T.C.

GAZI UNIVERSITY

FACULTY OF ENGINEERING

DEPARTMENT OF CHEMICAL ENGINEERING

CHE378 ENGINEERING ECONOMICS

Doç. Dr. HÜSEYİN ARBAĞ

PROJECT REPORT

BIODIESEL FEASIBILITY REPORT

191142049 – SAİT SEVİNÇ

191142039 – SERRA KERMAN

191142061 – KORHAN YILDIZ

201142024 – DİLA KARA

191142043– HAFİZE TUĞÇE ÖNAL

201142039-EFSANE YAYLI

DATE: 23/05/2023

1
Summary

The subject of Biodiesel Production has been researched within the scope of engineering
economics due to its increasing popularity. As a result of the literature research, we concluded
that there are many active studies on biodiesel production and that there are many plant-based
materials that can be used as raw materials. As a result of market analysis, the production of
bitodiesel from vegetable algae has become popular in recent years and studies have been
carried out on this subject. Although Biodiesel Production is not very popular in Turkey
compared to other countries, it is used quite a lot in many countries and projects based on
biodiesel production are carried out in the USA and Europe, even in many countries of the
world. According to the researches carried out over the years, due to the high demand for
biodiesel production in our country, studies have been started for the production of biodiesel
from algae due to the insufficiency of vegetable waste sources. Since the vegetable oil
produced in our country only meets the consumption needs, it was preferred to use algae as
raw materials. The reason for the establishment of the facility around the Tuzla-Istanbul
industrial zone can be counted as the easier growth of microalgae in an environment close to
water and the necessity of an environment with a large waste water source.

2
 TABLE OF CONTENTS

1. IDENTIFICATION OF THE PRODUCT..............................................................................8

1.1 Physical and Chemical Properties Of Biodiesel................................................................8

1.2. Physiological Effects......................................................................................................15

1.3. Restrictions And Rules On Transportation.....................................................................17

2. STANDARD FEATURES....................................................................................................20

2.1 Standard Features of Biodiesel........................................................................................20

2.2 Standards for Packaging..................................................................................................22

2.3 Possibilities to Improve the Quality of the Product........................................................22

[Link] INDUSTRIES...............................................................................................23

3.1 Places of Use and Applications.......................................................................................23

3.1 Total Consumption and Monetary Value.........................................................................25

3.3 Distribution of Total Consumption..................................................................................28

3.3.1 Interregional Distribution.........................................................................................28

[Link] PROGRAM.................................................................................................29

4.1 Domestic Production and Changes in Production Direction...........................................29

4.2 Global Production and Production in Major Countries...................................................31

4.3. Production Program of Other Major Producers.............................................................33

5. PRICES.................................................................................................................................34

5.1. Structure of Prices..........................................................................................................34

5.2. Distribution of Price Values in Past Years......................................................................35

5.3. Factors Affecting Price...................................................................................................36

6. TRANSPORTATION AND STORAGE OF BIODIESEL...................................................36

7. COMPETITIVE SITUATION..............................................................................................39

7.1. Markets Around..............................................................................................................39

7.2. Export Status..................................................................................................................40

3
8. PROFITABILITY.................................................................................................................41

8.1 Capacity...........................................................................................................................41

8.2 Raw Material, Reserve Quantity and Availability...........................................................43

8.3 Labor...............................................................................................................................43

8.4 Determination of Fixed and Total Capital Investment....................................................44

8.5 Amount of Product Obtained per Unit Quantity Raw Material......................................45

8.6 Cost of the Product..........................................................................................................46

9. FUTURE MARKET OPPORTUNITIES..............................................................................47

9.1 Which Way Consumption Is Going.................................................................................47

9.2 Change in prices..............................................................................................................52

9.3 Quality of Produced Product, Quality in Biodiesel Production......................................54

9.4 Analyzing the Supply Demand Balance..........................................................................56

10. PATENT STATUS AND OTHER LEGAL RESTRICTIONS............................................57

10.1 Legal obligations as a result of the production of a patented product...........................57

11. CONCLUSION...................................................................................................................61

12. REFERANCES...................................................................................................................62

4
 LIST OF FIGURES

Figure 1. Average emission values of biodiesel in heavy vehicle engines...............................13

Figure 2. Physiological Effects.................................................................................................16
Figure 3. Ethanolysis reaction...................................................................................................18
Figure 4. Methanolysis reaction................................................................................................18
Figure 5. Improving the Fuel Properties of Vegetable Oils......................................................23
Figure 6. Industries of applications...........................................................................................24
Figure 7. Global trend of biodiesel consumption......................................................................26
Figure 8. Worldwide Biofuel Consumption..............................................................................26
Figure 9. Distribution of Companies Holding Biodiesel Processing Licenses by Provinces...28
Figure 10. World biodiesel consumption.................................................................................28
Figure 11. World biodiesel market development......................................................................29
Figure 12. Facilities with Biodiesel Authorization Certificate in Turkey................................31
Figure 13. World biodiesel production amounts by years.........................................................33
Figure 14. Sales value graph.....................................................................................................35
Figure 15. Turkey’s demand graph...........................................................................................42
Figure 16. EU Biodiesel Production Capacities.......................................................................47
Figure 17. Distribution of Producers by Province....................................................................50
Figure 18. Number of Employees and Firms by Province........................................................51

5
 LIST OF TABLES

Table 1. Properties of Biodiesel................................................................................................11

Table 2. Biodiesel Emission Values Emission Type.................................................................13
Table 3. Biodiesel Emission Values Emission Type.................................................................16
Table 4. Biodiesel production methods by chemical method...................................................17
Table 5. European Standard (EN 14214) for Biodiesel and its requirements...........................20
Table 6. World Biodiesel Consumption (Thousand Barrels of Oil Equivalent per Day)..........26
Table 7. Table Biodiesel Ex-Factory Prices by Years and Biomass..........................................26
Table 8. Local Agricultural Products Supply and Demand Values for Biodiesel in Turkey
(Sabancı,2006)..........................................................................................................................29
Table 9. Oil Crops Plantation Areas in Turkey (Ulusoy and Alibaş, 2002)..............................30
Table 10. Biodiesel Production Amounts in EU Countries.......................................................31
Table 11. Biodiesel Mixing Ratios in Some Countries.............................................................32
Table 12. Biodiesel analyzes.....................................................................................................34
Table 13. Polymer vs. compatibility compared to diesel..........................................................37
Table 14. Markets around the world.........................................................................................39
Table 15. Export status..............................................................................................................40
Table 16. Import values of Turkey............................................................................................41
Table 17. Export values of Turkey............................................................................................41
Table 18. Demand values of Turkey.........................................................................................42
Table 19. Estimated values (2023-2040)...................................................................................43
Table 20. Direct cost calculation...............................................................................................44
Table 21. Indirect Cost Calculation...........................................................................................44
Table 22. Direct cost calculation...............................................................................................45
Table 23. Fixed Expenses for TPC............................................................................................46
Table 24. Biodiesel Usage Amount in EU................................................................................48
Table 25. Energia: Capital Costs of Modular Processing Plant................................................53
Table 26. Full Facility Costs: LFTB and Energea....................................................................54
Table 27. Analysis of the supply demand balance....................................................................56

6
INTRODUCTION

Biodiesel is a biofuel used in a wide variety of industries. It is produced using biodiesel,

sunflower oil, microalgae, canola etc. The usage areas of biodiesel, which is frequently used
in sectors such as industry, transportation, mining, pottery, and casting, are very wide. Its
production and consumption capacity is increasing every year both in the world market and in
the Turkish market. It is frequently used in motors and many other sectors in the
transportation sector. Considering the usage shares in the sector, it was decided to produce
biodiesel from microalgae, which is a new production method. As a result of the literature
research, necessary process analyzes were made and in these analyzes, biodiesel production
from microalgae in Turkey was carried out by T.C. It is based on the process system of the
Ministry of Industry. A literature review was conducted by taking into account the projects
supported and encouraged by our country. As a result of these research, it was decided to
establish a production facility in Tuzla. Fixed investment cost was determined with the
feasibility reports published at the same time. As a result of the literature research, necessary
process analyzes were made.

7
1. IDENTIFICATION OF THE PRODUCT

1.1 Physical and Chemical Properties Of Biodiesel

Biodiesel is obtained from vegetable oil seeds (from canola, flax, cotton, soybean, peanut,
rapeseed, coconut, and palm plants), used waste frying oils, animal fats and all kinds of
biological origin oils with a short chain alcohol (methanol) accompanied by a catalyst. or
ethanol) are fatty acid methyl esters formed as a result of the reaction and used as fuel [1].

Biodiesel are mono alkyl esters obtained by the reaction of vegetable fatty acid esters with
simple alcohols such as methanol or ethanol under certain conditions. Biodiesel is an
environmentally friendly and renewable liquid alternative fuel within the scope of biofuels. In
practice, it is also referred to as biodiesel, green energy or, in popular words, "oil diesel"[1].

Biodiesel, which has similar properties to the current diesel fuel, can be used in diesel engines
by making some changes and adjustments. Biodiesel can be used directly instead of diesel
fuel, or it can be used by creating a mixture with the existing diesel fuel in certain proportions.
Biodiesel fuel produces less emissions than petroleum-based fuels and does not contain sulfur
[1].

