Chapter 1: PROJECT SUMMARY

Bioethanol Production from Tobacco (Nicotiana tabacum L.) Stalks Page 1

PROJECT SUMMARY

At present, there is no existing commercial scale producer of bioethanol from

Tobacco (Nicotiana tabacum L) stalks in the Philippines. In this light, this project will

aim to realize the first ever large scale production of bioethanol from tobacco stalks in the

country.

The proposed project will provide for the local demands and possible exportation.

The plant will have a daily production of 10.33288 metric tons or 13,078.69 L per day

of 99.5% bioethanol.

The proposed plant will be situated in the Municipality of Sison, in the province

of Pangasinan and will occupy a land area of 26,996.25 m2. The plant will be operational

within one year of land acquisition. This time frame includes the time needed for

importation of equipment and raw materials, construction and training and hiring of

employees.

Plant operations will equal to 300 days per year, except for the air dryer and

hammer mill unit wherein it will only operate for 90 days, leaving the remaining days for

maintenance purposes. Before hiring, applicants will be screened through written

examinations and personal interviews. A minimum of 131 personnel will be needed for

the smooth operation of the plant. As new developments related to the processes involved

in the plant occur, additional personnel trainings will be conducted.

The financial aspect was the primary basis of determining if the project is feasible

or not. The price of carbon dioxide and ethanol was manipulated, with reference to

existing prices, so that the conditions for a feasible study would be achieved.

Bioethanol produced by the plant will be sold directly to other industries, at Php

43.00/L. Also, the total capital investment of Php 6,531,817,509.62 will have an ROI of

Chapter 1: PROJECT SUMMARY

Bioethanol Production from Tobacco (Nicotiana tabacum L.) Stalks Page 2

31.08 % and a payback period of approximately 4 years. The amount needed for the

capital investment will come from investors, bank loans, and stocks.

During all of the undertakings of the plant, the environment will not be

compromised. Also, the jobs generated and the plant will provide benefits for the locality

and its constituents.

From these data obtained, and with the best engineering judgment that the group

can provide, the plant that was proposed is definitely feasible. With further verification

through a full feasibility study, this plant would be expected to succeed in terms of profit

and return on investment.