Analysis of operating costs for producing biodiesel from palm oil at pilot-scale in Colombia

• Conversion of oil to biodiesel achieved 99.4% efficiency; above required standards.
• Biodiesel production cost at the pilot scale (20.000 L/day) was US$3.75/gal.
• The feedstock, crude palm oil, represented 72.6% of the total production cost.
• The process is profitable by generating $1.08/gal (i.e., 22.4% of the total income).
• The best scenario uses crude palm oil and takes advantage of byproducts.

The present study aims to evaluate the operating costs of biodiesel production using palm oil in a pilot-scale plant with a capacity of 20,000 L/day (850 L/batch). The production plant uses crude palm oil as a feedstock, and methanol in a molar ratio of 1:10. The process incorporated acid esterification, basic transesterification, and dry washing with absorbent powder. Production costs considered in the analysis were feedstock, supplies, labor, electricity, quality and maintenance; amounting to $3.75/gal ($0.99/L) for 2013. Feedstocks required for biodiesel production were among the highest costs, namely 72.6% of total production cost. Process efficiency to convert fatty acids to biodiesel was over 99% and generated a profit of $1.08/gal (i.e., >22% of the total income). According to sensitivity analyses, it is more economically viable for biodiesel production processes to use crude palm oil as a feedstock and take advantage of the byproducts such as glycerine and fertilizers.