Since the amount of oxygen contained in biodiesel is 11% higher compared to diesel, mixture
formation is better in the use of biodiesel, and as a result, a decrease in exhaust emissions is
observed.

The properties of biodiesel conforming to the standards are as follows;

Intensity

Although the density of vegetable oils generally varies according to the oil type, it comes to
880-920 kg/m3 at 15 °C. The density of the obtained biodiesel decreases, and it can go down
to the diesel level. If the obtained biodiesel density is too high, it is an indication that glycerin
has not been sufficiently removed from the environment. Biodiesel has 10-15% less calorific
value than diesel but is 5-7% more dense. As a result of low calorific value, there is a decrease
in engine power and torque. However, power loss decreases due to high density [12].

8
Flash Point

Flash point is very important in risk classification of fuels. A high flash point is required for
transportation and storage. Although the flash point of diesel fuel is 74 °C, the flash point of
vegetable oils is above 300 °C and the flash point of biodiesel is around 220 °C.

Calorie Value

The calorie value is important for the optimum operation of the engine and is the fuel quality
criterion. Generally, the calorific value of biodiesel is greater than 35 mJ/kg.

Kinematic Viscosity

Kinematic viscosity is characteristic of biodiesel. High viscosity causes poor atomization of

the fuel, bad combustion, clogging of injectors, carbon accumulation on the rings and
deterioration of the lubricating oil. High viscosity reduces pumpability and spraying of
injectors. Viscosity depends on temperature. The viscosity value of biodiesel varies between
3.5-6 mm2 /s at 40 °C. The viscosity increases as the chain length of hydrocarbons increases,
and the viscosity decreases as the number of double bonds increases. High viscosity is an
indication that the transesterification process has not been successfully completed.

There are two basic strategies to solve the high viscosity problem;

• Adaptation of the engine to fuel: Vegetable oil engines-stationary engines

• Adaptation of fuel to the engine: Biodiesel (Viscosity reduction)

Cold Flow Feature

Biodiesel has a higher pour point than diesel. This situation creates problems in the use of
fuels in the cold. They crystallize at high temperatures. Animal and frying oils have a high
number of saturated hydrocarbons. The use of fuel with poor cold flow properties will damage
the fuel supply elements of the engine. In addition, initial movement problems occur in the
motor [4].

Cetane Number

Indicates the ignition feature of diesel fuels. High cetane number reduces the ignition delay
time. Long straight chain saturated hydrocarbons have a high cetane number. Fuels with a
high auto-ignition temperature are more prone to diesel knock. The cetane number increases

9
as the length of hydrocarbons increases and decreases as the number of double bonds
increases. Medium or long chain saturated hydrocarbons have high cetane numbers (palm and
tallow) Soy and sunflower oil have high unsaturation and low cetane numbers. Peroxides
formed as a result of oxidation increase the cetane number.

Heating Value

It determines the amount of energy taken per unit mass/volume of fuel. This value is very
important for vehicles with weight limit. As the chain length of saturated hydrocarbons
increases, the calorific value increases (palm oil). As the unsaturation increases (as the
hydrogen number decreases), the heating value decreases [1].

Lubricity

Engine elements (piston-ring areas, fuel pumps, injectors, etc.) need lubrication to eliminate
friction and wear problems. The amount of sulfur in today's fossil diesel fuels has been
considerably reduced. Additives that increase the lubricating properties are used for diesel
fuels with reduced sulfur content. However, when the number of additive increases, deposits
form on the fuel supply elements. The lubricating property of biodiesel is very good [2].

Carbon Residue

By simulating the combustion of fuel on a surface in an oxygen-free environment, carbon

residue is determined according to the DIN EN ISO 10370 test method. Carbon residue causes
carbon accumulation in the injector holes or combustion chamber. Trials have shown that
biodiesel leaves practically no carbon residue, and the maximum value is 0.4% by mass [3].

Iodine Count

The number of iodine varies according to the characteristics of vegetable oils and the number
of double bonds. High iodine number fuels cause blockages in the injector holes or damage to
the combustion chamber.

Sulfur Content

In the case of using vegetable oils, there is a decrease in the amount of sulfur when compared
to diesel fuel [1].

Water Content

10
Vegetable oils basically do not contain water. However, it can be mixed during the production
and storage of vegetable oils. The fact that the fuels contain a certain amount of water is not a
disadvantage for the engine. If the water/fuel emulsion ratio is suitable, it can reduce the
combustion temperature and NOx emissions. However, in high-pressure injection systems,
water can be separated from the fuel and cause corrosion in the injector system.

Oxidation Stability

Oxidation stability of biodiesel is much lower than fossil diesel fuel due to its chemical
structure. In particular, polyunsaturated fatty acids are low in oxidation stability (linoleic and
linolenic acids are high in sunflower oil). The oxidation stability of saturated fatty acids is
high (palm oil). Oxidation stability also depends on the tokepherol and carotene (antioxidant)
content of the crude oil. Antioxidant additives are used.

Dilution of Lubricating Oil

One of the negative aspects of the use of biodiesel in diesel engines is the dilution of the
lubricating oil. The direct relationship of engine oil and biodiesel in the engine takes place in
the fuel injection pump and in the cylinder during the fuel injection combustion process.
Studies have shown that the lubricating oil dilution is 4-5%.

Toxic Effect

Biodiesel has no adverse toxic effects. For biodiesel, the lethal dose for direct oral
administration is 17.4 g biodiesel/kg body weight. For table salt, this value is 1.75 g salt/kg
body weight, and it has a lethal effect 10 times higher than salt biodiesel.

Biodegradability

C16-C18 methyl esters that make up biodiesel decompose easily and rapidly in nature and do
not show any negative microbiological effects up to 10 000 mg/l. When left in water, 95% of
the biodiesel and 40% of the diesel can be degraded in 28 days. Biodiesel's ability to degrade
in nature is similar to dextrose (sugar) [1].

The properties of biodiesel are given in Table 1.

Table 1. Properties of Biodiesel

BIODIESEL (EN14214)
Density (kg/m3) 15 °C 860-900
Viscosity (mm2/s) 40 °C 3.5-5.0

11
 Flash Point >=120
Lubricity -
Water Content <=500
Cetane Number >=51
Oxidation Stability >=6
Iodine Count <=120

In addition to the features described above, since agricultural products are used as the basic
material in the production of biodiesel, it is produced by many countries with domestic
resources. In the light of what has been said, biodiesel gains importance due to the reasons
listed below;

• The depletion of fossil fuels and therefore the gradual increase in oil prices

• Strategies and efforts of countries to diversify their energy resources and to get rid of foreign
dependency in energy for the major environmental damages arising from the use of fossil
fuels and their compensation,

• Being a strategic fuel in war and mandatory situations,

• Accelerating the agricultural development of countries with a multiplier effect by ensuring

the integration of agricultural products into industry,

• Advantages over engines; Its cetane number is higher than that of petroleum diesel, and the
benefits it provides to engines in terms of combustion and use due to its lubricating properties,

• Economic viability of small (domestic) and industrial production,

• Its flash point is higher than petrodiesel. For this reason, it is not included in the scope of
"Hazardous Goods" in world standards in terms of transportation and storage, and it is
accepted as safe fuel.

• The advantage of biodiesel is that it does not need any change in the use of biodiesel in the
engine.

Despite these advantages, biodiesel also has its drawbacks. These;

• Its calorific value is lower than petrodiesel. This causes some power reduction as a result of
combustion in the engine.

12
• It is affected by cold weather conditions more quickly than petrodiesel. This limits the use of
biodiesel in cold climates. To overcome this, B20 usage form is preferred.

. • Nitrogen oxide emission is slightly higher than petrodiesel. However, this problem can be
overcome by reducing the combustion temperature [4].

• It causes dilution of lubricating oil.

Biodiesel Emissions

Biodiesel is the first and only alternative fuel whose emission results and possible effects on
human health have been fully published and submitted to the United States Environmental
Protection Agency (EPA). This program, in which the EPA certifies fuel or fuel additives,
includes very strict emission programs [2].

Being a biological fuel, it decomposes easily and rapidly in nature (95% of water in 28 days,
40% of diesel oil) is an important environmental feature of biodiesel.

Figure 1. Average emission values of biodiesel in heavy vehicle engines

13
Table 2. Biodiesel Emission Values Emission Type

EMISSION TYPE B100 B20

REGULATED
Total Unburned Hydrocarbons - %67 - % 20

CO - %48 - %12

Particulate Matter - %47 - %12

NO +%10 +%2

NOT REGULATED
Sulfate -%100 -%20

PAH -%80 -%13

NPAH -%90 -%50

According to the results in this table;

• With the use of biodiesel, the amount of total hydrocarbon (one of the factors that contribute
to the formation of smog and ozone locally) is 50% lower than the amount produced by using
diesel.

• Sulfur emissions are almost completely eliminated by the use of pure biodiesel. The exhaust
emissions of sulfur oxides and sulfates (the main component of acid rain) are significantly
eliminated by the use of biodiesel compared to standard diesel.

