Dear listmates,

There has been traffic on both lists about the need to scale up
production of biofuels to "economical" levels, and that has triggered
much thinking on my part. Until now I, too, had been concentrating on
industrial scale processes - admittedly still not on a very large
industrial scale, because the logistics of coconut-based industry here
limit plant size - feeling that smaller scale processing would be
uneconomical. The recent traffic forced me to rethink my position. In
thanks, I would like to share the result of my cogitations.

When a person with surplus wealth considers his investment options, he
has a wide range of choices. His surplus is cash, or convertible to
cash, and therefore highly mobile. For him, ROI is the preponderant
criterion.

When a farmer with little cash and growing cash expenses considers
investing his time and effort, the criteria are fundamentally different.
His labor is not readily convertible to cash - that's why he's poor! -
so his best bet is usually to use labor to reduce cash expenditures,
e.g. for fuel. If he is growing the usual crops - banana and coconut, he
is fortunate in being "labor rich," as little labor is required to
cultivate these crops most of the year. Thus he has time, and with a
little scrounged equipment and a lot of effort he can make small
quantities of high-grade fuel. An economic analysis written from the
point of view of somebody investing cash to get cash would prove that
this activity is "uneconomical," but economics is the science of human
action (Ludwig von Mises' phrase), and different humans have different
needs and resources. If our hypothetical farmer can save cash by
investing labor, that is "profit" for him regardless of what
hypothetical cash value an analyst might set on his labor. To put
numbers to it, if a farmer can get diesel fuel currently costing 15
pesos per liter at the pump with a CASH outlay smaller than 15 pesos per
liter, it is a winning proposition for him. I haven't got prices for
methanol yet, so I don't know whether that question has a positive
answer for true (transesterified) biodiesel, but if the pseudo-biodiesel
that consists of a blend of kerosene and coconut oil is considered the
answer is unmistakeably YES. Kero costs less at the pump here than
diesel, and when blended 20:1 with zero-CASH-cost coconut oil from the
farm the cash saving is considerable. Even a sharp rise in kero cost
will not change this result because the weighting factor is 5%.

Furthermore, the effect on this poor debtor nation's economy can be
considerable, regardless of the scale of individual efforts. Filipinos
are very quick to emulate something that works, and a few liters a day,
multiplied by hundreds of thousands - eventually of farmers, comes to a
very large reduction in petroleum purchases on the international spot
market - a very desirable result. What is more, a small change in
balance-of-payments can have a very strong cascade effect on the
domestic economy, as cash saved is invested in local manufactures. It is
essentially that process that changed the USA from a primarily agrarian
nation into an industrial superpower in two generations!

Now the question is: how to make this feasible? There must be standard
methods, easily implemented at small scale, for refining coconut oil
and/or biodiesel to a standard that is compatible with existing
equipment, and there must be standard tests, easily and quickly carried
out, for verifying that this has been accomplished.

I would like to challenge interested listers to do as I do, tabulating
the key acceptability criteria and searching for cheap and reliable
methods for determining a sample's conformity to those criteria.
Viscosity I think is easy. Water content, free acids and alkalis, etc.
may require considerable thought and experiment - or has this already
been worked out?

Best to all,

Marc de Piolenc

Biofuels at Journey to Forever
http://journeytoforever.org/biofuel.html
Biofuel at WebConX
http://www.webconx.com/2000/biofuel/biofuel.htm
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