On the economic feasibility of the first, second and third generations biodiesel feedstock

The share of renewable energy resources has been surging in the overall global energy mix, as energy consumption continues to rise due to the global population growth. Fears of the non-renewable resources depletion aside, fossil fuels have also been proven to be one of the main causes of global warming. Whilst in search of alternative fuels worldwide, biodiesel has emerged as one of the most viable candidates. This study aims to provide an overview on the feasibility of biodiesel to supplant fossil diesel through detailed analysis of feedstock readiness and economic viabilities of the implementations of three generations of biodiesel, i.e. edible, non-edible and algae-based biodiesel. In this paper, the global total production of biodiesel of 176 countries is calculated. At 85 billion litres, the first and second generation biodiesel production has the potential to exceed its current production by three times. The profitability of the biodiesel production relies heavily on the crude oil price. When the crude oil price peaked at 133.9 USD/bbl, 74% of the global potential biodiesel production can be made profitably, contributing 135.45 GW into the renewable energy mix. With business as usual scenario, edible oil biodiesel will remain to be the dominant category of feedstock. Nonetheless, 15 countries are able to replace portions of diesel consumption with second generation non-edible biodiesel, with two being able to entirely supplant fossil diesel with it The implementation of third generation algae-based biodiesel can save up to 93% of arable land. In all, biodiesel represents a great alternative to the unsustainable fossil diesel usage and contributes to the renewable energy mix.