Interested in small biodiesel business ideas? If YES, here is how to start a biodiesel company with no money and no experience.
Feedstock Think long and hard about what feedstock you are going to refine into biodiesel or biofuel. Carefully consider these words from Lyle Estill of Piedmont Biofuels: Be aware that feedstock is the only thing that matters.
You have a new reactor technology? You can get a complete biodiesel reaction in a tenth of a second and it takes me a whole minute?
If my feedstock is cheaper, or more plentiful than yours, I can crush your brand new patent pending reactor with a 55 gallon drum and a canoe paddle. Not if you have a tenth of a penny per pound feedstock advantage.
You can take your tenth of a penny edge and roll it into brainpower and crush the competition with their all-volunteer staff. In light of the above, consider the following. Now, breaking even on selling biodiesel is a good deal if you are a farmer who owns shares in a biodiesel co-op.
In fact, you are making a killing selling high priced soybean oil to the refinery. You are well advised to choose as inexpensive a feedstock as possible. This is why some smart refineries are using old restaurant fry oil yellow grease or poultry fat.
These feedstocks are more difficult to refine but the net impact to the bottom line makes the added complexity worthwhile. There are even some companies that are using trap grease and even black grease scrapped out of the sewers to make biodiesel.
One quick caveat is that your biodiesel business plan should also try to avoid using a feedstock that environmentalists blame for deforesting the rain forest. I think the argument that palm oil biodiesel is to blame for deforestation is misguided but I will address that issue on another day.
To sum up, for your biodiesel business plan you need to decide on a feedstock and get a signed feedstock supply agreement.
You need to have agreement. This is a devilishly difficult issue to overcome and has meant the death of many well-meaning biodiesel plants.
Off-take agreement Your biodiesel business plan should also address how you will sell your production of biodiesel and glycerin.
Investors are really concerned about having an off-take agreement in place. Between you and me, these are pretty easy to secure. The pricing may not be the best but with a few phone calls you should be able to get a contract with a reputable firm. This is strait forward but have a lawyer look over the contract.
Site Control You are going to need to have a site selected and agreement to either lease or an option to purchase. Key things to consider are: Proximity to Feedstock — Conventional wisdom is that you need to be close to either your feedstock supply or your end customer.
Choose to be close to your feedstock.
The more of these you have the better. Unless you are a very small supplier, you should have at least two. You will need at least a month storage capacity each for feedstock, biodiesel, glycerin, methanol, etc. Fire suppression — Fires have wiped out several biodiesel plants in recent years.Business Strategy A.
Barriers to entry and exit Barriers to entry could be a concern as one issue that many who have researched this process have faced is an inability to cost effectively produces the biodiesel on an industrial scale.
In the specific case of biodiesel, and in the light of overall fuel consumption figures for transport in India, this means that a minimum of , metric tons of biodiesel should be incorporated into the system in and 1,, mt in /5(2).
Starting a biodiesel production company is capital intensive and it also requires serious planning and hard work but the fact remains that it is indeed a profitable business to go into and it is still very much open for more investors to come in. UR Biodiesel Business Proposal to Charles and Janet Forbes Entrepreneurial Competition The use of biodiesel as a fuel has been proven all over the country as an effective way to power diesel vehicles.
Though it can be purchased The implementation of the UR Biodiesel plan. Biodiesel Business Plan: Developing an Action Plan In order to write a successful biodiesel business plan, Growthink's business plan consultants suggest that you factor in several important trends in the biodiesel industry and broader economy and geopolitical environment.
Biodiesel Business Plan: Developing an Action Plan In order to write a successful biodiesel business plan, Growthink's business plan consultants suggest that you factor in several important trends in the biodiesel industry .