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Biodiesel Production from Waste Vegetable Oil – Opportunity or Hot Air?
Over the last five years there has been a rapidly growing interest in the production and use of biodiesel as a substitute fuel for ‘conventional’ mineral diesel. Whilst there is a lot written about biodiesel, there is little on the specifics of production and the economics. For anyone considering embarking on such a venture as a means of generating additional income, it is important to undertake a thorough independent feasibility study. Through case studies of producers of biodiesel from waste vegetable oil, some of the key issues are revealed.
Summary Report Main considerations: Costs of producing biodiesel - Cost of oil supply - varies between no costs other than the labour and transport of collecting the waste oil to up to about 40p per litre and is considerably less than using virgin rapeseed oil.
- Costs of the chemicals and power form a relatively small proportion of the overall costs. However, the capital costs of the necessary equipment required for the conversion process can be considerable.
- Cost of labour, rent, rates, insurance and depreciation etc - these issues vary considerably but could amount to up to 25p/litre.
- Add duty and VAT on a production cost of 80p/litre, the total price can be up to £1.25/litre.
Sale of Biodiesel or products - Most biodiesel producers set their prices at approximately 10-20p/litre below garage prices with the aim to attract customers to use non-conventional fuel.
- Glycerol is the main by-product of the biodiesel production process. One producer reports prices of up to £150/tonne (approx 15p/litre) which could make a significant contribution to the overall economics.
Legal and Regulatory Issues - Planning consent may be required.
- Compliance with weights and measures legislation, environmental and fire regulations is necessary.
- Compliance with minimum Quality Standards (EN14214) may be required, but the costs of full testing can be prohibitive for small and medium scale producers.
If you are interested to know more on these projects e.g. Biomass & Biofuel SW Review or our Sustainable Energy collaborative initiatives, please contact Alan Stewart on 0117 3282542
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