Biodiesel Production Business: How to Start a Biodiesel Production Business

Bio-petroleum is produced through an esterification and transesterification process. The process produces biodiesel and bio-fuel used in industrial and automobile applications.

The process uses ethanol or fat oil obtained from animal or vegetable fat. The producers induce a reaction by using a catalyst which could be acids or base catalysts.

The type of catalyst preferred by manufacturers is usually predicated on the reaction time and cost considerations. The major advantage of biodiesel is that it is renewable and organic.

Other properties are clean emission and environmentally friendliness. The average biodiesel emissions are much lower than conventional diesel.

The Feedstock used to Produce Biodiesel

The type of feedstock you use to produce biodiesel is very important to the success of failure of the enterprise.  Cheaper feedstock offers better opportunity to dominate the industry.

Choose an inexpensive feedstock to increase volume and profit margin. Common feedstock include sunflower oil, beef tallow and restaurant grease.

Others are jatropha , canola oil, vegetable oil and soybean oil. Recycled feedstock is the most abundant source open to biodiesel producer.

Feedstock List

Canola Oil

Recycled Vegetable Oil

Soybean oil

Beef tallow

Sunflower oil

Restaurant grease

How to Produce Sunflower Oil

Start a Biodiesel Company

Understand the Technicality of Producing Biodiesel

To launch your biodiesel production enterprise you need to understand the production process. Bio-diesel is a derivative of recycled fat or vegetable oil.

It is slightly challenging and technical to convert spent oil into biodiesel. Learn how to produce bio-diesel through online resources, books and practical knowledge.

Hire an expert in the field to teach the modalities of the process. You can signup for a seminar that deals effectively with the topic for better insight.

Biodiesel Production

The most common raw material processed into biodiesel is recycled vegetable oil. Large restaurants and hotels have them in huge quantity.

Find local retailers of recycled vegetable oil to source the oil. The manufacturer then removes impurities in the oil.

The common impurities are due to cooking, dirt, charred food, water and storage. They degum to remove phospholipids and plant mater.

The removal of water is very important to prevent triglycerides during base-catalyzed transesterification process. They determine the concentration of fatty acids in the oils and later turned into biodiesel.

The producers of bio-diesel are not limited to the production of a single product. The process has many bye product based on reaction time and application.

Manufacturers of bio-diesel have many bye products such as glycerol, alcohol and soap. Base-catalyzed transesterification is the most common method used by bio-diesel producers.

However there are other methods such as lipase-catalyzed method and ultrasonic reactor method. Understanding the technical requirements of producing biodiesel is very important.

Registration and Permits for Biodiesel

To legally sell biodiesel it should conform to ASTM-D6781 grade quality diesel. The process of acquiring operational permits is difficult and time consuming.

Biodiesel is a combustible liquid classified under class IIB. To start your biodiesel business you need to meet fire safety standards and certification.

You need flood plain determination, motor fuel tax liability and a business license. Register your biodiesel business as a limited liability company and follow state and local government laws.

 The property should abide by property subdivision requirements and conditions. Your company needs Department of environment emission permit per day, including water and waste management agreement.

Others are zone compliance insurance, certificate of occupancy including spill containment management. More permits include Biodiesel plant and straw Bale B100 storage shed certification.

 Finally you might need a motor fuel tax and flood plain determination approval before launching the enterprise.

Locating the Biodiesel Company

There are two options purchase a suitable site or lease a site. It is better to purchase a land due to permits and land use requirements.

 Something to consider before buying the property is the flood plain level. Others are proximity to feedstock and good access of vehicular traffic. You need to build a large tank farm, government incentives and proper fire safety protocols.

Ingredients

A list of chemicals used in the biodiesel process are methanol, sodium hydroxide, lye, and sulfuric. Equipment includes tank farm and biodiesel processing system.

Sample Business Plan for Biodiesel Production Company

Write a Biodiesel Business Plan

The business plan should accommodate site control, permits and licenses. More provisions in the plan are nearest to feedstock and technology selection.

You need to conduct a feasibility study to locate adequate resources, labor and capacity building. The business plan is also useful when seeking funds.

Marketing the Biodiesel Product

To sell your biodiesel leverage on the good qualities of the product such as price, low emission and renewable energy. Others are organic and steady locally availability of the product.

Secure sales contracts and sell byproducts such as fertilizer or compost. Places to sell your biodiesel are hotels, resorts, farms, offices, industries and universities.

Conclusion

Write a business plan and carry out a feasibility study. Incorporate your biodiesel company and secure bank loans. Lease or buy property, apply for permits and hire skilled labor.