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.