Bio-fuel Manufacturing Business How To Start, Cost, Raw Material, Profit, Plan, Idea | SkillsAndTech

The production process of biodiesel is carried out using ethanol or fatty oil (circus oil) obtained from animal and vegetable fats.

The process of using ethanol to make biodiesel is called esterification and transesterification. Biodiesel is renewable and biodiesel used in the automotive and industrial sectors.

The manufacturer uses a catalyst to stimulate the reaction. The catalyst can be an acidic or basic catalyst.

Biodiesel emits clean, so it is not harmful to the environment; in addition, the emissions of biodiesel are significantly lower than that of conventional diesel.

In view of all the advantages and characteristics of biodiesel, people prefer biodiesel to traditional fuels.

Therefore, more and more attention is paid to biodiesel, and people’s understanding of biodiesel is also growing rapidly. Therefore, if you are looking for a biodiesel business, this is an excellent choice to make money through small investments.

Starting a biodiesel business requires a lot of planning and research; the following articles can help you start producing biodiesel.

Commercial potential of biodiesel (market opportunity)

The production of biodiesel increased steadily in 2016, and grew rapidly with the help of new raw materials and advanced technologies in 2017-2018.

Industry experts believe that the global biodiesel market will double in the next few years. The average annual production of biodiesel will reach 65 billion gallons.

There are various types of engine mechanisms that use different fuels, such as gasoline and natural gas. The engine has been modified to run on biodiesel.

Another advantage of biodiesel is that the emissions of biodiesel are lower than other fuels, and the energy produced is the same.

It is also a carbon dioxide neutral fuel, making it a popular environmentally friendly fuel source.

Therefore, the market demand for biofuels is increasing.

See Also:

Brewery Business

Led Light Business

Mineral Water Plant Business

Registration and license of biodiesel company

You will need to obtain an outdoor definition, fuel tax liability and a business license.

  •  Company registration: You can set up the biodiesel business as your own company or partnership.

If you start the business as a sole proprietorship, you must register your business as the owner.

For a partnership to work, you must be a limited liability company (LLP) or Pvt. Limited company. At the Registry of Commerce (ROC).

  • ASTM D6781 grade: To legally manufacture and sell biodiesel, you must meet ASTM D6781 grade diesel. This registration and approval process takes time.
  •  Fire protection standards and certifications: Biodiesel is a Class IIB flammable liquid. Biodiesel companies must register to meet fire protection standards and certifications.
  •  Emission permit: Your biodiesel plant must obtain a one-day emission permit from the Ministry of Environment, including a water and waste management agreement.

 Warehouse certification-other approvals, including leakage control management, biodiesel plant certification and B100 bales for straw storage.

  • GST registration: Obtaining a GST number is a necessary condition for any business.
  •  Environmental certificate: Biodiesel production can fight pollution, so you need to apply for an environmental certificate.
  •  MSME / SSI records: MSME / SSI records will help you obtain government funding and programs.

 Finally, before starting commercial promotion, you need to apply for fuel tax and determine the floodplain area.

Biodiesel production land demand (location)

When planning to build a biodiesel plant, it is best to purchase land due to licensing and registration issues.

You need to build a large tank farm, so the land area needs to be large enough to accommodate your facilities. At least 2,000 square meters are required to install biodiesel.

Consider the height of the floodplain, the supply of raw materials in the area and good transportation links.

To operate a biodiesel plant, you must comply with government incentive regulations and agreements.

Choosing good raw materials is not easy.

The type of raw materials or raw materials used is an important factor in the production and business development of biodiesel plants.

 Biodiesel production raw materials

Choosing cheaper raw materials will help dominate the industry and increase production and profits.

Common raw materials-fatty oils, tallow and restaurant fats; recycled raw materials are the richest available source for biodiesel plants.

Vegetable oil:

See Also:

Chocolate Making Business

Artificial Flower Making Business

Ginger Garlic Paste Making Business

We all know where vegetable oil comes from; kitchens, restaurants and hotels are the best sources of used vegetable oil

You can use virgin oil, but it is expensive, so we recommend using used vegetable oil


Methanol can be obtained from chemical distributors. Its use in industry and laboratories.

