That makes 84 cents per liter or $3.25 per gallon. Sound like overpricing, but still in line or lower than European diesel prices at the pump now. In fact it is cheaper than diesel at the pump now, in many countries the veg oil in supermarkets are cheaper than the diesel at the pump. The heating oil is better to compare with, as I have done. Because the low taxation in US for automotive use, it might be the same thing.
Distributor pricing in large quantities for production of biodiesel must be an other deal, since I heard that biodiesel at the pump is around $3 +/- 10% per gallon. In Europe the heating oil is now between 55 cents to 80 cents, depending on country, which is in parity with biodiesel and veg oil with same taxes. Buying rape seed and cold press it give a substantially lower cost for the veg oil and with commercial conversion to biodiesel give a price around 55 cents per liter and 55-70 cents depending on taxation. This with 10 years depreciation of investments and minimum 1.5 million liter production per year. Net profit 10-15%. At current heating oil prices it is close to parity between BD and DD. Hakan At 04:50 PM 3/13/2003 -0500, you wrote: >We purchased new soybean oil today at $14 for 4.3 gallons. > >This would be the equivalent of approximately $140 / barrel. > >It's got to be cheaper at that quantity. > >Steve Spence >Subscribe to the Renewable Energy Newsletter >& Discussion Boards. Read about Sustainable Technology: >http://www.green-trust.org >[EMAIL PROTECTED] >----- Original Message ----- >From: "Hakan Falk" <[EMAIL PROTECTED]> >To: <biofuels-biz@yahoogroups.com> >Sent: Thursday, March 13, 2003 10:44 AM >Subject: [biofuels-biz] Prices Biodiesel vs. Dinodiesel > > > > > > I have started to write "Biofuel business in developing countries" > > as a follow up to "Structures of a biofuel business" > > http://energy.saving.nu/biofuels/biofuelorg.shtml > > Analyzing heating oil, that is the same as diesel, but not having > > the same tax structures that obscures the use of diesel in > > vehicles, I am coming to the following conclusions, > > > > To produce biodiesel as commercial venture, with demands on > > profits and professional equipment etc., the price needed > > is around 0.50 Euro($) per liter. > > > > It seems that an equal situation between biodiesel and dinodiesel > > is achieved with oil price at 36-38 $/barrel. > > > > At oil prices around 25 $ a barrel the difference is 20% to 25% > > advantage for dinodiesel. To compensate for a 25 $ a barrel, the > > biodiesel would need a full tax exemption in the case of heating oil. > > > > I expect that the oil price soon will stay above the $30 benchmark > > and this it is always an advantage to use biodiesel as heating oil. > > The reason for my expectation is that the world is now pumping > > oils at peak capacity and with a swing capacity around 2.5 million > > barrels a day. A war in Iraq would eat up almost all swing capacity > > and it will be nothing left to keep the price down. It is already clear > > that without a dramatic rise of production in Iraq, the expected > > growth in use cannot be met. Even a short war in Iraq, without any > > destroyed wells, and a rapid development of capacity, will not grow > > faster than the needed rise in demand. > > > > Tax exemptions for vehicle use are very much more complicated > > and need a larger political willingness to deal with the problem. > > This is to a larger extent important for Ethanol, since biodiesel > > can secure it's expansion as heating oil. > > > > It looks that we are now already in the "window of opportunity" for > > starting biofuel ventures. > > > > Any others who have done this kind of analyses of prices and > > predictions. I like to know what your conclusions are in that case. > > > > Hakan > > Biofuels at Journey to Forever http://journeytoforever.org/biofuel.html Biofuel at WebConX http://webconx.green-trust.org/2000/biofuel/biofuel.htm List messages are archived at the Info-Archive at NNYTech: http://archive.nnytech.net/ To unsubscribe from this group, send an email to: [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
