Member of South Poland Cleantech cluster company ASPEN from Jarocin is planning to build a manufacturing plant for production of a dehydrated and rectified alcohol. Witaszyce near Jarocin was selected as location for the manufacturing plant.
In 1997 the Investor acquired a 49 200 m2 parcel of land adjacent to the Sugar Factory and Refinery “Witaszyce” Joint Stock Company. The choice of location was dictated by several aspects:
The alcohol production plant will have the capacity to produce 125 000 000 litres of 100% alcohol per year. The production will run 340-350 days a year which is equivalent to the production of 3676 hl/24h of 100% alcohol.
Aspen has bought a license from R. Katzen Associates International Inc. for the technology for production of dehydrated and rectified alcohol. It must be emphasised that Katzen Inc., on the basis of Output Guarantee being an enclosure A to the License Agreement concluded between Aspen and Katzen Inc., warrants the production capacity of Aspen Plant as below:
- 125,000,000 litres per year of dehydrated alcohol
incl.- 20,000,000 litres per year of rectified alcohol
The plant will produce raw alcohol (92% concentration, equivalent to 3676 hl/24h of 100% alcohol), which will be converted to:
- dehydrated alcohol at 105 000 000 litres per year,
- rectified alcohol at -(20 000 000 litres per year.
The Katzen Technology of alcohol production uses maize and rye as raw materials.
The ratio of raw materials will depend on the season, harvest and stock. It is however assumed that maize will be the basic material due to its efficiency, while rye due to its properties will be the main component of the rectified spirit.
For estimating the cost of production and sale volumes, the following proportion of both raw materials has been assumed: rye 10%, maize 90%.
The required amount of raw material to produce 1 litre of raw alcohol is:
- 62 kg/l of rye
49 kg/l of maize.
Assuming the proportion: 90% maize and 10% rye, daily demand for raw materials will be 2.50 kg/l of raw alcohol.
Daily demand for raw materials amounts to:
- 96,3 tonnes of rye
823,8 tonnes of maize.
Assuming the proportion: 90% maize and 10% rye, daily demand for raw materials will be about 950 tonnes.
- 340-350 days of raw materials processing.
Yearly demand for raw materials amounts to:
96,3 tonnes of rye x 340 days = 32.742 tonnes of rye
8 tonnes of maize x 340 days = 280.092 tonnes of maize.
Assuming the proportion: 90% maize and 10% rye, yearly demand for raw materials will be 312.834 tonnes.
The following transport means for raw materials are planned:
- 50% railway,
- 50% trucks.
The materials will be weighed using the existing rail and road weights.
In order to provide self-sufficiency of raw material supplies, and to pick up property value aswell, Aspen Company intends to purchase land of total area approximately 60.000 hectares. These should be grounds from resources of State Agency, as also acquired from secondary market. This investment will enable to significantly decrease the cost of raw material by approx. 25% – to remind, the crude material is ca. 62% of general-overhead costs – and will also be a good investment.
Counting in today’s prices i.e. circa USD 15.000 per hectare, the cost of this investment makes a sum of 1 billion $.
Added should be, that within EU funds for every land hectare the Company would gain a subsidy at an amount level of 300 $, (at present land acreage – $ 18.000 000) every year, what significantly would facilitate the financial handling.