The TECHNICAL AND ECONOMIC FEASIBILITY STUDY OF ESTABLISHING ETHANOL FUEL PLANT IN KENANA SUGAR COMPANY

  • Dr. Osama Mohammed Elmardi Suleiman Khayal Professor & Head
  • Mohammed Idris Osman
Keywords: feasibility study, technical, economic, ethanol fuel, sugar cane, Kenana sugar company

Abstract

In recent years sugar cane industry had been faced with challenges that are mainly manifested in utilization of its by-products such as bagasse and molasses, and the growing concern for the environment that makes the governments to orient its policies and efforts towards the product of fuel that is chemically extracted through fermentation and distillation.The research paper is directed to serve the economy through feasibility study to establish ethanol fuel plant to improve the profits of the sugar industry and alleviate the environmental problems resulting from the use of fossil fuels. The study revealed that a capital of $26,201,660 can be invested in plant that produces 200,000 liter/day of ethanol fuel; the annual gross revenue without considering taxes is estimated to be $11,133,000 with payback period of 3.67 years.  The economic indicators are feasible showing that internal rate of return is 22.55%.

Author Biographies

Dr. Osama Mohammed Elmardi Suleiman Khayal, Professor & Head

Mechanical Engineering Department, Faculty of Engineering and Technology, Nile Valley University, Atbara, Sudan

Mohammed Idris Osman

Department of Mechanical Engineering, College of Engineering, Sudan University of Science and Technology, Khartoum – Sudan

References

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[3]Bullock, G.E, December (2002). Ethanol from sugar cane.
[4]Ali Elsayed (KSC Factory manager), 26 August 2006.Rational of Ethanol production in KSC Limited.
[5]Renewable fuels association (RFA), One Massachusetts Ave. NW, Suite 820, Washington, E-mail: info@ethanol rfa.org, Website :www.ethanol rfa.org.
[6]Cliff Bradley & Ken Runion “understanding ethanol fuel production and uses” Fax: 703/243 – 1865, Internet: Pr-info@vita Drg.
[7]Tech serve Company (Durban – South Africa), October 2002. Feasibility study.
[8]http://en.wikipedia.org/wiki/molasses.
[9]http://www.ethanol market.
[10]http://sbinfocanada.about.com/cs/management/g/cash flowanal.htm.
[11]http://www.accounting for management/payback method for capital budgeting.
Vol 2 No 10 (2019): GPH-International Journal of Applied Science
Published
2019-10-31