
1979
1975
1971
1967
1963
1959
1955
1951
1947
1943
1939
1935
1931
1927
1923
1919
FIGURE B4
US IMPORTED CRUDE OIL PRICES: NOMINAL AND REAL
(dollars per barrel)
140
120
100
80
60
40
20
Jan 08
Jan 06
Jan 04
Jan 02
Jan 00
Jan .- 98
Jan 96
Jan 94
Jan 92
Jan 90
Jan 88
Jan 86
Jan 84
Jan 82
Jan 80
FIGURE B5
PLATTS ETHANOL NY 5-15 X NYMEX GASOLINE
(s/gl)
7 000
6 000
5 000
4 000
3 000
2 000
Ethanol NYH 5-15 Days Brg
nymex gasoline
Source: Tarcilo Ricardo Rodrigues. The CBI Market. BIOAGENCIA. Sao Paulo, Brazil, 2008.
85
1/9/07
1/7/07
1/5/07
1/3/07
1/1/07
1/11/06
1/9/06
1/7/06
1/5/06
1/3/06
1/1/06
1/11/05
1/9/05
1/7/05
1/5/05
1/3/05
1/1/05
1/11/04
1/9/04
1/7/04
1/5/04
0.000
1/3/04
1 000
FIGURE B6
PLATTS NY 5-15 X BRAZILIAN DOMESTIC PRICE
(US$/GL)
4.50
9.00
4.00
8.00
3.50
7.00
3.00
6.00
2.50
5.00
2.00
4.00
1.50
3.00
1.00
2.00
0.50
1.00
0.00
0.00
-0.50
-1.00
Difference (US$/gallon)
Domestic price FOB Brazil (US$/gallon)
Platts based FOB Brazil (US$/gallon)
FIGURE B7
PRICE INDEX
(USD/litro)
86
FIGURE B8
LANDED COSTS OF CRUDE OIL IMPORT FROM SELECTED COUNTRIES
Selected Countries
Angola
Canada Colombia Mexico
Nigeria
Saudi
Arabia
United Venezuela Persian

