In 2012, KiOR was in the procedure for beginning biofuels production at its first plant in Columbus, Mississippi. This initial plant was to provide a commercial scale proof-of-concept of KiOR's production technology, and the business anticipated to build another group of plants in Natchez, MS using "copy exact" principles. These latter plants would be three times the size of the Columbus plants, and KiOR expected several advancements in its production methodology. Among these were (1) an escalation in its conversion yield, or the quantity of biofuel that it could produce from an input of ton of biomass feedstock, and (2) a decline in input prices.
The RFS2 provided a subsidy to KiOR since RINs had a market value. This case analyzes the breakeven expense of the KiOR generation technology, with and without cost improvements and with and without RIN support. It provides representative assumptions that students may utilize to examine KiOR's business model and its particular susceptibility to policy support. The case package includes an Excel workbook that can be given to pupils to investigate susceptibility analyses around RIN and technological worth uncertainties.
PUBLICATION DATE: April 22, 2013 PRODUCT #: E427-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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