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A model for evaluating the economic feasibility of small-scale biodiesel production systems for on-farm fuel usage

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  • Pienaar, Johan
  • Brent, Alan C.

Abstract

Farming operations in Africa have, in general, not adopted small-scale biodiesel production technology well for on-farm fuel usage. This is mainly due to the lack of an acceptable method to assess the economic feasibility of constructing small-scale biodiesel production facilities, and the impact of such operations on existing farming production processes. The research study summarised in this paper subsequently set out to develop a model, termed the Biodiesel Production System Optimisation Model (BPSOM), which predicts the cost of producing biodiesel on a small-scale, and optimises on-farm production processes to maximise profits. The model was validated using a South African case study to evaluate the predicted cost of biodiesel per litre produced, and the economic impact of a small-scale facility on the production profits of a farm. A proxy indicator, profit per hectare cultivated land, is introduced to measure the impact. BPSOM predicts a positive profit increase of 33% for the specific farm case study, which proves the economic potential of small-scale biodiesel production facilities for fuel usage at farm level in Africa.

Suggested Citation

  • Pienaar, Johan & Brent, Alan C., 2012. "A model for evaluating the economic feasibility of small-scale biodiesel production systems for on-farm fuel usage," Renewable Energy, Elsevier, vol. 39(1), pages 483-489.
    • Handle: RePEc:eee:renene:v:39:y:2012:i:1:p:483-489
    DOI: 10.1016/j.renene.2011.08.048
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    References listed on IDEAS

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    1. Fortenbery, T. Randall, 2005. "Biodiesel Feasibility Study: An Evaluation of Biodiesel Feasibility in Wisconsin," Staff Paper Series 481, University of Wisconsin, Agricultural and Applied Economics.
    2. Meher, L.C. & Vidya Sagar, D. & Naik, S.N., 2006. "Technical aspects of biodiesel production by transesterification--a review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 10(3), pages 248-268, June.
    3. Yiridoe, Emmanuel K. & Langyintuo, Augustine S. & Dogbe, Wilson, 2006. "Economics of the impact of alternative rice cropping systems on subsistence farming: Whole-farm analysis in northern Ghana," Agricultural Systems, Elsevier, vol. 91(1-2), pages 102-121, November.
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