11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
Biodiesel is a renewable fuel produced thorough the transesterification process. Transesterification is a chemical progression that converts vegetable oil, or other fats, oils and greases, into biodiesel. Transesterification is a multi-step reaction changing these fats and oils into alkyl esters. Methanol is the more frequently used alcohol to achieve the process. Transesterification reactions are often catalyzed using an acid or base catalyst.
The reaction time may range from 30 minutes to two hours to sufficiently convert the feedstock to biodiesel. If an acid catalyst such as sulfuric acid is used, the reaction time can slow to three hours or more.
Biodiesel is commonly referred to as FAME (fatty-acid methyl ester), SME (Soy methyl ester), CME (canola methyl ester) etc., depending on the feedstock used.
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