Technical and economical Viability of Establishing Ethanol Fuel Plant in Kenana Sugar Company

Abstract

In recent years sugar cane industry had been faced with challenge that mainly manifested in utilization of its by-products such as bagasse and molasses, and the growing concern for the environment that make the governments to orient its policies and efforts towards the product of fuel chemically extracted through fermentation and distillation. The research is directed to serve the economy through viability 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 fuel. The study revealed that a capital of $26,201,660 can be invested in plant that produces 200,000 litre/day of ethanol fuel; the revenue within no tax is estimated gross of $11,133,000 with pay back period of 3.67 years. The economical indicators are feasible showing that intend rate of return is 22.55%.