Bio-Fuel Production from Crops (Bio-Diesel)

Project Opportunity

ICAST is looking for a management team who can come up with a business plan, bring in the necessary investment with our help, and manage the business. ICAST sees this as a business opportunity to provide a technology and service to farmer groups globally.

Project Description

With the rising price of petroleum-based diesel, the search for alternative fuels that are affordable and contribute to greater self-sufficiency becomes more important. Also, with rising costs of farming and decreasing prices for crops, family farmers are being forced to look for profitable alternatives. One potential solution that helps meet all these goals is crop based bio-diesel.

Energy economics is not the only factor that is driving the interest in bio-diesel:

  • Political climate – Recent legislation including the Farm Bill and the Energy Act of 2005 created major incentives for producing bio-diesel. Political action (including incentives such as the $1/gallon rebate on bio-fuels in the 2005 energy bill) should stimulate the market for the production of bio-diesel and other bio-fuels.
  • Environmental sustainability – The environmental performance of bio-diesel makes it an attractive alternative to petroleum-based fuels. According to a study done by EPA and NREL, bio-diesel (B100) reduces emissions of particulate matter by 47%, hydrocarbon by 66% and carbon monoxide by 47% over petroleum diesel. We believe that the debate on moving away from fossil fuels should be focused on air quality and pollution rather than “peak oil”.
  • Agricultural sustainability – Many crops used in the production of bio-diesel such as canola, sunflower, soybean, mustard, etc. also have other benefits that improve the sustainability of the land and other resources. As alternate crops they can fix nitrogen in the soil, reduce water consumption and can be a viable cash crop on dry lands that otherwise yield no income.
  • Community sustainability – In addition to the benefits stated above, local small-scale production facilities can enhance the sustainability of communities in other ways. Money used for energy purchases typically leaves the community. Through local production that meets local needs, this money remains in the community. The results of the economic multipliers can generate new jobs, additional tax revenue, local purchases and other benefits.

All of these factors stimulate interest in farmers to produce bio-diesel related crops and adopt bio-diesel for their own fuel needs. ICAST has conducted the economic viability and has designs to build a bio-diesel facility.

Objective:

Develop a business plan for a new venture that utilizes oil seeds to produce bio-diesel.

Deliverables:

Using estimates of capital costs, production volumes, operating costs, and product sale price, a business plan needs to be completed for the financial viability of the enterprise. The business plan will pull together all of the project information and analysis into a document that contains:

The Market Opportunity

The Service (Product Description and Operation Details)

Market Description and Marketing Strategy

Management and Personnel

Financial Projections and Risks

Appendix I

What is Bio-diesel?

“Biodiesel is the name of a clean burning alternative fuel, produced from domestic, renewable resources. Biodiesel contains no petroleum, but it can be blended at any level with petroleum diesel to create a biodiesel blend. . . . Biodiesel is simple to use, biodegradable, nontoxic, and essentially free of sulfur and aromatics.” (

“. . . the official definition consistent with other federal and state laws and Original Equipment Manufacturer (OEM) guidelines is as follows:

Biodiesel is defined as mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats which conform to ASTM D6751 specifications for use in diesel engines. Biodiesel refers to the pure fuel before blending with diesel fuel. Biodiesel blends are denoted as, "BXX" with "XX" representing the percentage of biodiesel contained in the blend (ie: B20 is 20% biodiesel, 80% petroleum diesel).”

Where is it used?

“It can be used in compression-ignition (diesel) engines with little or no modifications.” (

What is the raw material needed?

Straight vegetable oil or Waste vegetable oil (used cooking oil, fryer grease) or Animal fats

Methanol (CH3OH) -- 99%+ pure

Sodium hydroxide (NaOH -- caustic soda, lye)

(

What crops can be used to make bio-diesel

“As defined in legislation introduced last summer in the U. S. Congress (6), biodiesel includes fuel derived from corn, soybeans, sunflower seed, cottonseed, canola and rapeseed, crambe, safflower, flaxseed, and mustard seed.” (

What is the production process? What other raw materials are needed?

“The process simplified to its core steps is accomplished by combining refined soy oil with an alcohol and a catalyst. When the catalyst is removed, the remaining components are biodiesel and a small amount of glycerin” (

Are there any concerns for disposal of the waste stream from the production process? Is there any beneficial use for the waste?

Methanol recovery from both the fuel and the glycerol/methanol solution is possible. You can use a pressure-cooker with a condenser to collect boiled methanol. Also a heat-exchange system that uses the recovered FFAs (Free Fatty Acids) as a fuel can be set up. . Recovery is about 20% of what you used in your last batch of biodiesel.” ( That's a considerably better use than mixing it with gray water and land applying it because it is not at all attractive as far as the environment goes. After we evaporate or recover the methanol we can:

compost the rest;

use it as a binding agent in a sawdust log

as a shop cleaner and degreaser.

There is no simple way to purify the glycerine to the point where it becomes marketable because one has to raise the temperature VERY high, and perform special processes to get market-grade glycerin.
What machinery is needed for production?

The basic capital costs for a biodiesel facility is from one dollar to five dollars per gallon of annual capacity. The basic determinants are those that: allow for continuous production; the volume; the catalyst; used alcohol and glycerine recovery; and the capability for reacting high free fatty acid materials are primary. Similarly, the feedstock contributes approximately 65-75 percent of the final total cost of production.

How is bio-diesel sold?

Biodiesel can be made available anywhere in the US. The National Biodiesel Board (NBB) maintains a list of registered fuel marketers. A current list is available on the biodiesel web site at by calling the NBB at (800) 841-5849.”

Biodiesel is available nationwide. It can be purchased directly from biodiesel producers and marketers, petroleum distributors, or at public pumps throughout the nation. (

“The use of biodiesel for private and public fleets has grown considerably in recent years. Most of the fleets currently using biodiesel do so voluntarily, with the aim of reducing air pollution, oil consumption, and contributing to local economies. Fleets that use biodiesel range from private company fleets to school districts that use biodiesel as a way of reducing students’ exposure of harmful emissions from school busses, and even entire city fleets such as in Berkeley, California. There are more than 500 fleets nationwide that are currently using biodiesel. The U.S. military is one of the largest consumers of biodiesel. Military fleets, including fleets of the U.S. Army, Navy, Air Force and Marines, began using a mix of 20% biodiesel (B20) over three years ago. In June 2003, the city of Berkeley, California, became one of the largest public fleets to use biodiesel when it announced that the city uses 100% biodiesel (B100) in 90% of its diesel vehicles.” (

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