can biodiesel plants in calaifirnia make money?

Question

i have a client wants to build abiodiesel plant and the co is being told they make big profits and have no waste contamination nay ideas

Answer 1

It's possible, but it might suffer at the long term. First, the cost of the raw materials must be considered. Government subsidies. The most important thing is the price of Diesel. He might be able to sell it at a premium to some environmentally friendly companies. There is an outfit that is turning a profit on biodiesel in New York city. It only became profitable due to price of fuel recently. I wouldn't say big profits though. California would give you client a major headaches in regulations.

Answer 2

Not generally, due to the majority of consumers being uneducated about exactly what biodiesel is. It is a hard market, but there is a place for it. Look at it like this:

A consumer of diesel sees a station on the corner that sells biodiesel for $2.25 a gallon,
And across the street there is regular diesel for $2.26 a gallon.
Where will he go? What the benefit?
Actually it is said that biodiesel burns hotter and can hurt some older motors, thats why they mix it with regular diesel (Herd of B20) means 20% Bio Diesel/rest regular diesel to make it safer for cars/trucks.

The consumer will probably play it safe for now, and they do.

Yes there is a market, yes you can make money (if done right) .

Let me know, we build Gas and BioDiesel Plants in California

Answer 3

I would imagine he won't lack for customers. State and local government agencies have to use some fraction of alternative fuels. California's corporations seem most eager to go green. Lots of environmentalists and green-minded consumers in California.

Of course he should practice due diligence. Emotions are a good reason to consider a business opportunity, but a poor method to analyze it.

Answer 4

We need to do this all over as I don't trust the Arab and he will use fuel as a weapon some day.

Answer 5

maybe...