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Sunday, August 12, 2007 2:40:00 PM
After final distillation, USSE will have 5 gallons of liquid, but in possibly 4 or more different products. For example, here is a possible distribution:
~2 gallons of cut #1 gasoline octane booster ~~$3.25 gallon
~2 gallons of cut #2 biofuel diesel equivalent ~~$3 gallon
~3 quarts of green motor oil ~~10/gallon
~1 quarts of 0D-66 additive ~~ 15/gallon
So, but dividing the long carbon chains from the short, USSE can get even more value from its fuel, boosting the average cost per gallon. The simple way is to blend it all together, and sell it all as diesel, but by adding a more complex distillation unit, USSE might boost gross margins past 100%.
Much of that profit will be negated by high start up capital costs, testing fees and legal fees. I dont expect much in the way of net profits for a few years. For now, I will settle for epa test results and some revenue.
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