How much does it cost to produce biofuels?

As mentioned previously, the cost to produce biodiesel is $5.53-$6.38 per gallon. This is higher than the current price of regular diesel. If one takes into account the value of the seed meal produced ($3.03 per gallon), the cost to generate biodiesel becomes much lower, about $2.50-$3.35 per gallon.

How do you make a second generation biofuel?

Second-generation biofuels are produced from nonfood crops including the waste from food crops, agricultural residue, wood chips, and waste cooking oil [14]. Second-generation biofuel feedstock is the nonedible byproduct of food crops.

What are the main advantages of 2nd generation biofuels?

It is claimed that these 2nd generation biofuels may offer even greater benefits in terms of environmental performance, better overall energy efficiency, the ability to use lower cost and more widely available feedstocks, and be more easily integrated into the existing fuel supply and distribution system.

Is biofuel production profitable?

The profitability of biodiesel production is extremely variable. Due to the volatile price nature of biodiesel and soybean oil, its major feedstock, biodiesel profitability can change rapidly from month to month.

What are the goals of second generation biofuels?

Second-generation biofuels make the production of fuel more sustainable, so plants used are not edible and thus are not in direct competition with food production. Furthermore, the goal for this generation is to have a product for which the net carbon (the ratio between produced and consumed CO2) is neutral or negative.

When did third generation biofuels start being produced?

Third generation biofuels use algae as a feedstock. Commercial cellulosic biofuel production began in the US in 2013, while algae biofuels are not yet produced commercially.

How much biofuel is produced in the United States?

With the ebbing of the drought in 2013, biofuel production resumed. Ethanol production averaged 925,000 bbl/day in 2014, while biodiesel production averaged 87,000 bbl/d. Over the following several decades, biofuels experienced some growth, but remained a small portion of the US liquid fuel supply.

What are the economic benefits of biofuels production?

Economics of Biofuels 1 Background. First generation biofuels are made from sugar crops (sugarcane, sugarbeet), starch crops (corn, sorghum), oilseed crops (soybean, canola), and animal fats. 2 Potential economic benefits of biofuel production. 3 Potential economic disbenefits and impacts of biofuel production. 4 U.S.