Biogas, Financial Model, Manufacturing, Renewable Energy

10-year Financial Projections, Break-Even, Budget, Budgeting, Business Valuation, Cash Flow Analysis, Cash Flow Projections, CFO, Cost Calculation, Cost Projections, Dashboard, Debt Amortization, Discount Rate, Dividends, Excel, Financial Analysis, Financial Feasibility, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Financial Ratios, Financial Reporting, Financial Statements, Forecast, Income Statement, Investor Cash Flows, IRR (Internal Rate of Return), Payback Period, PDF, Pro-Forma, Profitability Analysis, Sensitivity Analysis, Startup Financial Models, Terminal Value, Uses and Sources of Funds, Valuation, WACC (Weighted Average Cost of Capital)

Biodiesel fuel is produced by transesterifying oils such as vegetable oils, yellow grease, used cooking oils, or animal fat feedstock. Most biodiesel currently produced is from waste vegetable oil sourced from restaurants, chip shops, and industrial food producers. The biodiesel production process requires alcohol. Methanol is the most frequently used alcohol, although ethanol can also be used.

This financial model Excel template prepares the business plan for a biodiesel plant using a bottom-up approach. It starts by identifying the biodiesel plant production capacity, annual biodiesel production target, how much feedstock and alcohol are needed to reach the biodiesel production target, by-product output, price projections, and production costs.

Other key assumptions include the start year of operations, total capital expenditures, uses and sources of funds, and assumptions related to debt financing. By translating these assumptions into a comprehensive 30-year financial plan, business owners and managers may understand how the company should perform financially over the following years.

Additionally, the model enables the determination of the biodiesel plant’s break-even volume and price, as well as the key relevant financial ratios and financial metrics, such as the biodiesel plant profit margin, IRR, and NPV, that are necessary for banks and investors to comprehend the biodiesel plant project.

Biodiesel Plant Spreadsheet Template Structure

This Excel template has instructions and formulas that are simple and easy to follow, which allows users to run simulations by varying the input assumptions. The elements of this financial model template are enumerated below:

Instructions and Terms contain the cell color codes and the terms and abbreviations used.

Executive Summary and Detailed Summary include charts for a better understanding of your Biodiesel Manufacturing Plant project reports’ financial prospects and to provide answers to the following questions:

• How much does it cost to set up a biodiesel plant, and
• Is biodiesel production profitable?

These spreadsheets include a 10-year summary of the following:

• Projected Financial Statements overview– Income Statement, Balance Sheet, and Cash Flows Statement.
• Levered and Unlevered Free Cash Flows calculating key financial feasibility metrics such as the Internal Rate of Return (IRR), Payback Period, Net Present Value (NPV)
• Investor Summary (Premium Version only)
• Uses and Sources of Funds and Debt Financing
• Operational Key Performance Indicators – Profit per gallon of Biodiesel
• Biodiesel Production Summary
• Lifetime Profit Distribution and Cash Flows
• Break-Even Analysis Summary (Premium Version only)
• Sensitivity Analysis Summary (Premium Version only)

Assumptions that are necessary and applicable in the business plan of a Biodiesel Plant Financial Model are presented in this worksheet.

• General Settings
  • Currency
  • Project Timeline – Biodiesel Production Operation Years and Plant Lifetime
  • Income Tax Rate
  • Net Working Capital
  • Inflation and Price Escalation
• Biodiesel Manufacturing Plant Assumptions
  • Product Input, Output, and By-Product UnitsConversion Ratios – Biodiesel and by-products output for every inputBiodiesel Manufacturing Plant Processing CapacityBiodiesel and By-Product PricesDirect Costs of Producing BiodieselOperating Expenses
  • Capital Expenditures, CAPEX Schedule, and Maintenance per year

It could take up to three years to completely set up a biodiesel manufacturing plant. By spreading out the amount of capital across the first three years, the CAPEX schedule of this model enables customers to plan this circumstance flexibly and realistically.

