...! BIODIESEL INCORPORATED (Case Study p565-569) Joshua Maxwell shut down his laptop and looked out the window. From the second floor of the Graduate School of Management’s new building, he could see a number of cars driving on the nearby freeway and sitting in the adjacent parking lot. Josh was in his last term of the full-time MBA program at UC Davis. He would soon be graduating and entering a new chapter of his life. While he had the luxury of having several management-level job offers from which to choose, he was unsure whether he wanted to follow such a traditional route. There was one opportunity in particular that had recently come across his path which gave him pause. Background The previous term, Josh had been enrolled in Professor Dorf’s class on Business and Sustainability. While the class was offered at the GSM, it was open to the entire university. In this class, he met Hannah Long, who was in her final year of her undergraduate studies in Agricultural Economics, and Matthew Hammond, who was a senior in the Mechanical Engineering department. The three began working on a class project, which would ultimately turn into a formidable business opportunity. The impetus for their collaboration began with a lecture-discussion regarding the challenges and opportunities in the emerging renewable energy industry. The Challenge Dependence on energy is a worldwide reality. Energy powers the machines and equipment around us in order to make life more convenient and efficient...
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...Biodiesel Incorporated Teaching Notes The Biodiesel Incorporated case describes the process of one group’s efforts to effectively identify a business opportunity. Individual analysis and group discussion of this case are well-suited for illustrating and applying the terms and issues covered in Chapter 2 “Opportunity and the Business Summary.” Naturally, the case also allows for the discussion of additional concepts and topics, including material covered in Chapters 4, 8, 10, 17, and 18. Discussion Questions 1) What are the key factors in determining if this is a viable business opportunity for Josh, Hannah, and Matthew? 2) What market drivers should they research and be aware of? 3) What are the flaws in the current business strategy? 4) What type of financing should they use if they choose to go forward with this? 5) What types of distribution channels should they go into? 6) How can they improve their chances for success? 7) What is the next step? Answer Guide 1) What are the key factors in determining if this is a viable business opportunity for Josh, Hannah, and Matthew? Josh, Hanna, and Matthew have to determine if this is a viable opportunity for them. In particular, they need to decide if the expected income and level of independence (and other rewards of starting a new venture will outweigh the risk undertaken and significant amount of effort required. The case consists of little information regarding the leadership qualities of the three students...
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...Engineering Entrepreneurship Ron Lasser, Ph.D. EN 0062 Class #4 9-29-06 1 Biodiesel Incorporated The Case: It is about one group’s efforts to identify a business opportunity Look at the Entrepreneurial Attractiveness index (textbook, bottom of page 35). Use this analytical tool to help you answer questions at the end of the case N EA = ∫ ( w1Y + w2 I − w3W − w4 R )dt 0 Try to understand the process required to evaluate an opportunity How to do homework: Read the case as a bedtime story and then read the questions at the end of the case; don’t answer the questions at this time Think about the case for 24 hours, then review chapter 2 Think about chapter and the case for another 24 hours to let your ideas form in your mind from the case, Chapter 2, and the topics discuss in class Finally, prepare your PowerPoint slide using critical thinking to answer the questions and summarize your thoughts into concise statements Keep it simple, but show me your understanding and learning 2 Summary 1 Background Hannah Long – Agricultural Economics Matthew Hammond – Mechanical Engineering Josh Maxwell – Grad School of Management Josh, Hannah, and Matthew meet in Business and Sustainability class Biodiesel is a class project 3 Summary 2 The Challenge Energy dependence is a world wide problem Usage is not sustainable, for it is not renewable Current energy industry is committed to current business model due to large assets...
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...BUSINESS PLAN MISSION STATEMENT: Project offers immense scope for rural employment and education to farmers. The project intends to churn the vast potential of Pongamia Pinnata oil with regard to its value as an eternal source of energy. The plan is to market the methyl ester of Pongamia Pinnata oil as a bio diesel, to be used without any changes to the existing diesel oil engines and hence solve the brunt of the huge energy crunch that India is facing today. This biodiesel is a cheaper, indigenous and “eco friendly” alternative to diesel that will shake the roots of India’s energy shortage. The vision, by this long term economic and energy planning, is to ameliorate the economic condition of the rural poor. INDUSTRY ANALYSIS: [pic] PRODUCT DETAILS: The product offering is a bio-diesel called PPME (Pongamia Pinnata Methyl Ester) which is extracted from the seeds of Pongamia Pinnata Milletia. The plant can be cultivated in any region or weather condition; it does not need fertile soil thereby leaving agricultural land unaffected. Eco-Friendly: Pongamia adheres to all international standards of emission especially in terms of carbon residue. It does not produce sulphur oxides, which lead to acid rain. Carbon monoxide and un-burnt hydrocarbons in the exhaust is reduced by 50%. FINANCIAL PLAN: An initial investment of Rs 10 Million is required for building up the required infrastructure, procuring seeds, storage and transportation infrastructure...
