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Large oil collection companies
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I was a bit disappointed over the past weekend to find that a rather large source of my used oil had dried up. We have two county fairs in our area that I have gotten the used oil from for the past few years. This usually amounts to about 300 or so gallons of nice low titrating used oil - keeps me busy most of the winter after the local ice cream stands shut down.

But this year at the fair I was told by the vendors that they had been instructed by the fairgrounds people that they were to dump all their oil into 55 gal drums. The drums were labeled with agenergy.biz. I checked the website and found that they typically pay .50 - .75 cents a gallon for used oil, provide containers and regular pickup.

Is this the end of the small scale individual producer and are the days of collecting free used oil gone? Or are these large oil collection companies unsustainable?
 
Registered: April 24, 2006Reply With QuoteReport This Post
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Wouldn't your vendors, seeing as they own the oil, have the right to do with it what they see fit?

They could take the oil with them when they leave, and give it to you later. They could tell the fair people they have another use for it, including making it into BD.

They could speak with the top brass who may not be aware whats happening.
 
Location: New Zealand | Registered: August 15, 2006Reply With QuoteReport This Post
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This is has become a symptom of the downside of free enterprise.

Yes, the food vendors have, and should continue to have the right to sell their waste, or give it away.

Being said, I do not believe that waste should be paid for.

A couple reasons:
1.) This raises the price of biodiesel, making it more expensive to produce, therefore, costing more at the pump. This causes less people to buy it when dino diesel is cheaper
2.) Food vendors are getting a heavy tax on it. It's treated as 'other income' because they are not doing anything to earn the income from the waste. Local food merchants in my area are discovering the are actually putting 25 to 35% of what they are getting paid for their WVO. One business get's about $75 per pickup. So they are actually banking about $20.
3.) This is the John Rockefeller effect. Back in the 1920's, he and his investors bought out all the other vehicle fueling retailers to eliminate competition. By buying WVO, this will have a huge negative effect on small producers who cannot, or will not buy the oil for the same price. Therefore, they are buying out competition.

Now, if you could offer a tax incentive, such as $3/gallon, such as one gentleman does, then you might have something. Look up the court cases on Free Church. You can be the 'Church of Biodiesel' for all the matters. It's a 508 or some other type of charitable business that does not require filling from the IRS, but is treated as a business entity. That is why it's a Free Church. Do some homework. No, it's not a tax shelter, either. Look it up.
 
Location: Columbus, GA, USA | Registered: September 29, 2011Reply With QuoteReport This Post
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Location: coldest N.America | Registered: May 03, 2005Reply With QuoteReport This Post
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JG, do you mean he is up against some stiff competition?
 
Location: New Zealand | Registered: August 15, 2006Reply With QuoteReport This Post
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I plan to talk to the people who run the fair and express my displeasure in a respectful way when the time is right.

I'm hoping that this type of operation will go away simply because I don't think it is sustanable. I'm guessing that this type of operation will have the costs of paying people for their oil, plus the cost of equipment and manpower needed to drive all over 3 states to pick up all this oil, plus the cost of converting the oil to bio - can't be a whole lot of profit margin after you get done paying everyone.

Thanks for the tax angle Project23D - didn't even think about that. I am going to check and see if the vendors got any cut of what this guy probably payed the fair board. If they didn't then as Paulus said, I might be able to get the individual vendors to give it to me.

If the practice continues then I guess the only way to get the oil would be to pay for it. The oil from the local county fairs around here is typically good oil - low titrating, easy to work with - especially the oil from the funnel cake booths. The smell of funnel cake oil - ahhhh, you just know it's good stuff.
 
Registered: April 24, 2006Reply With QuoteReport This Post



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Unfortunately, used veggie oil or yellow grease has a value of about $2.68/gallon on the commodity market. That is why the big guys are paying for the oil.
 
Registered: July 02, 2009Reply With QuoteReport This Post
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One easy way around the UVO supply problem is to lease new VO to restaurants including pick-up of your oil when they're finished with it. You purchase the VO wholesale and drop off new oil when you pickup the old oil weekly. Draw up a simple agreement to lease the oil to them at the current wholesale price. They can't give it to others because it's your VO.



 
Location: coldest N.America | Registered: May 03, 2005Reply With QuoteReport This Post
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quote:
I do not think it would be very easy or time efficient for the small amount of oil most of us want.

Yes it will be easier to simply buy UVO when the 'free' supplies 'dry-up' because someone is willing to pay for it.



 
Location: coldest N.America | Registered: May 03, 2005Reply With QuoteReport This Post
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Fortunately Veg here is plentiful in small, 200L and below amounts.
There is competition for getting bulk lots from clubs and major restaurants and chains but a lot of the collectors can't be bothered with the little guys.... unless the price goes up and then they lay on the stand over tactics.
 
Registered: July 30, 2010Reply With QuoteReport This Post
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Ttommy, Just curious where is here?
 
