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    Laughing Stock Farm, Freeport, Maine

 

Economics

The final report for this project includes a detailed economic evaluation including:

1)    Cost of used cooking oil including the labor to collect and process the oil is about  $0.34/gallon assuming a $10.00/hr employee is performing the work.

2)    The first year economics worked out as follows:

Total UCO cost to the farm was 5,500 gallons x $0.34/gal = $1,870. 

Total farm energy savings this year was $8,580.  No. 2 oil averaged about $1.90/gal. 

Total restaurant disposal cost savings was $8,250.  The average cost for the restaurants to dispose of the oil is about $1.50/gal. 

3)    Installed cost of boiler system was: 

A)    About $25,000 for complete new hot water system.  This represents about a 3 year payback on energy savings alone.  We installed our system from scratch so the costs included things like piping, pumps, valves unit heaters and such that are standard heating system components.  These components are the same regardless of the fuel being burned.

B)    The cost would have been about $15,000 for tie in to existing hot water system.  These installations are called primary/secondary systems.  The major advantage of these systems is that the original equipment remains in place and operational as a back-up to the UCO system.  These systems are less expensive that brand new hot water systems since they make use of existing piping, valves, pumps, and unit heaters. 

C)    The cost would have been about $10,000 for a new hot air furnace system.  These systems are the most cost effective of the systems since there is no need for piping, valves, pumps, and unit heaters.  In these systems a fan blows air across the furnace heat exchanger and into the space.  Because UCO solidifies at relatively high temperatures, at least one hot water boiler is necessary to heat and process the UCO.  Heated oil must be supplied to each burner to assure reliable operation.

These figures are estimates including labor and materials installed to meet all local, state, and federal codes. Savings can result from farm self installation.

4)    The comparative costs of various fuels this winter were:

Used Cooking Oil $0.34/gal 

Yellow Grease (Truck Load) $0.95/gal 

Soybean oil (Commodity prices) $1.60/gal 

No. 2 Fuel Oil $2.10/gal 

Biodiesel B20 $2.75/gal 

Biodiesel B100 $3.50/gal

5)    UCO available in Maine is only about 1.5 million gallons per year.  In 2001 Maine used more than 470 million gallons of heating oil.  Obviously this will not solve Maine's energy problems.  

However, if all this UCO were used to heat greenhouses like ours, we could:

Heat 40 Acres of Greenhouses Distributed Across Maine 

Contribute ~$6 Million in Gross Farm Revenue 

Save ~ $2.25 Million in Restaurant UCO Disposal Costs 

Do This With NO Haz Mats, Minimal Transportation, NO Multi-Million Dollar Process Plant, NO Legislative Support Actions.

 

 

Send mail to lisa@laughingstockfarm.com with questions or comments about our farm
Send to ralph@rturner.com with questions or comments about our energy project. 
Copyright 2008, Laughing Stock Farm
Last modified: February 01, 2008