Biodiesel is a renewable fuel source that pollutes less than fossil
fuels. According to the Environmental and Energy Study Institute,
California is the biggest market for biodiesel in the U.S. Starting a
biodiesel business requires research on a source of vegetable oil for
making biodiesel and the equipment needed to process it. Setting up a
plant and acquiring raw materials is the costliest part of this venture.
Things You Will Need
Equipment(cylinders, mixing vessels, pipes, valves,etc)
Conduct market research. Find out your main clients. Motor vehicle
owners, farm machinery operators and local industries
customers. Select a location to set up the bio diesel plant. Consult
local authorities to confirm suitability of the designated site.
Get funds. Low interest loans from banks, credit unions and personal
savings are common sources of start-up funds. Most of the funds will be
used on infrastructure (setting up the plant) and purchasing raw
materials. Operation costs will be greatly subsidized when profit from
sales begin to cover the initial capital outlay. Due to federal
incentives for alternative fuel initiatives, federal funding may be
available from the Department of Energy in California. for people
venturing into biodiesel business.
Register the business. Get a business license from the California
Secretary of State Office. Obtain a Federal Employers Identification
Number (FEIN) from the same office to enable you to hire staff. In
California, the legislature has proposed (RealFlow Scripts) RFSs,
reduced fuel taxes, provision of grants
and loans for distribution
Purchase equipment. Buy cylinders, mixing vessels, pipes, valves,
heating containers and packaging containers with the help of a certified
Follow industry and engineering standards, as well as environmental
regulations, when building a plant.. Buy the raw materials. They include
the feedstock (Soya beans, jatropha or yellow grease), methanol, sodium
hydroxide and water. You will also need a storage facility and a
Hire staff. This will include plant operators, engineers, drivers of
motorized wheelers and loading machines and packaging staff.
Market the product. Advertise in the local papers, with fuel station
dealers, on the Internet, in magazines and in the media (TV and Radio
adverts). You should also market it with automobile companies, for
instance, Mercedes Benz, who produce vehicles that can be converted to
run on Bio diesel.
Tips & Warnings