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Biodiesel production from waste fats

Biodiesel production. Nowadays, the term “biodiesel” is vague. Originally it was used as a name for a mixture of fuel oil and vegetable oil in a ratio of 70-95% / 30-5%.

Now it is a term for fuel made of animal or vegetable fats by transesterification.

The use of biodiesel as fuel reduces the amount of almost all harmful substances released into the atmosphere typical of petroleum fuels. Being natural in origin, it has a low toxicity and is safe for plants and animals if released into the environment. Biodiesel is completely biodegradable in water and soil. It is recycled to 99% after 28 days.

Also worth mentioning are the good mixing properties of vegetable oil esters with petroleum diesel. The obtained blends do not separate even in dissolved water.

Other advantages of biodiesel fuels:

  •        Due to the chemical composition, biodiesel has good mixing properties that are not affected even by fuels containing sulphur;
  •        Cetane number of 51;
  •        High flash point (over 150º), which makes biodiesel relatively safe;
  •        The presence of oxygen improves combustion efficiency;
  •        Increasing engine life by 60%.

As the main raw material for biodiesel production plants, such as rapeseed, soybean, canola, castor, nettle spurge, are used. The research is still going on about the production of biodiesel from nut, cotton and hemp oil and walnut kernels. Also the raw material for biodiesel production includes waste vegetable oil, waste animal fats, fish oil, algae etc.

GlobeCore uses the principle of jet hydrodynamic ultrasonic high frequency controlled cavitation in the production of biodiesel.

This technology shows a decisive competitive advantage of the resulting product and the speed of transesterification.

The traditional methods of biodiesel production are based on oil being heated to 70 ° C, which requires high energy expenses. In addition it needs recovery of excess methanol and additional transesterification. Vacuum drying leads to considerable power consumption.

The hydrodynamic cavitation treatment does not consume a lot of energy, and actually saves energy costs by a factor of ten. It does not require installation of expensive dosing pumps: the ejector pulls the required amount of components to be mixed in the unit.

The UBD unit by GlobeCore can be used at facilities specializing in the production of biodiesel, as well as oil refining and food factories, or at small farms.

Biodiesel is an alternative fuel

alternative fuel

Alternative fuel. An increase in the number of cars has led to a growing demand for petroleum products. But the oil reserves are estimated to last only a few decades, thus forcing to actively search for alternative fuels.

Depletion of oil reserves will have a significant impact on the transport sector. That’s why so much attention is paid to alternative fuels, especially biodiesel obtained from vegetable oils.

Biodiesel is the most promising alternative fuel due to the following reasons:

  • Biodiesel can be used in existing diesel engines without structural changes;
  • Biodiesel is produced exclusively from plant components, it contains no sulfur, aromatics, metals and oil residues;
  • Biodiesel is a fuel with oxygen. It produces less emissions of carbon monoxide and gases compared with conventional diesel fuel;
  • Biodiesel does not affect global warming, CO2 (carbon dioxide) is absorbed by plants, in contrast to fossil fuels.
  • Biodiesel has better lubricity compared with diesel fuel;
  • Biodiesel is produced from renewable vegetable oils and animal fats and hence increases the fuel safety and economic independence.

The research shows that it is possible to use vegetable oil in its natural form, but it is not recommended. The high viscosity and low volatility of vegetable oil affects fuel distribution in the cylinder, resulting in incomplete combustion and heavy deposits in piston ring grooves. To reduce the viscosity of vegetable oil, it is blended with diesel fuel, emulsified and mixed with methanol for transesterification.

A significant number of studies were conducted on combustion, production and performance of vegetable oil and methyl (ethyl) ester, sunflower oil, rice bran oil, palm oil, soybean and canola oil.

Vegetable oils are naturally present in plants, also known as triglycerides of fatty acids. Their molecular weight is about 800 kg / m3 or more. Because of their high molecular weight, the oils have high viscosity, which causes a serious problem when used as fuel. These molecules must be broken down into smaller molecules, to have lower viscosity and other properties to be closer to the standard diesel fuel. The change in oil composition can be achieved by pyrolysis, microemulsification, blending and transesterification.

