Economic feasibility review for community-scale farmer cooperatives for biodiesel

A review of 12 economic feasibility studies shows that the projected costs for biodiesel from oilseed or animal fats have a range US$0.30–0.69/l, including meal and glycerin credits and the assumption of reduced capital investment costs by having the crushing and/or esterification facility added onto an existing grain or tallow facility. Rough projections of the cost of biodiesel from vegetable oil and waste grease are, respectively, US$0.54–0.62/l and US$0.34–0.42/l. With pre-tax diesel priced at US$0.18/l in the US and US$0.20–0.24/l in some European countries, biodiesel is thus currently not economically feasible, and more research and technological development will be needed. Economic analysis of a farmersʹ biodiesel cooperative near Vienna, Austria, shows that government subsidies enable the farmers to produce the canola on set-aside land for biodiesel and by-product meal cake at almost no net cost to the farmers.