Biodiesel Blog: Why is biodiesel so expensive in California?
News and information about Biodiesel & alternative fuels.
Why is biodiesel so expensive in California?
Ben Jordan enlightens us at BeyondChron (it's almost $6/gallon), here's a snippet:
Biodiesel will become cheaper than petroleum diesel but it won't be because the price of biodiesel goes down. This change will occur because the price of petroleum will continue to rise. A good place to start to understand some of the factors that affect the price per gallon of biodiesel is to ask where does your fuel come from? Was it locally produced or did it travel across the country or around the world by train, truck, or ship? What is your fuel made from: virgin soy bean, corn, canola, tropical palm oil, rendered animal tallow or waste vegetable oil and inedible kitchen grease?
The base cost of each gallon of biodiesel is the sum of raw materials costs (vegetable or animal oil feedstock, methanol, catalyst, heat), market influences of supply and demand, and taxes. Additional items that affect the final cost are transportation, distribution, permits, state regulation, and consistent quality assurance of the fuel.
Posted by Eric Case at 17:30
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