Methanol is the second most important component in the production of biodiesel after vegetable oil.

Methanol is also called methanol.

It is a versatile chemical product used in industry and laboratories. In addition, its price is reasonable.

Bleaching agent:

bleaching agent is called potassium hydroxide or sodium hydroxide and acts as a catalyst in the reaction of oil and methanol.

Biodiesel plant includes facilities such as tank farms and biodiesel processing plants.

  • Feed-stock List
  • Lye
  • Methanol
  • Recycled Vegetable Oil
  • Restaurant grease
  • Sodium hydroxide
  • Soybean oil
  • Sunflower oil

Biofuel production machine

Biodiesel can be produced in two ways, one uses fatty oil as raw material, and usually vegetable oil as raw material.

Another way to produce biodiesel is to use methanol. The list of equipment and equipment used by biodiesel plant is as follows.

  • Thermometer
  • Conical flask
  • Hot plate
  • Magnetic stirrer
  • Oven
  • Separating funnel
  • Water bath
  • Digital weighing balance
  • Hydrometer
  • Measuring cylinder
  • Pipette
  • Retort stand
  • Stopwatch

Production process of biodiesel production company.

Oil filtration:

Vegetable oil is equipped with a color filter to remove any food or other contaminants present in the oil and obtain a homogeneous filtered oil.


Add 200 ml of methanol: Add methanol to the mixer or mixer, be careful not to spill, and turn on the mixer at low speed.

Add 3.5 grams of bleach:

The bleach absorbs moisture in the air. Make sure that the bleach seals well when measuring the weight.

Formation of sodium methoxide:

Methanol reacts with bleach. Sodium methoxide should not be stored for a long time. Let the bleach completely dissolve in methanol for about 5 minutes.

Although sodium methoxide decomposes quickly, an additional biodiesel production stage continues after the liquid is completely dissolved.

Heating oil:

Heat 1 liter of vegetable oil from 55°C to 60°C, then add the hot oil to the mixture and mix with sodium methoxide for 20-30 minutes.

The reaction produces two products: biodiesel and glycerol.

Pour the mixture into the container:

Pour the mixture of methanol, bleach (sodium methoxide) and vegetable oil into the container and let the mixture stand.

Step 1: Deposition:

8 to 12 hours. The mixture is divided into two layers, the top layer is biodiesel and the second layer is glycerin.

The density of biodiesel is lower than glycerin, so it floats on top of glycerin.


Let the mixture sit for a few hours. When the glycerin and biodiesel are completely separated, carefully store the top layer so that it can be used as biodiesel.

Use a pump or syringe to peel off the top layer.

Glycerin Remover

See Also:

CNC Machine Making Business

Jute Bag Making Business

Paper Bag Making Business

Properly dispose of glycerin-For information on how to dispose of glycerin, please contact your local waste management agency.

The by-product of glycerin is used as a raw material for soap production.

Water Flush:

If the reaction goes well, the biodiesel can be used directly, but if the biodiesel is contaminated, it must be removed by flushing with water.

Water flushing is a process of mixing biodiesel with water. Water is heavier than biodiesel, so it will settle the container and absorb alcohol, catalyst and soap.

Biodiesel separation

After absorbing all the pollutants, remove the water from the container, and we get clean biodiesel.

How to sell biodiesel

All you need to do is to develop strategies to help you successfully sell biodiesel

Local market (retail)

The demand and use of biodiesel is growing globally, and people realize that the use of biodiesel does not require any additional research or Researching the biodiesel market, it does not take time to enter the biodiesel market

When selling biodiesel on the market, you need to work on the safest, most environmentally friendly, and most convenient business, dedicated to the good ownership and ecological use of biodiesel. This replaces ordinary fuel.

Don’t worry if the commercialization of biodiesel takes time. The industry has a bright future and it will do well.

The sales points of biodiesel are as follows

  • Hotels
  • Resorts
  • Farms
  • Offices
  • Industries
  • Universities

How to Start Bio-fuel Manufacturing Business | SkillsAndTech

error: Content is protected !!