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...production (to power machinery, to transport crops, etc) does have a large impact on the overall savings achieved by biofuels. Biofuels prove to be substantially more environmentally friendly than their alternatives. Biofuels can be made from many sources such as plant material, fungi and algae and since these source are available in abundance and can potentially reproduced on a massive scale they are an energy source that is potentially unlimited, this will end our need to depend on other foreign countries for our energy needs and can potentially help to bring world peace. Biofuel operations help rural development. One type of biofuel is biodiesel, it can be used in any diesel vehicle and is biodegradable and non-toxic. Plus Biodiesel has a high flash point, making it safer and less likely to burn after an accident. ( from Bignerds.com) Biodiesel can also be produced from...
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...CRUDE OIL CRISIS SAVIOUR .. By focusing our attention from digging for more fossil fuel resources, if we focus it on producing vegetable oil using the land resources, we will greatly reduce the demand for petroleum products. .. Our engine is extremely VERSATILE, being able to run on diesel, bio-diesels, vegetable oils with very little change in power and efficiency. This will diversify the kind of fuels that can run a diesel engine and reduce the dependence on fossil fuels. • ECO-FRIENDLY .. No additional Carbon Oxides are emitted into the atmosphere. .. This is because only carbon stored in the plants seeds are released back in the atmosphere as carbon oxides. • COST SAVINGS .. Waste Vegetable oils cost an average of $0.30 per litre for filtering and is usually free of charge. Whereas diesel costs $1.243, saving a total of $0.943 per litre. Copyright © Singapore Polytechnic. All rights reserved. 3 • GREAT FUTURE SCOPE .. Internet research has shown that some oil from wild plants can be used to make bio-diesel and possibly used directly on a modified diesel engine. .. One such plant is Jatropha curcas, also called physic nut. The very oleaginous kernels can be used to make both bio-diesel and vegetable oil, to be used as motor and heating fuel. When properly irrigated, it procedures seeds during almost the whole year (in tropical regions with high humidity). In drier regions there are 2 peaks in seed production. .. By proving vegetable oil...
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...TO SAVE THE DIESEL FUEL AND ENVIRONMENT POLLUTION BY USING JATROPHA OIL Mohd Zaheen Khan Department of Mechanical Engineering Faculty of Engineering & Technology Jamia Millia Islamia, Jamia Nagar New Delhi- 110025 (India) E-mail: zhnkhan4@gmail.com Tel: 8802198381(M) Abstract The aim of present study is to analyze the performance and emission characteristics of C.I. engine using a suitable bio diesel as a fuel. The bio diesel selected to conduct this experimental investigation is Jatropha biodiesel. The performance of single cylinder water-cooled diesel engine and methyl-ester of Jatropha oil as the fuel is evaluated for its performance and exhaust emissions. The fuel properties of biodiesel such as kinematic viscosity, calorific value,...
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...Discussion Question: 1. What degree of confidence do you have that Gerritsen, Buck, and Leay will be able to execute their three-point plan? What factors have to come together for the plan to work? What advantages does Aquaflow have in its efforts to execute the plan and continue to grow? Answer: They can truly execute the three-point plan because it can be one of the most competitive player in the market. Some factors to consider to make this plan work is that Aquaflow must use wild algae to help clean up water. They should also try to cultivate mono-cultures or a small number of species although its quit expensive, hard to scale and has significant technical risk. Aquaflow must look to partner in where the ‘fuel’ is a byproduct of the scheme’s overall value and etc. Aquaflow believes it now has a world-leading multi-biomass to biofuels capability and technology offering. This is a robust and highly integrated technology package which can leapfrog other biomass to biofuel technologies because it goes straight to blended fuel stock and avoids intermediate pathways. 2. To what extent did passion play role in the founding of Aquaflow and its early success? Do you think that someone without passion for alternative fuels could have successfully founded the firms? Why or why not? Answer: They show that they are truly dedicated to their work and face all the challenges and risk that will happen. They improved the Aquaflow a lot and make used of their intelligence to build...
