In-bin drying to Portable driers

What's Your Grant Score?

• Dries 50,000 bushels
  
• Currently uses 2,500 BTU/lb. BTU/lb./10 percentage points (pt) of drying
  
• Plans on only drying 5 points in a typical year
  
• Has two bins with storage of 50,000 bushel each; raised floors and 15hp fans
  
• System uses $14,000 to dry with propane priced at $2 per gallon
  
  2500 BTU/lb.* 7.421lb ( 10 points) * 70% energy
  *50,000 bushel / 91,500 btu/gal. = 7,095 gallon
  
  = $14,000

• Would dry 50,000 bushel in 67 hours @ 5 pts


• Will dry from 20 pt to 17 pt


• Use $5,500 propane for 5 pt reduction


• Propane @ $2 gallon


• Cost $45,000 installed

• Initial ROI = $8,500 / $45,000 = 19%


• Simple payback = $45,000 / $8,500= 5.2 years


• System costs $45,000 before grant


• Energy savings

$14,000
-$5,500
$8,500

• True cost = $45,000- $11,250 grant = $33,750
  
• Annual payment @ 7% for 7 years = $6,200
  
• Year 1 depreciation = 45,000/2*35% = $7,875
  
• Cash flow
  
  • $8,500 energy savings
    
  • + $7,875 Tax savings
    
  • – $6,200 loan payment
    
  • = $10,175 Positive Cash Flow year one