Biodiesel Production Process And It’s Business Plan

Biodiesel is one of the best alternatives to normal diesel produced from edible oil, animal fats. This is a renewable biofuel can produce from sources containing fats and oil. Biodiesel can run any machine runs on normal diesel.

It is not good at all of using used edible oil but recommended for making biodiesel. If you come to restaurants we can see large amount edible oil either selling to street shoppers or use for several times.

By educating them we can collect a lot of edible oil from restaurants and also from homes. So raw material for biodiesel can easily collect without any problem. Among many recycling businesses waste oil recycling is also the best business.

Biodiesel is an environmentally friendly as it causes zero percentage of pollution to the environment. Using this also helps in increase of county economy. So many countries like India, United States are encouraging this type of industries.

Biodiesel Production Cost:

Actually, this needs a lot of investment. Almost it needs Rs30/- to Rs50/- lakhs as it includes certain machines like refining, expellers, filter presses, and transesterification equipment.

If you design a plant for 24X7 then above cost is applicable otherwise we can plan business with low cost.

Related Article: How To Get Funds To Your Billion Dollar Business Idea

Mainly we choose to recycle waste oil from restaurants and houses. So this will not cost much. As we cannot get waste oil continuously we can’t run continuously and therefore the cost of a plant is low.

For this, we need containers, temperature measuring elements like thermometers, chemicals like methanol, sodium hydroxides or potassium hydroxides.

Biodiesel Production Process:

Biodiesel is a mixture of cleaned used oil, methanol, phenolphthalein. Let’s know about the process of converting waste oil or used oil into biodiesel. The following process is a general process and we can learn clearly from our classroom subjects or from persons encouraging biodiesel plants.

The process includes collecting used oil from restaurants, houses. Then oil has to heat to clean from foreign material like food particles as it is used oil. The cleaned oil has to separate from water and glycerine by placing in static position.

Then pH test has to conduct for solution by mixing oil, methanol, and phenolphthalein with NaOH or KOH (lye solutions). Proper care has to take while mixing lye solutions because it causes an explosion.

While adding solution with oil, methanol, and phenolphthalein color has to observe and measurement has to note down. This measurement will help you to know the ml of lye solution needed to convert taken mixture to convert into biofuel.

Starting A Biodiesel Production Company:

Up to now, we know the average plant cost and process. Now just know about the steps for starting biofuel production company.

Detail study of process and research:

Above mention, the process comes under research and study. This needs some time and money investment. The effective study and research bring you confidence that you can run a business or not.

This also helps you to know the cost of investment for raw material and equipment capacity. Mainly this will help you to get funds for your business.

Proper Layout with a set of goals:

From research and study, we will come to know the requirement regarding land, manpower, and type of clearances.

We know biodiesel production involves explosions and hazardous methods. So we need operation license and environmental clearance certificate. So each and every step has to discuss and explain to get a legal license.

While coming to the land we have to plan in a non-residential area which is safe for people. We also choose in such a way that easy for transportation. So proper inspection has to do before applying for license approval.

Biofuel production company needs manpower as it carries multiple sections in producing. We need to get all documents related to employment.


We know of any business marketing is important. We don’t need any extra investment for creating advertisements with beautiful girls and models. Only by revealing the facts of using biodiesel we can promote effectively.

Environmentally friendly, Lower Emission, Low cost compared to normal diesel are three main facts will bring customers. Not only facts we get strong support from governments which is the backbone of your business.

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About sudharshan

Hello! I am Sudharshan, Business Development Executive and I write articles on entrepreneurs, small business ideas, reviews and much more...
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