Kingdom
Gulf
Nationsa
Total
OPECb
Total
NonOPECb
1973 Averagec
1975 Average
1980 Average
1985 Average
1990 Average
1995 Average
1996 Average
1997 Average
1998 Average
1999 Average
2000 Average
2001 Average
2002 Average
2003 Average
2004 Average
2005 Average
W
11.81
34.76
27.39
21.51
17.66
21.86
20.24
13.37
18.37
29.57
25.13
25.43
30.14
39.62
54.31
5.33
12.84
3.11
25.71
20.48
16.65
19.94
17.63
11.62
17.54
26.69
20.72
22.98
26.76
34.51
44.73
W
W
22.34
17.45
22.02
19.71
13.26
18.09
29.68
25.88
25.28
30.55
39.03
53.42
12.61
31.77
25.63
19.64
16.19
19.64
17.30
11.04
16.12
26.03
19.37
22.09
25.48
32.25
43.47
9.08
12.70
37.15
28.96
23.33
18.25
21.95
20.64
14.14
17.63
30.04
26.55
26.45
31.07
40.95
57.55
5.37
12.50
29.80
24.72
21.82
16.84
20.49
17.52
11.16
17.48
26.58
20.98
24.77
27.50
37.11
50.31
35.68
28.36
22.65
17.91
20.88
20.64
13.55
18.26
29.26
25.32
26.35
30.62
39.28
55.28
5.99
12.36
25.92
24.43
20.31
14.81
18.59
16.35
10.16
15.58
26.05
19.81
21.93
25.70
33.79
47.87
5.91
12.64
30.59
25.50
50.55
16.78
20.45
17.44
11.18
17.37
26.77
20.73
24.13
27.54
36.53
49.68
6.85
12.70
33.56
26.86
21.23
16.61
20.14
17.73
11.46
16.94
27.29
21.52
23.83
27.70
36.84
51.36
5.64
12.70
33.99
26.53
20.98
16.95
20.47
18.45
12.22
17.51
27.80
22.17
23.97
27.68
35.29
47.31
2006 January
February
March
April
May
June
July
August
September
October
November
December
Average
61.35
61.48
62.44
70.68
68.62
68.64
72.89
71.47
60.38
57.25
59.49
60.46
64.85
47.43
44.72
46.59
56.61
63.47
61.14
64.69
63.77
55.22
47.83
47.83
50.91
53.90
61.95
55.99
55.89
64.06
68.80
66.06
70.94
66.67
57.25
55.50
56.06
56.91
62.13
51.30
49.48
51.05
58.02
56.37
55.91
61.26
60.78
45.78
48.33
48.91
50.93
53.76
65.91
63.03
67.04
73.72
72.93
72.70
77.43
74.94
65.21
60.90
62.88
63.94
68.26
56.23
56.26
58.89
62.92
65.10
66.49
65.50
62.11
56.29
54.00
52.57
54.05
59.19
67.33
63.01
65.21
71.35
71.29
71.12
74.59
W
W
59.70
58.67
58.69
67.44
53.93
52.97
57.70
63.81
62.63
62.65
66.19
62.15
53.94
50.74
50.75
50.95
57.37
55.70
55.16
57.98
62.49
64.26
65.81
65.62
62.11
55.80
53.48
52.43
53.95
58.92
58.10
56.72
60.38
65.76
66.09
67.16
69.21
65.49
57.86
54.98
54.77
56.21
61.21
53.18
50.14
52.74
60.99
63.14
62.03
66.52
64.81
56.59
50.89
51.44
52.92
57.14
2007 January
February
March
April
May
June
July
August
September
October
November
December
Average
53.12
57.78
61.91
67.78
67.51
72.40
78.73
70.28
77.76
81.92
92.56
90.96
71.27
46.86
50.25
52.58
54.60
56.46
57.54
62.66
64.10
66.76
67.36
76.60
69.62
60.38
52.22
59.08
59.37
61.77
63.70
67.87
73.15
72.72
77.32
79.74
80.74
94.68
70.91
44.32
48.45
51.07
55.16
56.40
60.68
65.46
62.52
66.55
72.68
79.70
81.53
62.31
58.55
61.16
66.47
71.15
72.99
77.15
80.84
76.67
81.96
90.13
95.54
97.88
78.01
51.21
54.94
58.22
61.53
66.15
69.53
72.37
74.11
80.60
84.73
86.92
83.72
70.78
56.59
59.30
65.96
65.92
W
W
77.73
W
79.48
81.77
W
94.58
72.47
47.20
51.97
54.34
58.67
60.17
63.24
67.95
65.64
70.64
76.74
85.23
82.55
66.13
50.65
54.18
57.49
60.98
65.02
68.18
71.29
72.79
78.56
84.29
86.17
84.00
69.83
52.81
56.06
59.60
63.73
66.38
69.58
73.63
71.73
77.37
83.58
88.53
88.30
71.14
47.56
51.69
54.71
57.43
58.91
61.65
66.95
65.76
69.42
73.62
80.39
79.02
63.96
87
FIGURE B8 (CONCLUDED)
Selected Countries
Angola
2008 January
February
March
April
May
June
July
August
Canada Colombia Mexico
93.21 77.83
97.58 81.37
106.19 93.33
117.34 103.08
127.06 111.83
R133.08 R119.80
R130.86 R122.89
112.49 111.05
85.22
85.20
102.88
105.95
118.42
127.35
126.58
113.14
Nigeria
Saudi
Arabia
81.28 96.81 92.42

81.33 101.23 97.64
88.54 109.73 108.26
95.31 118.07 118.50
104.42 130.93 127.77
117.29 R142.39 R125.91
R124.28 R137.22 R122.08
109.79 124.23 112.83
United Venezuela Persian

Kingdom
Gulf
Nationsa
Total
OPECb
W
83.23 89.70 89.61
W
86.22 96.02 94.64
W
93.59 105.39 103.94
W 100.57 115.52 112.31
128.95 111.77 125.36 123.28
W R122.65 R125.61 R128.45
W R124.91 R120.68 R126.22
- 112.68 110.79 113.11
Total
NonOPECb
82.10
85.13
94.65
103.20
114.83
R122.78
R124.37
110.85
Source: Energy Information Administration, November 2008.

Notes:
a
Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, Unides Arab Emirates, and the Neutral Zone (between Kuwait and
Saudi Arabia)
b
See Organization of the Petroleum Exporting Countries (OPEC)* in Glossary.
On this table, Total OPEC for all years includes Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi
Arabia, Unides Arab Emirates, and Venezuela. for 1973-1992 and again beginning in 2008, also includes Ecuador
(Although Ecuador rejoined OPEC in November 2007, on this table Ecuador in included in Total Non-OPEC* for
2007); for 1974-1995, also includes Gabon (although Gabon was a member of OPEC for only 1975-1994); and
beginning in 2007, also includes Angola. Data for all countries not included in Total OPEC are included in Total
Non-OPEC*.
c Based on October, November, and December data only.
R= Revised. - = No data reported. W = Value withheld to avoid disclosure of individual company data.
Notes: See note 3 at end of section. Values for the current 2 months are preliminary. Prices through 1980 reflect
the period of reporting: prices since then reflect the period of loading. Annual averages are averages of the monthly
prices, including prices not published, weighted by volume. Cargoes that are purchased on a netback basis, or
Ander similar contractual arrangements acquired for importation into the United Status, are not included in the
Publisher coverage is the 50 States and the District of Columbia. See Nominal Price* in Glossary.
Web page: See http://www.eia.doe.gov/emeu/mer/prices.html for all available data beginning in 1973.
Sources: October 1973- September 1977: Federal Energy Administration, From FEA-F701-M-0. *Transfer Pricing
Report. 1978-2007: EIA, Petroleum Marketing Annual 2007, Table 22. 2008: EIA, Petroleum Marketing
Monthly, November 2008, Table 22.
FIGURE B9
US ETHANOL MARKET PRICES
Source: CME Group. Ethanol Derivatives. September, 2008.
88
Annex C - Ethanol Production, Import-Export General Statistics