• Tests have shown that with the use of biodiesel in diesel engines, significant reductions in
unburned hydrocarbons, carbon monoxide, and particulate matter have been achieved.
Emissions of nitrogen oxides are the same or slightly increased.

14
• The exhaust emissions of carbon monoxide (a toxic gas) decreased by 48% with the use of
biodiesel compared to the use of diesel.

• Breathing particulate matter is extremely harmful to human health. With the use of biodiesel,
there was a 47% reduction in the amount of particulate matter compared to the use of diesel.

• With the use of biodiesel, the amount of total hydrocarbon (one of the factors contributing to
the formation of smog and ozone locally) is 67% lower than the amount produced by using
diesel.

• NOx emissions (one of the contributing factors to smog and ozone formation locally) are
reduced or increased depending on the use of biodiesel and the engine type and test
procedure. However, since biodiesel does not contain sulfur, NO x control techniques that
cannot be used with standard diesel can be used with biodiesel. For this reason, NO x emission
of biodiesel can be effectively controlled and eliminated [2].

1.2. Physiological Effects

• Since biodiesel is obtained from agricultural plants, it converts carbon dioxide through
photosynthesis and accelerates the carbon cycle, so it does not increase the greenhouse effect.

• The CO2 released into the atmosphere from the biodiesel we consume will be taken back by
the oil plant to be used in biodiesel production within a maximum of one year.

• From this point of view biodiesel production can be described as a natural sink for CO 2
emissions and it makes significant contributions to reducing the negative effects of global
warming, which is one of the most important environmental problems of the world and caused
by the greenhouse effect

• When left in water, 95 percent of biodiesel dissolves at the end of a 28-day period, while this
rate drops to 40 percent in diesel.

• For this reason, the use of pure biodiesel has been made mandatory for transportation
vehicles and boats used in wet areas such as lakes and rivers, especially in many states of the
USA.

• The amount of sulfur contained in biodiesel, which is considered environmentally friendly

because it can be easily decomposed by bacteria, is much lower than diesel.

• This prevents negative environmental effects such as acid rain if biodiesel is used instead of
diesel.

15
• It has also been proven that CO emissions are reduced, and particulate matter and unburned
hydrocarbons are less released.

• Biodiesel gives lower exhaust gas emissions than diesel fuel. With the use of pure biodiesel
and diesel-biodiesel mixture, CO, particulate matter, HF, SO x and CH4 emissions decrease,
while NOx and HCl emissions increase.

• Sulfur emission can be completely eliminated by using pure biodiesel.

• Sulfur oxide and sulphate emissions caused by the use of diesel fuel disappear with the use
of biodiesel.

Figure 2. Physiological Effects

• Compared to diesel fuels, the number of particles released in the use of biodiesel is 47%
less.

• In the use of biodiesel, the rate of unburned hydrocarbons is 67% less, CO2 emissions are
80% less, and aromatic hydrocarbons with carcinogenic effects are 75-90% less than diesel
fuel.

• With the use of biodiesel, the negative effects on the ozone layer are less than with diesel
fuel.

• Sulfur components that cause acid rain are also negligible in biodiesel fuels [5].

16
1.3. Restrictions And Rules On Transportation

Table 3. Biodiesel Emission Values Emission Type

Production by Production by Other Usage Areas Other Important

Chemical Method Methods Factors
• Thinning Method • Traditional methods • As fuel in • Environmental
• Microemulsion • By microwave generators and impact
• Pyrolysis method method heaters • Effect on health
• Transesterification • Supercritical method • Lubricating engine
• Ultrasonic method or other machine
parts
• In greenhouses
• Mining and pottery

Table 4. Biodiesel production methods by chemical method

Method Definition Advantages Disadvantages

Thinning Biodiesel is diluted Renewable, ready to High viscosity, low
with diesel fuels. use. Portable, natural volatility. Reactivity
liquid. of unsaturated
hydrocarbon chains
Microemulsion It is formed by the Better spraying We dropped the
combination of two during combustion, cetane number. low
normally lower fuel viscosity energy content
immiscible liquids
and one or
more amphiphiles.
Pyrolysis Conversion of long Chemical similarity High cost due to high
chain and saturated to petroleum-derived

17
 materials into fuels energy
biodiesel by heat gasoline and diesel
Transesterification Obtaining ester and Renewability. high Difficulty separating
glycerol from cetane number. Low glycerin and water
animal and emission, high from the product
vegetable oils in combustion efficienc
the presence of y
alcohol and catalyst

Traditional Method of Biodiesel Production

• Biodiesel is obtained as a result of transesterification of vegetable and animal oils.

• Transesterification is a chemical reaction in which various vegetable or animal oils together

with alcohol (usually ethanol or methanol) form fatty esters and glycerol in the presence of a
catalyst.

• In the literature, this process is called methanolysis when methanol is used as alcohol and
ethanolysis when ethanol is used.

Figure 3. Ethanolysis reaction

Figure 4. Methanolysis reaction

Biodiesel Production by Microwave Method

In recent years, with the development of microwave technology and the increase in its
controllability, studies on the use of microwave in biodiesel synthesis have increased.

18
• Today, as an alternative to classical heating methods, the heating feature of microwave rays
is used in chemical synthesis.

• Microwave heating provides a great increase in both the reaction rate and the efficiency of
the reaction.

• Microwave method is very useful for slow progressing reactions, in other words, for
reactions that require high activation energy.

Although it has important advantages, there are some disadvantages of microwave biodiesel
production.

• The biggest disadvantage of this method is that it allows small-scale production only in the
laboratory environment, and that it does not have the opportunity to produce in industrial
scale.

• Another important disadvantage is that the material's ability to absorb microwave radiation
may vary depending on its electrical properties.

• Another disadvantage is that its use in industry is not attractive in terms of safety.

Biodiesel Production by Supercritical Method

• Supercritical fluid can be defined as substances that exceed the critical temperature and
critical pressure values.

• The critical temperature for a substance is the temperature above which the substance cannot
exist as a liquid phase, regardless of the pressure.

• Critical pressure is the vapor pressure of the substance at its critical temperature.

. • The separation problems encountered from time to time in recent years can be solved with
supercritical fluids.

• The main feature of supercritical fluids is that the dissolving power of such fluids can be
controlled by density variation.

• Supercritical fluid has high solubility, density, and diffusion.

Biodiesel Production by Ultrasonic Method

19
• An ultrasonic cleaner system consists of a metal tank made of stainless steel and piezo-
ceramic transducers attached to the bottom or side of this tank, an ultrasonic generator, and
cleaning fluid.

2. STANDARD FEATURES

2.1 Standard Features of Biodiesel

Biodiesel has become a rapidly growing renewable liquid biofuel. Standardization and quality
assurance, transportation, and heating, to ensure customer acceptance; biodiesel as fuel is a
key factor in bringing it to market. There are different standards for biodiesel quality. The two
best known are EN 14214 and ASTM D6751.

EN 14214 is for the European Biodiesel Standard. It is an international standard that defines
the minimum requirements for biodiesel, created by the European Committee for
Standardization. ASTM D6751 details specifications for biodiesel blended with medium
distillate fuels. This specification standard specifies various test methods to be used to
determine certain properties for biodiesel blends. Biodiesels that comply with the
specifications of certain classes in this standard can be run in unmodified diesel engines in the
USA and Canada. A notable difference between these two standards for biodiesel is that EN
14214 46 is designed more for B100 fuel and ASTM D6751 is developed with B20 or lower
blends. ASTM D6751 includes some EN tests for this component as they have not developed
a standard for oxidation stability and Sodium/Potassium.

Table 5. European Standard (EN 14214) for Biodiesel and its requirements

Properties Units Lowest Limit Highest Limit Test Method

Ester content % (m/m) 96.5 - Pr EN 14103 d
Density (15 °C) kg/m3 860 900 EN ISO 3675
EN ISO 12185
Viscosity (40 °C) mm2/s 3.5 5.0 EN ISO 3104
Burst Point °C >101 - ISO CD 3679e
Sulfur content mg/kg - 10 -

20
Tar residue (at % (m/m) - 0.3 EN ISO 10370
10% distillation
residue)
Cetane - 51.0 - EN ISO 5165
Sulphated ash % (m/m) - 0.02 ISO 3987
content
Water content mg/kg - 500 EN ISO 12937
Total pollution mg/kg - 24 EN 12662
Copper tape degree Class 1 Class 1 EN ISO 2160
corrosion (3 h at
50 °C)
Oxidation hour 6 - pr EN 14112 k
stability at 110 °C
Acid value mg KOH/g - 0.5 pr EN 14104

Iodine value - - 120 pr EN 14111

Linoleic acid % (m/m) - 12 pr EN 14103d

methyl ester
Polyunsaturated % (m/m) - 1 -
(4 double bonds)
methyl ester
Methanol content % (m/m) - 0.2 pr EN 141101
Monoglyceride % (m/m) - 0.8
content pr EN 14105m

Diglyceride % (m/m) - 0.2 pr EN 14105m

content
Triglyceride % (m/m) - 0.2 pr EN 14105m
content
Free glycerine % (m/m) - 0.02 pr EN 14105m
pr EN 14106
Total gliserin % (m/m) - 0.25 pr EN 14105m
Alkali metals (Na mg/kg - 5 pr EN 14108

21
 + K) pr EN 14109
Phosphorus mg/kg - 10 pr EN14107p
content

2.2 Standards for Packaging

It should be stored in its tightly closed original packaging in a dry, cool and well-ventilated
place. It should be kept away from food, drink and animal feed. It must be protected against
physical damage and/or friction. It should be protected from heat, sparks and flame and stored
in a cool, well-ventilated area. It should be stored away from incompatible materials and
stored in tanks designed according to the product. Storage tanks should be labeled and kept
closed when not in use. Warning signs should not be removed as there may be some products
in empty tanks [6].

