“The Center for Advanced Studies in Applied
Economics (CEPEA) of the University of Sao Paulo’s College of Agriculture “Luiz
de Queiroz” (ESALQ) has released a recent study comparing the cost of producing
biodiesel (oil extraction and biodiesel production), for different raw
materials, in five Brazilian macro-regions. The study includes separate
estimates for plant of differing capacities (10, 40 and 100,000 metric
tons/year). The study further considered that raw materials could be obtained
from the market (at prevailing prices) or produced directly (using estimated
cost of production of the raw material, using 2004/05 prices). Because the study
did not include mark-ups or taxes, the results cannot be compared to the price
of mineral diesel at the pump.
Biodiesel produced from soybeans in the Center-Western region of Brazil resulted
in the cheapest cost (R$ 0.83/liter) when considering only production cost of
the raw material. When considering purchase cost of the raw material, the use of
seed cotton in the Northeast (in a 100,000 ton/year refinery) resulted in an R$
0.66/liter cost of production. The tables below show the results for a 40,000
metric tons/year refinery for different regions, source and cost of raw
materials.
Minimum Biodiesel Cost of Production
(cost of production of the raw material, 40,000
ton/year mill capacity, R$/liter)
|
North |
Northeast |
Center-West |
Southeast |
South |
|
soybeans 1.167 |
soybeans 1.670 |
soybeans 0.883 |
Soybeans 1.247 |
soybeans 1.786 |
|
dende 1.231 |
castor 1.585 |
sun flower 1.034 |
peanuts 1.610 |
sunflower 1.649 |
|
|
seed cotton 0.712 |
seed cotton 0.975 |
sun flower 1.534 |
|
Source: ESALQ/CEPEA
Note: Prices for the July 2004-June 2005 period. Cost of production of the raw
material includes leasing of the land
Minimum Biodiesel Cost of Production
(cost of production of the raw material, 40,000 ton/year mill
capacity, R$/liter)
|
North |
Northeast |
Center-West |
Southeast |
South |
|
soybeans 0.902 |
soybeans 0.951 |
soybeans 0.952 |
soybeans 1.372 |
soybeans 1.424 |
|
dende 1.324 |
castor 2.219 |
sun flower 1.253 |
peanuts 1.874 |
sunflower 0.889 |
|
|
seed cotton 0.712 |
seed cotton 0.975 |
sun flower 0.859 |
|
Source: ESALQ/CEPEA
Note: Prices for the July 2004-June 2005 period. Cost of production of the raw
material includes leasing of the land.”
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