BIODIESEL BUSINESS – EXCELLENT PROFIT WITH GOOD ENVIRONMENTAL FOOTPRINT & ADD-ON PLUS TO YOUR BUSINESS
BIODIESEL BUSINESS â EXCELLENT PROFIT WITH GOOD ENVIRONMENTAL FOOTPRINT & ADD-ON PLUS TO YOUR BUSINESS
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Home Page > Food and Beverage > Restaurant Reviews > BIODIESEL BUSINESS â EXCELLENT PROFIT WITH GOOD ENVIRONMENTAL FOOTPRINT & ADD-ON PLUS TO YOUR BUSINESS
BIODIESEL BUSINESS â EXCELLENT PROFIT WITH GOOD ENVIRONMENTAL FOOTPRINT & ADD-ON PLUS TO YOUR BUSINESS
Posted: Jul 18, 2010 |Comments: 0
| Views: 121 |
What is  biodiesel ;
Biodiesel is a type of organic fuel which can substitute diesel and provide better fuel properties than diesel itself without modifying the engine. Most commonly a methyl ester, it is derived from vegetable and fruit seeds oil, but not limited to, because  fish, beef and pork oils can be converted as well. The process of conversion is known as  transesterification reaction. This fast reaction removes the glycerine from the triglycerides or oil and produces 3 molecules of biodiesel with the same chemical structure and length as diesel ( depending on the type of oil feedstock used ) except it has an oxygen in its molecular structure. This oxygen makes biodiesel a better fuel than diesel. This also made biodiesel more combustible, less soothy and have much higher cetane rating ( octane rating for gasoline ) than diesel ( diesel 44, biodiesel 50 â 70 ). Recycling used cooking oil from restaurants, commissaries and food industries and factories, is also a good source of feedstock for biodiesel. In fact, this is a good business add ons to reduce and/or eliminate purchase of diesel fuels for genset, delivery vans, boilers and other diesel vehicles being used for business activities.
Biodiesel has long been known, in fact longer than diesel itself. Scientists Duffy and Patrick in 1853 discovered the process of making biodiesel. In 1892, engineer Rudolf Diesel of Germany invented the diesel engine for the primary purpose of using peanut oil as its fuel. He presented this engine running on this oil in an exhibition at Ausburg, Germany in August 10, 1893. This is the reason why this day was tagged as ” International Biodiesel Day ” up to now.
Advantages of Biodiesel :
S ome advantages of biodiesel were detailed in the website of Biofuels Phils. ( www.biofuelsphils.com.ph). Here are some of it below ;
In the Engine ;
The molecule of biodiesel as earlier discussed has an oxygen in it, combustion therefore is faster and easier. This is also the reason why effluents are not soothy, smoke is minimal and lighter in color. This oxygen is also the reason for its higher Cetane Rating compare to diesel. Better mileage thus results as emphasized by Biofuels Phils. ( 10 â 25 % for surplus diesel engines ). Repercussion of this is, no more smoke belching violations due to less pollution.
The alkyl group of the molecule also made less friction between moving parts of the engine. This results to smooth lubrication, less sounds and vibrations. Aside from being a fuel, it also acts as additive lubricant reducing drastically cost for regular maintenance and repair.
Another property of biodiesel is its high cleaning activity. It cleanses the combustion and fuel systems of burnt and sooths due to accumulated diesel residues.
In Business ;
The Gross Product Return, GPR of producing biodiesel is 46.5 % minimum ( see actual example below ). Most quick service restaurants have only 10 to 15 % GPR. Here, the Return on Investment, ROI or financial analyst called Payback Period is only 8 days. This means you can get back your capital investment in merely 8 days compared to most franchise business of 2 years minimum.
Primeplus for this business is that you are VAT-FREE and TAX FREE for 7 years because of Biofuels Act of 2006 and Renewable Energy Law 2008 respectively.
In Health and Environment ;
Biodiesel is renewable and biodegradable. This means we can sustain its production by merely planting and culturing animals. Our economy don’t have to worry because of instability in the Middle East, and we don’t have to be involve in war just because of uncertainties in our fuel supply.
It is also good for our health because it doesn’t contain carcinogenic substance unlike diesel. It emits very minimal pollution ( zero sulfur ) and thus reduce drastically Global Warming. For every liter of biodiesel blended in diesel nowadays, 2 kg of carbon dioxide is eliminated in the atmosphere.
For the Economy ;
Biofuels Act 2006 incorporated 2 % biodiesel in diesel being sold in the Philippines. This boost our economy by P45B last year. Increasing it further to 5 to 10 % will have tremendous economical repercussions.
For our Coconut Industry and Farmers ;
The use of coconut oil as feedstock for  biodiesel has helped in revitalizing the coconut industry. It leverages and thus commands higher oil price in the world market. As a result, it stabilizes the copra prices for the Philippines being the leading coconut source in the world. It also prevented the coco farmers from converting their remaining trees to coco lumber due to prevailing high market trends.
