Economic assessment of biodiesel production from waste frying oils

Waste frying oils (WFO) can be a good source for the production of biodiesel because this raw material is not part of the food chain, is low cost and can be used in a way that resolves environmental problems (i.e. WFO is no longer thrown into the sewage network). The goal of this article is to propose a method to evaluate the costs of biodiesel production from WFO to develop an economic assessment of this alternative. This method embraces a logistics perspective, as the cost of collection of oil from commercial producers and its delivery to biodiesel depots or plants can be relevant and is an issue that has been little explored in the academic literature. To determine the logistics cost, a mathematical programming model is proposed to solve the vehicle routing problem (VRP), which was applied in an important urban center in Brazil (Rio de Janeiro), a relevant and potential center for biodiesel production and consumption. Eighty-one biodiesel cost scenarios were compared with information on the commercialization of biodiesel in Brazil. The results obtained demonstrate the economic viability of biodiesel production from WFO in the urban center studied and the relevance of logistics in the total biodiesel production cost.