Business
Liquafaction Corporation Business Section - This web page only contains information on Corn/Barley based ethanol for information on Cellulosic Ethanol processing please contact Mark Mollo (Liquafaction Corporation) or Dave Hughes (New Age Energy Corporation).
We've included a corporate overview, business plan, a Pro Forma Analysis tool, marketing plan, and an independent appraisal of the Moses Lake Ethanol Project.
Executive Overview
The following link provides information about our Executive Overview.
Business Plan
The following link provides information about our Business Plan.
Risk Analysis
The following link provides information about the risks involved in this business. There are a lot of things you probably don't know about the ethanol business and you will find this worth reading.
Pro Forma Income
Analysis
Much of the analysis in
this business plan is based from market prices that set the spot
market price of the commodities used and sold from this plant.
These numbers are critical to analysis of the profitability of
this facility. Since the market rates change daily the Pro Forma
of the plant will change with these market changes. The analysis
in most of the reports use the spot market prices set on
8/28/07.
Pro Forma Analysis Spreadsheet
- Washington State Rack Ethanol Pricing from DTN
- Nebraska Corn pricing from USDA
- Chicago Board of Trade (CBOT) Corn Market Pricing
- DDG pricing from USDA
- Pipeline Spot Gas Pricing
Marketing Plan
The first part of the marketing plan is getting corn (or barley) to our plant. With an elevator capable of unloading a train of 110 cars filled with grain in 10 hours, our plant will do this quite efficiently. Marketing ethanol is fairly easy. Washington State has a mandate that gasoline sold in Washington State be 2% ethanol by December 1, 2008, and if sufficient production in state is available, as much as 10% of gasoline sold in state be ethanol.
Our other product, distiller's grains, is used as feed for animals that can no longer afford to be fed the corn that we use for ethanol. From our marketing plan, much of this will be sold as food for cattle
All these things are discussed in more detail in our marketing plan: Marketing plan for Moses Lake Ethanol Plant
Appraisal
A prospective investor was kind enough to provide us with a professional appraisal of our ethanol plant by The Mentor Group. As of April 13, 2007, their number was $15,975,000 with an "orderly liquidation" value of $10,385,000. Since that time, equipment has continued to pour into Moses Lake, further arrangements have been settled with regard to things like water rights and permits, and a new appraisal would be appropriately higher. The appraisal goes on to give a plant value of $30,415,000 at 12 million gallons per year, and $75 million at 36 million gallons per year:
Market Value In Use
Seventy Five Million Dollars
$75,000,000
With the present high cost of fuel, reasonable price of corn, and very limited number of companies that are capable of building ethanol plants, ethanol plants currently sell for $4 per gallon. This would give a value for a 36 million gallon plant of about $144 million.
Appraisal Documentation
The appraisal documentation contains proprietary information. Please contact Mark Mollo for the process of obtaining a copy of the actual appraisal document.