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Engineering Economic Analysis of a Cottonseed Oil Bio-diesel Operation – TTU-NCPA


National Cottonseed Products Association

Research Team:

Terry R. Collins, Joshua P. Jones, James L. Simonton, Paul Kiererleber, Lisa Patviviatisiri

Universities Involved:

Texas Tech University

Start Date:


End Date:



This project will investigate the performance characteristics of blending various levels of cottonseed oil based Biodiesel into low sulfur content diesel. The tests will be segregated by two cottonseed oil types of Refined Bleached and Deodorized (RBD) and Pure Bleached Summer Yellow (PBSY). An air emissions and particulate analysis will be part of this study to capture particulates to determine the amount and chemical composites of Biodiesel emissions. A second objective of this research project is to develop a detailed cost model which will calculate the price per gallon of pure 100% biodiesel. One attractive feature of the cost model is the ability to calculate the price per gallon if other cheaper oils are used to make the methyl-esters.
The objective of this project is to create a representative cost model that can be used in later work to explore the cost feasibility of creating a biodiesel operation utilizing cottonseed oil from marketing, logistics, and manufacturing aspects. This will be accomplished by addressing the three key components:

* Market Related
* Logistics
* Manufacturing

This research effort with the National Cottonseed Products Association in collaboration with PYCO, Incorporated under the auspice of the Center for Engineering, Logistics, and Distribution is to investigate the costs of manufacturing cottonseed oil based biodiesel.

A complex cost model has been developed to determine multiple financial characteristics of using cottonseed oil as a primary feedstock for biodiesel production.

An executive summary of the cost model provides pertinent information which includes, total sales revenue, total annual manufacturing and logistics cost, manufacturing and logistics cost/gallon, total annual recovery cost, total capital investment, total annual labor cost, total annual raw material cost, total annual material handling cost, total annual utilities cost, and total annual miscellaneous costs associated with the production of cottonseed oil based biodiesel. A summary of the labor and energy costs by process is included as well.