Discovering Mechanics: Louis Renault e-book (RENAULT) | Page 181

Economics of biofuel production  The rise in oil prices is the most important factor boosting the competitiveness of alternative fuels, including biofuels.  Feedstock costs are the most significant cost of biofuel production, 80% for EU biodiesel from rapeseed.  Energy is also a major cost component, up to 20% of biofuel operating costs in some countries.  The sale of byproducts, such as dried distillers’ grains, also contributes to a biofuel plant’s profitability.  The ratio of crude oil prices to feedstock prices offers a simple indicator of the competitiveness of biofuel made from various feedstocks.