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A process model to estimate biodiesel production costs.

Michael J Haas1, Andrew J McAloon, Winnie C Yee

  • 1US Department of Agriculture, Agricultural Research Service, Eastern Regional Research Center, 600 East Mermaid Lane, Wyndmoor, PA 19038, USA. mhaas@errc.ars.usda.gov

Bioresource Technology
|June 7, 2005
PubMed
Summary
This summary is machine-generated.

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This study models biodiesel production costs, finding that feedstock price is the primary cost driver. Glycerol byproduct sales offer a minor cost reduction, highlighting the need for cost-effective soybean oil sourcing.

Area of Science:

  • Chemical Engineering
  • Renewable Energy Systems
  • Process Economics

Background:

  • Biodiesel, a renewable fuel from fats and oils, consists of fatty acid alkyl esters.
  • Industrial biodiesel production involves transesterification and product recovery.

Purpose of the Study:

  • To develop a computer model for estimating capital and operating costs of a biodiesel production facility.
  • To analyze the economic impact of feedstock costs and glycerol byproduct value on biodiesel production.

Main Methods:

  • Utilized process simulation software to model a continuous-process vegetable oil transesterification plant.
  • Incorporated current costs for reagents, equipment, and supplies, specifying soybean oil as feedstock.
  • Modeled a plant with an annual capacity of 37,854,118 liters (10 million gallons).

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Main Results:

  • Estimated facility construction costs at US$11.3 million, with storage tanks being a major expense.
  • Predicted a biodiesel production cost of US$0.53/liter (US$2.00/gallon) with soybean oil at US$0.52/kg.
  • Identified feedstock cost as the dominant factor (88%) in production expenses, with a direct linear relationship.

Conclusions:

  • Biodiesel production costs are highly sensitive to feedstock prices.
  • Glycerol byproduct sales reduced production costs by approximately 6%.
  • The model is adaptable for evaluating various economic scenarios, including feedstock type and market values.