Registered: March 23, 2004Reply With QuoteReport This Post
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There are some interesting factors that are driving the competition for used oil some of which I don't quite understand. An ave. price of 62 cents per gallon for waste oil is about 8 cents per lb assuming 7.5 lbs/gallon. Yellow grease cash price is currently 34 cents/lb or $2.58/gal. This is the practically the same price as crude corn oil (37 cents/lb) and not far from 42 cents for crude soybean oil. Obviously the difference between 8 and 34 cents is huge and makes for good profit for relatively little input, just pickup & cleaning. In contrast, why should crude but virgin soybean oil be so inexpensive, not long ago soybean oil was 50-58/lb. I don't understand this because soybeans have been quite high ($14-16/bu) and due to go higher since the Midwest flash drought will make another short crop.
There are other factors as well, For instance NYC has mandated that a certain percentage (2%?) of the heating oil be biodiesel. Many states have a mandated biodiesel percentage in all government vehicle fuel (read school buses) which really puts pressure on the fuel suppliers to find supply. One local fuel distributor here filled with BD just to blend with government fuel (all those school districts, prisons, DOT)
And then there is the RFS which mandates a certain percentage renewable fuel in the national supply.

I think we are just the victims of our own success.

Just a thought, if resturants are really only receiving 8 cent/lb I would be tempted to start a small bidding war. I know that we are accoustumed to not paying but maybe try bidding a dollar a gallon in cubies (35 lbs or 4.7 gal) and see what happens.
 
Registered: March 23, 2004Reply With QuoteReport This Post



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quote:
Originally posted by Rick G:
I think we are just the victims of our own success.

Just a thought, if resturants are really only receiving 8 cent/lb I would be tempted to start a small bidding war. I know that we are accoustumed to not paying but maybe try bidding a dollar a gallon in cubies (35 lbs or 4.7 gal) and see what happens.


For most of us, myself included, making biodiesel could best be described as a hobby that provides a practical, financial benefit. Those of us who've been at it for a while have pretty much mastered all the nuances of making really good biodiesel with minimal time and cost. Contrary to what some people think, it's not free fuel. The cost of the materials (methanol & caustic) put the cost of homemade biodiesel somewhere around $1/gallon. Add in the harder-to-figure cost of the time and electricity and you might be somewhere around $2/gallon. Now, if you have to add in an additional $1/gallon to buy the used oil, the attractiveness of making your own fuel starts to wear a little thin.

I think you said it well : We are just the victims of our own success.
 
Registered: April 24, 2006Reply With QuoteReport This Post
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As Peak Oil progresses, resource shortages such as this will become more common.
 
Location: New Zealand | Registered: August 15, 2006Reply With QuoteReport This Post
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SOUTH Australia is sitting on oil potentially worth more than $20 trillion, independent reports claim - enough to turn Australia into a self-sufficient fuel producer.
http://www.adelaidenow.com.au/...frea83-1226560401043



 
Location: coldest N.America | Registered: May 03, 2005Reply With QuoteReport This Post
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Originally posted by john galt:
SOUTH Australia is sitting on oil potentially worth more than $20 trillion, independent reports claim - enough to turn Australia into a self-sufficient fuel producer.
http://www.adelaidenow.com.au/...frea83-1226560401043


That would never happen.

Our Dumb arse Gubbermint would sell it to the chinese for 1C a liter ( like they do LPG) and we'd be stuck paying through the nose for imported oil.

You can bet your backside they would come up with some moronic excuse to make that seem like a great thing for everyone.

You can belittle our coal exports and environmental practices etc but you cannot possibly come up with an insult worthy of the idiotic and inexplicable ideas of our political leaders that in any way lives up to their real world stupidity.

They have it all over anything anyone can come up with in that department. Frown
 
Registered: July 30, 2010Reply With QuoteReport This Post
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"Australian carbon tax to be repealed by incoming conservative government"

"Australia’s new government prepared to take control of the nation Sunday, with Prime Minister-elect Tony Abbott vowing to immediately scrap a hated tax on carbon polluters and implement a controversial plan to stop asylum seekers from reaching the nation’s shores."

http://www.theglobeandmail.com...ent/article14179627/



 
Location: coldest N.America | Registered: May 03, 2005Reply With QuoteReport This Post
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On this side of the pond, I have been competing with oil collectors for a few years now. At today's rates the collectors are offering $1.51 per USgallon for wvo here. We now pay $4.90 per USgallon at the pumps for diesel, so despite competing with the large collectors, making bio still works out to half the pump value.


Land Cruiser 4.2tdi, Figo 1.4tdci,
W123 240d
 
Location: Bottom tip of Africa, Port Elizabeth | Registered: January 20, 2010Reply With QuoteReport This Post



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Isn't the Australia shale oil going to need a lot of water to process? The interior of Australia is extremely dry, and hot. Can they use piped seawater?

I guess processing the shale oils would be a little at odds with trying to contain carbon emissions.
 
Location: New Zealand | Registered: August 15, 2006Reply With QuoteReport This Post
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I live in Oklahoma. Companys are paying about.20 per gallon to pick up used oil. I know it has a market value. Where do you find the current value?
 
Registered: August 30, 2006Reply With QuoteReport This Post
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