The most commonly used commercial process of producing high-quality and environmentally friendly vegetable based fuel oil, ie biodiesel, is transesterification.

The transesterification of biodiesel is a reaction of triglycerides with alcohols (methyl, ethyl or the like) and catalysts at controlled temperature. The final products are alkyl esters and glycerin. Alkyne esters have favorable properties to be used as fuel in the biodiesel engines as the main products, and glycerin is a byproduct.

By-product of biodiesel production. Where to use Glycerol?

The worldwide interest in biofuels is especially important now, caused by the progressing depletion of crude oil resources. Within the two last decades, not only specialized laboratories, but governments actively work on the idea of using vegetable oil and animal fat to produce renewable environmentally safe biodiesel fuel for diesel engines.

Biodiesel fuel is a mixture of monoalkyl esters of long chain fatty acids, obtained from vegetable oil or animal fat. It can be used straight or blended with regular diesel. The most commonly used blend B20 contains 20% biodiesel and 80% regular fuel.

Experience of many countries offers much proof that development of biodiesel industry is tremendous social and political importance. The world produces approximately four million tons of biothanol and biodiesel.

Globally, biofuel production may be a saving hand for agricultural trade. Within the last 50 years the volume of agricultural trade in the world dropped from 50% to 8%. All effort by the WTO to liberalize agricultural markets have met with insurmountable blocks. Each nation attempts to protect its producers with various measures, such as export subsidies, high import duties and other measures. The result is that the powerful national support for agricultural producers from the more developed countries blocks the farmers from the less developed countries, which have no access to large scale subsidizing, from the world market.

Besides, biodiesel production also includes production of glycerine, a product used in many industries (see Table 1).

Table 1. Glycerin Applications

Industry Application Objective
Tobacco Tobacco moisture adjustment Removal of unpleasant irritating taste
Plastics production Production of transparent packaging materials High flexibility in wide temperature range
Food production Preparation of vegetable extracts Expansion to taste range
Agriculture Treatment of seeds Preservation of quality
Pharmaceutical industry Medicine production solutions; pills; increasing viscosity of liquid medicines; protection from enzymatic changes during liquid fermentation and drying of ointments, pastes and lotions.
Electricity and radio Production of electrolytic capacitors. Production of insulation material
Textiles Used in spinning,  weaving, printing, dyeing, smoothing, in production of synthetic silk and wool Gives the fabric softness and elasticity. Used in production of aniline dyes and solvents
Paper production Production of tracing paper, parchment, tissue paper, tissues and fat-resistant paper Making paper fire-resistant
Tanning industry Added to water solutions of barium chloride, used for leather preservation Used for production of components of wax emulsions for skin curing
Lacquer and paint production Production of electrical insulation lacquer Polishing effect
Detergents and cosmetics Soap production Improves cleaning ability, makes the skin whiter and softer

Production of Biodiesel

Vegetable oil (sunflower, rapeseed, flax, etc.) is the main raw material for production of biodiesel.  The type of oil used gives some particular properties to the final product.  For example, rapeseed oil-based biodiesel has a relatively low calorific value and high pour point and filterability.

Generally speaking, the process of biodiesel production is aimed at the reduction of vegetable oil viscosity.  This effect can be achieved using various methods.

The composition of vegetable oil includes triglycerides (esters, connected to a glycerol molecule) and trihydric alcohol.  Glycerol is mainly responsible for viscosity and density. Making biodiesel involves removing of this component by displacing it with alcohol.  This process is called transesterification.

A positive feature of biodiesel is the possibility to use waste vegetable oil for production.  The primary product must be pre-filtered to remove impurities and water.  In the case when water is not completely removed, there is a risk that transesterification reaction will be replaced with hydrolysis of triglycerides.  This is very undesirable since at the output we’ll get not biodiesel, but fatty acid salts.

