Ethanol Plant – 10 Year Financial Model

Ethanol Plant – 10 Year Financial Model Description

Ethanol Plant – 10 Year Financial Model, including revenue streams from ethanol, DDGS, and corn oil. The model covers plant development, production costs, payroll, financing, and exit valuation assumptions. It features detailed reports like cash flow, break-even analysis, financial ratios, business valuation, and investor returns.

An ethanol plant is an industrial facility that produces ethanol, a renewable biofuel typically made from crops like corn, sugarcane, or other biomass. The process involves fermenting plant sugars, distilling the alcohol, and refining it for use as a fuel additive or alternative. Ethanol plants are equipped with specialized equipment for grinding, fermentation, distillation, and drying byproducts like distillers grains, which are often used as livestock feed. These plants contribute to energy diversification, reduce greenhouse gas emissions, and support agricultural economies.

This financial model presents a development and operations scenario for an Ethanol Production Unit, including the extraction of DDGS (Distillers’ Dried Grain with Solubles) and corn oil as by-products. It provides a comprehensive 10-year financial forecast, detailing the financial outlook and potential profitability of the Ethanol Production Unit.

The model assumes the following revenue streams:

• Ethanol: Ethanol is mainly used as an input for the Production of Alcoholic drinks, Blending with gasoline, and as a solvent for paints, varnishes, and perfumes.
• DDGS: DDGS, extracted as a by-product, is sold as a high-quality feedstuff ration for dairy cattle, beef cattle, swine, poultry, and aquaculture.
• Corn Oil: Unprocessed Corn oil extracted during ethanol production is sold to corn oil producers where it is used as an input.

Model Structure

The model also includes a Plant Development Budget (Land and plant Construction Costs), Startup Expenses, Plant Capacity and Efficiency Assumptions, Revenue (sale prices for the 3 products), Direct Costs (Raw Materials, Consumables, Utilities, etc.), Payroll, Operating Expenses, Fixed Assets and depreciation, Financing through Debt and equity, and Exit Valuation assumptions (WACC and Terminal Value) in case of a potential sale of the business.

The template structure follows Financial Modeling Best Practices principles and is fully customizable.

Detailed instructions for the model’s functionality are included in the Excel file.

Model Inputs and Setup Reports:

• General Setup Assumptions, incl. Starting Expenses, Capacity, Sources of Revenue & Direct Costs Assumptions, Financing (Debt & Equity), and Valuation Metrics

• Plant Development Budget (Land and Plant Development Costs)

• Payroll, OpEx, and Capex, incl. Depreciation Schedule

• Forecast Scenarios

Output Reports:

• Monthly Operating Cash Flow Report

• Annual Financial Statements (3 Statement model – 10 Year Forecast)

• Break-Even Analysis

• KPIs & Financial Ratios, including several Profitability, Efficiency, Liquidity, and Leverage (Solvency) Ratios

• Performance Dashboard

• Business Valuation, including DCF Model, Return Metrics (NPV, EV, IRR, MOIC, ROI, etc.), and Sensitivity Analysis

• Investors Distribution Waterfall Model

• Dynamic Professional Executive Summary with an option to choose the Exit Year and Exit Scenario (with or without Terminal Value)

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