Epsilon Archive for Student Projects

Abstract

With a shifting world market and periodically profitability issues, Swedish farmers seek
alternative ways to enhance their profitability. One interesting alternative to get a higher
value and enhance products is biodiesel, a way to improve the profitability on a farmscale.
The diesel that is produced and sold, already have a mixture of 5% biodiesel, and
there is a possibility to add more biodiesel to it. By developing new engines several
engine-manufacturers now allow a mixture up to 100% biodiesel in their engines. Hence
there is a market for an increased production of biodiesel. The aim of this study were to
investigate the possibilities and the problems related to farm-scale production of
biodiesel, and to study the profit margin in the production. It should also point out the
key factors that affect the profit.
In this degree project the existing literature within this subject was gathered and studied.
The literature treats the production process and the key factors that affect the process.
Facts concerning key factors that affect the production of biodiesel were gathered and
pointed out so that the reader could understand the extent of biodiesel production.
Economic key factors such as by-products and taxes are also illustrated. This degree
project also illustrates possible use and markets for biodiesel.
To investigate the profitability on a farm-scale production a calculation were made that
points out the profitability and sensitivity to the global market. Diagrams show the key
points for profitability and conditions for a profitable production.
The most important conclusion that is drawn from this degree project is that there are
good possibilities for a profitable and sustainable farm-scale production of biodiesel, and
thereby to get a greater value from their products.