Firm offers 'phased financing' for biodiesel process facilities

By Ron Kotrba | October 01, 2012

Nevada-based biodiesel equipment provider International Procurement Tools LLC has announced what it is calling “phased financing,” an approach that allows would-be biodiesel project developers with access to a million dollars to start a small production facility and, after 18 months of production, swap it out for a unit scaled 10 times larger.

IPT says it offers initial installation of an 8,000 metric ton (2.4 MMgy) ultrasonic cavitation biodiesel production unit (multifeedstock) for $1.1 million. The unit is shipped to the desired site in a standard 40-foot container and is installed eight weeks after the order is placed, with production following as soon as two weeks later.

“The smaller unit, developed by Incbio, is designed to offer the latest technology in an easily installed package and provide a 10 percent solution for the larger unit in order to allow the owner to learn the business and create a revenue stream for the financial world,” said Peter Brown, IPT co-founder. “From our experience, we have learned that the single-most important element to successful financing is profitability. An 8,000 ton unit can generate up to $9 million a year and, depending on feedstock, profits can represent up to 35 percent of that.”

After 18 months of operation, IPT says the newer 80,000 ton unit is installed and tested for an additional $5 million, and the smaller unit is removed from the site.

According to Brown, what’s attractive about this option is, production with the larger unit starts with experience already gained with the smaller one. Since the larger version is the exact same as the original, except 10 times larger, scaling up is tremendously simplified, he added.

Glycerin purifiers, crushing or extraction units, distillation columns and solar power add-on units are also available. IPT advises certain infrastructure upgrades must be considered.

“Our units are being installed in a number of sites around the world and we are confident that they are flexible enough to meet the large number of alternative situations that biodiesel production creates,” said Jose Marques, Incbio CEO. “We are very excited about this new development offer because it provides working capital, ongoing education and a clear path for the installation of a major facility. The initial investment is low enough to allow a number of new groups, from farmer cooperatives to local fuel providers, to become involved in renewable energy and biofuels futures. Local financial institutions can now invest in local projects with a number of instruments from equipment leasebacks to equity positions.”


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