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#31
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Converting to diesel - where is the break even point?
On 2007-05-23, Newps wrote:
and you make your own biodiesel at ~$1/gal., would you say the break even point is acceptable? I don't know. First off putting $80K into a $50K airplane won't happen for that reason alone. I used to fly a c172 trainer that was upgraded from the stock engine to 180HP. Granted it had to be cheaper than a change in engines that burn different fuels, but how much different? Here's the breakdown on the diesel upgrade: parts: $29k labor: $46-51k More of the cost is labor. What's the cost of going from say 160HP to 180HP (both burning the same type of fuel)? I don't expect to see many folks making a lateral change to diesel for the sake of economy or range, but if someone wants an upgrade in power anyway, it may be viable to spend a little more and make it a diesel. The $80k is not exactly a toss-away investment either, because they can expect to sell the plane for more as well. Second the guy who has $80K to put into a 182 isn't the kind of guy who homebrews his own biodiesel. Perhaps that's the case with doctors and lawyers who are private pilots. However, imagine a full-time flight school owner/CFI, who might often be stuck at the airport 1-2 hours between student sessions. It's not worth it to go home during this idle time, so they might as well use the time to make more biodiesel. They would still charge the same wet fee as they would for gasoline trainers, but the diesel savings would directly increase profits. At $3-4/gal in savings, the school would get $30-40/hr more profit on each flight. And that's assuming fuel costs don't go up, and doesn't account for the saving inherent in a diesel reguardless of type of diesel. So how long does it take a busy school to put ~2200 hours on a plane? Unless I made some gross error, I'd say in ~2-3 years the engine upgrade would pay for itself. The school could even gain some business by offering students discounts for doing the grunt work of making the fuel, thus gain some business for those who can't quite budget enough to pay regular prices. -- PM instructions: do a C4esar Ciph3r on my address; retain punctuation. |
#32
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Converting to diesel - where is the break even point?
Justin Gombos wrote: I don't know. First off putting $80K into a $50K airplane won't happen for that reason alone. I used to fly a c172 trainer that was upgraded from the stock engine to 180HP. Granted it had to be cheaper than a change in engines that burn different fuels, but how much different? Huge. An O-360 doesn't cost that much more new than the 320 it replaces. Get yourself a field overhauled one and there really isn't much difference. Those conversions can be done two ways, with a fixed pitch and with a constant speed. Even going constant speed that's about a $3K difference. Here's the breakdown on the diesel upgrade: parts: $29k labor: $46-51k More of the cost is labor. What's the cost of going from say 160HP to 180HP (both burning the same type of fuel)? Hardly anything. The engine bolts right up. You'll have some labor installing the prop cable but that's trivial. I don't expect to see many folks making a lateral change to diesel for the sake of economy or range, but if someone wants an upgrade in power anyway, it may be viable to spend a little more and make it a diesel. The $80k is not exactly a toss-away investment either, because they can expect to sell the plane for more as well. The diesel conversion is still a 230 HP aircraft albeit now turbocharged. The value will certainly rise but not $80K worth. Not even close. Second the guy who has $80K to put into a 182 isn't the kind of guy who homebrews his own biodiesel. Perhaps that's the case with doctors and lawyers who are private pilots. However, imagine a full-time flight school owner/CFI, who might often be stuck at the airport 1-2 hours between student sessions. It's not worth it to go home during this idle time, so they might as well use the time to make more biodiesel. They would still charge the same wet fee as they would for gasoline trainers, but the diesel savings would directly increase profits. At $3-4/gal in savings, the school would get $30-40/hr more profit on each flight. And that's assuming fuel costs don't go up, and doesn't account for the saving inherent in a diesel reguardless of type of diesel. So how long does it take a busy school to put ~2200 hours on a plane? Unless I made some gross error, I'd say in ~2-3 years the engine upgrade would pay for itself. First off it isn't legal. You got an STC for that biodiesel? Didn't think so. That mom and pop flight school/FBO located at that nice quaint airport doesn't sell jet fuel. A very common situation. Now what? |
#33
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Converting to diesel - where is the break even point?
On 2007-05-24, Newps wrote:
You got an STC for that biodiesel? Didn't think so. This was brought up earlier here, and someone said biodiesel doesn't need to go through any process to get FAA approval. Supposedly the fuel only needs to meet the standards required by the manufacturer. I'm not sure what an STC is. -- PM instructions: do a C4esar Ciph3r on my address; retain punctuation. |
#34
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Converting to diesel - where is the break even point?
Justin Gombos wrote: On 2007-05-24, Newps wrote: You got an STC for that biodiesel? Didn't think so. This was brought up earlier here, and someone said biodiesel doesn't need to go through any process to get FAA approval. Supposedly the fuel only needs to meet the standards required by the manufacturer. I'm not sure what an STC is. The engine is certified for jet fuel so that fuel is OK. Now you want to use a different fuel. You have to prove to the FAA that the fuel you propose to use meets the engine makers requirement. That alone will take thousands of dollars and years to accomplish. Now you're going to tell the FAA your going to be homebrewing this concoction in your own big vat? No way, no how. |
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