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

Business name
Equipment(cylinders, mixing vessels, pipes, valves,etc)

Step 1

Conduct market research. Find out your main clients. Motor vehicle owners, farm machinery operators and local industries are ideal customers. Select a location to set up the bio diesel plant. Consult local authorities to confirm suitability of the designated site.

Step 2

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.

Step 3

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 infrastructure.

Step 4

Purchase equipment. Buy cylinders, mixing vessels, pipes, valves, heating containers and packaging containers with the help of a certified mechanical engineer.

Step 5

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 transportation vehicle.

Step 6

Hire staff. This will include plant operators, engineers, drivers of motorized wheelers and loading machines and packaging staff.

Step 7

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. Array

Tips & Warnings