Todays Biodiesel Fuel ... The Way of the Future?

Promoting Biodiesel Fuel

First, what is it and is it really the way of the future?

One gallon of refined used cooking oil will produce about one gallon of Biodiesel Fuel! Plus More Than a pound of Glycerin!

         Now lets discuss biodiesel fuel, it’s a great product!

Biodiesel is the name of a clean burning alternative fuel, produced from domestic, renewable resources such as used (or un-used) cooking oils. It can be used in modern diesel engines with little or no modifications. Biodiesel is simple to use, biodegradable, nontoxic, essentially free of sulfur and has no unpleasant smell when used.  Take note that on pre-1994 vehicles however, it may be necessary to replace rubber fuel hoses that are not made of modern synthetic materials.  Such rubber fuel lines will deteriorate during the use of biodiesel fuels which in turn will clog the fuel filter(s) which will vastly reduce engine performance.  

While looking closely at biodiesel fuel, you will find that its chemical and physical properties are extremely similar to petroleum based diesel fuel, at least in relationship to its operation in diesel engines.  Because of this, biodiesel may be used in diesel engines without all of the expensive alterations you might expect to the fuel system or engine.  In addition to all of the potential savings in cost, here’s a half dozen notable benefits for using biodiesel:

1. Biodiesel fuel is non-toxic, biodegradable, and is essentially free of aromatics and sulfur in its natural form.

2. Biodiesel fuel is safer to transport and handle than petroleum based products.

3. Biodiesel fuel has less noxious emissions, compared to diesel fuel that is petroleum based, and it virtually eliminates acid rain which causes sulfur dioxide.

4. It will work well in all diesel engines manufactured from 1994 and forward.

5. Biodiesel has a high octane number.

6. Biodiesel reduces friction within engines during use.

To be sure, some of you already recognize the many benefits associated with biodiesel fuel use. But did you realize that as long ago as 1998 a biodiesel lifecycle study concluded that biodiesel reduces net CO² emissions by 78% compared to petroleum diesel. Sounds to me like this could help reverse global warming which would hush-up a lot of us “tree huggers” out there.

Biodiesel can be made from waste / used cooking oil. Lately the value of the stuff fluctuates, but at this time (spring 2011) it hovers around $1.90 a gallon.  Biodiesel can be created from either used or unused vegetable oils.   Be aware that there is potentially 100 million gallons of used vegetable oils available each year for creating biodiesel.  The cost associated with biodiesel production averages a little less than a Dollar per gallon.  With this in mind, by combining the “feed stock” ($1.90 a gal) price with the production price ($.70 to $.99 a gal), then add a 10% markup for the initial producers (a maximum of $.29 a gallon) efforts; add another 10% for the marketing / distribution companies (about $.29 a gallon) that gives us a total sales price of $3.47 per gallon. ($1.90 + $.99 + $.29 + $.29 = $3.47)  This is a bit lower than the current average price of petroleum diesel fuel at the pump (about $3.85 per gal., March of 2011) in the US; and you’d be hard pressed to believe these numbers will not continue to increase.  Now, is biodiesel a “no-brainer” or what?  While you may think these “markups” for the distributor / producer, are low, remember that they will succeed by volume marketing …     E.g.  50,000 gallons of production per month is considered extremely low … regardless, consider (50,000 gal x $.29 = $14,500.00 per month).  

Yet another impressive economic point that makes the production of biodiesel even more desirable: the principal by-product just happens to be glycerin. This by-product is also marketable in numerous areas.  In its raw / by-product form, it sells for a few Cents per pound and it is used for making hand made soap for example.  For much higher prices (we’re talking greater than 30 Cents per pound here) producers may opt for a refined product. Keep in mind that every gallon of biodiesel fuel produced generates 1.05 pounds of glycerin.  This refining equipment is presently available for purchase and is priced reasonably. Let us suppose that the handling cost for the glycerin by-product is 5 Cents per pound … Then production per month would only equal 50,000 pounds and it is marketed at 30 Cents per pound less 5 Cents handling cost and lets give a Broker or Distributor about 9 Cents per pound : 50,000 x $0.16 = $8,000.00 per month … additional income.       Total Earnings on a monthly basis then = $22,500 or $270,000.00 per year!

At the time of this writing, a typical high mileage automobile using:

B100 or 100% biodiesel cost around 9.2 Cents per mile and gets about 41 MPG’s (miles per gallon) average on the highway & in the city … If the typical pump price is around $3.75 per gallon… I located B100 fuel in Huston, TX for $3.40 per gallon (in March 2011).    ($3.75 per gal. / 41 MPG = 9.2 Cents.)

Unleaded gasoline cost roughly 11.5 Cents per mile and gets an average of 28 MPG’s…     Average pump price was at $3.21 per gallon in March 2011 … projected to be at $3.57 in 4^th quarter of 2012.      ($3.21 per gal. / 28 MPG = 11.5 Cents.)

Conventional, petroleum-based diesel cost about 9.1 Cents per mile and gets an average of 42 MPG’s…  With the average pump price at $3.80 per gallon  in March 2011 … Projected to reach $4.03 by 4^th quarter of 2012.   ($3.80 per gal. / 42 MPG = 9.1 Cents.)

Although the fact that petroleum based diesel fuel is the cheapest of the three options listed above on a per mile basis; do not be discouraged with the cost-effectiveness of biodiesel.  Again, while gas and diesel prices are rising, biodiesel costs are expected to soften. After all, a gallon of biodiesel fuel cost $5.00 just 5 years ago. At the time of this writing biodiesel cost was from $3.40 to $3.75 per gallon and is expected to get even lower.      

Did you know?

• The US government has mandated a 20% reduction in the use of fossil fuels by 2015.
• Biodiesel production is currently only 2 percent of all diesel fuel produced.
• Biodiesel is the way of the future. It is a natural resource; burns much cleaner than petroleum based fuel and can be produced for much less than other fuels. All while reducing our dependency on very pricey crude oil.
• In 2005 roughly 40 billion gallons of diesel was used for on-road transportation, only 75 million gallons of which were Biodiesel.

What do we do now?   Just two things:

First you and everyone you know with a functioning brain should contact your Congressmen and appeal for their support of biodiesel production!

Second, for those who have the means for obtaining funding, become an entrepreneur, a true capitalist; develop a biodiesel business in your hometown, USA before everyone else does.        After all, it is the way of the future!   



Sources ...

http://en.wikipedia.org/wiki/Biodiesel ... http://www.buzzle.com/articles/biodiesel-facts.html ... http://www.sebd.biz/facts.asp ... http://www.alibaba.com/countrysearch/US/biodiesel-equipment-supplier.html ... http://www.sciencedaily.com/releases/2007/05/070525090245.htm