Thursday 25 August 2016

Would Biodiesel production be a good business to start? Could it generate a lot of profits?

Biodiesel is the fuel derived from either plants or animals. Typically used sources include, rapeseed, soybean oil, jatropha, coconut, peanut, animal fats, algae, etc. Biodiesel is a direct competitor of diesel and can also substitute fossil fuels for other requirements, such as heating. Fossil fuels are available in limited quantity and are unequally distributed geologically. This has resulted in several energy crises in last few decades and several countries are working towards viable alternatives. Biodiesel...

Biodiesel is the fuel derived from either plants or animals. Typically used sources include, rapeseed, soybean oil, jatropha, coconut, peanut, animal fats, algae, etc. Biodiesel is a direct competitor of diesel and can also substitute fossil fuels for other requirements, such as heating. Fossil fuels are available in limited quantity and are unequally distributed geologically. This has resulted in several energy crises in last few decades and several countries are working towards viable alternatives. Biodiesel is one such alternative and also helps in reduction of carbon monoxide and sulfur. The global production of biodiesel is rising very rapidly and production of biodiesel is a pretty good business to start.


There are few concerns with biodiesel production though. The sources of biodiesel, especially the plant sources, are cultivated at the expense of food crops (in many places). There are regulatory norms for the production and use of biodiesel in several countries and others need to develop them. Even though biodiesel does not produce carbon monoxide and sulfur, there are still emissions of carbon dioxide, which other alternate sources of energy (such as solar and wind power) do not. Not all the blends of biodiesel can be used without modifications in the existing engines. These concerns should be considered and addressed before entering into this business.


Hope this helps.  

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