The economic feasibility of operating an ethanol production facility in southeast Georgia
Best, Michael J.
Shumaker, George A.
McKissick, John C.
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The Center for Agribusiness and Economic Development was asked to study the feasibility of a proposed ethanol plant in southeast Georgia. A group of farmers from Alma, GA wanted the Center to investigate the profitability of a conventional dry grind facility that would produce, at full capacity, about 30 million gallons of ethanol annually. The Center for Agribusiness and Economic Development, UGA subcontracted a portion of the task leading to the estimation of the production costs and capital expenditures to Frazier, Barnes and Associates (FB & A). FB & A provided the cost estimates for the conventional ethanol plant construction and operation. These cost estimates were then utilized by the Center to determine the potential profit of the facility and to do sensitivity analysis for the economically significant variables. Frazier, Barnes and Associates is well known for their work in the ethanol and oilseed processing industries. FB & A also performed the initial feasibility analysis that led to the construction of the Commonwealth Agri-Energy plant in Hopkinsville, KY that is in its second year of operation and is currently producing between 23 and 30 million gallons annually.