Although the tanks containing the product vapor may be empty, cutting, welding and brazing
operations should not be done. If the hydrocarbon vapor concentration is more than 1% and
the oxygen concentration is less than 20%, the tank should not be entered without an oxygen
mask. There is a possibility that the igniting vapor of the product may collect in the storage
tanks. Therefore, static electricity must be discharged.

Precautions should be taken against the ignition source during filling and discharging. Pump
etc. to prevent static electricity build-up. equipment must be grounded, or transmission cables
must be interconnected with a cable.

The following standards have been set in the EU to determine the properties of biofuels.

For biodiesel:

• EN 14214 standard specifying test requirements for FAME type biodiesel

• EN 590 European Diesel Fuel Standard

With these standards, the quality control of the biofuels within the Union is ensured, and the
consumers are prevented from being adversely affected by the biofuels produced in
accordance with the standards.

22
2.3 Possibilities to Improve the Quality of the Product
Studies on the improvement of fuel properties of vegetable oils are primarily aimed at
reducing the viscosity of oils. Two methods, thermal and chemical methods, are used to
reduce the viscosity of vegetable oils.

Improving the Fuel Properties of Vegetable Oils

Reducing Viscosity

THERMAL METHOD CHEMICAL METHOD

• Dilution

• Microemulsion Formation

• Transestrification

• Prolysis (Separation)

Figure 5. Improving the Fuel Properties of Vegetable Oils

[Link] INDUSTRIES

3.1 Places of Use and Applications

In our country, biodiesel can be used as a fuel in all areas where diesel is used, except for very
cold regions. Biodiesel can be used as a substitute for diesel fuel in the transportation sector,
as well as in residential and industrial sectors as an alternative to fuel oil.

23
Transportation Sector: Biodiesel can be used in diesel-powered engines without any technical
modifications or with minor adjustments in some vehicles. It can be stored under the same
conditions and in the same facilities as diesel fuel. Due to these characteristics, biodiesel is
widely used in the transportation sector.

Residential Sector: Biodiesel can be used as a fuel in boilers that normally run on fuel oil in
residential settings.

Industrial Sector: Biodiesel can be used as an alternative to fuel oil for energy production in
industrial facilities. It can be used in boilers used for heating purposes and in generators used
for energy production.

Agricultural Sector: Biodiesel can be used in agricultural machinery and tractors, reducing the
environmental impact of fuel used in agricultural activities.

Maritime Sector: Biodiesel can also be used in certain ships involved in maritime
transportation. Especially for vessels and yachts operating in inland waters, biodiesel can be
preferred as a more environmentally friendly fuel.

Aviation Sector: The use of biodiesel is increasing in the aviation industry. Biodiesel can be
used as jet fuel, replacing kerosene used in aircraft. This way, carbon emissions can be
reduced in the aviation sector.

24
Figure 6. Industries of applications

3.1 Total Consumption and Monetary Value

Biodiesel has a significant share in the total consumption of alternative fuels. Its usage has
been increasing steadily in recent years, driven by its environmental benefits and renewable
nature. The exact figures regarding the total consumption of biodiesel vary depending on the
region and time period.

In terms of the monetary value, the biodiesel market has experienced substantial growth and
represents a valuable sector within the energy industry. The monetary value of biodiesel is
determined by various factors, including the market demand, production costs, government
incentives, and regulations. As the demand for renewable energy sources and the awareness of
sustainability continue to rise, the monetary value of biodiesel is expected to increase further.

It is important to note that the total consumption and monetary value of biodiesel are
influenced by factors such as government policies, market dynamics, technological

25
advancements, and environmental concerns. These factors shape the overall market conditions
and determine the significance of biodiesel within the energy landscape.

Figure 7. Global trend of biodiesel consumption

26
Figure 8. Worldwide Biofuel Consumption

Table 6. World Biodiesel Consumption (Thousand Barrels of Oil Equivalent per Day)

Biodiesel 2009 2011 2013 2015 2017 2019 2019a 2008- 2019b
2018a
Canada/Mexico 1 4 5 4 6 5 %-4,5 %20,1 %15,4
ABD 18 49 80 83 111 101 %-5,7 %27,7 %0,8
Brasil 23 38 43 58 63 87 %11 %11,9 %13,3
South/North ABD 3 16 20 23 25 25 %2.9 %29,1 %3

AB 160 200 200 217 243 261 %-2,6 %7 %9,9

Asia 26 36 63 61 80 173 %50,1 %19,4 %26,4
World 231 344 412 448 530 655 %9,2 %12,1 %100

a
: Annual growth rate b
: Total share

Table 7. Table Biodiesel Ex-Factory Prices by Years and Biomass

Product Unit 2016 2017 2018 2019 2018/2019

27
 Change
Soybean $/ton 943 942 904 850 %-9
Biodiesel
Rapeseed $/ton 766 776 711 700 %-7
Biodiesel
Wax Oil $/ton 655 704 581 600 %17

3.3 Distribution of Total Consumption

3.3.1 Interregional Distribution

Figure 9. Distribution of Companies Holding Biodiesel Processing Licenses by Provinces

28
Figure 10. World biodiesel consumption

Figure 11. World biodiesel market development

[Link] PROGRAM

29
4.1 Domestic Production and Changes in Production Direction
Biodiesel production is typically derived from oilseed crops. With the development of
utilizing vegetable oils and waste products as motor fuel, it is necessary to increase the
production of oil crops in the agricultural sector. This shift aims to ensure a domestic supply
of feedstocks for biodiesel production and reduce reliance on imported raw materials. By
expanding domestic production of oilseed crops, the availability of raw materials for biodiesel
production can be improved, contributing to the growth of the biodiesel industry in the
country.

Table 8. Local Agricultural Products Supply and Demand Values for Biodiesel in Turkey
(Sabancı,2006).
Production Amount (ton)
Total Domestic Production (A) 497.100
Total Demand (B) 1293.100
Difference (B-A) 796.000
Total Imports 798.600

Although our agricultural production capacity is high in our country, production is made
entirely for food oils, but it cannot meet our needs (Şentürk, 2005).

The cultivation areas, oil ratios, production yield and quantities of oil plants used as basic raw
materials in biodiesel production in Turkey are given in the table below.

300 thousand tons of these oils, which are used in restaurants, hotels and different kitchens,
turn into waste frying oil. In the production of biodiesel, refined vegetable oils can be used as
well as used cooking oils (Keskin et al., 2006).

There are many waste oil collection and recycling companies in Turkey. The re-refining and
use of waste frying oils as food is harmful to human health. On the other hand, it causes
environmental pollution when it is thrown directly into the sewer. In recent years, especially
in our big cities, studies have started by municipalities and governorships to make annual
contracts with authorized collectors in restaurants, cafeterias and hotels (Elmas, 2006).

Oil plant name Cultivation area Fat ratio (%) Production Produce amount
(ha) efficiency

30
 (kg/ha) (ton)
Peanut 28000 35-55 2679 75000
Soy 24000 13-25 2750 66000
Canola 187 40-45 1765 330
Saffl 50 9-28 1000 50
ower
Sunflower 595000 40-50 1597 950000
Flaxseed 385 30-40 590 227
Sesame 51000 45-59 549 28000
Poppy seed 55000 44-50 570 899117
Cotton seed 731362 16-24 1798 1314660
Corn 518000 17-18 4434 2297000
Cannabis seed 536 - 103 55
Table 9. Oil Crops Plantation Areas in Turkey (Ulusoy and Alibaş, 2002).

Figure 12. Facilities with Biodiesel Authorization Certificate in Turkey

In today's world, ethanol and biodiesel are alternative fuels to gasoline and diesel. As an
agricultural country, biodiesel is a preferred option in our country. It will contribute to

31
strengthening the economic structure and creating job opportunities in rural areas, as well as
promoting the development of the ancillary industry. The strategic position of biodiesel
should not be overlooked. However, biodiesel being derived from vegetable oils makes it
more expensive compared to diesel fuel. The use of waste oils in biodiesel production helps
reduce costs. In Turkey, 300,000 tons of waste oil is generated annually. When these waste
oils are used in biodiesel production, it will result in a profit of 480 million TRY per year.
Additionally, using these waste oils in biodiesel production will reduce CO emissions, a
greenhouse gas, by 900,000 tons compared to diesel fuel [2].