• Uses and Sources of Funds
  • Cash Reserve and Net Working Capital
  • Loan Amounts and Interest Rates
• Investors – Funding and Equity Stake
• Exit and Valuation Assumptions
• Dividend Policy Assumptions – Cash Sweep or Profit Distribution

Operating Model contains detailed calculations of the annual 30-year operational forecasts of the Manufacturing Plant of the Biodiesel production process.

• Price and Cost Inflation
• Input and Output Production Volume and Prices
• Revenue Breakdown of Biodiesel and By-Product
• Direct Costs
• Operating Expenses
• Fixed Assets Schedule – Initial CAPEX, Spending allocation, Maintenance and Depreciation

The special features of this worksheet include:

• Annual Biodiesel Plant output volume should not exceed the Biodiesel Manufacturing Plant’s Production Capacity
• Percentage of the Plant Utilization
• Biodiesel plant output volume is calculated depending on the assumption of the project timeline
• Operating Expenses will also only start upon the first year of production

The Monthly Budget is prepared to provide a detailed assessment of the financial feasibility of a biodiesel manufacturing plant. This five-year monthly budget is formulated to start calculation from the selected first target year and operating month of the biodiesel production process. Using the monthly budget, users may distribute the monthly production target, annual revenue, and costs using percentages for the months that occurred. Also presented in this spreadsheet are the calculations of biodiesel profit margins and the presentation of Monthly Free Cash Flows (Unlevered and Levered) and Projected Cash Balance.

Financials worksheet contains a comprehensive and detailed 30-year forecast of:

• Financial Statements – Income Statement, Balance Sheet, Cash Flow Statement
• Operations Summary
• Financial Ratios
• Standardized Income Statement
• Biodiesel Profit per Gallon analysis
• Projected Enterprise Value
• Unlevered and Levered Free Cash Flow
• Financial Metrics, and
• Equity Funding and Divided Policy Schedule

The Financials worksheet also calculates Profit Margins in the production of Biodiesel, such as Gross Profit, EBITDA, EBIT, EBT, and Net Income/Loss Margin.

Debt Schedule is specially prepared for funding purposes to be presented to banks and investors. It contains financial ratios the banks and investors want to see when evaluating a project’s feasibility. The debt schedule includes two debt facility options and adjustments for drawdowns and repayments.

Break-Even Analysis (only Premium Version) calculates the required volume and price for biodiesel of a selected year to break even at an EBIT level. This sheet also shows a break-even sensitivity analysis.

Shareholders Cash Flow (only Premium Version) is prepared to show the calculations of the Equity Multiple and Investors’ IRR, which helps determine whether their funding and equity stake percentages would result in profit.

Sensitivity Analysis (only Premium Version) determines how variables such as prices, expenses, and conversion ratios affect the IRR of a chosen parameter. Users may select Unlevered or Leveled IRRs, and Investors. 

Start Manufacturing your own Biodiesel!

This Biodiesel Manufacturing Plant Excel worksheet template offers users helpful features that help them decide whether producing biodiesel is financially viable by analyzing the effects of various scenarios on the feasibility of your project. Users will be able to determine whether to invest in biodiesel production with the aid of financial analysis and significant KPIs.

This financial model template comes pre-filled with an example forecast from a business plan for a biodiesel manufacturing plant. The forecast can be readily changed by altering the assumptions indicated in blue.

The models, current version at 2.1, are available in two fully editable Excel versions:

• Premium Version (Excel file, fully editable) – All features
• Basic Version (Excel file, fully editable) – All features except for the Break-Even Analysis, Shareholder’s Cash Flow, and Sensitivity Analysis

Both versions are also available in PDF Demo Preview (which outlines the details of the model structure) and Null Versions (No values in the assumption sheet)

File types:
.xlsx (MS Excel)
.pdf (Adobe Acrobat Reader)