Benefit, Cost and Break Even Point Analysis of Biodiesel Production from Palm Fatty Acid

Abstract

The research analyzes benefit, cost and break even point including sensitivity of making biodiesel production factory from palm fatty acid. Biodiesel production system of Thailand Institute of Scientific and Technological Research (TISTR) is used for this study. It is found the present net value has been a deficit of 27,024,966 baht. The sensitivity of the project has been analyzed by increasing selling price of biodiesel of 5% and 7.5%, but reducing material price of 10% and 20%. It is found the present net value still has been deficient. The project will payback at 5th, 8th and 10th year be with selling price of biodiesel. is about 31.71 baht per litre. Therefore, the cost of palm fatty acid should lower than 2.89, 3.05 and 3.82 baht per kilogram. If selling price of biodiesel about 33.30 baht per litre, the cost of palm fatty acid should be lower than 4.65, 4.82 and 5.58 baht per kilogram. respectively.