Biodiesel Industrialization Costs
It is reported that in the past two years, China has produced 100,000 tons of biodiesel annually, with a portion being sold to local gas stations and some exported abroad. Given China's ongoing energy shortages, biodiesel is not widely available in the domestic market. Instead, it is primarily exported, mainly because the cost of raw materials for biodiesel is significantly higher than that of conventional diesel. Exporting allows producers to avoid financial losses.
One of the major challenges in the industrialization of biodiesel is its high production cost. According to Qiu Hongwei, a researcher at the China Biotechnology Development Center under the Ministry of Science and Technology, approximately 75% of the average cost of biodiesel comes from raw materials. For instance, producing biodiesel from waste cooking oil costs around 3,500 yuan per ton, while using imported palm oil can reach up to 5,000 yuan. Rapeseed-based biodiesel exceeds 5,000 yuan per ton, and jatropha fruit costs about 4,000 yuan. In comparison, the total cost of raw materials and processing for petroleum-based diesel is only around 3,500 yuan per ton.
Qiu Hongwei emphasizes that producing biodiesel from sources like oil crops, oil-bearing trees, and restaurant waste oil can help alleviate China’s energy shortage, enhance national energy security, and boost farmers’ income while reducing environmental harm from food waste. The government has already introduced relevant supportive policies.
Currently, one of the most urgent issues is providing subsidies for large-scale planting of oil crops specifically used for biodiesel production. This requires government planning and financial support. China has 6.66 million hectares of unused winter land suitable for rapeseed cultivation. If properly utilized, these areas could be used to grow biodiesel-specific rapeseed varieties through supporting measures, thereby reducing raw material costs. Additionally, establishing a network for collecting urban waste oil and promoting fuel tree crops also need government coordination. With such efforts, the cost of biodiesel raw materials could decrease, accelerating its industrial development.
Qiu Hongwei also notes that the state has promoted ethanol gasoline for vehicles and implemented various measures. Ethanol gasoline is already widely used in many regions. If biodiesel reaches a certain level of industrial scale, similar policies could be applied to promote its use as well.
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