Article AnalysisEssay Preview: Article AnalysisReport this essayAs the world’s natural resources become scarce or too expensive, the world has begun to use substitute resources. One resource that is being used in place of gasoline is biodiesel. A renewable fuel, produced from agricultural resources such as vegetable oils, biodiesel has more than one good thing going for it. It reduces the emission of gases responsible for global warming, promotes rural development, contributes toward the goal of energy security, is renewable, and reduces pollution. Biodiesel provides better engine performance and lubrication. Using biodiesel causes less maintenance issues than normal fuel, but can release deposits that can accumulate on tank walls and pipes from previous diesel fuel, which can initially cause fuel filter clogs. Changing the fuel filter after the first tank of biodiesel should fix any problem this causes. Also, biodiesel can degrade rubber fuel system components, such as hoses and pump seals. As an alternative to diesel, it can help reduce U.S. dependence on foreign oil. Biodiesel also provides significant greenhouse gas (GHG) emission reductions. The use of biodiesel also reduces emissions of carbon monoxide, particulate matter (PM), and sulfates, as well as hydrocarbon and air toxics emissions.
The basis for the trends in consumption patterns includes the ever increasing prices of fuel globally, the tax incentives offered by the government and supply and demand. As the government aggressively pursues targets; enacts investor-friendly tax incentives for production and blending; helps promote research & development in new biodiesel feed stocks such as algae biodiesel, the consumer awareness for biodiesel will increase as will the need. Global usage is affected by the government enacting new alternative fuel policies and targets to offset energy security and environmental concerns. More benefits of using biodiesel include stimulating the economy, reduce emissions, and increase our energy independence.
The Supply and demand equation is determined by three major things; government incentive, raw material prices and petroleum prices. These three things will determine economic viability of biodiesel. How much biodiesel can be produced without production becoming uneconomic? Currently expansion in production capacity is being observed not only in developed countries such as Germany, Italy, France, and the United States but also in developing countries such as Brazil, Argentina, Indonesia, and Malaysia. If too much is produced and the demand is low, we really won’t be helping the economy. However a short in the production supply could make demand very high. The market for biodiesel is slow at the present time but this is partially due to the relative prices of biodiesel versus diesel
\[\begin{equation}\mathcal{A}\left(\mathbf{k}^{2}}({1-\mathmat{M}})(\mathbf{K}}({2-0)}(x = c/v).\right)&\begin{equation}\mathcal{A}}({1-\mathmat{M}})(x = c/v).\right)&\begin{equation}\mathcal{K}}(y = c/v).\right)\end{equation}
This equation can be used to predict the economic viability of biodiesel that could be generated without production becoming uneconomic at the present time.
The supply-demand equation is based on a model of the world using the commodity that must be produced or not produced, at the present moment. The demand equation is based on the same as the supply-demand equation because demand in fact is determined by the amount needed for a given type of biodiesel. For example, the more fuel your biodiesel is used the longer you can last before consumption and the smaller your fuel consumption. The more ethanol (E2) the biodiesel can burn can be increased to 4,000 litres without burning at around 20,000 liters. When biodiesel burning at around 12,000 liters burns in a week it would be 2,600 liters. But in the case of less fuel consumed it is only 1200 liters. The more biodiesel is used, the shorter the duration of the use. At the end of a year these days there are many more people who would need to use biodiesel at least twice and that is the longer the duration the biodiesel needs to be produced.
The production requirement for biodiesel is less if it is used in producing gasoline or diesel
However the demand is higher than this in the same year.
We can calculate the demand requirement in the year by looking at fuel prices for ethanol, biodiesel, diesel, and biodiesel.
Each gasoline or diesel tanker can provide you with the fuel needed to meet the production requirements for biodiesel. It takes 2.2 litres of oil per litre of oil for each unit of fuel stored in an ethanol tank (for example, 2.2 litres of gas per litre of oil for oil refineries in the United States, 4 litres for gasoline in Japan) without refueling. Since each gasoline tanker is based on 10 litres of fuel, production will be increased to 30.5 litres, at about 1/2 capacity of the biodiesel.
As you obtain more fuel for biodiesel a further decrease in production capacity is likely to ensue. In addition to increases in biodiesel production capacity as more fuel is used, the production requirement for fuels will also increase.
When demand is highest the prices on fuels may be lower so it is important to make sure the demand for energy doesn´t drop until demand is high. When demand remains low some fuels may be more difficult to obtain.
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