One of Dr. Charles' Peterson's efforts, the leading pioneer in development of the biodiesel industry,
occured in the early 2000s when interest in biodiesel absolutely exploded.
At that time many people decided they were going to build a biodiesel production plant,
and many of these people were starting to spend considerable amounts of money without really thinking through all that was involved in building a plant,
or even if it would be profitable.
Chuck was being inundated with biodiesel questions, and decided he needed to develop something to answer many of the same questions he was getting.
The result was the eight questions to ask when considering starting a biodiesel plant.
Those questions are just as relevant today.
The first question he asked to people when they were considering starting a biodiesel plant was what their motivation happened to be.
Is it money? Employment? An energy-independent farm or business? A plentiful supply of oil?
The environment? To reduce dependence on foreign oil? Or to find a market for your agricultural production?
Make sure your business plan objective meets your motivation.
The second question he asked was what is the source of the feedstock you're using?
There are several kinds of feedstocks. Virgin oil can include oil from soybean, canola, yellow mustard, and many more.
80% of US grown vegetable oil is from soybeans.
Used oil from restaurants and delis is also a choice. There's an estimated 1.1 gallons per person per day of used vegetable oil
from restaurants and delis. However, it may not be available. Used oils have many uses,
and are actively traded on commodities markets. If available, however, you may be able to negotiate a deal with the restaurant or deli owners.
With used oils, you need to determine the free fatty acid content. Anything above 3% generally requires additional process steps.
Tallow can't be used as feed which may open it up for biodiesel. However, its availability is not guaranteed.
Dr. Peterson's third question is extremely important: What are your markets?
Consumers are cost-conscious. Identify markets and prices before you make investments in the plant, and study handling
and storage guidelines related to biodiesel.
The fourth question is what are you going to do with your by-products?
You may produce meal in your biodiesel process. Soybean meal is good for livestock feed, but not all oilseed crop meals are.
You'll also produce glycerol, which has several uses like livestock feed, boiler fuel, raw materials for cosmetics, and others.
Know what you will do with these by-products.
The fifth question is, what is your plan to meet the ASTM specification for quality biodiesel?
There are 19 individual tests to meet the complete standard. A 3-tiered approach is suggested, and includes
properties that need continuous monitoring, such as free and total glycerin, acid number, total sulfur, and flash point,
properties that should be checked regularly such as cloud point and viscosity, properties that may only need evaluation when the feedstock changes,
such as cetane number and distillation.
The sixth question is, do you have a business plant that incorporates each of the above?
The business plant should include the capabilties of the management team, materials aquisition, production, and sales costs and services.
Anticpate how economic factors may affect the cost.
For example, as the use of biodiesel expands, the price of canola oil may rise.
Make sure you have a marketing plan. Do market research beforehand on whether your product will sell, who your customers will be,
what prices they will be willing to pay, who will compete with you, and what their strengths will be, and what you will be able to offer to make your product desirable.
You also need a plan to make sure you are sufficiently financed for startup and for expansion.
You'll want insurance for fire, vandalism, and liability. Study various federal, state, and local initiatives and incentives
for bioenergy and biodiesel. Such incentives are often the difference between success and failure.
Make sure you have all the necessary permits and meet the zoning requirements.
Dr. Peterson's seventh question is, are you prepared to deal with safety issues related to biodiesel production and use?
Biodiesel production is a chemical plant. Study the materials safety data sheets for each of the materials.
Talk to the local fire marshal to be sure you have followed local and national regulations.
Develop a plan and operating procedures that will promote safety in and around your plant.
Methanol, sodium hydroxide, and potassium hydroxide have many safety concerns you should be familiar with.
The final question is, have you thought through the process details?
Select a process, design the plant, obtain the equipment, and produce some biodiesel.
Start small and develop a technique that works for your situation.
As you gain experience and confidence in the process it can be readily expanded.
Biodiesel is a fuel that is here to stay. A properly implemented plan by individuals or groups with the resources
and determination to produce biodiesel can result in a safe, successful, and satisfying business.