As feedstock is the single largest expense in any biofuels operation, the risks associated with the different feedstocks must be carefully evaluated. As opposed to other types of agricultural based operations, biofuels sees new feedstocks being constantly introduced to the renewable energy market. The risks, costs and benefits of each feedstock must be identified early, and assistance with a professional familiar with the industry is paramount to develop appropriate strategies. Any new feedstock must be identified with respect its rate of conversion into the biofuel, its status as approved feedstock (linked with greenhouse gas emission questions) and thus it ability to create RINS. These factor help assess its biofuels profitability. Additionally, consideration must be give 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 type of biofuels operation, the location, feedstock and capital costs are the first three factors to consider.
At Lee Enterprises Consulting, we have a number of highly qualified renewable energy feedstock experts available to assist you with any related matters. Feel free to call or email us for more information.