Techno-Economic Study of a Biodiesel Production from Palm Fatty Acid Distillate

Techno-economic analysis has been carried out for a single-step noncatalytic esterification process which produces biodiesel from palm fatty acid distillate (PFAD). A simulation model for this biodiesel production process has been developed, which provided the basis for the estimation of capital expenditure and operating cost. Although the process considered in this work has been observed as nonprofitable even at considerably large-plant capacity, the net cash flow becomes surplus at the capacity of 100 kt·y–1. Effects of raw material cost and biodiesel product price on the economic feasibility of the process have also been evaluated. With techno-economic analysis, it was found that the current biodiesel process would be economically viable with favorable changes in the economic parameters, i.e. $50·t –1 reduction for raw material purchase cost or $50·t –1 increase for biodiesel sales price.