4.2 Global Production and Production in Major Countries

In 1988, a small farmer cooperative established the first biodiesel plant with a capacity of 500
tons per year in Austria. The first industrial-scale production facility (10,000 tons per year)
was also set up in Austria. Italy, France, and other countries began establishing production
facilities. Developed countries are increasing the use of renewable energy sources as part of
their energy policies (Karaosmanoğlu, 2004).

According to a report from the International Energy Agency organized by the "Austrian
Biofuels Institute" in 1998, it was determined that 21 countries worldwide were engaged in
biodiesel production. Currently, in EU countries, 1,434 thousand tons of biodiesel are
produced in 40 facilities per year ([Link]

Table 10. Biodiesel Production Amounts in EU Countries

Biodiesel production amount (thousand tons)

Country
Germany 715
France 357
İtaly 273
Austria 32
Spain 6
Denmark 41
England 9
Sweden 1
Total 1434
32
 Biodiesel(%) Petroleum diesel (%)
Country
Germany 100 -
Ausria 100 -
France 5 - 36 95
ABD 20 80
Belgium 100 -
Spain 30-36 70-64
England 5 95
Table 11. Biodiesel Mixing Ratios in Some Countries

EU countries have committed, in the directive dated November 27, 2001 (2001/77/EC), to
obtain 22% of their total energy consumption from renewable sources by 2010. It has been
decided to impose 50% less tax on biodiesel users compared to diesel fuel users in terms of
CO2 emissions (Acaroğlu, 2005).

Figure 13. World biodiesel production amounts by years

In 1992, the Energy Policy Act (EPACT) was passed in the United States. The most
significant provision of this law was to replace 10% of American petroleum consumption with

33
alternative fuels by the year 2000 and 30% by the year 2010. This law envisioned the United
States working on alternative fuels such as electric vehicles, ethanol, methanol, and biodiesel.

On the other hand, the Canadian government has decided to produce 500 million liters of
biodiesel annually by the year 2010. Currently, Canada utilizes 26.4 million hectares of land
for crop production, with approximately 3% of this area dedicated to biodiesel production.
Canada continues to engage in biodiesel production in laboratory conditions and pilot plants.
It is evident that the search for alternative energy sources continues worldwide, and countries
are implementing incentives to promote the use of alternative fuels.

4.3. Production Program of Other Major Producers

Renewable Energy Group: Headquartered in Ames, Iowa, this company produces 212 mmgy
(million gallons per year) across six facilities.

ADM: This company produced 145 mmgy in three production plants. Its headquarters is in
Decatur.

Ag Environmental Products: A subsidiary of Ag Processing, Inc., with headquarters in

Omaha, Nebraska. Production figures are not available.

Louis Dreyfus Corp: Located in Claypool, Indiana, this company produces 90 mmgy in a
single facility.

RBF Port Neches: Headquartered in Houston, Texas, this company produces 50 mmgy in a
single facility.

5. PRICES

5.1. Structure of Prices

The production cost of biodiesel produced in our country was determined as 2.01 TL/l within
the scope of the research. When an additional 0.72 TL/l Special Consumption Tax (SCT) is
added to the calculated production cost of 2.01 TL/l, the biodiesel price reaches 2.73 TL/l. By
adding 18% Value Added Tax (VAT) to the SCT-inclusive biodiesel price, the biodiesel price
reaches 3.22 TL. After conducting discussions with fuel distribution stations and biodiesel
34
production facilities, taking into account the profit margins in the sector, this value was
further increased by the company's profit share, resulting in a selling price of 3.54 TL/l.

Table 12. Biodiesel analyzes

BIODIESEL ANALYZES
Codes Analyze Names Price(TL) Sample
Amount
444 Copper Corrosion(TS 2471 EN ISO 2160) 100,00 200 ml
445 Carbon Residue Determination (TS 6148 EN ISO 245,00 500 ml
10370)
447 Flash Point Determination (TS EN ISO 3479) 100,00 15 ml
448 Kinematic Viscosity Determination (TS 1451 EN ISO 125,00 100 ml
3104)
449 Cold Filter Plugging Point Determination ( TS EN 116, 92,00 350 ml
TS EN 116A/C)
450 Water Determination (TS 6147 EN ISO 12937) 110,00 15 ml
451 Density Determination (TS EN ISO 12185) 70,00 75 ml
452 Iodine Number Determination (TS EN ISO 14111) 155,00 8 ml
453 Acid Number Determination (TS EN 14104) 155,00 150 ml
455 Determination of Oxidation Stability (TS EN 14112) 260,00 40 ml
456 Determination of ester and linolenic acid methyl ester 325,00 5 ml
content (TS EN 14103:2011)
457 Determination of Methanol Content (TS EN 14110) 325,00 5 ml
458 Pour Point Determination (TS 1233 ISO 3016) 110,00 350 ml
462 Extracting Oil from Seeds 110,00 Up to 10
kg
463 Oil 125,00 100 gr
464 Biodiesel Plot Plant Production 700,00 100 lt
465 Biodiesel Production 140,00 1 lt

35
5.2. Distribution of Price Values in Past Years

Sales Value (TL)

800000000

700000000

600000000

500000000

400000000

300000000

200000000

100000000

0
2016 2017 2018 2019 2020

Figure 14. Sales value graph

5.3. Factors Affecting Price

In businesses that use waste oil as a raw material, the production cost is relatively lower. The
factors that reduce production costs include the utilization of by-products generated during the
production process, such as oil cake and glycerin. Glycerin, in particular, is a by-product that
determines the production cost of biodiesel and directly affects the economic benefits of the
facility. Purifying glycerin and marketing it can increase the profit margin of the business.
Additionally, the fertilizer obtained during the purification process also has economic value.

6. TRANSPORTATION AND STORAGE OF BIODIESEL

Biodiesel is also considered safe in terms of transportation and storage. However, it has a
softening and melting effect on asphalt in road transportation [60]. To enhance the safety of
diesel during transportation, blending biodiesel in certain proportions is practiced. There are
several key properties to consider in the transportation and storage of biodiesel, including
exposure temperature, oxidative stability, fuel solubility, and material compatibility. The term
"exposure temperature" refers to the temperature at which biodiesel is stored or transported.
Oxidative stability is related to the ability of biodiesel to be stored for a long time without
degradation. Fuel solubility concerns the solubility properties of biodiesel. Material

36
compatibility relates to the interaction between biodiesel and the materials used in storage
tanks, seals, and gaskets [4].

Environmental Temperature

All types of diesel fuels can gel at low temperatures. The temperature at which biodiesel will
gel (freeze) is generally higher compared to conventional diesel fuel and depends on the
composition of biodiesel. Saturated methyl esters, in particular, have a higher gel point
compared to unsaturated esters. The composition of biodiesel is determined by the oil
feedstock used in its production, which affects the gel point of biodiesel.

Oxidative Stability

All diesel fuels have the potential to create oxidative stability issues. Oxidative stability is
related to the degradation of fuel through reaction with oxygen. The reactivity of the fuel is
important in this context. The oxidative stability of a diesel fuel can be estimated using the
iodine number (ASTM D 1510). The long-term stability value of diesel fuel can be
determined through accelerated stability testing (ASTM D 2274).

Fuel Solubility

Biodiesel is a mild solvent compared to diesel fuel and has higher solubility properties. Due to
this characteristic, biodiesel can dissolve residues in diesel storage tanks or vehicle fuel tanks.
The solubility properties of biodiesel decrease when it is blended with diesel fuel. Typically,
blending biodiesel at a ratio of 20% or less will almost render the solubility property of
biodiesel ineffective. However, when biodiesel is introduced into a previously diesel-used
storage tank, its solubility property should be considered. When transitioning to biodiesel use
in a vehicle or fleet, it is often recommended to change the fuel filters multiple times to avoid
usage-related issues.

Material Compatibility

Material compatibility is another important property to consider when working with biodiesel.
The use of stainless steel or aluminum equipment is preferred when handling biodiesel.
Oxidation and residue production can begin with the contact of biodiesel or diesel with brass,
copper, lead, tin, and zinc. Biodiesel may have compatibility issues with certain polymers.
Table... shows the compatibility of biodiesel with some polymers compared to diesel.
Biodiesel is compatible with commonly used gaskets, seals, and adhesives. However, there
may be issues with gaskets, seals, and adhesives manufactured before 1993 [2].
37
Table 13. Polymer vs. compatibility compared to diesel

POLYMER Compatibility Compared to Diesel

Fluorosilicone Little change in firmness, 7% increase in swelling
Nitrile 20% reduction in firmness, 18% increase in swelling
Nylon (6/6) Little change
Polypropylene 20% reduction in firmness, 8-15% increase in swelling
Polyurethane Little change in firmness, 6% increase in swelling
Polyvinyl Much worse
Teflon Little change
Taigon Much worse
Viton A401-C Little change
Viton GFLT Little change

Storage

If biodiesel is to be stored for a long period, the stability of biodiesel is an important

characteristic. Weak stability can lead to an increase in acid number, fuel viscosity, and the
accumulation of gums and sediments. The stability of stored biodiesel can be assessed by
continuously monitoring acid number and viscosity. The storage stability of biodiesel has not
been extensively studied and, therefore, the current best practice includes not storing biodiesel
or biodiesel blends for more than six months. If biodiesel is to be stored in a humid and warm
climate, the addition of additives to biodiesel storage tanks is necessary. Water contamination
in stored fuel should be minimized as it can promote biological growth. If water
contamination occurs, the use of biocides can reduce biological growth and bacterial
development. When selecting tanks for biodiesel storage, certain factors should be considered.
Suitable materials for biodiesel storage tanks include aluminum, steel, Teflon, and fluorinated
polyethylene or polypropylene. Tanks previously used for diesel storage are often
contaminated with water, which can be absorbed by biodiesel. If tanks previously used for
diesel storage are to be used for biodiesel storage, they should be cleaned beforehand. Tanks
should be selected to minimize both water contamination and exposure to air as much as
possible.

