Economic Feasibility of Biodiesel Production from Jatropha Oil

This study aims to assess the economic viability of small-scale biodiesel production, known as fatty acid methyl ester (FAME), using the non-edible oil from Jatropha curcas. It is crucial to understand the economics of biodiesel production for its potential industrial application. The findings of this paper indicate that the cost of oil feedstock is the most significant expense, contributing 70% of the total production costs, making it a critical economic factor in biodiesel production. Other costs, including methanol, catalysts, utilities, labor, and capital cost (fixed), account for 8, 1, 9, 2, and 10% of the total costs, respectively. While capital expenditure (CAPEX) has a minimal impact on costs, operational expenditure (OPEX) significantly influences the overall production expenses. Currently, the cost of producing biodiesel is lower than that of conventional diesel fuel. However, the biodiesel offers the advantages of reduced pollution compared to petroleum diesel, enhances energy security, and ensures environmental protection. Additionally, glycerol as a by product enhances economic feasibility for producers by serving as a raw material for the production of value-added chemicals. The recovery and purification of crude glycerol (~80% w/w) for commercial sale can lower the total production costs by about 5%, offering an economic boost to biodiesel production.