
Lower Capital and Conversion Costs
The economics of MixAlco require lower capital and conversion costs for both large and smaller-scale applications. The MixAlco conversion technology does not require the addition of expensive enzymes, sterile process equipment and does not employ energy-intensive distillation or high heat and pressures resulting in lower capital and conversion costs.
Lignocellulosic biomass, such as municipal solid waste, sewage sludge, crop residues, energy crops, and manure, is an inexpensive feedstock for making biofuels. Many biomass sources are free or command a low disposal fee. Agriculture and logistics for production of energy crops, such as sweet sorghum and energy cane, are under development and in the near future they are expected to demand a price for about $40/ton, which is equivalent to oil at $15/bbl on an energy basis.
Because of the non-sterile nature of the conversion process, plants can be built for approximately $2.00 per annual gallon versus about $3.50 for other technologies. For example, using municipal solid waste and raw sewage generated by a typical city of 250,000, Terrabon believes it can operate bio-refineries for:
Renewable gasoline - Producing 6.0 million gallons per year of renewable gasoline for cash conversion costs, including feedstocks, of about $1.25 to $1.50 per gallon.
Acetic Acid - Producing 90 million pounds per year of acetic acid at a cash conversion cost, including feedstocks, of $0.10 to $0.25 per pound, compared to the current market price of about $0.30 to $0.40 per pound.