The general scheme of biodiesel production looks as follows.  Vegetable oil is heated to a certain temperature, after which it is mixed with alcohol and catalyst.  In some cases, acid is used to accelerate the reactions.  The resulting mixture should be stirred and settled.  Then the mixture should break down into layers: the upper layer is biodiesel, the middle layer is soap, and the lower layer is glycerol.

The other layers are separated from biodiesel and then it should be washed to remove soap residues, catalysts and other undesirable impurities.  This is followed by drying with magnesium sulfate.  The drying agent is removed by conventional filtration.

Mathematics of biodiesel production is simple enough: if you have one ton of vegetable oil, 111 kg of alcohol and 12 kg of catalyst agent, the output can amount to 970 kg of biodiesel and 153 kg of glycerin.

The color of good biodiesel should resemble the color of honey, while glycerin is darker.  If waste vegetable oil was used as feedstock, the resulting glycerin is usually brown and may solidify at the temperature of 38°C.  If using fresh vegetable oil, glycerin remains liquid even at lower temperatures.

Visual inspection and control of pH is used to evaluate the quality of the resulting biodiesel.  Externally, quality biodiesel should be similar to pure sunflower oil, should not contain any impurities, suspended solids and contaminants, as well as turbidity. If turbidity is present, this means that the product contains water, and it must be removed by heating.

GlobeCore offers UBT-type plants, designed to produce biodiesel.  This equipment works based on hydrodynamic ultrasonic high frequency controlled cavitation principle.  This makes it possible to achieve significant advantages:

  • Minimum feedstock requirements.
  • Instantaneous transesterification reaction.
  • No need for washing and drying of biodiesel.
  • Minimal power consumption.
  • Compact dimensions and flexibility in plant design.

Vegetable-Based Fuel for Diesel Engines

Fuel for Diesel Engines

Vegetable-based fuel is the name for biodiesel, plant oil and other plant-derived liquids that can be burnt in engine cylinders.  Biodiesel is the most popular fuel in the European market.

In those countries where this type of fuel is not used yet, it is possible to implement a gradual transition by mixing biodiesel with petroleum products of mass consumption.

The following mixture can be applied in practice:

  • Biodiesel with diesel fuel;
  • Biodiesel with methanol;
  • Plant oil with diesel fuel;
  • Adding vegetable-based additives to diesel fuel.

Biodiesel + Diesel fuel

Adding biodiesel to diesel fuel can increase its density, viscosity and flash point in closed crucible.  The subsequent increase in the concentration of biodiesel will increase the efficiency of an engine, reduce its opacity, but the amount of emitted nitrogen oxide will be increased.

Biodiesel + Methanol

Using methanol looks quite promising, due to its relative cheapness in the first place.

With increasing concentration of methanol in the mixture, the decrease in density and viscosity is observed.  Flash point in a closed crucible decreases.  By applying methanol into the inlet pipe even in its minimal concentration (0.35% by volume), the efficiency of a diesel engine coefficient will be sharply decreased.  The engine will become rough.  But when methanol concentration is increased to 15% by volume, the performance characteristics of a diesel engine are quite satisfactory.

Plant oil + Diesel fuel

Scientists have proven that a diesel engine can run on a mixture of vegetable oil and diesel fuel.  German companies were the first to make their mark in this direction.  At present, the engines have been already developed to operate on diesel fuel and plant oil.  A distinctive feature of these aggregates is the need for initial warm-up on diesel fuel with the subsequent transition to plant oil in an automatic mode.  The highest efficiency value can be achieved by adding about 30% (by volume) of plant oil to biodiesel.

Diesel fuel + vegetable-based additives

Plant-derived additives are added to diesel fuel to improve fuel efficiency and improve environmental performance.  If the type of an additive and its concentration are chosen correctly, it is possible to achieve the increase in diesel engine efficiency and to reduce harmful emissions.

How to mix?

The GlobeCore USB plant for on-line mixing and dissolution of any liquids is intended for mixing two to five separate components, in particular, for preparation of multicomponent mixed motor fuels, including additives of vegetable origin, bioethanol, and mixing biodiesel with diesel fuel.

When using conventional methods of blending, known today, fuel tends to break down when separate components are added to it.

