Aqp Etanol Company

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AQP ETANOL COMPANY S.R.L.

1. THE COMPANY AND THE MARKET

1.1. SUMMARY OF THE PROCEEDINGS OF THE BUSINESS PLAN

AQP ETHANOL S.R.L. is a development and innovation company that has found in a problem

business opportunity. Currently the world is in critical times and that climate change has led to

increased desertification reduction of glaciers and loss of ecosystems such as deserts and cloud

forests that supply water to many areas of the world has brought this has brought as a result in

less fresh water on the planet and as a consequence less water for agriculture which threatens

world food security since the population is growing demographically quadratic form and

agricultural air are decreasing by the advance of desertification and lack of water, yet this

scenario are planting large areas of crops into biofuels confines of turn, is why we have sought

an alternative that does not involve jeopardizing food security and seeks to solve an

environmental problem that the use of organic waste from the production of rice as one of the

4 agricultural products increased global consumption is a serious problem, and thus exploiting

the properties of rice husk is we have achieved what ethanol which when mixed with gasoline

can get a biofuel that does not conflict with food security and solve the environmental problem

of waste rice.

DESCRIPTION OF THE ELEMENTS OF SUCCESS

As a rice husk waste from rice production not incur costs for its production nor would have to

plant more area and for many years been building to which is a clean and cheap raw material

as compared with the production of ethanol from sugar cane which represents a cost of $ 40

000 per ha and water consumption of 18000 m3 which could irrigate and sow beans 6

campaigns. We live in an economy of intangibles and many consumers are environmentally

conscious and therefore always seek and consume products that do not pollute theenvironment as is the case of biofuel

GOALS OF THE PROJECT

Power realization of a production plant for ethanol from rice husk


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CONCLUSION

There is another cheap and cost effective to produce ethanol without compromising

environmental safety, which is obtaining it from waste rice husk which is economical because it

is a waste material.

SUMMARY OF PROCESINNOVACION.THE BUSINESS PLAN SHOWING IMPROVEMENT IN

THE BUSINESS

Our business plan thinks about the future of the business: how to go faster and what to do

along the way to reduce uncertainty and risks. The following business process contents a set of

logically related tasks performed to achieve a defined business outcome: The industrialization of

waste from rice production as a result to get BIOFUEL. Also were conducted market research,

product evidence, costs, among other studies to guarantee the use of rice husks as biofuel

without affecting the ecosystem and the economy. Improvements by introducing something

NEW / DIFFERENT FROM EXISTING KNOWLEDGE AND TECHNOLOGY

Ethanol from cellulose can be produced from a variety of agricultural residues (corn, wheat,

sugarcane, etc.), Plant wastes from industrial processes (paper pulp, sawdust) and energy crops

such as switchgrass. The difference that makes our project is that we will not use land to grow

crops that suppress and threaten the food security of the poorest and use water for feedstock

crops that produce ethanol, rather than being used to plant products in large amount of

demand as rice. This will be a higher quality biofuel without using all the resources mentioned

above only based on rice husk.

Organic waste of energy that abounds in rice growing areas when not in use becomes an

environmental problem as it builds up around the mills because its decomposition is slow. Note

that the rice husk biofuel results achieved in the environmental impact such as clearing forests

to plant crops that produce biofuels and the decline of soil fertility, reduction of greenhouse

gases among others.

THE MARKET NEED

- Domestic ethanol demand of 250 000 liters per day, which proyections are 9125 0000liters per year in the Peruvian market for biofuels.

- There is a global effort to develop clean energy.- Japan: Are expected by 2030 with 20% ethanol and LPG instead of petroleum products.


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61%23%

16%

Principal Uses of Ethanol

combustible

uso industrial

produccion de bebidas

alcoholicas

- Canada: the year 2015 will require a mixture of 10% ethanol. Finally, in China, Colombiaand Venezuela have similar measures.

On March 31, 2005 approving the regulations of Law No. 28,054, the promotion of biofuels,

which states that the percentage of fuel ethanol in gasoline marketed in the country will be

7.8%.

THE PROBLEM:

Domestic production of ethanol, is not satisfied, the only producer of ethanol (Romero Group)

supply the domestic market.

The international price of oil is not stable, with growth prospects.

The company's existing ethanol production (Romero Group) affects food production.

THE SOLUTION

PRODUCT/SERVICE SHOWS THAT MEETS AN IMPROVED CUSTOMER NEED

The product offered is ethanol produced from organic waste from agricultural bran of rice,

(renewable resource), which improve vehicle performance, in fact; the lubricity of biodiesel

extends the life of diesel engines. Compared with conventional fuels has the potential to

produce lower emissions of pollutants, especially emissions of lifecycle greenhouse gases, which

in other words, keep our environment clean. They enable fuel regardless of import policies and


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fluctuations in oil prices, forcing a reduction in these costs, producing far less emissions harmful

to living things, water and air.

DIFFERENTIATE THEM FROM THEIR COMPETITORS

The production of ethanol from rice bran does not affect food production.

The production of ethanol is made from organic waste.

