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Biodiesel Cost Calculation

This document outlines the cost calculation for producing biodiesel at different prices of crude palm oil (CPO) per liter. It shows that as the price of CPO increases from RM 1730 to RM 2857 to RM 4800 per liter, the total cost of producing a liter of biodiesel increases from $0.63 to $0.88 to $1.31 respectively. The largest cost component is CPO, accounting for 61-82% of the total biodiesel production costs. It also compares the breakeven price of biodiesel to the current Brent oil price of $69.65 per barrel.

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Terry Tan
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58 views1 page

Biodiesel Cost Calculation

This document outlines the cost calculation for producing biodiesel at different prices of crude palm oil (CPO) per liter. It shows that as the price of CPO increases from RM 1730 to RM 2857 to RM 4800 per liter, the total cost of producing a liter of biodiesel increases from $0.63 to $0.88 to $1.31 respectively. The largest cost component is CPO, accounting for 61-82% of the total biodiesel production costs. It also compares the breakeven price of biodiesel to the current Brent oil price of $69.65 per barrel.

Uploaded by

Terry Tan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Biodiesel Cost Calculation

Biodiesel per Gallon Biodiesel per Litre


CPO Price 1.46 US/Gal 0.38 US/L 61%
Chemical Cost 0.79 US/Gal 0.21 US/L 33%
Labour 0.05 US/Gal 0.01 US/L 2%
Electricity 0.03 US/Gal 0.01 US/L 1%
Quality Analysis 0.03 US/Gal 0.01 US/L 1%
Maintenance 0.02 US/Gal 0.01 US/L 1%
Total 2.38 0.63

* This is based on cost of CPO of RM 1730 per Litre (RM 1513 per MT)

Biodiesel per Gallon Biodiesel per Litre


CPO Price 2.42 US/Gal 0.64 US/L 72%
Chemical Cost 0.79 US/Gal 0.21 US/L 24%
Labour 0.05 US/Gal 0.01 US/L 1%
Electricity 0.03 US/Gal 0.01 US/L 1%
Quality Analysis 0.03 US/Gal 0.01 US/L 1%
Maintenance 0.02 US/Gal 0.01 US/L 1%
Total 3.34 0.88

* This is based on cost of CPO of RM 2857 per Litre (RM 2500 per MT)

Biodiesel per Gallon Biodiesel per Litre


CPO Price 4.05 US/Gal 1.07 US/L 82%
Chemical Cost 0.79 US/Gal 0.21 US/L 16%
Labour 0.05 US/Gal 0.01 US/L 1%
Electricity 0.03 US/Gal 0.01 US/L 1%
Quality Analysis 0.03 US/Gal 0.01 US/L 1%
Maintenance 0.02 US/Gal 0.01 US/L 0%
Total 4.97 1.31

* This is based on cost of CPO of RM 4800 per Litre (RM 4200 per MT)

Current Brent Oil Price @ 9th August 2021 Biodiesel by CPO Price at cost 0.63 US/L
69.65 US/Barrel Biodiesel by CPO Price at current price 1.31 US/L
0.44 US/L Biodiesel by Soybean Price (in USA) 0.78 US/L
Current Diesel Price 0.44 US/L

Breakeven Price of Biodiesel to Brent Oil Price 99.62 US/Barrel

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