China Biodiesel - 4/13/08

Waste oil is the feedstock China Biodiesel uses when making biodiesel.  This waste oil comes from used cooking oil, expired oil from grain depots and waste oil from animal fats.  The Chinese government is a big promoter of using waste oil for fuel.  China Biodiesel uses its own technology to convert waste oil to biodiesel.  Its competitors use new vegetable oil to produce biodiesel, which is a more costly way to produce biodiesel. 

Once China Biodiesel processes the waste oil into biodiesel, it is sold to distributors which supply the diesel stations in the area.  The biodiesel is sold at a 5% discount to petroleum diesel.  Although the Chinese authorities suppress the price of petroleum below the world market rate, it is rising, which is a benefit to China Biodiesel’s revenues.  The majority of China Biodiesel’s revenues come from the sales of biodiesel, one quarter of their revenues come from the glycerin, which is a byproduct that is sold to make phosphate free detergents and toxin free plastic packaging. 

Related links:
Biodiesel is Good, But Be Careful
Mahindra May Offer Diesel-Electric Hybrid SUV in the U.S.
High Cost Closes Biodiesel Company

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