Transportation

38
When transporting biodiesel, transport containers should be clean and dry. Additionally, the
containers should be made of the same construction materials used for storage. Seals, gaskets,
and adhesives in the transfer systems should also be compatible with the materials used. Due
to its pour point, transporting pure biodiesel by ship in cold weather is difficult. Methods for
transporting biodiesel in cold weather include rapidly distributing hot biodiesel in tank trucks,
using tank trucks equipped with vapor coils for transporting solidified biodiesel, and blending
biodiesel with 20% winterized diesel or 50% kerosene for transportation.

7. COMPETITIVE SITUATION

7.1. Markets Around

Table 14. Markets around the world

USA First, the ASTM-6751 standard, which is applicable to domestically produced

vegetable oil and simpler and more practical than the EU standard, has defined
the specifications for biodiesel fuel properties. The ASTM standard only
includes the fuel properties of biodiesel.
Malaysia As the world's largest exporter of palm oil and possessing significant petroleum
reserves, the country has implemented revolutionary decisions that have
brought about substantial incentives for palm cultivation nationwide.
Brazil Having achieved incredible success with a usage rate of up to 80% in
bioethanol, this once switched to biodiesel attack.
India Concentrating on the Jotropha plant suitable for its ecology, it has organized its
legislation and research accordingly.
China It resolutely implements the national biofuel policy for its own resources.
Germany Germany is a pioneer in the field of biofuels and biodiesel in both the European
Union (EU) and the world. In the European Union, Germany has taken the lead
in biofuels by introducing mandatory quotas for biofuels through the German

39
 Energy Tax Act.
France The annual production is 450,000 tons, and it is used with a tax exemption and
a blending rate of 5%. Efforts are being made to increase production through
projects supported by well-known automotive companies as well as
international oil companies.
Austria Austria, a country that has taken the lead in biodiesel through conscientious
research and raw material organization, is increasing its production of 100,000
tons per year according to its program and exporting to Germany.
Italy The project, which was successfully initiated by encouraging the use of
municipal vehicles in settlements with a population of over 100,000, continues
to promote and support the use of biodiesel, particularly for residential heating
purposes.
Spain In addition to tax incentives, the EU has deviated from its standard in order to
promote the use of sunflower oil. Despite all objections, it continues to enforce
its own standard by keeping the iodine value at 140.
England The country engaged in regional applications has exempted the use of biodiesel
in certain regions from taxation.
Belgium Keeping pace with the development of other countries by allowing 100% use
of biodiesel in vehicles
he made it up.

7.2. Export Status

Table 15. Export status

Company 2016 2017 2018 2019 2020

TBE
Biyodizel - - - 1.506,42 9.505,74
Tarımsal
Enerji
Kolza - -
Biyodizel - 1.463,56 5.182,16
Yakıt ve

40
 Petrol
Maysa Yağ
Sanayi A.Ş. 96,60 537,30 305,34 97,90 1.756,16

8. PROFITABILITY

8.1 Capacity
Turkey's demand was calculated by subtracting the import and export values.

Table 16. Import values of Turkey

IMPORT (1000Ton)
YEAR VALUE
2012 656
2013 32,527
2014 No Quantity
2015 913
2016 559
2017 591
2018 486
2019 157
2020 173
2021 243
2022 637

Table 17. Export values of Turkey

EXPORT (1000Ton)
YEAR VALUE

41
 2012 1
2013 72,043
2014 139
2015 56
2016 163
2017 707
2018 498
2019 3,113
2020 16,858
2021 13,801
2022 10,311

Table 18. Demand values of Turkey

TURKEY DEMAND(1000Ton)
YEAR VALUE
2012 655
2013 -39.516
2014 -139
2015 857
2016 396
2017 -116
2018 -12
2019 153.887
2020 156.142
2021 229.199
2022 626.689

42
 Turkey Demand
1000

800

600

400

200 f(x) = 0.0409545454545423 x + 168.976590909097

R² = 1.60173506902339E-07
0
2 0 10 2 0 12 2 0 14 2 0 16 2 0 18 2 0 20 2 0 22 2 0 24

-200

Figure 15. Turkey’s demand graph

Using these values and the linear graph, the demand in Turkey until 2040 has been estimated.

Table 19. Estimated values (2023-2040)

YEAR DEMAND QUANTITY

2023 25192300
2024 25196400
2025 25200500
2026 25204600
2027 25208700
2028 25212800
2029 25216900
2030 25221000
2031 25225100
2032 25229200
2033 25233300
2034 25237400
2035 25241500
2036 25245600
2037 25249700

43
 2038 25253800
2039 25257900
2040 25262000

We agreed that our capacity would equal 30% of Turkey's estimated demand in 2040.

Thus, our capacity will be 7578600 Kg/year.

8.2 Raw Material, Reserve Quantity and Availability

In the process we selected, microalgae were used as raw material and grown in special ponds.
For this reason, the number and size of the pool can be counted as the factors affecting the
amount of reserve.

8.3 Labor
Operational labor for 10 people working per shift in the factory, which operates 300 days a
year with a determined capacity of 0.2 tons/day, was found to be 720000 USD/year.

men shift days $

10 ×3 ×8 hours ×300 ×10 =720000 $ / year
shift 1 day 1 year employee hour

8.4 Determination of Fixed and Total Capital Investment

Table 20. Direct cost calculation

Equipment Purchased Cost (PEC) 29,000,000 USD

Installation including insulation (35% of 10,150,000 USD
PEC)
7,830,000 USD
Instrumentation and controls (27%
of PEC)
pipes (62% of PEC) 17,980,000 USD
Electricity (15% of PEC) 4,350,000 USD
9,570,000 USD
Buildings and process (33% of
PEC)

44
 15,660,000 USD
Service and site improvements (54% of
PEC)
Land (6% of PEC) 1,740,000 USD
TOTAL= Direct Cost 67,280,000

Table 21. Indirect Cost Calculation

11,437,600 USD
Engineering and Control (17% of
Direct Cost)
Legal Expenditures %2 of Fixed Capital Investment
Contracting and supervisor %15 of Fixed Capital Investment
expenditures
contingency %10 of Fixed Capital Investment

Fixed Capital Investment = Direct + Indirect Cost

FCI = 78,717,600 USD + 0,27 FCI

0.73 FCI = 78,717,600 USD

FCI = 107,832,328 USD

For Total Capital Investment;

Working Capital (WC) is estimated at 15% of Total Capital Investment:

TCI = 107,832,328 USD + 0.15 TCI

0.85 TCI = 107,832,328 USD

TCI = 126,861,562 USD

45
8.5 Amount of Product Obtained per Unit Quantity Raw Material

Direct Cost Calculation for Total Product Cost;

Table 22. Direct cost calculation

Raw materials 15,000,000 USD

Labor expenses (O.L) 720,000 USD
108,000 USD
Direct Supervision and Office
Work (15% OL)
(Steam and Electric) 8,000,000 USD
Maintenance and repair (7% FCI) 7,548,262 USD
Operating Materials (13% 981,274 USD
maintenance and
repair)
Laboratory expenses (16% of 115,200 USD
O.L)
Patent (No patent) 0
Direct Production Cost Total 32,472,736 USD

• Fixed Charges;

Table 23. Fixed Expenses for TPC

Depreciation (6% FCI per year) 5,160,423 USD

Local taxes (1% FCI) 851,875 USD
insurance (0.8% FCI) 862,658 USD
Rent (none) 0
Finance (5% of Total Product 0.05 TPC
Cost)

• Facility-General Cost;

46
0.6 (720,000 USD + 108,000 USD + 7,548,262 USD) = 5,025,757 USD

General expenses: (20% of TPC)

TPC = 0.25 TPC + 44,373,449USD

TPC =59,164,598 USD yearly

8.6 Cost of the Product

4930 ton/ year

Annual profit 16,830,000

10 years of service

16,830,000− ( 107,832,328
10 ) ( 1−0 , 35) =3,930,398USD
3,930,398
ROI=Np/T = ×100
107,832,328+19,029,234

¿%3

Since 3% < 15%, it will not be a profitable investment to implement the business.