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How Biodiesel is Made ;
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The process of making biodiesel is simple ( Paggawa ng Biodiesel mula sa Gamit o Bagong Mantika, Capistrano, 2008 ). Biodiesel can be made from use or unused cooking oils sourced from plants or animal. Example of these oils are soya, palm, coconut, canola, jatopha, khan grass, pig, chicken, beef or even fish oils. Using proper mix of alcohol and small amount of  catalyst, dark brown glycerine can easily be seen separating or precipitating from golden yellow biodiesel in just a matter of 18 to 30 minutes depending on the type of oil. There are also visible indicators when reaction is starting and when reaction is over. While auto mixing for instance, gravy brown appearance means the reaction is starting and when the color starts going dark amber brown which can be seen from the transluscent fiberglass, the reaction is almost nearing completion. The sweet smell distinct to biodiesel and the accumulation of say 12 % black to dark brown glycerine at the bottom of the cone are indicators of correct reaction. There are however, cautions on the process, like soap formation, gelling, milky appearance and incomplete reactions. There are simple pinpointed solutions to these. The use of appropriate processor like the one pictured above with automated features ( digital thermometer, 8 functions pump, no lifting of raw materials, conical reinforced fiberglass for simple decantation etc. ) makes production simple and correct process easy and safely to implement.
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There are QC standards in qualifying the biodiesel produced.  These are governed by DOE PNS Standards which is based on ASTM D6751-07b. One important comparative evaluation of the produced biodiesel is flame test as shown on the left. Biodiesel when misted and combusted are full of energy with zapping sound, while diesel flame is very soothy, produce lots of smoke and smells foul. For highly purified biodiesel, special dry filtration system is also recommended specially when the objective is for use in CRDI diesel engines. Actual usage in diesel engine is by far the most convincing method. The smoke, sound, vibration and smell of effluents make very distinct difference between diesel and biodiesel.
How Much Profit Can Biodiesel Bring ;
In a research publication done by Klebnikov, Paul and Forbes ( When the Oils Runs Out, 2002 ), petroleum specifically crude oil where gasoline and diesel are being distilled from, will lasts for only 25 years. This means the continued rise in diesel pump price will be incrementing drastically upwards in 2 to 5 years from now. This will definitely affect the prices of common commodities as well as the overall economy. When you venture to biodiesel business, this becomes positive opportunity.
Let’s see some examples of two situations below. One is a small biodiesel business where he gets his used cooking oil from his restaurant and maintains 4 diesel delivery vehicles. On the otherhand, another has a noodle factory with fleets of diesel vehicles, genset and boiler. Both used their own waste cooking oil in producing their biodiesel.
T he cost of chemicals, utilities and salary of one person is only P5/L. In a 200 L  biodiesel processor, 3 tons can be produced in a loose day. In the upper row of the picture, one can see the business consuming 400L diesel is gaining P10,000 per day profit. He therefore has a return on investment, ROI of 8 days only. This is phenominal, as progressive quick service restaurants has on the average 2 years ROI.
At the bottom row of the picture, the business consuming 5000L diesel before for his fleets of vehicles and equipment upon conversion to biodiesel is gaining profit of P125,000 per day or P3M per 24 days month. This is outstanding and to most unbelievable, as the ROI is less than one day only.
The above biodiesel production are for own usage only. They are using their waste cooking oils as feedstock in making biodiesel. If the resulting biodiesel will be sold to jeepneys for instance at a price of P25 /L, this would mean a profit of P20/L. Producing a daily output of 3000 L would therefore mean a profit of P60,000 per day. Â If this for instance will be sold to minor oil players ( B100 incorporated at 2% to their regular diesel ), who are getting it at a price of P38/L, this would mean a profit of P99,000 per day or equivalent of P1.98M per month. To maximize the profit, B100 at Banawe cost P100 to P140 per L. This can be a level up option.
For bigger biodiesel operation, the cost of feedstock has to be considered. The cost of volume of used oils from quick service restaurants, food commissaries, food factories, instant noodles manufacturers, rendering companies and even electronic companies must be considered likewise in the financial calculation. If you will however consider constant feedstock supply, the oil refineries and manufacturers like Minola, Spring, Baguio etc. are some options. If you need Profit and Loss Financial Evaluation for such, you may contact me at my email address at biodiesel@chemist.com.
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Ricardo Capistrano -
About the Author:
Ric F. Capistrano graduated BS in Chemistry as a fulltime DepEd scholar from University of Santo Tomas. He was able to hurdle the Chemistry Board Examination right after graduation and immediately became practicing Professional Chemist from then on. While working, he pursued his Masteral Degree at University of the Philippines as International Rice Research Institute, IRRI Scholar. He also pursued his second Masteral Degree in Mechanical Engineering by Research at Victoria University in Melbourne Australia.