THE PRODUCT

NAME:

98 Ethanol GL, based on rice bran /AQP ETANOL COMPANY

CONCEPT:

We proposed to investigate a cost effective method of obtaining industrial ethanol from rice

husks. The obtained results showed a yield of 25 liters of alcohol (ethanol) of 98 GL from

100.00 Kg. of rice husks, competitive traditional raw material molasses. The obtained method

makes it profitable to produce alcohol for industrial ethanol from rice hulls and other

agricultural residues, forestry and industry, and can turn the country into an exporter of alcohol

and / or using this alcohol, as alcohol fuel (gasohol).

CARACTERISTICS:

- Calories- Non-toxic- Oxygenating, non-carcinogenic- Renewable and sustainable

The production and use of the mixture of 85% ethanol (E85) with gasoline saves 36% of fossil

energy and saves 70% of greenhouse gases compared to gasoline production and use

The production and use of the mixture of 5% ethanol (E5) with fuel-saving 1.12% of fossil

energy and save 3% of greenhouse gases compared to gasoline production and use

Ethanol has an octane rating than gasoline much higher-around 110 - what it does not burn as

efficiently in conventional engines.

APPLICATION

Biofuels produced from bioethanol

E5: E5 Biofuel means a mixture of 5% bioethanol and 95% of regular gasoline.


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E10: E10 Biofuel means a mixture of 10% bioethanol and 90% of regular gasoline

E85: A blend of 85% bioethanol and 15% gasoline used in vehicles with special motors.

E95 and E100: Mixes up to 95% and 100% ethanol is used in some countries like Brazil with

special motors.

E-DIESEL: Bioethanol allows blending with diesel fuel additive using a solvent and producing a

biofuel diesel E-Diesel

ETBE: not marketed as a biofuel, but is used as a gasoline additive. ETBE (ethyl tertiary butyl

ether).

STANDARD AND VARIABLES / CATEGORY

Variables: pressure and temperature

Constants: the acid concentration and time.

RESOURCES / COMPOSITION

Action: rice husks Plant tissue composed of cellulose and silica elements that help your good

performance and fuel)

TECHNOLOGIES USED

- Fermentation- Distillation

PRICE

- The price of ethanol from rice husk, will depend largely on two factors:- The cost of raw materials from which produces ethanol.- The cost of processing to convert the feedstock into the desired product Common cost

1 liter of ethanol to 2.7 soles.

CONCLUSIONS OF THE TEST PROTOTYPE

Promoting ethanol production and consumption of rice husks generated internal economic

importance in the field of agribusiness, a large demand for specialized direct labor and

exploitation of existing and potential agricultural resources such as rice. Given the significant

volumes of ethanol required, must be developed transport infrastructure, storage, distribution

and use under the conditions of security techniques and product characteristics "ethanol from

rice hulls' demands.


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PRODUCT LIFE CYCLE

At present rice husk is a problem for many farmers, because they see it as waste and burn it,

rice is a product that will never happen to stop in Peru and in many countries, so that the

projection of our project and the development of our product (ethanol) has no risk of failure, as

it has enough raw material. A projection made from rice husk, alcohol and added value,

January-June 2007 ", gives an estimate of national production of 86 million liters of alcohol 96

GL and an aggregate value of 256'908, 750 soles, about 80 million. Therefore the product we

produce is endless cycle of life as biofuel consumed in alcoholic beverages and industrial use.

TECHNICAL SPECIFICATIONS OF PROTOTYPE

Specifically, the scale is composed of lignin (20 to 25%), cellulose (35 - 40%) and hemicellulose

(15 to 20%), by what is considered a suitable substrate for ethanol production, because of its

availability and relatively low cost. It has successfully completed the circle of the technology to

convert wasteligno cellulosic ethanol. Earlier in the twentieth century it was completely the

saccharification of cellulose by chemical processes, but the cost of these processes showed that

although it was technically feasible but economically it was not because the cost of oil was very

cheap. 15 years ago a barrel of oil cost 12 U.S., now exceeds 130 USD with a tendency to go up.

Since the mid 95's began the first steps in production testing and removal of cellulases for

industrial application and since 2002 was achieved by the methodology that reduces costs by

up to 30 times what it was before this time.

One important being is the sum of the experience of chemical and enzymatic hydrolysis,

knowledge of cellulases, cellulose features and improvement of the materials from process

equipment.

The use of biomass ligno-cellulosic residues as raw material for alcohol production has the

following advantages:

- Cellulose is an abundant resource that is readily available in all types of plant materialincluding waste products such as stalks and corn cobs, wood pulp, wood chips,

sugarcane straw and leaves and rice husks.

Cost is very cheap and rather solves a waste disposal problem.

The use of lignocellulosic residues reduce the use of starches and sugars (corn, cassava,

potatoes, beets, molasses, etc..), Which would have a better application in human food.