9. FUTURE MARKET OPPORTUNITIES

9.1 Which Way Consumption Is Going

Biodiesel, which is expressed as the fuel of the 3rd Millennium in the world, first entered the
literature when Rudolf Diesel, who gave his name to diesel engines at the beginning of the
last century, started his engine with peanut oil. Especially since 1973, studies on biodiesel
have intensified. Biodiesel production is increasing day by day in the world, and new
countries are added to the producing countries every day. Especially with the EU's Biofuels
directive in 2003, the obligation to participate in petrodiesel caused a rapid increase in
biodiesel production. EU biodiesel production capacities are given in Figure 9.

47
Figure 16. EU Biodiesel Production Capacities

The change in Biodiesel Usage Amounts in the EU by years is given in the table below.

Table 24. Biodiesel Usage Amount in EU

Year Amount (million tons)

1999 0,6
2002 1,2
2003 1,8
2004 2,8

Biodiesel Use in the EU:

The use of B5 and B20 is common in the application of the biodiesel standard in vehicles with
EN 14214.

B20 has been used in VW, Audi and Mercedes trucks since 1996.

It is more widely used in agricultural vehicles, transport vehicles, trucks, greenhouses,

industrial generators, heating boilers, ships, military vehicles.

48
According to the EU Biofuel Use Directive “DIRECTIVE 2003/30/EC OF THE EUROPEAN
PARLIAMENT AND OF THE COUNCIL of 8 May 2003 on the promotion of the use of
biofuels or other renewable fuels for transport”, the biofuel usage target is;

2% in 2005 (approximately 5.8 million tons)

It was determined as 5.75% (approximately 16.5 million tons) in 2010. The EU Biofuels use
target is 20% for 2020.

In Europe, biodiesel is legally tax-exempt. (Austria, France, Germany, Italy, Ireland, Norway,
Sweden, Poland, Slovakia, Czech Republic)

In Europe, idle lands that are not used for agriculture have been allocated to biodiesel
farming.

On the basis of pre-tax costs, the disadvantage of biodiesel against diesel is compensated by
the guarantee of agriculture, various tax deductions and incentive premiums.

Today, biodiesel

• Germany (B100)

• Austria (B100)

• Czech Republic (B30-B36 in municipal vehicle fleets)

• France (B30-B36 in municipal vehicle fleets) (B5-on sale to the public)

• Italy (also used as heating fuel and lubrication additive) • Slovakia

• Spain (B30-36) in municipal vehicle fleets

• USA (B20)

49
• UK (B5)

used in standards.

In the directive (2001/77/EC) dated 27 November 2001, EU countries have committed to

provide 22% of their total energy consumption from renewable sources (74% of biomass) in
2010. It has been decided to apply 50% less CO2 tax to biodiesel users compared to diesel oil
users. To give examples from some countries;

• Austria, Production quantity: 30 000 tons/year. In case of using 100% biodiesel in diesel
engine, 95% tax deduction is made.

• France, Production quantity : > 180.000 tons/year. Biodiesel applications in France are
carried out by automotive manufacturers and oil companies with the political support of the
European Union.

• Italy, Production amount: ~125 000 tons/year. Biodiesel is mostly used in buses with tax
deduction.

The most important factor in the production of commercial biodiesel fuel is the production
cost of the fuel. The production, transportation and storage costs of vegetable oil used in fuel
production constitute 75% of the fuel production cost.

Current status of biodiesel in Turkey:

At the end of 2005, biodiesel in Turkey reached a production capacity of 450 000 tons
according to ALBiyor, and a production capacity of 878 000 tons/year according to TOBB
capacity reports. Considering the number of employees (excluding the extreme companies),
700 people are employed in biodiesel production. The number of personnel per firm is
approximately 9.7 persons/biodiesel establishment. In Figure 5.5, the number of firms and the
number of employees by provinces are given. As of November 2005, considering the
companies that had previously received 65 capacity reports in Turkey, the total number of

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producers has increased to 76. The distribution of these producers by province is given in
Figure 17.

Figure 17. Distribution of Producers by Province

Figure 18. Number of Employees and Firms by Province

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The unused area in Turkey due to the division and abandonment is 1900000 hectares. If these
areas are evaluated, it is possible to produce 1,250,000 tons of biodiesel per year. Its use in
cultivated areas will be provided by contract farming. Evaluation of all areas will create
employment opportunities for 80,000 farmers. The job opportunity provided will reduce
migration to cities. By-products such as manure, pulp and glycerin will contribute
significantly to agriculture and manufacturing industry. Environmental effects will become a
cost factor in production and factories that cannot reduce their emissions will be able to export
by obtaining emission certificates from biofuel producers, and strategic production facilities
and reserves can be created for crisis periods. With the new facilities being established and the
Energy Efficiency Law coming into force, it is estimated that the annual production amount
may exceed 200,000 tons in a short time.

As a result, 3 million tons/year of oil crops production for biodiesel is approximately 1.5
billion TL/year for 1 million tons of domestic biodiesel, 300 million TL/year for 1.8 million
tons of concentrated feed, for a total of 1.8 billion TL/year. year will provide employment.
The most important issue to be done to our producers is to explain the philosophy of Bring
Your Seed, Take Your Fuel very well: to expand contracted agriculture with a new production
philosophy and change, to produce oil plants that are needed instead of surplus products, and
with this understanding, operators and producers can also contribute to both plant production
and investment. Providing advantages should be the main goal. Another source that should be
considered as a source of biodiesel raw material in our country should be waste oils. The fact
that our current production of oilseed plants is insufficient and that these plants are expensive
as a raw material source require us to evaluate waste oils. According to the foresight of the
Ministry of Agriculture, although increasing the production of oilseed plants in 2011 is
important in reducing the resource shortage, the length of the transition period and the
condition that the iodine number should be less than 120 according to the standards are a
problem. The fact that the iodine number of plants other than canola is greater than 120 will
cause warranty problems in the use of biodiesel obtained from these plants in engines.

9.2 Change in prices

The primary effects on the cost of biodiesel production are as follows:

52
• Processing plant, plant capital and operating costs including services, catalyst, raw material
and product storage.

• Raw materials used in the process: vegetable or waste oil, alcohol, methanol.

• Biodiesel or unit biodiesel produced by glycerol by-product providing a secondary income

stream

acts as an offset against its cost.

• Yield of biodiesel and glycerol produced from tallow / oil and methanol inputs and

quality.

While the price of conventional diesel fuel is not a direct component of the cost of producing
biodiesel, it provides the baseline against which the cost of producing biodiesel should be
compared. From the biodiesel producer's perspective, the price charged for biodiesel
production will likely be closely related, although not necessarily equivalent to the diesel
price, and therefore have a direct impact on the profitability of the producer's operation.

In reviewing the cost of biodiesel production, it quickly becomes apparent that this cost is
difficult to typify, as its components, particularly the main raw materials and by-product
glycerol, are subject to significant and irrelevant market price fluctuations.

In addition, the cost of conventional diesel fuel, which is directly related to the price of crude
oil, is subject to similar fluctuations and creates uncertainty in biodiesel production costs
targets. Cost studies focus on risk analysis and price fluctuations in the raw material and
product markets.

The only published estimates of detailed biodiesel production costs in New Zealand were
produced by the Liquid Fuels Trust Board in 1983. These were adjusted by Barry Judd in the
EECA report on biodiesel production from tallow, using time-based cost indices provided by
New Zealand statistical services. Most estimates of biodiesel production unit costs available

53
in the literature include unspecified costs of the raw material and therefore give little or no
information about the capital and operating costs of the plant itself.

The Austrian company Energia, which built the biodiesel from its tallow plant in western
Austria, provided the cost data. However, this company only supplies the processing plant
provided in modular form, leaving the warehouse, service, infrastructure and building supply
to its customers.

Table 25. Energia: Capital Costs of Modular Processing Plant

Capacity (ton/year) Million Euros

20,000 3.8
40,000 4.3
60,000 5.1

In the table above these costs have been converted to New Zealand dollars using the implicit
scaling factor in the Energy data and adjusted for an annual plant capacity of 70,000 tonnes to
compare with the updated LFTB data from 1983 to 2002. Because the energy equipment is
procured in a modular fashion, the associated costs for installation, piping, and
instrumentation used in LFTB calculations have been scaled back as well as engineering and
unallocated costs due to the greater degree of precision in design.

Table 26. Full Facility Costs: LFTB and Energea

LFTB 1983 LFTB 2002 Energy

Process Plant 3.4 7.2 10.9
Facility Setup 2.4 5.2 1.6
Factory Buildings 0.2 0.5 0.5
Storage 1.6 3.4 3.4
Services 1.3 2.9 1.7
Construction works 1.1 2.4 2.4
Spare part 0.3 0.6 0.6
Non-separated 1.5 3.2 1.5
Emergency 1.0 2.2 2.2

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 Engineering 4.5 9.7 5.0
17.5 37.2 29.7

The index used to scale LFTB costs from 1983 to 2002 is the Capital Goods Index for 1990-
2002, all groups, and the Capital Expenditure Index for 1983-1990, the food and beverage
processing group. While these comparisons and the assumptions contained in them are
somewhat arbitrary, they show that the process plant alone can be less than 50% of the entire
plant capital cost.

9.3 Quality of Produced Product, Quality in Biodiesel Production

The contribution of biodiesel use to the economy can only be achieved at the expected level
with an appropriate production in international standards.