The peculiarity of the installation is the fact that applying an injection method and hydrodynamic shock can increase the cetane number of fuel.  The resulting product does not break down within 180 days (guaranteed).

Modern hydrodynamic (inline) mixing plants have proven themselves in industrial use as cost-effective, accurate and sustainable means of production of high-quality motor fuels with optimal cost.  The achievable cost savings and increase of production profitability, compared to conventional technology of  mixing components in mixing vessels, can accelerate the return on investment up to 60% per year and provide a return on the project during a period of one year or less.

Biodiesel fuel: applications, production and advantages

Biodiesl fuel is made of vegetable oil and methanol. Ethanol or isopropyl alcohol can be used instead of the latter. The process is based on transesterification of the product in the ratio of 200 kg of methanol per 1 ton of oil. Sodium or potassium hydroxide is also a component in the production process. Process occurs at 60ºС at normal pressure.

To make the fuel compliant with the quality standards, the following conditions must be met:

  • content of methyl esters in the fuel must not be less than 96%;
  • additional purification of methyl ester from methanol. This is due to the fact that the latter is usually used in excess for rapid and complete transeesterification;
  • methyl esters must be purified from saponification products. If this is not done, the soaps will quickly clog filters, forming tar and carbon deposits. Separation and centrifuging methods are not efficient, water or sorbent wash is required;
  • methyl esters must be dried. Water promotes development of microbes and formation of fatty acids, reducing the quality of the biodiesel;
  • biodiesel should not be stored longer than three months. After three months the fuel may break down.

Using biodiesel

Biodiesel fuel can be used straight or blended with regular diesel. In the United states, fuels are marked as follows: first the letter B, as a general designation, then the percentage of biodiesel in the blend. B2, for instance, means that the blend contains 98% of diesel and 2% biodiesel fuel. Using high quality blended fuels does not require any design change of the engine.

Biodiesel cetane number must not be less than 51. Mineral diesel has 42-45 cetane number.

Biodiesel sources

The raw materials for biodiesel production are usually vegetable or algae oil. European producers prefer rapeseed, while the most common feedstock in the US is soybean oil, Canada mostly uses canola (a kind of rapeseed), Brazil – castor oil, Indonesia and the Philippines – palm oil. Animal fat, tallow etc can also be used.

Oil yield per one hectare (data: The Global Petroleum Club)





































Pumpkin seeds






























Poppy seed









Castor plant















Brazil nut









Oil palm





The world leaders in biodiesel production are the US, Germany, France, Italy and Spain. For instance, 2611 million liters of biodiesel were produced in the US in 2008. European production figures are more modest. German production at the same time period was 5302 thousand tons of the product.


If biodiesel fuel is spilled into water, it cannot harm plants and animals. It is fully biodegradable, as opposed to petroleum based fuels. Research shows that biodiesel in soil or water is completely decomposed by microbes in 28 days, making the risk of polluting rivers and lakes minimal.

Besides, the use of biodiesel significantly reduces carbon dioxide emissions into the atmosphere. High flashpoint (above 100ºC) makes this fuel relatively safe.

Biodiesel production equipment

GlobeCore has developed and supplies biodiesel production lines. GlobeCore biodiesel plants are built in production capacity range from 1000 to 16000 liters per hour, working on any type of vegetable oil or animal fat. This fuel can also be made form used vegetable oil and algae oil.

GlobeCore biodiesel production complex is designed for transesterification of vegetable oil or animal fat by highly intensive mixing with catalyst and subsequent dry polishing. The product fully complies with the European EN 14214 and the American ASTM standards.

The unique technology allows production without a lengthy process of resetting the equipment for various oils or fats. All components are built from stainless steel in ex-proof design.

The biodiesel production line consists of the following components:

  • stream oil heater;
  • biodiesel reactor;
  • biodiesel settling tanks and output pumps;
  • methanol recovery section;
  • purification and filtration section.

The raw material is filtered and purified, then pumped to the oil heater to raise its temperature. The hot oil is then pumped to the biodiesel reactor. The reactor is also supplied with alkali solution and methanol. After hydrodynamic mixing and the reaction of oil with the alkali and methanol, the reactor output is crude biodiesel.

