Biodiesel Producer Recycling Glycerin, Eco-Soaps Show Promise for Sustainable Growth

The Biodiesel industry has seen plenty of ups and downs over the last 5 years, but advancing "green" innovations may now offer some much needed stability.

Diesello Verde S.A. (Costa Rica) has developed technology that provides biodiesel producers the ability to leverage an existing low-value waste stream into new eco-friendly products.  During the biodiesel production process, a crude glycerin byproduct is generated.  This byproduct in its crude form has little value on the open market and is often discarded.  Ironically, crude glycerin disposal can be a waste management nightmare for biodiesel producers who inherently are trying to make a positive environmental impact.

Using emerging technologies and processes, Diesello Verde has demonstrated how the glycerin byproduct can be further recycled into environmentally friendly, natural soap products.  Using a low value waste stream provides significant competitive advantages for biodiesel producers.  This competitive advantage can help biodiesel producers generate additional revenue streams and further penetrate the green market niche.  Since biodiesel producers are already selling an environmentally friendly fuel, biodiesel, to customers willing to buy "green", offering more natural products would be a harmonious extension.

While biodiesel producers typically work with razor thin margins on the production of biodiesel fuel, these natural soap products can offer a welcome source of income.  The profitability of a biodiesel business rests delicately on a few variables including: the price of crude oil, the price of diesel fuel at the local pump, current local/national/international tax incentive programs, the prices of feedstock, and the prices of chemicals needed for the production process.  All of these variables are out of the direct control of any biodiesel producer.

Diversifying their product offering and generating natural soaps from a low value waste stream seems to make good business sense for the biodiesel industry.  When tax incentives expire or oil prices fall this diversification would allow a biodiesel producer, instead of shutting its doors and laying off employees, to continue to recycle their waste stream and ramp up production on eco-friendly soap products.

2010 was the worst year on record for the U.S. biodiesel industry with expired tax credits and tumbling crude oil prices, combined with a sharp economic recession.  Many producers closed their doors temporarily and many others permanently.  Recycling the glycerin waste stream could certainly help biodiesel producers to better weather tough economic times as were felt in 2010.

The demand for natural cosmetics is rising sharply as more and more individuals move away from synthetic products.  As such, the market conditions appear to be favorable towards new product penetration in the world of natural cosmetics.