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...The scientific review of switchgrass concisely explains both the positive and negative effects of implementing switchgrass on a large scale in the future as a sustainable source of biofuels. After explaining the effects of switch grass in a multitude of regions, including cultivation in CRP lands, potential for disease, insect outbreaks, and invasive species, impacts on wildlife, and soil diversity, the authors conclude that switchgrass “can increase ecosystem services as well as provide economic value” (Hartman et al). One aspect of this article that I found especially notable was that it provided an unbiased view by presenting the negatives of switchgrass even though the overall conclusion was in support of the implementation of switchgrass....
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...Learning from the Indian experience and the BioFuels industry in India Rajan K. Paradkar Sr. General Manager Armaco Consultant Pvt. Ltd., Mumbai, India NOT AN OFFICIAL UNCTAD DOCUMENT Financing BioFuels and Jatropha Plantation Projects Accra, Ghana-November 13, 2006 EXPRESSES THANKS TO YOU, HONOURABLE CHAIRPERSON, FOR THE KIND INVITATION EXTENDED TO DELIVER THIS PRESENTATION AND WELCOMES THE PARTICIPANTS TO THIS WORKSHOP Financing BioFuels and Jatropha Plantation Projects Accra, Ghana-November 13, 2006 Financing BioFuels and Jatropha Plantation Projects Accra, Ghana-November 13, 2006 Financing BioFuels and Jatropha Plantation Projects Accra, Ghana-November 13, 2006 •CDM is a mechanism to monetize environmental value of proenvironmental projects established in response to global climate change. •CDM enables developed countries with high CO2 reduction costs, to meet the shortfall of allowed emissions at a lower cost than achieving the reduction domestically. •To Developing countries, the CDM presents an opportunity to attract investment from developed countries to environmentally sound projects assisting in sustainable development. •Optimum size of the project for CDM financing to be analyzed. This is in terms of CER’s per year (I.e. Certified Emission Reductions OR Tons of CO2 per year). Financing BioFuels and Jatropha Plantation Projects Accra, Ghana-November 13, 2006 Financing BioFuels and Jatropha Plantation Projects Accra, Ghana-November 13...
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...Biodiesel is a form of diesel fuel manufactured from vegetable oils, animal fats, or recycled restaurant greases. It is safe, biodegradable, and produces less air pollutants than petroleum-based diesel. Biodiesel can be used in its pure form (B100) or blended with petroleum diesel. Common blends include B2 (2% biodiesel), B5, and B20. Most vehicle manufacturers approve blends up to B5, and some approve blends up to B20. Check with your owner’s manual or vehicle manufacturer to determine the right blend for your vehicle, since using the wrong blend could damage your engine and/or void the manufacturer's warranty. Biodiesel Compared to Petroleum Diesel | Advantages | Disadvantages | * Domestically produced from non-petroluem, renewable resources * Can be used in most diesel engines, especially newer ones * Less air pollutants (other than nitrogen oxides) * Less greenhouse gas emissions (e.g., B20 reduces CO2 by 15%) * Biodegradable * Non-toxic * Safer to handle | * Use of blends above B5 not yet approved by many auto makers * Lower fuel economy and power (10% lower for B100, 2% for B20) * Currently more expensive * B100 generally not suitable for use in low temperatures * Concerns about B100's impact on engine durability * Slight increase in nitrogen oxide emissions possible in some circumstances | BLENDS Blends of biodiesel and conventional hydrocarbon-based diesel are products most commonly distributed for use in the retail diesel fuel marketplace...