It is supplied to the settling tanks, where water and glycerin phase is separate and pumped away.

The remaining biodiesel is pumped to the methanol recovery section, where the product is dried under vacuum.

The final polishing of biodiesel occurs in the filtration and purification section. Passing through a layer of ion-exchange resin, the residual methanol is removed from biodiesel. Particulate matter is removed by a system of filters.

GlobeCore biodiesel process has the following advantages:

  • low power consumption;
  • near-instant transesterification reaction;
  • transportation mobility and simple installation thanks to modular design;
  • no waste stream. Glycerin phase can be used for many purposes: power generation, fertilizer production etc;
  • simple operation and high efficiency.

What are the advantages of biodiesel?

Biodiesel fuel has the following advantages:

  • good lubrication properties;
  • high cetane number;
  • extended engine life without upgrades;
  • relative safety due to high ignition temperature;
  • no harmful environmental effects.

What is Biodiesel Fuel?

Biodiesel fuel is a less harmful to the environment substitute for conventional fuel that is made from 100 percent replaceable staple.

It is destined to become the fuel of the new era. It is widely known as Biofuel. Biodiesel does not contain any fractions of processed crude oil, but conventional fuel can be blended to make biodiesel mix (eg. B20, B50) that can be used in different machineries. However, unmixed biodiesel fuel (ie. B100), cannot be used in gasoline powered engines. Biodiesel is ecological and innoxious, making it less dangerous than the widely used cooking salt.

Biodiesel can be used in diesel engines without any changes

Biodiesel is not like plant oil and other recently invented fuels. Biodiesel can be used in diesel engines without any changes to biodiesel itself or engine design. Plant oil fuels need to be adjusted and limited to use only in gasoline powered engines. Considering all this facts, biodiesel is the simplest newly developed fuel to use. It is regarded by many as the best alternative for use in agriculture in agricultural machineries.

Process of biodiesel production assumes separation of glycerin from plant oil or animal fat, and knows as transesterification.

Process of biodiesel production assumes separation of glycerin from plant oil or animal fat, and knows as transesterification. In the course of this process glycerin and methyl esters are extracted from plant oil and animal fat. Pure biodiesel does not contain sulfur and phenyl compounds, which are usual components of conventional fuels.

Most of other newly developed fuels cannot be distributed legally for use in motor vehicles, because they do not adhere to Environmental Protection Agency (EPA) standards. Unlike them, owning to its distinguished properties, which let biodiesel to successfully complete health impact assessments, biodiesel has been approved by (EPA) for wide use across the country. Which means biodiesel satisfies the requirements of the 1990 Clean Air Act Amendments.

One of the greatest advantages of biodiesel, that unlike conventional fuels, it has low impact on human health and nature. Biodiesel is only one of a few fuels that can be truly called environmentally safe. Level of pollution caused by use of biodiesel is considerably lower than of conventional fuels. Subsequent replacement of petroleum diesels with biodiesel will benefit to struggle with the global warming and will save the environment.

Biodiesel also stimulates different sectors of domestic economy. USA petroleum fuel producing industry hugely depends on crude oil exported from Middle East, Africa and other oil reach regions. It makes it vulnerable to any political instability in these countries. Staple for biodiesel can be produced in the United States. And money reinvested into the home economy.

Biodiesel is newly developed fuel that is swiftly becoming more accessible to wider part of the population. It can be found across the United States in number of locations or purchased straight from suppliers. The price of biodiesel at present is higher than conventional fuel price, because biodiesel fuel market is still underdeveloped. It is predicted that in near future population will appreciate advantages of biofuel and as a result demand will increase and the cost will lower.

At this particular time, however, the easiest way to get hold of biodiesel is to make it yourself at home.

Biodiesel equipment here: reactors, processors.