Inadequacies in production quality,

• Product loss,

• Raw material loss,

• Failure to provide stabilization in production,

Such problems will reduce productivity and deteriorate product quality.

Parameters that determine the quality of biodiesel:

• Raw material quality

• Factors determining the chemical properties of biodiesel

• Production process factors

• Post-production factors

Parameters affecting the fuel quality of biodiesel:

• Raw material quality

55
• Fatty acid composition of vegetable or animal oil

• Production process and other materials in the process

• Production parameters

Quality control of produced biodiesel fuel

In order to ensure the trouble-free use of biodiesel in diesel engines, the following operations
must be performed properly:

• Completion of the reaction

• Removal of glycerin

• Removal of the catalyst

• Removal of alcohol

• Absence of free fatty acids

Analysis methods related to these parameters can be found in biodiesel production standards.
Product yield indicates the amount of biodiesel that can be produced from crude oil. Fatty
acid methyl ester yield is the amount of fatty acid methyl esters in biodiesel, which is an
indicator of the quality of biodiesel. The amount and quality of biodiesel produced in the
transesterification process is also affected by some reaction variables such as reaction
temperature, reaction time, methanol/oil molar ratio and catalyst concentration. These process
parameters need to be optimized to maximize yield and quality. The application of a catalyst
during transesterification plays an important role in reaction efficiency. Many researchers
have used different catalysts such as acids, bases and enzymes to increase transesterification.
Base catalysts have been recognized as the most suitable catalysts for industrial scale
biodiesel production compared to acid and enzyme catalysts due to their low cost, low
reaction temperatures and short reaction times.

9.4 Analyzing the Supply Demand Balance

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Table 27. Analysis of the supply demand balance

PRODUCTION AMOUNT (TON)

Total Domestic Production (A) 497.100
Total Demand (B) 1293.100
Deficit (B-A) 796.000
Total Imports 798.600

10. PATENT STATUS AND OTHER LEGAL RESTRICTIONS

10.1 Legal obligations as a result of the production of a patented product

Scope of Rights Arising from Patent Registration:

The patent owner benefits from the patent right without making any distinction as to the place
of the invention, the field of technology and whether the products are imported or
domestically produced. The scope of the patent application or the protection arising from the
patent is determined by the claim or claims. The claim or claims are interpreted on the basis of
the description and pictures. For this reason, it is of great importance that the patent file is
prepared by expert patent engineers.

The claim or claims are interpreted together, on the one hand, to provide the patent applicant
or the patent owner with the protection they are entitled to, and on the other hand, to express a
reasonable degree of certainty to third parties in terms of the scope of the protection.

57
Lawsuits and Claims of the Patent Owner in Civil Courts;

The patent owner, whose patent rights have been infringed, may file a lawsuit in the courts
and make the following requests: He/she may request that the acts of infringement arising
from the patent be stopped, In addition, BY DECISION OF INCIDENTAL MEASURES;
Demanding that the goods produced or imported by infringing on the rights arising from the
patent or the means used in the execution of the patented procedure are confiscated and kept
in any place where they are located within the borders of Turkey or in customs and free ports
or regions, can.

It may demand the elimination of the Infringement of the Patent Right and the compensation
of the material and moral damages.

It may demand the seizure of the products produced or imported by infringing on the rights
arising from the patent, the tools directly used in their production and the tools that enable the
use of a patented method.

It can demand the recognition of the right of ownership over the seized products and vehicles.
In this case, the value of the products in question is deducted from the compensation amount.
When this value exceeds the accepted compensation, the patent owner must pay the surplus to
the other party.

In order to take measures to prevent the continuation of the infringement of the rights arising
from the patent, to change the shape of the confiscated products and vehicles, or to prevent
the infringement of the rights arising from the patent, if it is unavoidable, it may demand their
destruction.

The request for notification of the court decision against the person infringing the rights
arising from the patent, at the expense of the infringer, to the relevant parties and to be
announced to the public through announcement.

58
The patent owner may demand from the infringer to be paid not only the value of the actual
loss, but also the loss of profit due to the infringement of the patent right.

The deprived gain is calculated according to one of the following evaluation methods,
depending on the choice of the injured patent owner:

• According to the possible income that the patent owner could obtain by using the patent, if
the competition of the infringer of the right arising from the patent did not exist;

• According to the gain obtained by the infringer of the right arising from the patent, by using
the invention that is the subject of the patent;

• According to the license fee that the infringer of the patent has to pay if he has used the
invention lawfully with a license agreement.

Factors such as the economic importance of the invention, the validity period at the time of
infringement of the patent right, and the number and type of licenses related to the patent at
the time of infringement are taken into account in calculating the lost earnings.

Cases Regarding Invalidity of Patent;

In the following cases, it is decided by the authorized court to consider the patent invalid:

If it is proved that the subject of the patent does not have the conditions of patentability
(novelty, exceeding the state of the art, applicability to industry);

If it has been proven that the invention is not clearly and fully defined enough to enable an
expert in the technical field to be able to put it into practice;

59
If it has been proven that the subject of the patent is beyond the scope of the application; If it
is proved that the patent owner does not have the right to request a patent.

The claim that the patent owner does not have the right to request a patent can only be put
forward by the inventor or his successors.

If the reasons for invalidity are related to only a part of the patent, partial invalidation is
decided by canceling the claim or claims affecting only that part. It cannot be decided that a
request is partially invalidated.

The invalidity of the patent may be requested by the injured persons or by the relevant official
authorities through the Public Prosecutors. In addition, the invalidity of the patent may be
claimed by the persons entitled to request a patent.

Invalidity of the patent can be sued during the continuation of the protection period or within
five years following the expiry of the right.

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11. CONCLUSION

In this study, which we did within the scope of engineering economics course, market and
process research was conducted for biodiesel production. The decrease in fossil fuel reserves
day by day causes energy crises. In addition, the environmental impacts arising from the use
of fossil fuel resources are increasing day by day. In order to find solutions to the problems
that arise, the interest in renewable energy sources is increasing. Biodiesel, which is the sub-
branch of the biomass (bioenergy) energy class, is an alternative fuel produced from
renewable resources such as animal and vegetable oils that can be used in diesel engines.
Biodiesel; It is a sustainable, environmentally friendly, non-toxic alternative fuel that can be
used with modifications in diesel engines. When the systematic production of biodiesel is
started, economic development will be achieved. Since it is not a regional energy source, it
can be produced almost anywhere in the world. Research has turned to alternative energy
sources in order to reduce the gradual decrease of oil resources and the economic impact of
oil importers on oil-dependent countries. In addition, biodiesel will contribute greatly to the
development of the agricultural economy and the vegetable oil industry. No modification is
required for use in diesel engines. Biodiesel fuels are more stable than diesel fuels. Countries

61
with sufficient potential in biodiesel production should focus on the production of oilseed
plants in the agricultural sector. The rapidly increasing population also increases the demand
for energy. Our investment objectives are to give the necessary importance to “Biodiesel
Fuels” in order to meet the energy needs and to reach the level of economic welfare. As a
result of the market analysis, it was decided to produce microalger diesel with waste water
and carbon dioxide treatment. No investment will be 100% profitable. The important point is
to analyze the advantage and disadvantage. Our facility, which will operate with a daily
production capacity of 13.5 tons, will receive a return in 10 years.

12. REFERANCES

[1] Özdemir&Mutlubaş/ Kirklareli University Journal Of Engineering And Science 2 (2016)

129-143

[2]Biyodizel Üretimi, Motorlarda Kullanımı Ve Türkiye’deki Kaynakların İncelenmesi

Yüksek Lisans Tezi Mak. Müh. Abdurrahman Serkan Altınsoy,Ocak 2007

[3]Küresel Biyoyakıt Politikalarının Ab Ve Türkiye Açısından Değerlendirilmesi Ab

Uzmanlık Tezi ,Ankara ,2015

[4]Mittelbach, M., & Remschmidt, C. 2004. Biodiesel. The Compherensive Handbook (No.
L-0577).

[5] Biyodizel Üretiminde Kalite Kontrol, Doç.Dr. Demir C.,Nisan 2006

[7]İstanbul İli Atık Su Ve Co2 Arıtımı İle Mikroalgal Biyodizel Üretimi T.C. Sanayi Ve
Teknoloji Bakanlığı Ön Fizibilite Raporu ,2021,İstanbul

[8]Motorin Türlerine Biodizel Harmanlanması Hakkında Tebliğ, Resmî Gazete Tarihi:

16.06.2017 Resmî Gazete Sayısı: 30098

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[9]Uludağ Üniversitesi Fen Bilimleri Enstitüsü Laboratuvar Ölçekli Biyodizel Üretim
Tesisinin Projelendirilerek İmal Edilmesi Ve Yabani Zeytinden (Oleaoleaster) Üretilecek
Biyodizelin Yakıt Özelliklerinin Belirlenmesi Murat Arslan

[10]Biyodizel Üretimi Sırasında Yan Ürün Olan Gliserolün Ruminant Beslemede Enerji
Kaynağı Olarak Kullanımı Sibel ERDOĞAN

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