FIGURE C1
ETHANOL PRODUCTION, IMPORT, EXPORT GENERAL STATISTICS
(milhares m3)
89
Annex D - CBI Ethanol Production, Import-Export Data

FIGURE D1
US ETHANOL IMPORTS - 2007
Others
1.1%
CBI
49.8%
Brazil
48.6%
China
0.4%
Others
Brazil
China
CBI
FIGURE D2
DEHYDRATION CAPACITY
Note: The boundaries and names shown on this map do not imply official endorsement or acceptance by the United
Nations.
90
FIGURE D3
CBI CAPACITY SHARE 2007
(Million Gallons)
Virgin Islands
11%
Jamaica
36%
Costa Rica
15%
Trinidad &
Tobago
19%
El Salvador
19%
2007
135
70
70
55
40
JAMAICA
EL SALVADOR
TRINIDAD & TOBAGO
COSTA RICA
VIRGIN ISLANDS, USA
FIGURE D4
CBI CAPACITY X QUOTA
2 500
1 968,41
2 000
1 855,98
1 643,061
1 424,897
1 438,45
1 500
1 059,91
1 000
500
0
2006
2007
Total CBI Capacity 12 months (000 cm3)
2008
Total CBI Quota (000 cm3)
91
FIGURE D5
US ETHANOL IMPORTS FROM CBI - 2007
(1000 cubic meters)
40
1 000 Cubic Meters
35
30
25
20
15
10
5
0
Jan
El Salvador
Feb
Jamaica
Mar
Apr
Trinidad & Tobago
May
Jun
Costa Rica
92
Annex E - PRAJs Project Similar Ethanol Plants

FIGURE E1
MANUELITA, COLOMBIA
Source: PRAJ.
FIGURE E2
BRITISH SUGAR, UNITED KINGDOM
Source: PRAJ.
93
Annex F - Typical Vinasse Fertigation in Dry Land, Brazil

FIGURE F1
TYPICAL VINASSE FERTIGATION IN DRY LAND, BRAZIL
FIGURE F2
TYPICAL VINASSE FERTIGATION IN DRY LAND, BRAZIL
94

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Design and feasibility study of an

Eduardo Algodoal Zabrockis

Economic Comission for Latin America and the Caribbean (ECLAC)

United Nations Publication

ECLAC Project Documents collection

Design and feasibility study of an ethanol distillery in Guyana

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Design and feasibility study of an ethanol distillery in Guyana

Personnel and shifts ...................................................................................................... 13

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Design and feasibility study of an ethanol distillery in Guyana

Instrument list for ecovap evaporation section .......................................................... 78

Project Location ............................................................................................................ 14

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Design and feasibility study of an ethanol distillery in Guyana

Official Cooperation in Guyana

Special Assistance in Guyana

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Feasibility Study Assistance

Document Preparation Assistance

Imperial gallon (4.546 L)

milligram per kilogram

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kilogram per metre

Cost Insurance Freight

American Iron and Steel Institute

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Design and feasibility study of an ethanol distillery in Guyana

Basic design data and technical criteria

Source: Prepared by the authors.

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Design and feasibility study of an ethanol distillery in Guyana

Source: Google Map.

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Design and feasibility study of an ethanol distillery in Guyana

Source: Prepared by the authors.

Typical Molasses Specification

Source: Schuumans & Van Ginneken

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Anhydrous Fuel Ethanol Specification

20C kg/m max. 790.8

NBR 5992 / ASTM D4052

Source: IETHA International Ethanol Trading Association , Oct 1st 20.

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Process Quality Control

Operation Control and Maintenance

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Maintenance & Warehouse

Quality Control Laboratory & Operation Control Center

Social assistance & Amenities

Steam and Power Plant

Source: CTC Sugarcane Technology Center, Piracicaba, SP, Brazil.

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