What is Biodiesel

Biodiesel fuel is a clean burning alternative fuel that is made from 100% renewable materials.  Many people believe that Biodiesel is the fuel of the future. Sometimes it is also known as Biofuel.  Biodiesel does not contain petroleum, but petroleum can be mixed to produce a biodiesel blend (eg. B20, B50) that can be used in various cars.  Pure biodiesel fuel (ie. B100), though, can only be used in diesel engines.  Biodiesel is biodegradable and non-toxic, making it so safe that common table salt has been proven more toxic.

Biodiesel is not like vegetable oil alternative fuels.  Biodiesel can be used in its unaltered form in diesel engines.  Vegetable oil fuels must be modified and used only in combustion- ignition engines.  This makes biodiesel one of the easiest alternative fuels to use.  In fact, it is a great option for use on farms in farm equipment.

Biodiesel fuel is made through a process called transesterfication.  This process involves removing the glycerin from the vegetable oil or fat.  During the process byproducts are left behind, including methyl esters and glycerin.  Biodiesel is free from such substances as sulfur and aromatics which are found in traditional fuels.

Biodiesel is legally registered with the Environmental Protection Agency as a fuel that can be legally sold and commercially distributed.

Compared to other alternative fuels, biodiesel has a number of unique features and qualities.  It has passed all the health effects testing requirements, unlike other alternative fuels.  This means it meets the standards of the 1990 Clean Air Act Amendments.  Biodiesel is legally registered with the Environmental Protection Agency as a fuel that can be legally sold and commercially distributed.  Other alternative fuels can not be sold commercially as motor fuel because they do not meet the EPA’s fuel specifications.

I believe that the biggest feature about biodiesel fuel is that is it not harmful to the environment like traditional fuels.  Biodiesel is made from renewable resources which means it is safe for the environment.  It does not produce the high emissions like traditional fuels.  Biodiesel does not cause harmful effects to the environment that will produce lasting effects on our future generations.

Biodiesel is made from renewable resources which means it is safe for the environment.

Biodiesel is also good for the economy because unlike traditional fuels, the resources to make biodiesel come form within the United States.  It is made with products grown in the USA without having to involve politics with other countries.  The country can become less dependent upon foreign countries for fuel supplies and the money goes right back into the US economy.

Biodiesel is an innovative fuel that is rapidly becoming more available to the general public. It can be found around the country in select places or it can be bought directly from producers. It costs a little more than traditional fuels at the current time because the demand is not as great.  However, as demand grows and the public realizes the benefits of a biodegradable, renewable fuel source, the price will drop.

Right now, though, the cheapest way to get biodiesel fuel is to make it at home yourself.

Biodiesel equipment here: reactors, processors.

Hydrogen Fuel Cars – Do they Exist

Did you know that hydrogen fuel cars are already on the streets of many first world countries? General Motors and Ford already launched hydrogen fuel cars and currently, BMW has created a series of the same type of vehicle. General Motors already have thirteen hydrogen fuel cars roaming the streets of Washington, including 6 minivans.

Ford is still in the process of manufacturing Focus. Other car manufacturers namely Honda, Toyota, DaimlerChrysler, and Nissan already have vehicles in the Army and even with the public.

With the launching of hydrogen fuel cars, many car owners no longer have to worry about gas mileage. If you want to save money now, yet you cant afford the hydrogen fuel cars, have your existing car converted. Of course, it can cost a little but the benefits are priceless.

By 2010, General Motors will launch alternative hydrogen fuel cars. Although the cars use alternative hydrogen fuel, the price is just like that of internal combustion vehicles. GM and Shell are now partners; the latter has created stations for hydrogen fuel to meet the demand for the alternative fuel. The two giant companies projected that for every 200,000 hydrogen fuel cars, 300 stations are needed.

If you walk the streets of Europe, you will hardly notice that there are some hydrogen fuel buses roaming their streets. DaimlerChrysler introduced the said buses in 2004. You can find the buses in Barcelona, Amsterdam, London, Hamburg, Madrid, Luxemburg, Reykjavik, Porto, Stuttgart, and Stockholm. The buses function well regardless of the weather.