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COMPONENTS AND ELEMENTS OF TECHNOLOGY PLAN

It will have a new technology for ethanol production will use organic materials in rice (husk)

inedible. This technology uses subcritical water for the pretreatment of the raw material,

followed by fermentation and distillation of rice hulls. 3 methods were used:Stages: chemical

processing methods based on Duninng - Lathrop and Scoller - Tornesh., Biological processing,

comprising: obtaining and selecting the yeast strain, inoculum preparation and inoculation and

fermentation and distillation, usingfirst traditional computer lab glass, then a team called the

pre-pilot and finally a small pilot plant, the latter two with our own design and construction

advice, using national material


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PROCESS FLOW

RICE BRAN

COLLECTION

PRE-TREATMENT

ENZYMATIC HYDROLYSIS

FERMETATION

DISTILATION

ETHANOL


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PRODUCTION SYSTEMS, MACHINERY AND EQUIPMENT


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Production program:

- Steps established in function of time.- Purchasing: the raw material is purchased "rice husk."

Market vendors: Groups of companies or companies that offer the raw material (rice husk etc.)

productive market.

F1: Collection

F2: Pre-treatment

F3: Enzymatic Hydrolysis

F4: Fermentation

F5: Distillation

QUALITY CONTROL PROCESS, SUPPLIERS AND PRODUCTION LINE

Quality control:

- Define technical specifications for each component- Minimum specifications of the mixture (without altering national standard)- Define quality control points in the process- Establishment of procedures of the laboratory tests.- Training and purchase of equipment

MANAGEMENT TEAM

FINANCIAL PROYECTIONS

COMPANY INFORMATIONLEGAL BUSINESS ESTABLISHMENT

- Company name: AQP ETHANOL COMPANY SRL

- Purpose: The purpose company will produce ethanol from rice husk, sale, distribution, and

marketing it to domestic and international markets.-The duration of the company shall be

unlimited

Processes:

-Elaboration of the draft of constitution.

-Preparation of the deed

- Registration of legal persons

- Sunat/Essalud (to register as taxpayers only RUC and request number. Addition, users must

register their workers essalud.)

-Special permits

-Authorization of the book of lists Ministry of Labour and Employment Promotion (Document

Processing Office)

VISION


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- Consolidate as leaders in the production and marketing of ethanol from rice bran, using clean

technologies and encourage environmental culture of preserving our environment

MISSION

- In AQP ETHANOL COMPANY are entrepreneurs, values and commitment, we produce ethanol

from rice husk to contribute to the care of our environment, we grow our business profitably

and create value for our shareholders, for the people with whom work for our customers and

suppliers and thus contribute to the progress of our community.

OBJECTIVES

GENERAL OBJECTIVES

- Producing ethanol from the fermentation and distillation of rice husk and marketing in the

domestic market through forward sales contracts.

SPECIFIC OBJECTIVES

- Strengthen partnerships with fuel distribution companies and joint users of rice.- Improving

the technology for the production of biofuel.

- Expand the supply market gradually


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SWOT

STRENGTHS OPORTUNITIES

- Low price of main raw material.

- Extends the life of the engines

- The combustion is more complete.

- Increased demand in the market.

- Increase the number of jobs.

- Free Trade Agreement.

- Ease of credit.

- Easy entry into the market by the

existing monopoly.

WEAKNESSES THREATS

- Seasonality of the rice crop.

- Issuance of the final product waste

- Storage of raw material

- Altering the price for the global

economic crisis.

- Reduction of crops by natural

phenomena.

- Competition in the market.

- Increase the price of raw material

demand.


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2. Management Team:C.E.O.

Eng. Pedro Juan

Davila Z.

Logistic

Lic. Noemi Oviedo P.

Operations and

Maintenance

Lic. Jeanberth Vera Moya

Acesors

Eng. franco follano

pataEng. Patricia valencia

bustamante

4 operadores

Finance

Lic. Mariela

Chuquirima

Acesor

Lic. Alexandra

Sequeiros

Marketing

Lic. Patricia Castro

Valencia


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3. Financial Proyections:INCOME STATEMENT:

AQP etanol company S.A.A

Income Statement

For the Year Ended December 31

year 1 year 2

Sales 158400 221760

Cost of good sold 120000 168000

Gross profit 38400 53760

Operating expenses 19352 27093

Operating profit 19048 26667

Other income and expenses 8685 12159

Net profit before taxes 27733 38826

Income taxes 8320 11648

NET PROFIT 19413 66004

BALANCE SHEET


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Schedule of operating expenses

AQP etanol company

year 1 year 2

advertising 1500 2100

auto expenses 900 1260

bank charges

depreciation 1200 2400

dues & subscriptions

employee benefits

insurance 1000 2000

interest

office expenses 1300 1300

officer' salaries 2200 2200

payroll taxes 500 700

professional fees

repairs & maintenance 900 1260

salaries & wages 4202 5883

security

supplies 1400 1960


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taxes & lincenses 2700 3780

telephone 970 970

utilities 580 580

Other

TOTAL OPERATING EXPENSES 19352 26393

4. Contact:Jeamberth Vera Moya, President and CEO

AQP ETHANOL COMPANY S.R.L.

400 Venezuela Av.

Tel.: +(51)958822307

Email Adress: [email protected]

Documents

Aqp Etanol Company