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...Ashton Roesbery GS1140M – 03/23/2014 01_A4_Roesbery Introduction Bio-fuel, a wonder that hasn’t fully been discovered, but in 20 years, will definitely be the source of all things we use today. Have you ever wondered what there might be in the future? How things will run? With these current standards, how fast we waste NON-renewable energy sources, without bio-fuel, we would be lost completely (not counting other renewable energy). I bet by now you’re wondering how bio-fuel can be so amazing. Well, I will explain that all right here. 1. Poop, Feces, Ca-Ca (Insert other name here) You must be wondering, “There’s no way he just said that!” I’m here explaining, yes, I am. So I’m pretty sure, you don’t just go about life, thinking, “I wonder what can happen with all the feces I leave behind?” I mean, not many people wonder about what exactly what happens to our remains, but right now, as you’re reading this, there are ways that are being used to turn our leftovers into enough to power the very things we use today. Cars, cell phones, electricity as a whole... Let’s get to the good stuff. Today research is happening to turn our poo into fuel/power! There’s currently a machine that belches and farts, breaking down our waste, to provide energy to power over 6 acres of greenhouse power, currently in effect at a farm owned by Bayview flowers. Annually, they cut their energy bill from 300,000 to 200,000. That’s a lot of money, and mainly, these machines are at big companies, but...
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...Fuel for Thought Fuel that made from biological materials such as plants and animals is defined as biofuel. “Fuel for thought-All biofuels are not created equal”, is an article written by David Tillman and Jason Hill. This article describes how biofuel has made a complete circle from when it was first introduced 100 years ago. In the beginning hay and oats were our first transportation biofuels. These in turn were replaced by gasoline. In present day biodiesel from soybeans and ethanol from corn have started taking the place of diesel and gas. Switching to ethanol and biodiesel has been something of a positive as it helps reduce the threat of climate change and ease dependence on foreign oil. The downside, however, is that we are in conflict with some of our most important needs: food, energy, and a livable environment. (Hill) We are now coming into problems finding and providing answers to the food, fuel, and environment dilemma. If properly produced there are biofuels that can provide climate friendly energy. The difficulty is figuring out where and how to grow them. Our most abundant lands are being used for food production. As demand for energy and food inflates, competition for rich fertile lands could possibly increase food prices and force some of the poorer people into starvation. There is also the threat of extinction of many different plants and animals. Rainforests and other eco systems would potentially be destroyed to make room for new farms. We will...
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...The use of biodiesel is being promoted by EU countries to partly replace petroleum diesel fuel consumption in order to reduce greenhouse effect and dependency on foreign oil. Meeting the targets established by the European Parliament for 2010 and 2020 would lead to a biofuel market share of 5.75% and 10%, respectively. However, many voices have claimed that the associated agricultural development would bring considerable rise of food and water prices, unless biodiesel is made from waste materials or second-generation biofuels are developed. Waste cooking oil is one of the most promising feedstock in the Mediterranean countries, and in fact, many of the biodiesel production plants are currently using it. In a wide majority of cases these plants use methanol for their transesterification processes, which makes biodiesel (mainly composed by methyl esters) only 90% renewable. By the contrary, the use of bioethanol in the production process would provide a fully renewable fuel (ethyl esters), which would further contribute to reduce life-cycle greenhouse emissions from vehicles. Different studies have shown that biodiesel from waste cooking oil can be used in different types of diesel engines with no loss of efficiency [1–5] and significant reductions in particulate matter – PM– emissions [5–9], carbon monoxide –CO– emissions [3,6–9] and total hydrocarbon –THC– emissions [8–10] with respect to those obtained with conventional petroleum diesel fuel. Many of them...
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...could be that market ready alternative. In the article, “Biodiesel from algae: challenges and prospects”, Scott (2010) discussed biofuels ability to be used with the current infrastructure; Scott states: With the need to reduce carbon emissions, and the dwindling reserves of crude oil, liquid fuels derived from plant material – biofuels – are an attractive source of energy. Moreover, in comparison with other forms of renewable energy such as wind, tidal, and solar, liquid biofuels allow solar energy to be stored, and also to be used directly in existing engines and transport infrastructure. (Scott, 2010, p. 277) Most individuals are familiar with biofuels, such as ethanol, produced from corn, sugar cane and beets. Less known, but with numerous benefits over land-based sources are algae-based fuels. Some of the more notable benefits of algae-based fuels are; alga can increase in mass fourfold in just a single day; help remove Carbon Dioxide (CO2) from the atmosphere; just two acres of algae can produce almost 13,000 gallons of biodiesel a year. (Herro, 2008) Best of all, unlike other land-based biofuel sources algae do not compete for lands used to produce food for humans and animals. The notion of using algae as a source for energy goes back more than 50 years. The inventor of the diesel engine, Rudolf Diesel, first demonstrated his engine at the Paris World’s Exhibition in 1900; the fuel he used was the first biodiesel, peanut oil. This was the fuel used in his engine until...
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