In fact, the buses provide excellent transportation during hot summers and cold winters; as well as in the hilly regions and flatlands. You can find hydrogen stations in the 7 major cities of Europe and each station is equipped with the necessary equipments like the electrolysis tools. Water is used to create the fuel for the stations.

An ethanol fuel car can also use hydrogen fuel cells. Ethanol has water and this is where the hydrogen is derived. If you use this alternative, you can improve gas mileage and at the same time supply the cells with the needed hydrogen. This type of vehicle is called water power car or hybrid car and it can run using ethanol or hydrogen.

If you want a clean and abundant energy source, choose hydrogen fuel cars. As long as you have a water source, you can use it to power your hydrogen car. At present, the fuel cells are quite large but developers are now trying to make it more efficient and more reliable. Just imagine the very first computers which were large but after several years, small versions were soon invented and launched. It will not be shocking if hydrogen fuel technology will rapidly develop.

One things for sure, hydrogen fuel cars do exist. Some people are still unaware of this fact but in the coming years, these cars will dominate the streets. Heres good news to everyone, if you want to address the global warming problem, have your cars converted if it is feasible.

Check your locality if you can find a hydrogen station. This is a very important decision that you have to make, so be sure that you will have no regrets. So far, users of hydrogen fuel cars do not have any regrets and with the advanced technology of today, improvements are on their way. So look out for the cars of the future.

Biodiesel equipment here: reactors, processors.

The Basic Fact Sheet On Diesel Fuel Prices

As consumers, the basic basket of goods that we often purchase in the course of everyday involves diesel and other fuel products, making us susceptible to the impact of diesel fuel prices. Diesel fuel, gasoline, and oil are used not only in running cars and other transport vehicles, but also are used for cooking, heating the home, and powering diesel-powered equipment like snow-blowers, lawn-mowers, and the like. A huge chunk of expenditure goes to purchasing fuel to run these vital activities, which would justify trying to understand as much as one can about how it is priced and where the product itself is from.

To start with, diesel fuel is one of the refined versions derived from basic crude oil. Other forms of crude oil that results from refining include gasoline and distillate heating oil. This fuel type was named after Rudolf Diesel, the German engineer who created ignition engines that make use of diesel fuel.

Diesel petroleum is in fact a distillate of crude oil. While there are many types of distillates that can be derived from crude oil, Number 2 distillate is what is distributed for use in vehicles and equipment in many countries; it is also the same oil base used for distillate heating oils used to heat buildings and run industrial plants.

The chain of processes that create the value inherent in diesel fuel begins from the moment crude oil is purchased. Crude oil, as mentioned previously, is the base ingredient from where diesel fuel is derived. This base ingredient is traded internationally, with price determined by supply and demand dynamics. Crude oil is primarily produced by oil-exporting countries, all of which often belong to big oil cartels that dominate the supply dynamics in the market.

The demand for energy is not limited to the United States, but expands across Europe, China, and India. The thirst for energy for consumption occurs both in the level of industry, as well as individual consumers. On the consumer level, this means that the strong preference for diesel-powered vehicles has led to the need for diesel fuel in order to maintain the operations of these vehicles. In the industry level, expanding economies like China and India, and more stable economies like European ones, all rely on the supply of diesel fuel to run many of their transport sectors and even many of their industries. The high demand from both sectors has driven the prices of diesel fuel up: with limited supply, people use money in order to gain preferential access to the resource.

In addition, governments play a role in determining how diesel fuels arrive at the point of mass consumption. Governments levy hefty taxes on oil refining and distribution companies, many of which already run the regular gas pumping stations. Also, governments have required the reduction of sulphur content in diesel fuel, creating an expensive additional stage in the refining process to reduce sulphur. The additional burden of tax, the cost of operating distribution through gas pumping stations, and the cost of building infrastructure to enable them to comply with government ordinances have driven diesel prices to higher levels even if production costs considerations were ignored.

Knowing these drivers, and just what this resource is all about, allows consumers to better appreciate the dynamics of the energy industry. They will also be able to use their common knowledge of market dynamics in order to predict or protect themselves from diesel fuel prices inflation.

Biodiesel equipment here: reactors, processors.