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Social and Behavioral Sciences Commons

Open Access. Powered by Scholars. Published by Universities.®

2007

Oil, Gas, and Energy

Iowa State University

Return on investment

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Full-Text Articles in Social and Behavioral Sciences

The Growth And Direction Of The Biodiesel Industry In The United States, Nicholas D. Paulson, Roger Ginder May 2007

The Growth And Direction Of The Biodiesel Industry In The United States, Nicholas D. Paulson, Roger Ginder

CARD Working Papers

The biodiesel industry in the United States has realized significant growth over the past decade through large increases in annual production and production capacity and a transition from smaller batch plants to larger-scale continuous producers. The larger, continuous-flow plants provide operating cost advantages over the smaller batch plants through their ability to capture co-products and reuse certain components in the production process. This paper uses a simple capital budgeting model developed by the authors along with production data supplied by industry sources to estimate production costs, return-on-investment levels, and break-even conditions for two common plant sizes (30 and 60 million ...