In recent years sugar cane industry had been faced with challenges that are mainly manifested in utilization of its by-products such as bagasse a nd molasses, a nd the growing concern fo r the environment that makes the governments to o r ient its policies a nd effo r ts towards the product of fuel that is chemically extracted through fermentation a nd distillation.
The research paper is directed to serve the economy through feasibility study to establish ethanol fuel plant to improve the profits of the sugar industry a nd alleviate the environmental problems resulting fr om the use of fossil fuels.
The study revealed that a capital of $26,201,660 can be invested in plant that produces 200,000 liter/day of ethanol fuel, the annual gross revenue without considering taxes is estimated to be $11,133,000 with payback period of 3.67 years. The economic indicato r s are feasible showing that internal rate of return is 22.55%.