Commercial viability needs to be considered in the context of relative value and availability – as we were recently reminded by a World Bank economist: “The issue already for many people around the world is not the relative cost of one fuel against another, but whether they have fuel or not”.
The premium some customers will pay to secure sustainable energy independence is high. In January 2012, the US Navy paid $12/gallon or $3.17/litre for biodiesel – three times the pump price of fossil diesel at that time.
Mandated biodiesel targets means demand far outstrips supply and most countries cannot meet their own mandated levels today*.
The US Navy have mandated 30% biodiesel usage by 2020.
Feedstock varies from 20-70% of the total cost of biodiesel. The cost of feedstock varies dramatically from practically nothing for certain waste stream materials (an estimated 10-15% of all edible crops) to costly refined oils.
The BioCube has produced biodiesel at under $.070/lt from WVO in Canada, at $0.65/lt from mustard seed oil in Alberta, and $0.74/lt from pongamia oil in India, based on actual feedstock oil costs. Fossil diesel prices range from a little over $1.00/litre in subsidized markets to over $2.50/litre in others.
The BioCube Corporation has a commercial cost viability model available that can accurately calculate viability based on a battery of selected criteria; please contact us for further information if you are interested.
*Columbia 20% by 2014, Germany 12% 2017, Australia 5% 2014, India 5% 2014, Canada 2% 2013