Free won’t cost 0

When something has economic value, it’s no longer free.

I’m seeing a lot of yellow grease (used cooking oil) being touted as the feedstock for biodiesel. There are a limited number of Chinese restaurants, fast food places, etc. where they will continue to give away the feedstock for free. The most likely people/groups to use these type of biodiesel plants are the ones who have both a fleet of vehicles, AND access/ownership of the used cooking oil.

These are: School districts and food chains.

Collecting the fryer grease is a problem. It costs money to go out there and pick the stuff up. Unless you’re already out there for another reason. Going out to supply a restaurant with food, and picking up a container of used oil makes sense. If/when the used oil can be converted into biodiesel at the fleet parking lot. Then there are no transportation issues on the fuel, nor will there be any problems in ownership.

Anyone else who tries to set up a biodiesel plant using the “free” used cooking oil should start to incorporate a cost with the free feedstock in the future. And as you start to add costs on the front-end, things just get more expensive at the final product cost.