As feedstock is the single largest expense in any biofuel operation, feedstock evaluation and the risks associated with the different feedstocks are crucial considerations. As opposed to other types of agricultural-based operations, biofuels see new feedstocks being constantly introduced to the renewable energy market. The risks, costs, and benefits of each feedstock must be identified early, and assistance from a professional familiar with the industry is paramount to developing appropriate strategies. Different feedstocks have varying characteristics like energy content, moisture, chemical composition, and availability. The conversion efficiency, cost, and environmental impact must be analyzed to maximize efficiency.
Feedstocks must be selected that optimize yield while minimizing operational issues. Further, the supply chain and transportation costs must be well-defined. It is important to know whether the technology will handle multiple types of feedstocks efficiently as existing feedstock supply may change abruptly. Any new feedstock must be identified with respect to its conversion rate into biofuel, its status as approved feedstock (linked with greenhouse gas emission questions), and thus its ability to create RINS. These factors all assist in evaluating profitability. Additionally, consideration must be given to the particular feedstock’s price history, its long-term availability in the particular geographic area with shipping considerations, and its comparative costs with respect to other available feedstocks.
When considering any biofuel operation, selecting the right location, evaluating the feedstock, and clearly understanding the capital and operational costs are the first factors to consider. For more than 25 years, Lee Enterprises Consulting has been at the forefront of the bioeconomy. Our highly differentiated market position centers around our deep subject matter expertise in very specialized areas. We help clients minimize technical and economic risk by leveraging best practices in our industries, and we have a long track record of providing insightful analysis and practical advice. Our reputation is unparalleled because we provide a simpliﬁed process, with a single point of contact to a diverse international network of proven experts in biofuels, biomaterials, feedstocks, alternative proteins, and existing & emerging technologies. Our feedstock section assists clients with matters involving feedstock analysis, forecasting and hedging, conventional grains, oilseeds, fats & greases, energy crops, forest, pulp & paper, wood-related matters, plastics, rubber and latex, algae, biogas, CO2, methane, glycerin, solid recovered fuels, hemp, glycerin, and a variety of waste related matters like municipal solid waste (MSW), agriculture waste, landfill waste, wood, plastic food, and fermentation wastes, construction waste, waste oils, wastewater, and sludge. Take a look at our experts and the services we provide. Call us at 1+ (501) 833-8511 or email us for more information.