Biodiesel Industrialization Costs
It is reported that in the past two years, 100,000 tons of biodiesel produced annually in China has been partially sold to local gas stations and some exported overseas. Given China's energy shortages, biodiesel is not widely available in the domestic market and instead focuses on international markets. This is mainly due to the higher cost of biodiesel raw materials compared to those used for conventional diesel. As a result, exporting helps avoid financial losses.
One of the main challenges in the industrialization of biodiesel is its production cost. According to Qiu Hongwei, a researcher at the China Biotechnology Development Center under the Ministry of Science and Technology, about 75% of the average cost of producing 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 cost up to 5,000 yuan per ton. Rapeseed-based biodiesel exceeds 5,000 yuan, and jatropha fruit-based biodiesel is approximately 4,000 yuan. In comparison, the total cost of raw materials and processing for petroleum-based diesel is only about 3,500 yuan per ton.
Qiu Hongwei believes that producing biodiesel from sources like oil crops, oil-bearing trees, and restaurant waste oil not only helps alleviate China’s energy shortage but also enhances national energy security. Additionally, it can increase farmers' income and reduce environmental harm caused by food waste. The government has already introduced relevant supporting policies to encourage this industry.
At present, one of the most urgent issues is providing subsidies for large-scale planting of oil crops specifically for biodiesel production. This requires government planning and financial support. In China, there are 6.66 million hectares of unused winter land suitable for rapeseed cultivation. If properly utilized with supportive measures, farmers could grow rapeseed varieties ideal for biodiesel production, significantly reducing raw material costs. Moreover, establishing a network for collecting urban waste oil and promoting fuel tree crops also needs government coordination. These efforts would help lower the cost of biodiesel and speed up its industrialization.
Qiu Hongwei also mentioned that the state has promoted the use of ethanol gasoline for vehicles and implemented various measures. Ethanol gasoline is already in use in many regions. If biodiesel reaches a certain level of industrialization, similar strategies could be applied to promote its adoption as well.
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