Logistics costs consideration in the economic assessment of waste frying oil based biodiesel
Abstract – Aside from reducing the environmental problem of food service businesses uncontrolled disposal of waste oil, Waste Frying Oils (WFOs) based biodiesel also cuts the economy’s dependence on limited resources and petroleum-based diesel imports. In this study, a method for evaluating the costs of biodiesel production from WFOs was proposed with the aim of developing an economic evaluation of this alternative. A logistics aspect is seldom explored in the calculation of such feasibilities. This study addresses this cost by determining optimal vehicle routing systems to incorporate in the total biodiesel cost. The capital of Lebanon, Beirut, was selected as the survey zone as it holds a great number of restaurants and hotels. The only biodiesel production plant in Lebanon was surveyed to determine the production, chemicals, labor and tax costs in addition to glycerin and fatty acids’ esters (FAEs) credits. Ultimately, a comparison between eighty-one scenarios of the biodiesel costs and the information on the commercialization of diesel in Lebanon was realized. The results confirm the economic feasibility of WFOs’ biodiesel production in the studied area, and can help sustain a healthy development of the biodiesel industry in Lebanon.
Keywords: Biodiesel, Waste Frying Oils, Logistics cost, Economic evaluation, Lebanon