How to Start a Biodiesel Company

Based on treated vegetable oils, biodiesel fuel produces lower emissions and pollutants than petroleum fuel. Biodiesel/petroleum mixes can be used in any diesel engine, and pure biodiesel with only slight modifications. With so much interest in both government and business in reducing auto emissions, the time may be right for you to start your own biodiesel company.

Instructions

Difficulty: Challenging

1. Research the local biodiesel market. Find out how many diesel vehicles pass through your area, what companies are already offering biodiesel and what they do to stay in business.
2. Decide exactly what part of the biodiesel industry you want to start in. You can sell at retail or wholesale level; buy pretreated vegetable oil or treat it using your own formula; sell pure biodiesel or a biodiesel/diesel hybrid mix.
3. Contact big diesel users. If there are local companies with fleets of diesel trucks, talk to the boss and find out what it would take for them to consider buying from your biodiesel company.
4. Draw up a business plan. You may be 100 percent confident in your success, but your investors will want a well-thought out plan on how your biodiesel company will turn a profit, with facts to back it up.
5. Raise the money. Whether you tap into your savings, look for a venture capitalist or take out a bank loan, you're company will need start up funding.

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