Biodiesel Production Cost Analysis, Market Development and Product Overview

In the following blog, Biodiesel Product Overview, its benefits, method of production, key market players, and regional price analysis with the latest developments have been discussed at an elaborative length.

Biodiesel Product Overview

Biodiesel is a biodegradable and renewable fuel made using animal fats, vegetable oils, or recycled restaurant grease. The most popularly used sources of biodiesel are plant and animal substrates like animal fats and oils like corn, canola, and soybean, as well as other feedstock oils (grapeseed, sunflower, palm). It is also known as B100 or neat biodiesel in its unblended and pure form.

What are the Advantages of Biodiesel?

Biodiesel offers a great alternative that works as a clean-burning renewable fuel in place of conventional petroleum-based fuels. The major benefits of biodiesel as a transportation fuel include better energy balance and security, environmental safety, lowered emission, and better quality of air as well as optimized engine function.

  • The integration of biofuels strengthens national security and lowers the cost of transportation energy for businesses and individuals. Also, it can operate as a direct replacement for conventional diesel in many kinds of the engine or extend the conventional fuel’s supply.
  • Biodiesel-powered engines produce lower Carbon dioxide emissions and overall emissions, significantly improving the air’s quality.
  • Biodiesel’s use enhances fuel lubricity and increases the fuel blend’s cetane number, enhancing the engine function and prolonging the lifespan of its moving parts by controlling early damage.
  • The fuel, in a pure state, has a milder impact on the environment compared to traditional petroleum diesel in case of accidental spilling and is also less flammable with a higher flash point making it safer to store, handle as well as transport.

Biodiesel Production Method

Production of Biodiesel: Biodiesel Production from Fat or Vegetable Oil via Transesterification: The process includes biodiesel production using transesterification from fat or vegetable oil. Transesterification is the chemical process which transforms triglycerides (fats) present in oils (Feedstocks) into biodiesel. During this method, triglyceride (fat/oil) is made to react with alcohol (methanol) in order to make glycerol as well as an ester (methyl ester or biodiesel), thereby yielding biodiesel as the final product. The biodiesel created via the process of transesterification has a significantly lower viscosity compared to petroleum diesel, which makes it an ideal to be used in diesel engines.

The Major Market Participants Contributing to the Sector’s Expansion

  • Diester Industries
  • Neste Oil
  • ADM
  • Infinita Renovables
  • Biopetrol
  • Cargill
  • Ital Green Oil

Biodiesel Market Price Trend Analysis

The Following Trend Covers The Biodiesel Price Trend Globally, Categorised By Region.

North America

During the recent few months, the prices of Biodiesel wavered as the prices of feedstock palm and soybean oil differed throughout the entire time. The regions in North America consume considerable amounts of soybean oil to carry out the production of Biodiesel. The Biodiesel production capacity in October inclined in the market in the US as the demand for feedstock (soybean oil) fell. Since the availability of stock was adequate in the domestic market for catering to the regional market, the general prices dropped. The consumption of Biodiesel was made compulsory by USA’s federal renewable fuel standard; therefore, the industrial functions remained moderate. In the end, supply chains saw disturbances triggered by the storm Elliot in many areas of North America.

Asia Pacific 

The prices of Biodiesel in the Asia-Pacific region drove downward due to the falling prices of feedstock from significant Asian exporting nations. The shutdown stage continued in the cities in China, which hindered the production activity in the country, limited activity within the residential sectors in the neighbourhood, and delayed operations nationwide. The regional market was muted because of restrained mobility in the market and transportation. All these factors impacted the Biodiesel manufacturing facilities since there were no queries about the inventory’s product. Producers and Suppliers were pressured into decreasing prices because of the market’s dullness. In addition, the product’s deferred demand from the transportation industry persisted in having an influence on the biodiesel market in China. Indonesia and Malaysia are the countries that provide feedstock, and the product’s oversupply in the respective nations, as well as competitive behaviour, forced them to lower the international market’s export prices.


Recently, the market dynamics of Biodiesel observed stagnancy because the prevailing Biodiesel demand was static amid the growing prices of fuel. The price of making Biodiesel grew correspondingly since the costs of energy stayed high. The Biodiesel import was reduced because of the focus on food services by the German government in order to fulfil demand from the downstream industry. After the natural disaster wreaked havoc in the Malaysian region, the Malaysian product supply witnessed hefty delays. In spite of the inadequate industrial output as well as the increasing energy prices, the market in Europe stayed mute. As per the industry insiders, industries that let go of workers in the upcoming months are at risk of experiencing a recession in the regional economy. Suppliers saw a sluggish demand from consumers for purchasing the products, which added stress to them to keep costs stable.

Recent Development in the Biodiesel Market

  • JUNE 30, 2022- In most cases, Biofuels are two times pricier than petrol and diesel. Prices of Biodiesel are presently higher by 70 percent to 130 percent compared to petrol and diesel on the wholesale market, relying on the crop used. In the latest years, prices of biofuels have been comparatively pricier in comparison to fossil fuels in Europe. The hikes in prices of the feedstocks used for biofuels, including vegetable oils, animal fats, cereals, and used cooking oil and the difference in price to fossil fuels is turning greater.

Unarguably, Biodiesel is one of the most crucial commodities in the automobile industry and several other industries where it finds its applications directly and indirectly. With its widely sensed demand as a fuel, it becomes even more important to have a thorough analysis and evaluation of this commodity. The latest trends, price dynamics, demand-supply equation, and so on, thus must be kept abreast of, which can be helped by industry experts present worldwide, such as Procurement Resource, Expert Market Research, Syndicated Analytics, and so on. However, the primary point to look after while dealing with the procurement of such innovative products such as Bio-based diesel is to evaluate and take measured steps carefully.

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Company Name: Procurement Resource
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