Biodiesel Industrialization Costs

It is understood that 100,000 tons of biodiesel produced annually in China in the past two years is sold partly to gas stations in the area where the company is located, and some are exported overseas. In the case of China's energy shortage, biodiesel is not sold in the domestic market and it seeks overseas markets, mainly because the raw material price of biodiesel is much higher than that of mineral diesel oil-based raw materials, and only exports do not lose money.

The main problem facing the biodiesel industrialization is cost. According to Qiu Hongwei, a researcher at the China Biotechnology Development Center of the Ministry of Science and Technology, 75% of the average production cost of biodiesel is raw materials. Among them, the cost of producing biodiesel from waste oil is 3,500 yuan per ton and the cost of palm (mainly dependent on imports) 5000 yuan, the cost of rapeseed is more than 5,000 yuan, the cost of jatropha fruit is about 4,000 yuan. In contrast, the actual cost of raw materials and processing of petroleum-based mineral diesel is only about 3,500 yuan per ton.

Qiu Hongwei believes that the production of biodiesel from raw materials such as oil crops, oil forest trees, and restaurant cooking oil can not only ease the shortage of energy in China, ensure the country’s energy security, but also increase the income of farmers and reduce the harm caused by food waste to the environment. The country has issued corresponding supporting policies.

At present, the urgent need to solve is the large-scale planting and acquisition subsidies for oil crops that are exclusively used for biodiesel production. This requires government planning and financial contributions. In China, there are 6.66 million hectares of winter free field in areas suitable for planting rapeseed. If these winter fields are used, farmers can plant rapeseed varieties suitable for biodiesel production through relevant supporting measures. The raw material cost of biodiesel can be reduced accordingly. In addition, the network construction of urban waste oil collection and the promotion of fuel tree crops also require the government's unified planning. In this way, the price reduction space for biodiesel raw material costs will open, and the industrialization of biodiesel will accelerate.

Qiu Hongwei believes that the state has promoted the use of ethanol gasoline for vehicles and has launched a series of measures. Ethanol gasoline is used in many places. If biodiesel reaches a certain industrialization scale, these measures can also be used to promote the use of biodiesel.


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