Biodiesel and Ethanol Investing

Biodiesel Magazine reports that the model developed by the Agricultural Marketing Resource Center (AgMRC) for a hypothetical, single-feedstock biodiesel refinery using soybean oil finally showed profitability last September. Biodiesel revenue for the month showed $3.02 per gallon, the soybean oil cost was $2.35 per gallon, natural gas 3 cents per gallon and methanol cost 9 cents per gallon. AgMRC’s model plant showed a total break-even cost per gallon, including variable and fixed costs of $2.96 per gallon. The net return over variable costs was 32 cents per gallon, and the net return over all costs for September was 6 cents per gallon.