im curious as to what is required in order to start up a biodiesel company. im new to the forum, just signed up, simply because i am having alot of trouble finding information on the internet about starting this company. preferably i want to take a gas station with a garage and convert it to sell biodiesel that i would produce in the garage area. now that im putting this down on paper its sounds more unlikely to happen than ever. i understand the fuel i produce would need to be tested regularly and im sure there are insane certifications that i would have to pay for. but what is really required? where do i go? considering the lack of retail biodiesel pumps in NJ i figure i could make decent profit by running my own...any advice or criticism is gladly welcome
first, a question.
do you currently make biodiesel? if so, good, if not, you'llneed to get proficient at it before thinking of going into business.
next. do you have a current supplier of either WVO (waste vegetable oil) or other clean oil? (such as oil from rapeseed, palm, jatropha).
you should really break this down into manageable steps. starting with production of the fuel. see how long it takes, how long you can store it. becuase you will want a nice supply stored up before you open your doors to the public, nothing like stopping at your store 4 times in a row and you have no fuel to sell, I'd give up coming there after that.
if you dont currently make it, do you have any aquaintences that do?
next. the shop and licenses. register with your local county for a DBA or LLC. DBA's are $10 in Texas and good for 10 years. (or they were about 9 years ago when i got my first one). while you're at the county, check with the ag extension and see what they require. if you're going to sell fuel like a regular station, you'll need your pumps to be certified by Weights and Measures (DOE Im assuming), and the fuel certified as whichever % your claiming it to be. B100, B80, B20, B10.
if you're not selling B100, you'll need to certify that the fuel you purchase from whichever refinery, and the biofuel you mix into it. check with the state for any laws you must comply with there as well.
I am sure there are a lot of other things you need to do, but there is a start for you.
South Texas Jatropha Farms. http://biodiesel.blogdrive.com/
yes i do currently make bd. i have several suppliers of wvo (actually a little more than i can handle) and of course if i was going to seriously do this i would make sure id have everything all lined up as far as the supply, the equipment. im was just curious as to the laws and certifications i would have to go through the state for, as well as how much these certificates might cost.
thanks for the advice. im hoping to maybe start up a station maybe next year depending on how much info i can gather up on it, whether i can get a business loan from the bank, and whether or not it would be worth it. from the price of diesel right now i would think if i could produce it myself i could make a good profit while still selling it much cheaper than d2
NJNBF,
Where are you in New Jersey? I'm in Central NJ and know lots of places to get WVO that I can't properly service.
There is red tape involved in setting up as a commercial biodiesel producer/blender. The National Biodiesel Board ( NBB) has information on this process. You will have to join the NBB to fall under their safety umbrella. Their dues starts out at something like $3500/year and it might increase with production. You will then register with the IRS to get the blenders credit. You will have to have your fuel tested at least once a quarter and it costs about $1-1500/test. You will have to meet the local zoning for biodiesel production and meet OSHA standards if you have employees.
It is not impossible to jump through these hoops, but it does add at least $7500-10,000/year in overhead expense before you sell a drop of fuel.
We are the NY rep for the Biopro line www.biofuelclinic.com Give me a call or send me an e-mail and we can talk in more detail.
Thanks,
DD
irish1: NJNBF, Where are you in New Jersey? I'm in Central NJ and know lots of places to get WVO that I can't properly service.
Irish,
Saw your comment above. I live in E. Brunswick and am considering converting WVO to bd to heat my house. I have had success with pilot batches, but am running into problems finding reliable quantities of WVO before I scale up. All of the restaurants around my area seem to be locked up in contracts. Do you have any advice / excess capacity? I would need about 1000 gal total for the winter. Thanks.
Joe
See this handy blog by Graydon, Selling Biodiesel...is it worth it?
ErikUseful Biodiesel-related linksSupport International Microbusiness - Kiva"It is sometimes necessary to choose between clarity and precision, and an enlightening clarity (without serious distortion) is to be preferred to an obfuscating precision.
I know of a few companies that are offering commercial biodiesel production as a business opportunity considering you have the finances and the desire. Its not as hard as everyone else is making it sound considering you have the right team backing you. Contact me at shadowx1212@aol.com for info.
Joe,
I sent you an e-mail. Did you get it?
No email yet. I tried to reach you by email as well. You can reach me at tookish@comcast.net
Re-sent just now.