Page 125 - Biofuels Refining and Performance

108 Chapter Four

1. The technologies for extraction and processing are very easy and
simple, as conventional equipment with low energy inputs are needed.
2. Fuel properties are close to diesel fuel.
3. Vegetable oils are renewable in nature.
4. Being liquid, these oils offer ease of portability and also possess sta-
bility and no handling hazards.
5. The by-product leftover after extraction of oil is rich in protein and
can be used as animal feed or solid fuel.
6. Cultivation of these oilseeds is adaptable to a wide range of geo-
graphic locations and climatic conditions.
7. Biodiesel can be used directly in compression ignition engines with
no substantial modifications to the engine.
8. Biodiesel contains no sulfur, and there is no production of oxides of
sulfur.

Hence, biodiesel is considered an alternative fuel for internal combus-
tion engines derived from oils and fats from renewable biological sources;
it emits far less regulated pollutants than the standard diesel fuel
[1–10]. It entails minimal reduced engine performance as a result of a
slight power loss and increase in specific fuel consumption [8, 11–29].
However, one main concern in further usage of biodiesel is the economic
viability of producing biodiesel.
The main economic criteria are manufacturing cost and the price of
raw feedstock. Manufacturing costs include direct costs for oil extrac-
tion, reagents, and operating supplies, as well as indirect costs related
to insurance and storage. Fixed capital costs involved in the construc-
tion of processing plants and auxiliary facilities, distribution, and retail-
ing must also be taken into consideration [30].
Several authors have found that biodiesel is currently not economi-
cally feasible unless tax credits are applied [23, 31]. Peterson [23] has
found that diesel fuel costs less than biodiesel, and an emergency or
diesel shortage would be required to provide a practical reason for using
biodiesel. Some authors have stated that biodiesel could compete with
diesel fuel if produced in cooperatives [31, 32].
To promote biodiesel consumption, several countries have exempted
biodiesel from their fuel excise tax. Among them, the European Union
(EU) approved the biodiesel tax exemption program in May 2002. The
financial law funded biofuels through excise exemption over a period of
3 years (Art. 21, Finance Law 2001). The U.S. Senate Finance Committee
also approved an excise tax exemption for biodiesel in 2003. Moreover,
the legislation provides a 1% reduction in the diesel fuel excise tax for each
percentage of biodiesel blended with petroleum diesel up to 20%. Also,