BioDiesel Production
Discussion
Has anyone looked into the production of BioDiesel as a commercial operation?
Having done a bit of research, it would appear that not many producers sell to public or trade (Hauliers/Taxi firms). I know that you can produce upto 2500(?) litres anually for own use tax free. Obviously the Gov. will be interested in tax if selling fuel produced above this amount plus full compliance with H&S/Insurance criteria.
The kit is now readily available and can produce sufficient quantity per day, plus there is plenty of feedstock (used cooking oil) available. It looks as though you could sell for £1.20/Litre at the pumps and still make a good profit.
I have an empty out building on my site which could easily house a BioDiesel production facility with storage tanks and pump.
Having done a bit of research, it would appear that not many producers sell to public or trade (Hauliers/Taxi firms). I know that you can produce upto 2500(?) litres anually for own use tax free. Obviously the Gov. will be interested in tax if selling fuel produced above this amount plus full compliance with H&S/Insurance criteria.
The kit is now readily available and can produce sufficient quantity per day, plus there is plenty of feedstock (used cooking oil) available. It looks as though you could sell for £1.20/Litre at the pumps and still make a good profit.
I have an empty out building on my site which could easily house a BioDiesel production facility with storage tanks and pump.
I think if you're wanting to sell to the public you have to overcome the "will it damage my car" factor which is currently stopping a lot of people using it. There is also the distribution of the fuel as well. The commercial companies route would be better as they won't expect fancy pumping stations and they will be buying in much higher volumes on a regular basis with less hassle.
If you can pretty much guarantee the the supply of "used oil" in sufficient volume and produce a good grade of fuel then selling it to commercial organisations should be a money spinner. From the research I've done it seems most places can't produce enough of the "good stuff" to meet demand but these companies have invested in some serious production harware which isn't cheap.
From what I can see there are different grades/quality of the fuel and as with most things, the higher the quality the better the kit you will need to remove impurities and reduce the risk of engine damage. There are kits available for a couple of thousand pounds but the professional setups are vastly more expensive. It depends on what quality level and production levels your business model is going to be based upon. Personally I would imagine commercial companies are going to want good quality fuel which complies with BS standards to minimise any risk to their vehicles.
If you have a virtually guaranteed source of base ingredients (oil etc) then this is a good start along with the premises. Next thing is the right production kit and achieving quality levels in volume and meeting production standards.
I don't think selling it to transport companies, taxi places etc will be too hard once you've got the setup sorted. However a bit of market research e.g. approaching commercial companies with the possibility of supply to gather feedback and lining up clients/buyers before hand would be a good idea prior to spending some serious cash.
What level of setup were you thinking about?
If you can pretty much guarantee the the supply of "used oil" in sufficient volume and produce a good grade of fuel then selling it to commercial organisations should be a money spinner. From the research I've done it seems most places can't produce enough of the "good stuff" to meet demand but these companies have invested in some serious production harware which isn't cheap.
From what I can see there are different grades/quality of the fuel and as with most things, the higher the quality the better the kit you will need to remove impurities and reduce the risk of engine damage. There are kits available for a couple of thousand pounds but the professional setups are vastly more expensive. It depends on what quality level and production levels your business model is going to be based upon. Personally I would imagine commercial companies are going to want good quality fuel which complies with BS standards to minimise any risk to their vehicles.
If you have a virtually guaranteed source of base ingredients (oil etc) then this is a good start along with the premises. Next thing is the right production kit and achieving quality levels in volume and meeting production standards.
I don't think selling it to transport companies, taxi places etc will be too hard once you've got the setup sorted. However a bit of market research e.g. approaching commercial companies with the possibility of supply to gather feedback and lining up clients/buyers before hand would be a good idea prior to spending some serious cash.
What level of setup were you thinking about?
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