He has worked from Laboratory In-Charge to Managerial and Executive positions at various multinational and local companies like IRRI, Bayer, Reckitt & Colman, Cirimar Lab., Drugmakers Lab. and DiverseyLever/Unilever. Providing his employers achievements, track records and expertise in his chosen profession, he was promoted Technical Manager at an early age of 33. While working, he has also extended his knowledge and worked at headquarters of these companies at Germany, England, India, Thailand, Malaysia, Singapore and Australia. He has more than 200 consumer product formulations developed locally and abroad.
He has eight scientific publications, one of which won the Best Nuclear Research Award given by Philippine Atomic Energy Commision through Congressman Pilapil          . He will be publishing soon his books on Kabuhayan Series like detergents, chemical formulary, cleaning products and biodiesel.
He holds five Philippine patent serial numbers. He is a member of Federation of Philippine Chemical     Society, Royal Chemical Society of Australia and Institution of Engineers Australia. As a results his name has been listed in the 11th edition of Marqui’s Who’s Who in the World and in the 17th edition of Men of Achievement by International Biographical Centre in Cambridge, England.
In his free time, he has also participated in relief goods distribution at various calamity areas, as registered volunteer of ABS-CBN Foundation and as a trained Red Cross First Aider. He has also been a volunteer at Gateway Community Options at Kingsville, Australia, teaching aged people livelihood like perfume and candle making etc. He has also spent time giving free livelihood workshop at Municipality of Cabuyao, like soap, detergent, dishwashing, , bleach and fabric softener making, mushroom cultivation, biogas & biodiesel production and mango flower-induction spraying where he is currently a technical lecturer and professional consultant. From synthesis of octane from plant alcohols as his college thesis to hydrogen and biodiesel alternative fuels as his masteral thesis in Australia, alternative fuels and agriculture have been his interest and expertise.
He is married to Engr. Ma. Cecilia L. Capistrano, a scholar and Engineering Chair/Instructor at Colegio de San Juan de Letran. They were blessed with 2 loving sons, Erik Gaius and Patrick Ian.
For consultation on this book topic, you can send email messages to the author ric.capistrano@lycos.com.
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Ric F. Capistrano graduated BS in Chemistry as a fulltime DepEd scholar from University of Santo Tomas. He was able to hurdle the Chemistry Board Examination right after graduation and immediately became practicing Professional Chemist from then on. While working, he pursued his Masteral Degree at University of the Philippines as International Rice Research Institute, IRRI Scholar. He also pursued his second Masteral Degree in Mechanical Engineering by Research at Victoria University in Melbourne Australia.
He has worked from Laboratory In-Charge to Managerial and Executive positions at various multinational and local companies like IRRI, Bayer, Reckitt & Colman, Cirimar Lab., Drugmakers Lab. and DiverseyLever/Unilever. Providing his employers achievements, track records and expertise in his chosen profession, he was promoted Technical Manager at an early age of 33. While working, he has also extended his knowledge and worked at headquarters of these companies at Germany, England, India, Thailand, Malaysia, Singapore and Australia. He has more than 200 consumer product formulations developed locally and abroad.
He has eight scientific publications, one of which won the Best Nuclear Research Award given by Philippine Atomic Energy Commision through Congressman Pilapil          . He will be publishing soon his books on Kabuhayan Series like detergents, chemical formulary, cleaning products and biodiesel.
He holds five Philippine patent serial numbers. He is a member of Federation of Philippine Chemical     Society, Royal Chemical Society of Australia and Institution of Engineers Australia. As a results his name has been listed in the 11th edition of Marqui’s Who’s Who in the World and in the 17th edition of Men of Achievement by International Biographical Centre in Cambridge, England.
In his free time, he has also participated in relief goods distribution at various calamity areas, as registered volunteer of ABS-CBN Foundation and as a trained Red Cross First Aider. He has also been a volunteer at Gateway Community Options at Kingsville, Australia, teaching aged people livelihood like perfume and candle making etc. He has also spent time giving free livelihood workshop at Municipality of Cabuyao, like soap, detergent, dishwashing, , bleach and fabric softener making, mushroom cultivation, biogas & biodiesel production and mango flower-induction spraying where he is currently a technical lecturer and professional consultant. From synthesis of octane from plant alcohols as his college thesis to hydrogen and biodiesel alternative fuels as his masteral thesis in Australia, alternative fuels and agriculture have been his interest and expertise.
He is married to Engr. Ma. Cecilia L. Capistrano, a scholar and Engineering Chair/Instructor at Colegio de San Juan de Letran. They were blessed with 2 loving sons, Erik Gaius and Patrick Ian.
For consultation on this book topic, you can send email messages to the author ric.capistrano@lycos.com.
